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Türkiye experienced strong economic growth between 2002 and 2007, and it weathered the global economic crisis of 2008-2009 better than most countries, establishing itself as a relatively stable emerging market with a promising trajectory of reforms and a strong banking system. However, over the last several years, economic and democratic reforms have stalled and, by some measures, regressed. In 2021, Türkiye’s GDP grew 11 percent year-over-year (YOY), the highest growth rate in ten years, but the Turkish lira also shed 44 percent of its value against the dollar and has lost over 80 percent of its value against the dollar in the last five years. In 2022, GDP grew by 5.6 percent, exceeding expectations, while inflation averaged 64.3 percent. In 2023, growth is expected to be around three percent, with significant downside risks. Continued unorthodox monetary policy, currency depreciation, inflation, high current account deficits, and over $100 billion in damage from the February 2023 earthquakes have left Türkiye vulnerable to external economic shocks.

Türkiye’s foreign direct investment (FDI) regime treats foreign investors identically to domestic investors and places few restrictions on acquisitions by foreign firms. However, opaque rulemaking and legislative processes added risks for all investors in 2022. Türkiye’s FDI equity capital inflows amounted to $6.48 billion 2022, compared to $7.1 billion in 2021. Türkiye’s investment incentives promote green and renewable investments and the development of strategic industries and developing regions of Türkiye. Geopolitical shocks, including Russia’s full-scale invasion of Ukraine, have spurred inflation primarily through increased energy prices in Türkiye but have not meaningfully degraded the country’s investment climate. Export controls and sanctions compliance risks related to assets with business interests in Iran, Belarus, and Russia continue to be a concern for investors. Türkiye’s investment climate is positively influenced by its large domestic market, favorable demographics, skilled workforce, and strategic location.

Table 1: Key Metrics and Rankings 
Measure Year Index/Rank Website Address
TI Corruption Perception Index 2021 96 of 180
Global Innovation Index 2022 37 of 132
U.S. FDI in partner country ($M USD, historical stock positions) 2021 $6,190
World Bank GNI per capita 2021 $9,900


Türkiye acknowledges that it needs to attract significant new FDI to meet its ambitious development goals. As a result, Türkiye has one of the most liberal legal regimes for FDI among Organization for Economic Cooperation and Development (OECD) members. According to the Central Bank of Republic of Türkiye’s (CBRT) balance of payments data, Türkiye attracted a total of $6.48 billion of equity capital inflows FDI in 2022, compared to $7.1 billion in 2021. In 2022, Türkiye also attracted $6.3 billion in foreign real estate investments and $800 million in FDI via debt instruments: foreign investors divested $600 million from the Turkish market, bringing net FDI inflows to $13 billion, compared to $13.3 billion in 2021. Türkiye needs to take steps to stabilize its macroeconomic fundamentals; improve enforcement of international trade rules; ensure the transparency and timely execution of judicial awards; increase engagement with foreign investors on policy issues; and implement consistent monetary and fiscal economic policies to promote strong, sustainable, and balanced growth. Türkiye also needs to enact other economic measures to increase stability and predictability for investors: a stable banking sector, more independent monetary policy, tighter fiscal controls, efforts to reduce the size of the informal economy, increased labor market flexibility, improved labor skills, and continue privatization of state-owned enterprises would, if pursued, have the potential to improve the investment environment in Türkiye.

Most sectors open to Turkish private investment are also open to foreign participation and investment. All investors, regardless of nationality, face similar challenges: macroeconomic instability, excessive bureaucracy, a slow judicial system, relatively high and inconsistently applied taxes, and frequent changes in the legal and regulatory environment. Structural reforms that would create a more transparent, equal, fair, and modern investment and business environment remain stalled. Venture capital and angel investing are still relatively new concepts in Türkiye.

Türkiye does not screen, review, or approve FDI specifically. However, the government has established regulatory and supervisory authorities to regulate different markets. Important regulators in Türkiye include the Competition Authority; the Excessive Pricing Evaluation Board; Energy Market Regulation Authority; Banking Regulation and Supervision Authority; Information and Communication Technologies Authority; Tobacco, Tobacco Products and Alcoholic Beverages Market Regulation Board; Privatization Administration; Public Procurement Authority; Radio and Television Supreme Council; and Public Oversight, Accounting, and Auditing Standards Authority. Screening mechanisms are executed to maintain fair competition and for other economic benefits. If an investment fails a review, possible outcomes can vary from a notice to mandated remedy, which allows for a specific period to correct the problem, to penalty fees. Turkish law has increasingly moved to classify technology firms that provide services in Türkiye as Turkish firms. U.S. technology firms have faced increasingly frequent fines from Türkiye’s competition authority over their market presence and social media firms face a fine of up to three percent of global revenues under a new Turkish law that aims to curb ‘disinformation.’ The Turkish judicial system allows for appeals of any administrative decision, including tax courts that deal with tax disputes.

Türkiye promotes investments though the Investment Office of the Presidency of the Republic of Türkiye and encourages investments through incentive programs administered by the Ministry of Industry and Technology.


There are no general limits on foreign ownership or control. However, foreign investors in some sectors face increasing pressure to partner with local companies and transfer technology. These localization requirements are frequently written into government tenders, effectively mandating a local partner and some local production. This trend has been especially pronounced in the information and communications technology (ICT) and the pharmaceutical sectors. Telecommunications industry insiders, for example, anticipate that the government of Türkiye will require the existing 45 percent local component requirements for 4.5G to continue in 5G regulations. Unlike the rollout of 4.5G, the government will likely remove major loopholes to reduce the number of non-Turkish companies bringing in non-Turkish products and intellectual property that are superficially deemed “Turkish” after final assembly in Türkiye or joint ownership with a Turkish company. In the telecommunications industry, several multinational companies have moved some final stage assembly to Türkiye.

In many other sectors, Türkiye’s regulatory environment remains business friendly. Investors can establish a business in Türkiye irrespective of nationality or place of residence. There are no sector-specific restrictions that discriminate against foreign investor access, which is prohibited by World Trade Organization (WTO) regulations. Turkish Law No. 5174 mandates that firms operating in Türkiye are required to join one of the 365 local chambers of commerce and commodity exchanges located throughout Türkiye’s 81 provinces and are obliged to pay a registration and annual dues. All chambers and commodity exchanges are members of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) – a confederation of all local chambers of commerce, industry and maritime as well as commodity exchanges – that collects dues from local chambers and commodity exchanges. Consequently, TOBB represents every business in Türkiye with limited exceptions for artisans and very small enterprises. TOBB offers a variety of business services and issues an annual economic report.


The OECD published an Environmental Performance Review for Türkiye in February 2019, noting the country was the fastest growing among OECD members, and an Economic Survey of Türkiye in 2021, which noted that investor confidence in policy predictability could not be consolidated. The review also outlined that risk premium and exchange rate volatility remained very high. The OECD survey that includes details on policy recommendations, can be found at:ürkiye/oecd-environmental-performance-reviews-Türkiye-2019-9789264309753-en.htm  

Türkiye’s most recent investment policy review through the WTO was conducted in March 2016; the next is scheduled for 2023. Türkiye has cooperated with the World Bank to produce several reports on the general investment climate that can be found at: 

The International Investors Association’s (YASED) members represent 85 percent of all FDI in Türkiye. YASED has a working group structure to support the demands of investors and targets common themes to express investors’ perspectives and concerns to the government to shape the policymaking processes. YASED’s publications can be found at:  


The Presidency of the Republic of Türkiye Investment Office is the official organization for promoting Türkiye’s sectoral investment opportunities to the global business community and assisting investors before, during, and after their entry into Türkiye. Its website is clear and easy to use, with information about legislation and company establishment.  The Investment Office’s website and information on establishing a business in Türkiye can be found at:

The conditions for foreign investors setting up a business and transferring shares are the same as those applied to local investors. International investors may establish any form of company set out in the Turkish Commercial Code (TCC), which offers a corporate governance approach that meets international standards; fosters private equity and public offering activities; creates transparency in managing operations; and aligns the Turkish business environment with EU legislation, as well as with the EU accession process.

Türkiye defines micro, small, and medium-sized enterprises according to Decision No. 2022/5315 of the Official Gazette dated March 17, 2022. Micro-sized enterprises are those that have fewer than 10 employees and less than or equal to 5 million Turkish lira in net annual sales or financial statement. Small-sized enterprises are those that have fewer than 50 employees and less than or equal to 50 million Turkish lira in net annual sales or financial statement. Medium-sized enterprises are those that have fewer than 250 employees and less than or equal to 250 million Turkish lira in net annual sales or financial statement.


The government promotes outward investment via investment promotion agencies and other platforms. It does not restrict domestic investors from investing abroad.

Since 1962, Türkiye has negotiated and signed agreements for the reciprocal promotion and protection of investments. As of March 2022, Türkiye has 88 bilateral investment agreements in force with the following countries:    Afghanistan, Albania, Argentina, Austria, Australia, Azerbaijan, Bahrain, Bangladesh, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Cambodia, Cameroon, China, Croatia, Cuba, Czech Republic, Denmark, Djibouti, Egypt, Estonia, Ethiopia, Finland, France, Gambia, Georgia, Germany, Greece, Guatemala, Guinea, Hungary, Iran, Israel, Italy, Japan, Jordan, Kazakhstan, Kosovo, Kuwait, Kyrgyzstan, Latvia, Lebanon, Libya, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Mexico, Moldova, Mongolia, Montenegro, Mauritius, Morocco, Netherlands, Oman, Saudi Arabia, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russia, Serbia, Senegal, Singapore, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Syria, Tajikistan, Tanzania, Thailand, Tunisia, Turkmenistan, United Arab Emirates, United Kingdom, United States, Ukraine, Uzbekistan, Vietnam, Yemen and Zambia. The list of treaties is maintained on the Ministry of Industry and Technology’s website, located at: 

Türkiye has a bilateral investment treaty with the United States, which entered into force in 1990. The United States and Türkiye signed the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income Agreement, together with a related Protocol, in 1998. The treaty can be found at:ürkiye.pdf 


The government of Türkiye has adopted policies and laws that, in principle, should foster competition and transparency. The government of Türkiye makes its budgetary spending reports available online. Copies of draft bills are generally made available to the public by posting them to the websites of the relevant ministry, Parliament, or the Official Gazette. However, foreign companies in several sectors claim that regulations are applied in an inconsistent and nontransparent manner. Public tender decisions and regulatory updates can be opaque and politically driven.

Accounting, legal, and regulatory procedures appear to be consistent with international norms, including standards set forth by the International Financial Reporting Standards (IFRS), the EU, and the OECD. Publicly traded companies adhere to international accounting standards and are audited by well-respected international firms. Türkiye is a member of the OECD Inclusive Framework on Base Erosion and Profit Shifting (BEPS) and is party to the Inclusive Framework’s October 2021 deal on the two-pillar solution to global tax challenges, including a global minimum corporate tax.

In 2021, Türkiye’s Office of the Presidency partnered with the United Nations Development Program (UNDP) to assess the Impact Investing Ecosystem in Türkiye and the Sustainable Development Goal (SDG) Investor Map in Türkiye. These efforts provided preliminary steps towards environmental, social, and governance (ESG) regulations. Türkiye’s Capital Markets Board (CMB) amended its Corporate Governance Communique on Türkiye’s Sustainability Principles Compliance Framework for publicly traded companies in 2020. The Framework offers publicly traded companies an opportunity to take their social, environmental, and governance impact seriously, beyond shareholders’ demands. There is no standard ESG legal framework or required ESG disclosures, but the government of Türkiye recommends that all companies operating in Türkiye proactively adopt ESG standards. The Turkish Sovereign Wealth Fund has an initiative to integrate sustainability and ESG goals into investment decision-making.


Türkiye is a candidate for EU membership; however, the accession process has stalled, with the opening of new chapters currently on hold. Some, though not all, Turkish regulations have been harmonized with the EU, and the country has adopted many European regulatory norms and standards. Türkiye is a member of the WTO, though it does not notify all draft technical regulations to the WTO Committee on Technical Barriers to Trade (TBT). Türkiye’s customs union with the European Union allows free movement of goods without customs duties and quantitative restrictions between Türkiye and the EU for goods either wholly produced or put in free circulation after their importation from third countries in either Turkey or the EU. Turkey aims to harmonize with the regulations and principles adopted under the European Green Deal; Turkish goods will be subject to the EU Carbon Border Adjustment Mechanism (CBAM) once it comes into effect.


Türkiye’s legal system is based on civil law, provides means for enforcing property and contractual rights, and has written commercial and bankruptcy laws. Türkiye’s court system is overburdened, which sometimes results in slow decisions and judges lacking sufficient time to consider complex issues. Judgments of foreign courts, under certain circumstances, need to be upheld by local courts before they are accepted and enforced. The Turkish judicial system needs to undertake significant reforms to adopt fair and unbiased standards. The government is currently implementing a series of judicial reform packages introduced since 2019, but Amnesty International noted the new Human Rights Action Plan and two Judicial Reform Packages prepared by the Ministry of Justice “failed to address deep flaws in the judiciary.” The judiciary remains subject to influence, particularly from the executive branch, and faces significant challenges that limit judicial independence. The judicial reform strategy’s nine priorities are: protecting and improving rights and freedoms; improving judicial independence, objectivity and transparency; improving both the quality and quantity of human resources; increasing performance and productivity; enabling the right of defense to be used effectively; making justice more approachable; increasing the effectiveness of the penal justice system; simplifying civil justice and administrative procedures; and popularizing alternative mediation methods.


Türkiye’s investment legislation is simple and complies with international standards, offering equal treatment for all investors. The New Turkish Commercial Code No. 6102 (“New TCC”) was published in February 2011. The backbone of the investment legislation is made up of the Encouragement of Investments and Employment Law No. 5084, Foreign Direct Investments Law No. 4875, international treaties, and various laws and related sub-regulations on the promotion of sectorial investments. Regulations related to mergers and acquisitions include: the Turkish Code of Obligations: Article 202 and Article 203; the Turkish Commercial Code: Articles 134-158; the Execution and Bankruptcy Law: Article 280; the Law on the Procedures for the Collection of Public Receivables: Article 30; and the Law on Competition: Article 7. Specific details can be found at:


The Competition Authority is the sole authority on competition issues in Türkiye and handles private sector transactions. Public institutions are exempt from its authority. The Constitutional Court can overrule the Competition Authority’s finding in a competition case. There have been some cases of Turkish courts blocking foreign company operations based on competition concerns. Such cases can take over a year to resolve, during which time the companies can be prohibited from doing business in Türkiye, benefiting local competitors.

In 2019, the Government of Türkiye established a related board, the Excessive Pricing Evaluation Board, under the authority of the Ministry of Trade. As inflation has continued to increase throughout the country, some private sector contacts noted a marked increase in the frequency and aggressiveness of audits by the board. The board reportedly uses a “secret comparable,” whereby a product’s price is compared against the product of an unnamed company. In 2021 and 2022, prompted by dissatisfaction over rapid inflation, an increasingly active Competition Authority of Türkiye (RK) has stepped up its investigations with the purported intent of protecting consumers from anticompetitive behavior and price gouging. On October 29, 2022, the RK fined five supermarkets and one supplier a combined $283 million for violating antitrust regulations. The RK also announced investigations against two appliance distributors on January 5, 2023.

On October 13, 2022, the Turkish Parliament approved Law No. 7418, the Amendment of Press Law and Certain Laws. This omnibus law amended several existing laws, placing additional restrictions on social media providers and other technology firms whose software includes over-the-top (OTT) messaging services. The legislation was sweeping and, in many cases, vaguely written. The ultimate effect of the law will be determined by yet-to-be published secondary regulations made by the Türkiye’s Information Technologies and Communications Authority (BTK), as these regulations will determine how the law in enforced and how much discretion the regulator would have in how it is enforced. The law also appears to compel social media firms to allow intrusive audits that could compromise trade secrets and relinquish user data in ways that the firms claim violates their community standards. The new law carries a potential fine of up to three percent of a firm’s global revenue in the previous fiscal year and bandwidth throttling of up to 90 percent in the event of noncompliance. The law also compels social media firms present in Türkiye to appoint a local representative physically present in Türkiye. Article 29 of the new law establishes criminal liability carrying a possible prison sentence of one to three years for spreading disinformation to “create fear and disturb public order.”

The Turkish Parliament adopted the Law Amending the Regulation on Electronic Commerce on July 1, 2022, which introduces significant obligations to service providers and intermediary service providers.  The law identified certain e-commerce marketplaces as “large” and “very large,” based on specific turnover thresholds, and barred certain companies (based on their size) from competing horizontally by integrating into other sectors of the economy, including banking, travel, and entertainment. The new legislation imposed additional taxes on companies based on their revenues, while providing support for Türkiye-based e-commerce companies. The new legislation would impose harsher fines on companies that sell counterfeit products on their platforms and forbids companies from engaging in promotional activities that hurt competition and for use of consumer data to “create unfair competition.”

In November 2022, the Ministry of Trade released text of the Draft Amendment to Law No.4054 on the Protection of Competition, which would purportedly closely follow the European Union’s Digital Markets Act (EU DMA).


Under the U.S.-Türkiye Bilateral Investment Treaty (BIT), expropriation can only occur in accordance with due process of law, can only be for a public purpose, and must be non-discriminatory. Compensation must be prompt, adequate, and effective. The government of Türkiye occasionally expropriates private real property for public works or for state industrial projects. The government of Türkiye agency expropriating the property negotiates the purchase price. If the owners of the property do not agree with the proposed price, they can challenge the expropriation in court and request additional compensation. There are no known outstanding expropriation or nationalization cases involving U.S. firms.


ICSID Convention and New York Convention

Türkiye is a member of the International Centre for the Settlement of Investment Disputes (ICSID) and is a signatory to the New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards. Foreign arbitral awards will be enforced if the country of origin of the award is a New York Convention state, if the dispute is commercial under Turkish law, and if none of the grounds under Article V of the New York Convention are proved by the opposing party.

Investor-State Dispute Settlement

U.S. investors generally have full access to Türkiye’s local courts and the ability to take the government directly to international binding arbitration if a breach of the U.S.-Türkiye Bilateral Investment Treaty has occurred.

International Commercial Arbitration and Foreign Courts

Türkiye adopted the International Arbitration Law, based on the United Nations Commission on International Trade Law (UNCITRAL) model law, in 2001. Local courts accept binding international arbitration of investment disputes between foreign investors and the state. In practice, Turkish courts have sometimes failed to uphold international arbitration awards involving private companies and have favored Turkish firms. There are two main arbitration bodies in Türkiye: the Union of Chambers and Commodity Exchanges of Türkiye HYPERLINK “ “  and the Istanbul Chamber of Commerce Arbitration and Mediation Center . Most commercial disputes can be settled through arbitration, including disputes regarding public services. Parties decide the arbitration procedure, set the arbitration rules, and select the language of the proceedings. The Istanbul Arbitration Center was established in October 2015 as an independent, neutral, and impartial institution to mediate both domestic and international disputes through fast-track and emergency arbitration, and appointments for ad hoc procedures. Its decisions are binding and subject to international enforcement. More information can be found at:

As of January 2019, some commercial disputes may be subject to mandatory mediation; if the parties are unable to resolve the dispute through mediation, the case moves to a trial.


Türkiye criminalizes bankruptcy and has a bankruptcy law based on the Execution and Bankruptcy Code No. 2004 (the “EBL”), published in 1932, and numbered 2128.


Türkiye’s investment incentives program consists of four main pillars: the General Investment Incentive Scheme, Regional Investment Incentive Scheme, Priority Investment Incentive Scheme, and the Strategic Investment Incentive Scheme. These incentives can provide corporate tax reductions; customs duty exemptions; value added tax (VAT) exemption and VAT refunds; support with the employer’s share social security premiums; income tax withholding allowances; land allocation; and interest rate support for investment loans. The incentive schemes are updated almost every year by the Ministry of Industry and Technology, and the Presidency of the Republic of Türkiye Investment Office publishes these offerings on their websites.

Renewable energy investments

Investments in electrical power generation from biomass, solar energy, hydroelectric energy, geothermal energy, and wind energy are supported within the framework of the general incentive system and can receive VAT and customs tax exemptions. Green investments can also receive investment support under Türkiye’s Priority Investment Scheme. According to an amendment made on February 24, 2022, to encourage green transformation, solar power-based and wind power-based electricity generation facility investments made in the most economically developed regions of Türkiye can enjoy investment incentives normally reserved for developing areas. On November 19, 2022, the government of Türkiye made several amendments to the Electricity Market License Regulation to complement the existing rules with respect to the development and operation of electricity storage units at power generation plants. The updated rule adds storage ratio capacity for wind and solar power generation plants.

Additional pre-license requirements for the electricity generation plants with storage units.

Project-Based Investment Incentives

There is a special category of investment incentives that is tailored for projects that will serve the country’s current or future critical needs such as security of supply, reduction of foreign dependency, realization of technological transformation, innovation, and R&D-intensive and high-value-added solutions. Incentives for these types of projects are screened by the Ministry of Industry and Technology and approved by presidential decree.


There are no restrictions on foreign firms operating in any of Türkiye’s 18 free trade zones. These zones are open to a wide range of activities, including manufacturing, storage, packaging, trading, banking, and insurance. Foreign products enter and leave the free zones without imposition of customs or duties if they are exported to third country markets. Income generated in the zones is exempt from corporate and individual income taxation and from the value-added tax, but firms are required to make social security contributions for their employees. Additionally, standardization regulations in Türkiye do not apply to the activities in the free zones, unless the products are imported into Türkiye. Sales to the Turkish domestic market are allowed with goods and revenues transported from the zones into Türkiye subject to all relevant import regulations.

Taxpayers who possessed an operating license as of February 6, 2004, do not have to pay income or corporate tax on their earnings in free zones for the duration of their license. Earnings based on the sale of goods manufactured in free zones are exempt from income and corporate tax until the end of the year in which Türkiye becomes a member of the European Union. Earnings secured in a free zone under corporate tax immunity and paid as dividends to real person shareholders in Türkiye, or to real person or legal-entity shareholders abroad, are subject to 15 percent withholding tax.  


The government mandates a local employment ratio of five Turkish citizens per foreign worker in any firm operating in Türkiye employing more than one foreign employee. These schemes do not apply equally to senior management and boards of directors, but their numbers are included in the overall local employment calculations. Foreign legal firms are forbidden from working in Türkiye, except as consultants; they cannot directly represent clients and must partner with a local law firm. Türkiye does not impose onerous visa, residence, work permits or similar requirements inhibiting mobility of foreign investors and their employees. There are no known government-imposed conditions on permissions to invest.

Recent laws targeting the ICT sector have increased regulations on data, social media, online marketing, online broadcasting, tax collection, and payment platforms. ICT companies report pressure from the government of Türkiye to localize data, which they view as a precursor to greater governmental access to user information and source code. In 2019, the government of Türkiye implemented a measure prohibiting public institutions and organizations from using cloud-computing services and requiring that certain critical information and data, such as health records and biometric data, be stored domestically. In early 2018, the Capital Markets Board of Türkiye published the “Communique on Information Systems Management,” which requires publicly traded companies to retain their primary and secondary information systems, data, and infrastructure within Türkiye.

Law No. 6493 on Payment and Security Systems, Payment Services, and e-money Institutions, also requires financial institutions to localize data through the establishment of servers in Türkiye. The Turkish Banking Regulation and Supervision Agency (BDDK) is the authority that issues business licenses if companies localize their IT systems in Türkiye and retain the original data (not copies) in Türkiye. Regulations on data localization, internet content, and taxation/licensing have resulted in the departure of several U.S. technology companies from the Turkish market and have chilled investment by other possible entrants to the e-commerce and e-payments sectors. The laws potentially affect all companies that collect private user data, such as payment information provided online for a consumer purchase.

Türkiye enacted the Personal Data Protection Law in April 2016. The law regulates all operations performed pertaining to personal data including obtaining, recording, storage, and transfer to third parties domestically or abroad. For all data previously processed before the law went into effect, there was a two-year transition period. After two years, all data had to be compliant with new legislation requirements, erased, or anonymized. All businesses are urged to assess how they currently collect and store data to determine vulnerabilities and risks regarding legal obligations. The law created the Data Protection Authority (KVKK), which is charged with monitoring and enforcing corporate data use.

There are no performance requirements imposed as a condition for establishing, maintaining, or expanding investment in Türkiye. The government of Türkiye’s requirements for disclosure of proprietary information as part of the regulatory approval process are consistent with internationally accepted practices, though some companies, especially in the pharmaceutical sector, express concern about data protection during the regulatory review process. Enterprises with foreign capital must send their activity report submitted to shareholders, their auditor’s report, and their balance sheets to the Ministry of Industry and Technology, Directorate General of Incentives, Implementation and Foreign Investments annually by May. Türkiye grants most rights, incentives, exemptions, and privileges available to national businesses to foreign business on a most-favored-nation (MFN) basis. U.S. and other foreign firms can participate in government-financed and/or subsidized research and development programs on a national treatment basis.

Offsets are an important aspect of Türkiye’s military procurement, and increasingly in other sectors, and such guidelines have been modified to encourage direct investment and technology transfer. The government of Türkiye targets energy, transportation, medical devices, and telecom sectors for the usage of offsets. In February 2014, Parliament passed legislation requiring the Ministry of Science, Industry, and Technology, currently named the Ministry of Industry and Technology, to establish a framework to incorporate civilian offsets into large government procurement contracts. The Ministry of Health (MoH) has also established an office to examine how offsets could be incorporated into new contracts. The law suggests that, for public contracts above $5 million, companies must invest up to 50 percent of contract value in Türkiye and “add value” to the sector. In general, labor, health, and safety laws do not distort or impede investment, although legal restrictions on discharging employees may provide a disincentive to labor-intensive activity in the formal economy.


Secured interests in property, both movable and real, are generally recognized and enforced, and there is a reliable system of recording such security interests. For example, real estate is registered with a land registry office. Türkiye’s legal system protects and facilitates acquisition and disposal of property rights, including land, buildings, and mortgages, although some parties have complained that the courts are slow to render decisions and are susceptible to external influence.

The Ministry of Environment and Urbanization enacted a law on title-deed registration in 2012 removing the previous requirement that foreign purchasers of real estate in Türkiye had to be in partnership with a Turkish individual or company that owns at least a 50-percent share in the property, meaning foreigners can now own their own land. The law also provides additional flexibility in allowing international companies to purchase real property. The law also increases the upper limit on real estate purchases by foreign individuals to 30 hectares and allows further increases up to 60 hectares with permission from the Council of Ministers. As of March 2020, a valuation report, based upon real market value, must be prepared for real estate sales transactions involving buyers that are foreign citizens. To ensure that land has a clear title, interested parties may inquire through the General Directorate of Land Registry and Cadaster.


Türkiye continues to implement its intellectual property rights (IPR) law, the Industrial Property Code No. 6769, which entered into force in 2017. The law brings together a series of “decrees” into a single, unified, modernized legal structure. It also greatly increases the capacity of the country’s patent office (TurkPatent) and improves the framework for commercialization and technology transfer. Türkiye is a member of the World Intellectual Property Organization (WIPO) and party to many of its treaties, including the Berne Convention, the Paris Convention, the Patent Cooperation Treaty, the WIPO Copyright Treaty, and the WIPO Performances and Phonograms Treaty.

However, while legislative frameworks are improving, IPR enforcement remains weak. Some investors express difficulty in having theit IPR protected and note that general IP enforcement is deteriorating. Türkiye continued to have a physical market identified on the Office of The United States Trade Representative’s (USTR) Notorious Markets for Counterfeiting and Piracy and remained on USTR’s Special 301 Watch List for 2022. Concerns remain about prohibitive policies requiring the local production and manufacturing of pharmaceuticals, inadequate protection of testing data, and a lack of transparency in national pricing and reimbursement. IPR enforcement suffers from a lack of awareness and training among judges and officers, as well as a lack of prioritization relative to terrorism and other concerns. Law enforcement officers do not have ex-officio authority to seize and destroy counterfeit goods, which are prevalent in the local markets. Software piracy and pirated digital content are also common.

Additionally, the practice of issuing search-and-seizure warrants varies considerably, mainly due to the fact that IPR courts and specialized IPR judges only exist in major cities. Outside these areas, an application for a search warrant must be filed at a regular criminal court (Courts of Peace) and/or with a regular prosecutor. The Courts of Peace are very reluctant to issue search warrants, even in popular tourist areas. Despite the fact that by law, “reasonable doubt” is adequate grounds for issuing a search-and-seizure order, judges often set additional requirements, including supporting documentation, photographs, and even witness testimony, which risks exposing companies’ intelligence sources. For additional information about treaty obligations and points of contact at local IP offices, please see WIPO’s country profiles at:  .


The Turkish Government encourages and offers an effective regulatory system to facilitate portfolio investment. Since the start of 2020, persistent currency depreciation was exacerbated by the COVID-19 pandemic and high levels of inflation, resulting in dollarization and current account deficit concerns. Existing policies facilitate the free flow of financial resources into product and factor markets; however, since 2022 regulators deployed more than 200 macro prudential measures in the banking sector to address lira depreciation and decrease foreign currency demand, constraining free capital flow. The government respects IMF Article VIII by refraining from restrictions on payments and transfers for current international transactions. Credit is generally allocated on market terms, though the government has increased low- and no-interest loans for certain parties, and pressured state-owned banks to increase their lending, especially for stimulating economic growth and public projects. Foreign investors can obtain credit on the local market, and the private sector has access to a variety of credit instruments.

The Turkish Government adopted a framework Capital Markets Law in 2012, aimed at bringing greater corporate accountability, protection of minority-shareholders, and financial statement transparency. In 2022, Turkish capital markets drew growing interest from domestic investors, according to data from the Central Registry Agency (MKK). In 2021, the number of local real investors reached 2.3 million, up an average of 65,200 per month, with the total portfolio value reaching $22.2 billion. On February 14, 2023, government of Türkiye ordered private pension funds to allocate 30 percent of the funds the government contributes to match individual pension contributions to investments in Turkish equities.


The Turkish banking sector, particularly private banks, remains relatively healthy. State-owned banks’ assets represent 38 percent of the banking sector’s total assets. According to the Banking Regulation and Supervision Agency, the share of non-performing loans (NPL) in the sector was approximately 2.1 percent at the end of 2022, though there appears to have been some regulatory forbearance during the COVID pandemic. The only requirements for a foreigner to open a bank account in Türkiye are a passport copy and either an identification number from the Ministry of Foreign Affairs or a Turkish tax identification number. Ziraat Bankasi, Vakiflar Bankasi and Halk Bankasi are state-owned deposit banks. There are three Turkish banks with subsidiaries operating in Russia Ziraat Bank Moscow, Joint Stock Company Isbank, and Denizbank Moscow JSC – these banks face additional sanctions compliance risks due Russian malign activity.

The BDDK monitors and supervises Türkiye’s banks. The BDDK is headed by a board whose seven members are appointed for six-year terms. Bank deposits are protected by an independent deposit insurance agency, the Savings Deposit Insurance Fund (TMSF). Because of historically high local borrowing costs and short repayment periods, foreign and local firms frequently seek credit from international markets to finance their activities. Foreign banks are allowed to establish operations in the country.


Foreign Exchange

Turkish law guarantees the free transfer of profits, fees, and royalties, and repatriation of capital. This guarantee is reflected in Türkiye’s 1990 Bilateral Investment Treaty (BIT) with the United States, which mandates unrestricted and prompt transfer in a freely usable currency at a legal market-clearing rate for all investment-related funds. Funds associated with any form of investment can be freely converted into any world currency. The government of Türkiye has placed some restrictions on acquiring foreign currency on firms and investment banks in an effort to stabilize the value of the Turkish lira. In 2022, the government of Türkiye adopted an amendment to the 2018 Presidential Decree No. 85 Decision on the Protection of the Value of the Turkish Currency. Both the original decree and the subsequent amendment tightened restrictions on Türkiye-based businesses conducting numerous types of transactions using foreign currencies or indexed to foreign currencies. The Turkish Ministry of Treasury and Finance may grant exceptions. In November 2020, the limit for swaps, forward and option transactions where banks pay Turkish lira at maturity was raised to 30 percent, depending on their remaining maturities. Türkiye has taken a variety of such measures to support the valuation of the Turkish lira, including the mandatory surrender and repatriation requirements on exporters’ foreign exchange export proceeds. In January 2020, the surrender requirement was dropped, but the repatriation requirement remained. In April 2022 the Central Bank of the Republic of Türkiye (CBRT) announced it would buy 40 percent of all euro, dollar, or British pound-denominated export income from exporters.

On January 26, 2023, CBRT announced that Turkish companies, including exporters and tourism firms that bring in foreign currency from abroad, would be offered foreign exchange conversion support. Firms would be provided support corresponding to two percent of the foreign exchange they repatriate from abroad and convert into Turkish lira after selling it to the CBRT. The mechanism will apply to firms that commit not to buy foreign currency for a period determined by the bank and deposit the remaining amount to conversion accounts as part of a scheme to protect lira deposits against foreign exchange depreciation.

There is no limit on the amount of foreign currency that may be brought into Türkiye, but not more than 25,000 Turkish lira or 10,000 euros worth of foreign currency may be taken out without declaration. Although the Turkish lira is fully convertible, most international transactions are denominated in U.S. dollars or euros due to their universal acceptance. Banks deal in foreign exchange and do borrow and lend in foreign currencies. While foreign exchange is freely traded and widely available, a May 2019 government decree imposed a settlement delay for individuals’ foreign exchange purchases of more than $100,000; there was also a 0.2 percent tax on foreign exchange purchases. The settlement delay provision was repealed in December of 2020. Foreign investors are now free to convert and repatriate their Turkish lira profits.

Remittance Policies

There have been no recent changes or plans to change investment remittance policies. Waiting periods for dividends, return on investment, interest and principal on private foreign debt, lease payments, royalties, and management fees do not exceed 60 days. There are no limitations on the inflow or outflow of funds for remittances of profits or revenue.


The government of Türkiye announced the creation of a sovereign wealth fund (called the Türkiye Wealth Fund, or TVF) in August 2016. Unlike traditional sovereign wealth funds, the fund consists of shares of state-owned enterprises (SOEs) and is designed to serve as collateral for raising foreign financing. However, the TVF has not launched any major projects since its inception. Several leading SOEs, such as natural gas distributor BOTAS, Turkish Airlines, and Ziraat Bank have been transferred to the TVF, which in 2020 became the largest shareholder in domestic telecommunications firm Turkcell. Critics contend that the fund’s management is opaque and politicized. The fund’s consolidated financial statements are available on its website , although independent audits are not publicly available. Firms within the fund’s portfolio appear to have increased their debt loads substantially since 2016. International ratings agencies consider the fund a quasi-sovereign. The fund was already exempt from many provisions of domestic commercial law, and new legislation adopted April 16, 2020, granted it further exemptions from the Capital Markets Law and Turkish Commercial Code, while also allowing it to take ownership of distressed firms in strategic sectors.

As of 2023, the sectors with active state-owned enterprises (SOEs) included mining, banking, energy, telecommunications, and transportation. The full list can be found here: . Allegations of unfair practices by SOEs are minimal, and the U.S. Mission is not aware of any ongoing complaints by U.S. firms. Türkiye is not a party to the World Trade Organization’s Government Procurement Agreement. Türkiye is a member of the OECD Working Party on State Ownership and Privatization Practices, and OECD’s compliance regulations and new laws enacted in 2012 by the Turkish Competitive Authority closely govern SOE operations. In March 2022, Türkiye’s Information Technologies and Communications Authority (BTK) approved the transfer of 55 percent of Turk Telekom shares to TVF. TVF now owns over 60 percent of the local telecommunications giant, reversing a privatization drive that started in 2005.


The government of Türkiye has made some progress on privatization over the last decade. Of 278 companies that the state once owned, 210 are fully privatized. According to the Ministry of Treasury and Finance’s Privatization Administration, transactions completed under the Turkish privatization program generated $294 million in 2021, driven by the privatization of six power plants, a holiday village, a mining site, and 324 pieces of real estate, up from $20 million in 2020. See:  .

The government of Türkiye has committed to continuing the privatization efforts, but other measures, such as the creation of a sovereign wealth fund with control over major SOEs, suggest that the government has prioritized the use of some public assets to raise additional debt over privatization. Accordingly, the government of Türkiye has shelved plans to increase privatization of Turkish Airlines and instead moved them and other SOEs into the TVF. Additional information can be found at the Ministry of Treasury and Finance’s Privatization Administration website: .

Responsible business conduct (RBC) in Türkiye is gaining traction. Reforms carried out as part of the EU harmonization process have had a positive effect on laws governing Turkish associations, especially non-governmental organizations (NGOs). However, recent democratic backsliding has reversed some of these gains, and there has been increasing pressure on civil society since the 2016 coup attempt.

Türkiye has a National Contact Point (NCP), or central coordinating office, to assist companies in their efforts to adopt a due-diligence approach to RBC. The NCP performs informative activities for the introduction of the Economic Cooperation and Development Organization’s (OECD) Guidelines for Multinational Enterprises and finalizes the applications of alleged violations regarding the implementation of the Guidelines in an impartial, predictable, and fair manner and in accordance with the principles and standards included in the Guidelines. The Ministry of Industry and Technology’s General Directorate of Incentive Implementation and Foreign Investments is designated as the NCP of Türkiye to promote the Guidelines, to examine and resolve complaints. Dr. Mehmet Yurdal Şahin, Director General of Incentive Implementation and Foreign Investment Ministry of Industry and Technology is the designated NCP:  Tü  

Türkiye has several active business-oriented associations. The Turkish Union of Chambers and Commodity Exchanges (TOBB) and the Turkish Industrialists’ and Businessmen’s Association (TÜSIAD) issue regular reports and studies and hold events aimed at encouraging Turkish companies to become involved in policy issues. In addition to influencing the political process, these two organizations also assist their members with civic engagement. The Business Council for Sustainable Development Türkiye ( http://www.skdTü ) and the Corporate Social Responsibility Association in Türkiye ( www.csrTü ), founded in 2005, are two associations devoted exclusively to issues of responsible business conduct. The Turkish Ethical Values Center Foundation, the Private Sector Volunteers Association ( ), and the Third Sector Foundation of Türkiye ( ) are also influential associations.

Additional Resources

Department of State

Department of the Treasury

Department of Labor

Climate Change

Türkiye signed the Paris Agreement in 2016. It ratified the accord in October 2021 when it also submitted its Intended Nationally Determined Contributions (INDCs) to the UN Framework Convention on Climate Change (UNFCCC).  Türkiye has announced it will achieve “net zero emissions” by 2053.  In November 2022, Türkiye announced a new NDC at COP 27, which aims to bring its greenhouse gas emissions 41 percent below business-as-usual levels by 2030, raising the target from 21 percent.  Türkiye has yet to publish a copy of its NDC document, but announced it contains projections of a 30 percent increase in greenhouse gas emissions through 2030, with peak emissions by 2038.   Experts agree that a rapid decarbonization process by 2053 from peak greenhouse gas emissions in 2038 will be difficult and costly and could increase Türkiye’s vulnerability to fossil fuel crises in the near term.  Türkiye’s most recent Climate Change Action Plan can be found at 

Türkiye is a green energy leader, with renewables representing 54 percent of installed electricity generation capacity. However, Türkiye lacks a plan to phase out coal power generation, which currently accounts for over 30 percent of Türkiye’s electricity production. The EU is Türkiye’s biggest external market, and Turkish exporters will be subject to the EU’s carbon border tax, which could potentially be as high as $1.8 billion annually, according to the Turkish Industry and Business Association. In August 2021, Türkiye adopted a “Green Deal Action Plan” to comply with the European Green Deal. Türkiye does not have an emissions trading system.

Corruption remains a concern, a reality reflected in Türkiye’s sliding score in Transparency International’s annual Corruption Perceptions Index, where it ranked 96th of 180 countries and territories around the world in 2021. Government mechanisms to investigate and punish alleged abuse and corruption by state officials remain inadequate, and impunity remains a problem. Though independent in principle, the judiciary remained subject to government, and particularly executive branch, interference, including with respect to the investigation and prosecution of major corruption cases. (See the Department of State’s annual Country Reports on Human Rights Practices for more details: Türkiye is a participant in regional anti-corruption initiatives such as the G20 Anti-Corruption working group. The Presidential State Supervisory Council is responsible for combating corruption.

Public procurement reforms in Türkiye were designed to make procurement more transparent and less susceptible to political interference, including through the establishment of an independent public procurement board with the power to void contracts. Critics claim that government officials have continued to award large contracts to firms friendly with the ruling Justice and Development Party (AKP), especially for large public construction projects.

Turkish legislation prohibits bribery, but enforcement is uneven. Türkiye’s Criminal Code makes it unlawful to promise or to give any advantage to foreign government officials in exchange for their assistance in providing improper advantage in the conduct of international business. The Financial Action Task Force (FATF) placed Türkiye onto its October 2021 list of countries subject to increased monitoring. Türkiye was added alongside 22 other jurisdictions for strategic deficiencies in its regime to counter money laundering, terrorist financing, and proliferation financing.

The provisions of the criminal law regarding bribing of foreign government officials are consistent with the provisions of the Foreign Corrupt Practices Act of 1977 of the United States (FCPA). However, there are several differences between Turkish law and the FCPA. For example, there is no exception under Turkish law for payments to facilitate or expedite performance of a “routine governmental action” in terms of the FCPA. Another difference is that the FCPA does not provide for punishment by imprisonment, while Turkish law provides for punishment by imprisonment from four to 12 years. The Presidential State Supervisory Council, which advises the Corruption Investigations Committee, is responsible for investigating major corruption cases brought to its attention by the Committee. Nearly every state agency has its own inspector corps responsible for investigating internal corruption. The Parliament can establish investigative commissions to examine corruption allegations concerning cabinet ministers; a majority vote is needed to send these cases to the Supreme Court for further action.

Türkiye ratified the OECD Convention on Combating Bribery of Public Officials and passed implementing legislation in 2003 to make bribing foreign, as well as domestic, officials illegal. In 2006, Türkiye’s Parliament ratified the UN Convention against Corruption.

Resources to Report Corruption

Contact at government agency or agencies are responsible for combating corruption:
Organization: Presidential State Supervisory Council
Address: Beştepe Mahallesi, Alparslan Türkeş Caddesi, Devlet Denetleme Kurulu, Yenimahalle
Phone: +90 312 470 25 00
Fax: +90 312 470 13 03

Name: Seref Malkoc
Title: Chief Ombudsman
Organization: The Ombudsman Institution
Address: Kavaklidere Mah. Zeytin Dali Caddesi No:4 Cankaya ANKARA
Telephone number: +90 312 465 22 00
Email address:

Between 2015 and 2016 Türkiye experienced a comparatively volatile political period not seen since the 1970s. However, since January 2017, Türkiye has experienced historically low levels of violence, even when compared to past periods of calm due to the country’s significantly bolstered internal security measures. Türkiye can experience politically motivated violence. The July 2016 attempted coup resulted in the death of more than 240 people and injured over 2,100 others. Since the July 2015 collapse of the cessation of hostilities between the government and the terrorist Kurdistan Workers’ Party (PKK), along with sister organizations like the Kurdistan Freedom Hawks (TAK), the groups have regularly targeted security forces, with civilians often injured or killed by PKK and TAK attacks. (Both the PKK and TAK have been designated as terrorist organizations by the United States.)

Other U.S.-designated terrorist organizations, such as the Islamic State of Iraq and Greater Syria (ISIS) and the leftist Revolutionary People’s Liberation Party/Front (DHKP/C), are present in Türkiye and have conducted attacks in 2013, 2015, 2016, 2017, and early 2023. The indigenous Marxist-Leninist insurgent group, DHKP/C, for example, which was established in the 1970s and designated a terrorist organization by the U.S. in 1997, is responsible for several attacks against the U.S. Embassy in Ankara and the U.S. Consulate General in Istanbul in recent years, including a suicide bombing at the embassy in 2013 that killed one Turkish employee. The DHKP/C has stated its intention to commit further attacks against the United States, NATO, and Türkiye. In addition, violent extremists associated with ISIS and other groups have used Türkiye as a financial conduit and to transit into Syria in the past, though increased scrutiny by government officials and a general emphasis on increased security – including a newly constructed 911 km wall along Türkiye’s border with Syria – has significantly curtailed transit options.

Violence against religious missionaries and others perceived as proselytizing for a non-Islamic religion in Türkiye has occurred, though none in recent years. Perpetrators have threatened and assaulted Christian and Jewish individuals, groups, and places of worship, many of which receive specially assigned police protection, both for institutions and leadership. Anti-Semitic discourse periodically features in both popular rhetoric and public media, and evangelizing activities by foreigners tend to be viewed suspiciously by the country’s security apparatus. However, government officials support religious freedom as policy and frequently cite Türkiye’s religious minorities as a sign of the country’s diversity. Religious minority figures periodically meet with the country’s president and other senior members of national political leadership.

Türkiye has a population of 85.2 million, with 22 percent under the age of 14 as of 2022. Ninety-three percent of the population lives in urban areas. Official figures put the labor force at 35 million in 2022. Approximately one-fifth of the labor force works in agriculture (15.8 percent), while another fifth works in industrial sectors (21.6 percent). The country has a significant informal sector at 30.6 percent. In 2022, the official unemployment rate was 10 percent, and 18.9 percent unemployment among those 15-24 years of age. Türkiye provides 12 years of free, compulsory education to children of both sexes in state schools. Authorities continue to grapple with facilitating legal employment for working-age Syrians, a major subset of the 3.5 million displaced Syrian men, women, and children – unknown numbers of which were working informally.

Women constitute more than half of Türkiye’s population, but their labor participation rate stands at 36.6 percent, while male labor participation is 71.9 percent. While most women remain out of the labor market, many work in the informal economy, which presents unfavorable working conditions that are far from the four pillars of decent work definition of the International Labor Organization (ILO). U.S. Mission Türkiye, EU Delegation to Türkiye, various UN organizations, World Bank, the European Bank for Reconstruction and Development (EBRD), and other international financial institutions (IFIs) in Türkiye are working together with multiple stakeholders, including the government of Türkiye and its related public institutions on projects related to increasing female participation in the workforce. Some provide entrepreneurship funds and vocational-education support, and some initiatives advocate for heightened expectations of local and foreign investors and loan recipients to including a female labor workforce agenda into their business proposals.
Türkiye has an abundance of unskilled and semi-skilled labor, and vocational training schools exist at the high school level. There remains a shortage of skilled technology workers. Individual technology firms, both local and foreign owned, typically conduct their own training programs. Within the scope of employment mobilization, the Ministry of Family, Labor, and Social Services; Turkish Employment Agency (ISKUR); and Türkiye Union of Chambers and Commodity Exchanges (TOBB) have launched the Vocational Education and Skills Development Cooperation Protocol (MEGIP). Türkiye has also undertaken a significant expansion of university programs, building dozens of new colleges and universities over the last decade.

The use of subcontracted workers for jobs not temporary in nature remained common, including by firms executing contracts for the state. Generally ineligible for equal benefits or collective bargaining rights, subcontracted workers — often hired via revolving contracts of less than a year duration — remained vulnerable to sudden termination by employers and, in some cases, poor working conditions. Employers typically utilized subcontracted workers to minimize salary and benefit expenditures and, according to critics, to prevent unionization of employees.

The law provides for the right of workers to form and join independent unions, bargain collectively, and conduct legal strikes. A minimum of seven workers is required to establish a trade union without prior approval. To become a bargaining agent, a union must represent 40 percent of the employees at a given work site if the firm has more than one work site and one percent of all workers in that industry. Certain public employees, such as senior officials, magistrates, members of the armed forces, and police, cannot form unions. Nonunionized workers, such as migrant seasonal agricultural laborers, domestic servants, and those in the informal economy, are also not covered by collective bargaining laws.

Unionization rates generally remain low. Independent labor unions — distinct from their government-friendly counterpart unions — reported that employers continued to use threats, violence, and layoffs in unionized workplaces across sectors. Service-sector union organizers report that private sector employers sometimes ignore the law and dismiss workers to discourage union activity. Turkish law provides for the right to strike but prohibits strikes by public workers engaged in safeguarding life and property and by workers in the coal mining and petroleum industries, hospitals and funeral industries, urban transportation, and national defense. The law explicitly allows the government to deny the right to strike for any situation it determines a threat to national security. Türkiye has labor-dispute resolution mechanisms, including the Supreme Arbitration Board, which addresses disputes between employers and employees pursuant to collective bargaining agreements. Labor courts function effectively and relatively efficiently. Appeals, however, can last for years. If a court rules that an employer unfairly dismissed a worker and should either reinstate or compensate them, the employer generally pays compensation to the employee along with a fine.

Türkiye has ratified key International Labor Organization (ILO) conventions protecting workers’ rights, including conventions on Freedom of Association and Protection of the Right to Organize; Rights to Organize and to Bargain Collectively; Abolition of Forced Labor; Minimum Age; Occupational Health and Safety; Termination of Employment; and Elimination of the Worst Forms of Child Labor. Implementation of a number of these, including ILO Convention 87 (Convention Concerning Freedom of Association and Protection of the Right to Organize) and Convention 98 (Convention Concerning the Application of the Principles of the Right to Organize and to Bargain Collectively), remains uneven. Implementation of legislation related to workplace health and safety likewise remains uneven. Child labor continued, including in its worst forms and particularly in the seasonal agricultural sector, despite ongoing government efforts to address the issue. See the Department of State’s annual Country Reports on Human Rights Practices for more details on Türkiye’s labor sector and the challenges it continues to face.

The U.S. International Development Finance Corporation (DFC) replaced the Overseas Private Investment Corporation (OPIC) in December 2019 and continues to offer programs in Türkiye, including political risk insurance for U.S. investors, under its bilateral agreement. Since 1987, Türkiye has been a member of the Multinational Investment Guarantee Agency (MIGA), most recently financing a public hospital project in 2019.

Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy
Host Country Statistical source* USG or international statistical source USG or International Source of Data:  BEA; IMF; Eurostat; UNCTAD, Other
Economic Data Year Amount Year Amount  
Host Country Gross Domestic Product (GDP) ($M USD) 2022 $905,501 2021 $807,106
Foreign Direct Investment Host Country Statistical source* USG or international statistical source USG or international Source of data:  BEA; IMF; Eurostat; UNCTAD, Other
U.S. FDI in partner country, Jan-Nov. 2021 and 2022 ($M USD, stock positions) 2022 $1,150 2021 $248 BEA data available at


Host country’s FDI in the United States ($M USD, stock positions) 2021 $1,557 2020 $2,578 BEA data available at
Total inbound stock of FDI as % host GDP 2021 5.3% 2021 5.3% UNCTAD data available at

The IMF’s Coordinated Direct Investment Survey (CDIS) data is not consistent with Türkiye’s data as reported by the Central Bank of the Republic of Türkiye, which can be found at: 

Table 3: Sources and Destination of FDI
Direct Investment from/in Counterpart Economy Data (through 2021)
From Top Five Sources/To Top Five Destinations (US Dollars, Millions)
Inward Direct Investment Outward Direct Investment
Total Inward 74,344 100% Total Outward 51,487 100%
North Macedonia 11,647 16% North Macedonia 20,715 40%
Qatar 10,527 14% United Kingdom 4,152 8%
Germany 6,799 9% Germany 2,859 6%
United Kingdom 4,816 6% United States 2,478 5%
Azerbaijan 4,184 6% Austria 2,112 4%
“0” reflects amounts rounded to +/- USD 500,000.

IMF’s Coordinated Direct Investment Survey (CDIS) data available at: 


Economic Officer
U.S. Embassy Ankara
1480 Sokak No. 1
Cukurambar Mahallesi
06530 Çankaya
Ankara – Türkiye
Phone: (90-312) 294-0000

On This Page

  2.  1. Openness To, and Restrictions Upon, Foreign Investment
  3. 2. Bilateral Investment and Taxation Treaties
  4. 3. Legal Regime
      1. ICSID Convention and New York Convention
      2. Investor-State Dispute Settlement
      3. International Commercial Arbitration and Foreign Courts
  5. 4. Industrial Policies
      1. Renewable energy investments
      2. Project-Based Investment Incentives
  6. 5. Protection of Property Rights
  7. 6. Financial Sector
      1. Foreign Exchange
      2. Remittance Policies
  8. 7. State-Owned Enterprises (SOEs)
  9. 8. Responsible Business Conduct
    1. Climate Change
  10. 9. Corruption
  11. 10. Political and Security Environment
  12. 11. Labor Policies and Practices
  13. 12. U.S. International Development Finance Corporation (DFC) and Other Investment Insurance or Development Finance Programs
  14. 13. Foreign Direct Investment and Foreign Portfolio Investment Statistics
  15. 14. Contact for More Information
2023 Investment Climate Statements: Türkiye
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