Analysis
Smart, independent reporting on Turkey's politics, economy and foreign affairs.
Foreign direct investment (FDI) inflows fell 35% year-over-year in the first eight months of 2026 to $6.8 billion from $10.5 billion recorded during the same period in 2025, according to data released by the International Investors Association (YASED).
For nearly half a million retail investors caught in Turkey’s worst financial storm in years, compensation has finally begun to flow. But the first cash distributions came as the fallout spread beyond Turkey’s borders: global index provider MSCI froze index changes for Turkish equities on Oct. 15 and warned of a possible downgrade, while prosecutors broadened their probes and lawmakers scrambled to pass emergency legislation.
In one of the country’s largest financial scandals, payments to victimized fund investors began and priority will be given to small investors, according to statements from officials.
The government is seeking to create the impression that it is cutting ties with those involved in the stock market scandal and has launched an investigation, announcing that up to a million liras of losses will be repaid to investors soon. But the opposition calls it the 'corruption of the century' and is seeking a parliamentary inquiry.
Conglomerates Vestel Elektronik and Anadolu Group are in advanced negotiations to sell their stakes in Turkey’s first domestic electric vehicle manufacturer TOGG.
Foreign investors' confidence in Turkish equities is under mounting pressure as two of the world's leading index providers signaled Istanbul's stock market could face a downgrade. Morgan Stanley Capital International (MSCI) issued another warning regarding investment accessibility and shareholder transparency, announcing it may re-evaluate free-float structures on a company-by-company basis and reclassify certain shareholders as 'non-free float' to address distorted calculations driven by coordinated fund actions.
Finance Minister Mehmet Şimşek warned investors to expect a worsening in the country’s current account and the central bank said it expects faster inflation as strain grows on the government’s economic plans.
A Turkish government delegation has been in talks across Europe with international investors for the privatization of Istanbul bridges and highways.
Foreign direct investment (FDI) in Turkey rose 27% year-on-year to $6.3 billion in the first half of 2025, led by inflows from the Netherlands and Kazakhstan, according to the International Investors Association (YASED).