Foreign Direct Investment to Turkey Slumps 31% in H1 2026

Foreign direct investment (FDI) flowing into Turkey plunged 31% in the first half of 2026, signalling a historic slowdown.

A Stark Decline in Foreign Capital

According to data compiled by the International Investors Association (YASED) and the Central Bank of the Republic of Turkey (CBRT), total FDI inflows amounted to $4.2 billion during the first six months of 2026. This represents a 31% drop compared with the same period last year, reflecting a noticeable cooling of investor confidence.

Numerical Snapshot of the Investment Flow

■$4.2 billion – Total FDI inflows (first half)

■$3.7 billion – Investment capital

■$1.7 billion – Debt‑instrument entries

■$1.3 billion – Direct real‑estate sales to foreign nationals

■$2.4 billion – Net negative impact from disinvestments

Sectoral Allocation Highlights

■$847 million to wholesale and retail trade, accounting for 23% of total investment capital

■Information & Communication sector holds 13%

■Finance & Insurance activities capture 12%

Geographic Sources of Capital

■Netherlands – 23% share, the largest single-source investor

■Germany and USA – Each with 15% share

■United Kingdom – 11%

■United Arab Emirates – 10%

■European Union overall commands 52% of the FDI pool

Murat Yıldız – The sharp contraction in foreign capital flows, coupled with a $1.3 billion decline in real‑estate sales to overseas buyers, underscores the need for Turkey to reassess its risk premium for investors. While the modest 6% dip in investment capital suggests that core macro‑economic fundamentals (interest rates, inflation, FX stability) still offer a degree of resilience, the ongoing disinvestment pressure mandates tighter financing conditions for large‑scale projects and infrastructure development.