Economy

French Businesses Pledge €5 Billion Investment in Türkiye, Cementing Long-Term Economic Partnership

By Bosphorus News ·
French Businesses Pledge €5 Billion Investment in Türkiye, Cementing Long-Term Economic Partnership

Confidence Confirmed: The €5 Billion Pledge

A comprehensive new report, released by the French Foreign Trade Advisors Türkiye Committee (CCEF) and the Turkish-French Chamber of Commerce (CCIFT), has revealed a massive expansion plan by French-linked enterprises operating in Türkiye. The companies anticipate channeling an additional €5 billion into the economy within the next three years, signaling a deep, sustained commitment despite global economic volatility.

The new investment projection follows a period of significant activity, with French and Franco-Turkish businesses having invested €3.6 billion between 2020 and 2024. The data was presented in Istanbul at an event attended by the French Ambassador to Ankara, Isabelle Dumont, underscoring the high-level diplomatic support for the deepening commercial ties.

The Scale of the French Presence

Titled “A Sustained Impact: The Economic & Social Contributions of French and Franco-Turkish Companies in Türkiye,” the report meticulously details the considerable footprint of French capital in the nation. The findings position the Franco-Turkish partnership as one of the cornerstones of the Turkish economy:

  • GDP Contribution: French corporate activities currently contribute the equivalent of 1.6% of Türkiye’s Gross Domestic Product (GDP), amounting to approximately €18.7 billion.
  • Employment Engine: The companies provide direct employment for over 143,000 people, with the indirect employment effect raising the total supported workforce to nearly 400,000.
  • Manufacturing Base: French-owned and joint-venture firms operate 197 production facilities across the country, highlighting Türkiye's strategic function not merely as a large consumer market, but as a competitive manufacturing and export hub integrated into global value chains. Exports accounted for 22% of their combined €36.6 billion turnover recorded between 2020 and 2024.

Focus on Innovation and Sustainability

The new investment plan is not solely focused on volume, but also on qualitative growth. The report emphasized the commitment to high-value activities:

  • R&D Investment: Between 2022 and 2024, the surveyed companies invested €700 million in research and development (R&D).
  • Local Partnerships: A high percentage of firms, 52%, reported engaging in collaborative projects with local universities and research centers, helping to accelerate technology transfer and skill development within the country.
  • Corporate Responsibility: The survey results showed a strong focus on sustainability and social metrics, with 71% of companies assessing their annual carbon footprint and 64% taking concrete steps to increase female representation in management roles.

French Ambassador Isabelle Dumont affirmed the strength of the relationship, stating that the report “confirms French companies' sustained interest and long-term strategic focus on Türkiye.”

The commitment is contingent on the continuation of "suitable economic and legal conditions," positioning the investment as a significant endorsement of Ankara's ongoing efforts to stabilize its macroeconomic environment and foster a welcoming atmosphere for Foreign Direct Investment (FDI). France already ranks among the top sources of FDI in Türkiye, accounting for approximately 4.4% of total FDI inflows over the last two decades.