Turkey is actively seeking foreign partners for its grand infrastructure projects, often seen as symbols of the nation’s progress over the 22-year tenure of President Recep Tayyip Erdoğan, as part of an initiative to attract overseas investment.
Public-Private Partnerships
Bloomberg reports, according to Ahmet Burak Dağlıoğlu, the head of the government’s investment office tasked with encouraging companies to invest in Turkey, partnership deals are possible within the framework of public-private partnerships (PPP), extending from highways to the healthcare sector.
Dağlıoğlu mentioned that discussions are ongoing to sell “City Hospital” – one of the 22 hospitals built to consolidate smaller facilities under one roof – to a Gulf investor, and others may follow, though no further details were forthcoming.
Under President Erdoğan, Turkey has predominantly relied on public-private partnerships, as he has aimed to modernize the country’s outdated infrastructure. In this business model, the government provides loan and revenue guarantees, while private entities handle construction and operations.
Commitments
Healthcare was among the Turkish sectors that the UAE pledged to invest in last July, as part of a package valued at more than $50 billion, stretching across energy and defense; however, no significant deals have been concluded yet.
The UAE has pledged economic support worth $51 billion.
Dağlıoğlu predicts that the total foreign direct investment in Turkey will reach between $13 to $15 billion in 2024, including at least one car manufacturing company.
President Erdoğan requested Tesla CEO Elon Musk to open a factory in Turkey when they met last September, and Chinese carmaker Chery is also contemplating setting up a plant in Turkey, according to the Turkish daily “Hürriyet” reported in April.
Economic Growth
In terms of the broader economy, Turkey’s economy grew by 5.9% in the third quarter of 2023, according to data from the Turkish Statistical Institute, exceeding expectations driven by household spending. Yet, the activity is expected to slow down by year-end following monetary tightening to cool demand.
Turkish Trade Minister Ömer Pekcan, in a blog post on “X” website, explained that the Turkish economy maintained high growth for 13 consecutive quarters, with a 5.9% increase in GDP during the referred period.
Turkey anticipates achieving 4.4% overall growth in 2023 and 4% in 2024.
