International Finance

Foreign direct investments that have entered Turkey and rising markets since the beginning of 2005 have increased in a critical level internationally. The numbers show that the amount of investments in Turkey has exceeded $200 billion. Those investments have been made through foreign companies and/or private equity funds that form new partnerships with Turkish companies, acquire them or become shareholders in their majority or minority shares or buy their public shares via privatization. Most of the foreign direct investments that have entered Turkey and rising markets originate from the UK, the EU, the USA, the Middle East, Russia, and recently Asia by means of forming partnerships or acquiring.

Foreign companies and financial investors regard Turkey as a leading and high-growth promising market and have increased their interests in Turkey. We estimate that there will be an inflow between 10-15 billion dollars per year and that this amount will be incremental in rising markets. However, even so, all of those partnerships and buying activities must be handled meticulously and carefully by not ignoring a company is small or big and being aware of the difficulties of such activities. Even if such transactions are standard in theory all over the world, they include a great number of local, cultural, and environmental elements that investors must be aware of. This awareness and knowledge level can be increased through assigning experts in the right combination to boards of management of companies invested. At least one of those experts must be a Turkish citizen, who is highly experienced and knows all the global and local elements and every stage of this investment value chain. The fact that those experts are not only assigned in the board of management following the formation of partnerships but also appointed at the beginning of due diligence and/or during the preparation of partnership agreements and negotiations makes a great difference in the success of such partnerships.