Türkiye: A Top Destination for Investment | Middle Eastern Interest in Turkish Real Estate

Why Are Middle Eastern Investors Increasingly Interested in Turkey?

Over the past decade, we’ve witnessed a remarkable surge in interest from Middle Eastern countries toward Turkey. But what’s driving this shift? And how have relations between Turkey and the Middle East evolved? The answers are both fascinating and insightful.

First, it’s important to note that economic and cultural ties between Turkey and the Middle East go back decades. Even 50 years ago, Turkish films would occasionally portray Middle Eastern investors owning property in Turkey as a charming narrative. However, in the last 10 years, these ties have grown significantly stronger.

Countries like Qatar, Saudi Arabia, and the UAE have built robust economic relationships with Turkey. Qatar has invested over $20 billion in Turkey, collaborating on major projects with more than 220 companies. Meanwhile, over 700 Turkish companies operate in Qatar, spanning industries such as construction, furniture, food, and hospitality.

 

UAE–Turkey Investment Relations

Relations between the United Arab Emirates and Turkey have also intensified in recent years. Following reciprocal visits by leaders from both sides—including Al Nahyan's visit to Turkey and Erdoğan’s visit to Abu Dhabi—the UAE pledged to invest $50 billion in Turkey. However, specific investment sectors are still unclear.

One example worth mentioning: UAE-based tech firm Sterling (not to be confused with Elon Musk’s Tesla) employs thousands and generated over $400 million in net profits last year.

Despite limited physical manufacturing in the UAE, cities like Dubai and Abu Dhabi have become global service and tech hubs. This is a model Turkey should aim to replicate: a strong base offering reliable infrastructure and support services, especially in health, security, and transportation, to attract global companies.

 

Turkey's Potential as a Production and Export Hub

Once Turkey becomes a base for international production, products made here—even if owned by foreign entities—will bear the label "Made in Turkey", contributing significantly to the national economy.

For example, Volkswagen had once planned to build a factory in Turkey. That plan was later cancelled due to political issues. However, it’s worth noting that Qatar’s family fund holds 9% of Turkey’s investment pool, so had Volkswagen proceeded, part of that investment would have indirectly come from Qatar.

Turkey should aim to attract global giants like Google, Microsoft, Tesla, and Apple. Their presence would encourage other investors to follow suit and boost Turkey’s international profile as an investment destination.

 

What Needs to Improve to Attract More Investors

To make Turkey more attractive to foreign investors, improvements are needed in several key areas:

• Healthcare: Provide world-class services.

• Security: Ensure both personal and corporate safety.

• Transportation & Logistics: Modern, accessible infrastructure is crucial.

• Legal Frameworks: Transparent, investor-friendly, and efficient legal processes must be in place.

These factors are crucial for global corporations when choosing a country for operations, services, and manufacturing.

 

Investor Perspectives and Future Outlook

Investors clearly see Turkey’s potential. However, political and economic uncertainties continue to be a barrier to large-scale investment. To overcome this, Turkey must create a stable, reliable, and investor-friendly environment.

Turkey already has the spotlight. To maintain it, structural changes and strategic reforms are needed—especially in infrastructure, regulations, and international positioning.

 

Conclusion: Is Turkey Ready to Be a Regional Investment Powerhouse?

With massive investments from Qatar, upcoming opportunities from the UAE, and growing interest from the Middle East, Turkey remains a key destination for investment. But long-term success depends on creating the right conditions—especially in health, safety, and logistics.

If Turkey seizes this momentum, it can become more than just a real estate haven—it can evolve into a production and export hub for global markets.

 

What Do You Think?

We'd love to hear your views.
Do you think Turkey is ready to welcome more international investment?
What areas still need improvement?

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