Over the past 15 years, $45 billion in investments were promised but never delivered
Whether it was global crises or regional developments, Turkey has not been able to secure the investments it has been waiting for because of deteriorating bilateral relations. The majority of the $10-12 billion in foreign investment have come from Turkish companies sold to foreigners. Sales, privatizations and partnerships accounted for the majority of the $200 billion in foreign investments in the last 15 years. But somehow “greenfield” investments, meaning investments from scratch aimed at production and employment, have not come to Turkey. Foreign investment, which rose to $15 billion in 2015, experienced a decline of $5 billion in the last three years.
Turkey has lost more than $45 billion of investments in the last 13 years. In other words, Turkey has become a graveyard for canceled commitments. Most of them were signed but production never began. Here are some examples:
$7 billion for a solar panel factory in Kilis never happened
In 2012, the Minister of Science, Industry and Technology, Nihat Ergun, appeared in the media with the executives of an American energy company called ICA and announced a $7 billion solar panel and solar field investment to be established in Kilis. Seven years have passed. The sun in Kilis is still there, the land is still there but for some reason, this huge investment of $7 billion has fallen into oblivion.
Nothing on $8 billion technology investments
This time Economy Minister Nihat Zeybekci took the stage in 2016. Zeybekci stated that a technology giant had stopped its investments planned in two other countries and promised to shift them to Turkey. “The total figure of investments we discussed is about $8 billion,” Zeybekci said at the time. “We are talking about an organization that produces technologies in the energy and health sectors.” Three years have passed but neither the names of the two giants, nor their $8 billion in investments have materialized.
$3 billion agricultural investment from Gulf canceled
An investment agreement between Turkey and Abu Dhabi Investment House, Gulf Finance House and Ithmaar Bank ‘Vision3’ venture capital company was signed in 2008. Speaking at the signing ceremony, Deputy Prime Minister at that time, Nazim Ekren, said: “Turkey will not only be a financial harbor in the new era. It will also be a desirable destination for production.” The investment aimed to allocate $3 billion in agriculture and animal husbandry in the Southeastern Anatolia Project (GAP) Region in the first phase of the project. Then the perception of Turkey in the Gulf Region changed and investments were put on ice. Although 11 years have passed, the $3 billion project has never been implemented.
Ottoman grandson did not bring $3 billion
Former Economy Minister Zafer Caglayan had announced that the American company Allied Energy planned to make an investment in Turkey in 2012. “The investment will be around $2 billion,” he said. He appeared in the media with Energy Allied executives, including its president, who introduced himself as a grandson of the Ottomans, Mike Nassar. Two years later, Çaglayan and Nassar appeared in the media once again. They announced that they had raised the $2 billion to $3 billion. Nothing has been heard from them since.
China green plan withered
In 2016, the government proposed a $2 billion investment for wind, $10 billion for solar and $3 billion for thermal power plants at a meeting in China. The total investment coming from China would be $15 billion. However, for some reason, the projects have not been realized.
Crisis killed Indian plan
In 2006 - 13 years ago - Calik Holding and Indian IOC announced that they wanted to establish a petrochemical plant in Adana. An integrated refinery and petrochemical complex with an annual capacity of 15 million tons and 20,000 jobs would be established in the city with a $ 5-7 billion investment. An incentive exceeding TRY 14 billion was given for the project. But it didn’t happen. The Indian company decided to halt its investments due to the financial crisis. This investment promise was also silently forgotten.
Adana took another hit
A polypropylene factory, 70 percent of which belonged to Advanced Petrochemical of Saudi Arabia, was to be established in Adana in 2012 with a one billion dollar investment. The facility, which would create 1,500 jobs, was scheduled to be operational by 2015. However, the partnership was broken; the project was canceled.