The new foreign wave

TURKEY has recently been of the brightest stars when it comes to attracting foreign investment. Total foreign direct investment into the country reached $8.899 billion in 2010 and a report by BCG Partners forecasts that this figure will reach $12.5 billion in 2011. The report expects 80 percent of the foreign capital inflow to come from brand new investments and from mergers and acquisitions. Even though brand new investments have only accounted for 20 percent of foreign investments in recent years, there are expectations that this will reach 40 percent in 2011. The reason for the increasing interest in Turkey is that there are problems in developed countries. As Europe struggles with economic problems and there is political turmoil in the Middle East and Africa, it is Turkey which has come to the fore. Experts say that Turkey is regarded as a safe harbour.

WHO ARE COMING?
To date, most of the investment in Turkey has come from European countries. The interest from Europe still continues today, but there has also been another development. All analysts report that there is a significant appetite for in investments in Turkey from the countries of the Far East and the Middle East in particular. Müşfik Cantekinler says: "We see that investors from the Gulf states and Far Eastern countries such as China and Korea are more active." Kerim Kotan underlines that 50 percent of investment in Turkey is still coming from Europe and adds: "Strong companies in Europe prefer Turkey for growth. But it is not just Europe. Countries such as China, India, Hong Kong and South Korea are also increasing their investments in Turkey. Investments from the Chinese in particular, who are looking to get closer to Turkey, will increase in the future." In terms of the dimensions, experts say
that there is interest from investors from every region in large and medium-size companies. Ata Yatırım General Manager Bülent Altınel notes: "There is demand in all sizes of companies with high returns."
Cantekinler states that there is increasing interest in partnerships with medium-sized firms rather than large companies.

MAIN AREAS OF İNTEREST
As a large number of companies prepare to enter the Turkish market, interest is focusing on the retail, energy, pharmaceuticals and foodstuffs sectors. A large number of brands will enter the country over the year ahead through shopping malls. For example, three major clothing brands, Abercrombie and Fitch, Hollister and Victoria's Secret, are entering Turkey for the first time in the Marmara Forum in Istanbul. The Mexican entertainment chain KidZania is opening the chain's first store in Trump Towers. More clothing firms, such as Scotch & Scotch from the Netherlands, Springfield and Cortefiel from Spain, and Sport Zone and Zippy, are preparing to enter Turkey in the new shopping malls that will be opened.~
There is significant movement in the furniture retailing. In addition to the German furniture retailer Roller Markt, the Italian furniture brand Lafano and the Austrian Lutz are counting down the days until they meet with Turkish consumers.

MOVEMENT İN ENERGY
Foreign investors in the energy and industry sectors are also following Turkey closely. Major players in the energy sector from all over the world have been studying the market for some time and have decided to take action. Enso Hydro from Austria and KuzMunaiGaz from Kazakhstan are said to preparing to begin working on investments in the near future. Valero Energy from the US, the Oil Corp of India and the Mexican Pemex are looking at market opportunities. According to leading executives in the sector, the Italian energy plant producer Area Impianti SPA is about to realize an investment decision. There is currently unprecedented activity in the construction machinery sector in Turkey. Many companies are expected to enter the country this year. Fany of China, Liugogn and Zoomline are just a few of them.