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INTERVIEW-Turkish FDI picking up, may top $9-10 bln in 2010

Published 12/04/2009, 07:40 AM
Updated 12/04/2009, 07:45 AM

* FDI to Turkey hit by global crisis in 2009

* Energy, food, finance and infrastructure to be 2010 focus

* FDI from BRICs eyed by Turkey

By Alexandra Hudson and Nevzat Devranoglu

ISTANBUL, Dec 4 (Reuters) - Foreign investment in Turkey is picking up and may top this year's target of $9-10 billion in 2010, the head of the country's investment agency said on Friday.

Alpaslan Korkmaz told Reuters in an interview inflows of capital would focus on sectors including energy, infrastructure, agriculture and food, as well as finance and insurance.

He said a Gulf investor was poised to announce an investment worth hundreds of millions of dollars either this year or early next year, although he declined to give further details.

"We feel an improvement now... Companies which suspended their investment projects are now reconsidering them ... Next year will most probably be better than this year," he said.

FDI into Turkey totalled $18.2 billion in 2008 and $22 billion in 2007, but the financial crisis reduced inflows to the country sharply, with 2009's amount equal to that seen in 2005.

Strong economic growth from 2002 until 2007 was mirrored by soaring foreign investment, particularly in Turkey's banking sector, by firms eager to reach a youthful, increasingly affluent population of some 72 million.

Korkmaz said despite falling inflows, overall investment in Turkey's renewable energy sector increased in 2009 and energy would be a major focus in 2010.

Turkey, a net energy importer, is looking to profile itself as an energy hub and key transit country. It is also anxious to boost domestic electricity production, threatened by shortfalls in 2010.

Insurance would also be a focus given Turkey has one of the lowest percentages of insured people in Europe, he said.

Turkey's Akbank said in October it was seeking a strategic partner for its Aksigorta insurance unit.

Korkmaz added he did not believe the Dubai debt debacle would hit Gulf investment into Turkey, and that emerging peers such as Russia, China and India would increasingly invest in Turkey.

The new generation of Chinese cars could be made in Turkey he said, exploiting Turkey's proximity to the Middle East market. (Reporting by Nevzat Devranoglu and Alexandra Hudson; editing by Patrick Graham) ((alexandra.hudson@reuters.com; Telephone: +90 212 350 7062; Reuters Messaging: alexandra.hudson.reuters.com@reuters.net))

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