UK ranked highest third in terms of paid capital in the list of countries whose real persons or legal entities established FDI (Foreign Direct INVESTITION) companies in Turkey as of June 30, 2003, until when establishing an FDI company was subject to an authorisation.

Between year 1980 and July 2003, the cumulative amount of authorised FDI capital surmounted $ 35 billion.

After July 2003, the FDI rules were relaxed considerably and the following changes occured;

  • Both Turkish and FDI companies started being treated equally.
  • Bureuacracy with regard to establishing or acquisition of a company was minimised
  • Legislative changes made work permits of foreign personnel more transparent
  • The Government committed itself to remove all barriers infront

of FDI companies and to make the INVESTITION environment more attractive, boosted expectations with regard to Turkey’s full EU membership upon the EU’s decision on starting the negotiations as of October 2005 and fast recovery in Turkish economy in last four years enabled Turkey to draw the attention of the potential investors.

As a result, the total number of FDI companies increased by 78% in the 2.5 year period up to December 2005 whereas in the same period, the number of FDI companies with UK-based capital increased by 126%.

FDI Statistics
  End-June 2003 End 2005 Change %
Total Number of FDI Firms 6584 11694 78 %
Number of FDI firms established by UK citizens or companies 413 932 126 %
Share of UK in total paid FDI capital   8,75 % - -

UK ranks third (after netherlands and Germany) in the list of countries shares in FDI capital in Turkey

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