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Turkey is looking for foreign partners in giant infrastructure projects that are a symbol of the country’s progress during the 22 years in office of the president. Recep Tayyip Erdogan The ruling is part of a campaign to attract investment from abroad.
Sector partnership
Bloomberg quoted the head of the government investment office in charge of encouraging companies to invest in Turkey, Ahmed Burak Daglioglu, as saying that deals are possible in projects built within the framework of partnerships between the public and private sectors, which extend from highways to the health sector.
He added that talks are underway about selling City Hospital – one of 22 hospitals built to bring together smaller facilities under one roof – to a Gulf investor and others may follow, without providing further details.
Turkey has become mainly dependent on public-private partnerships under President Erdogan, who has sought to modernize the country’s aging infrastructure. Under this business model, the government provides loan and revenue guarantees while private entities undertake construction and operation.
Obligations
Health was among the Turkish sectors in which the UAE pledged to invest last July, as part of a more than $50 billion package that spanned energy and defence, but no major deals have been concluded yet.
The UAE pledged Emirati economic support worth $51 billion.
Davutoglu predicted that total foreign direct investment in Turkey would reach between $13 to $15 billion in 2024, including at least one car manufacturing company.
Erdogan asked CEO of Tesla Elon MuskHe opened a factory in Turkey when he met him last September, and the Chinese automaker Chery is also considering opening a factory in Turkey, the Turkish daily newspaper Hurriyet reported in April.
Economy growth
In the macroeconomic context, the Turkish economy achieved growth of 5.9% in the third quarter of 2023, according to data from the Turkish Statistics Authority, which exceeded expectations, driven by household spending, but activity is expected to slow by the end of the year after monetary tightening calmed demand.
Turkish Trade Minister Omar Polat explained, in a blog on the “X” website, that the Turkish economy maintained its high growth performance for 13 consecutive quarters, with the gross domestic product increasing by 5.9% during the aforementioned period.
Türkiye expects to achieve 4.4% overall growth in 2023 and 4% in 2024.
