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Ernst&Young : Turks to invest in crisis-hit Greece and Romania

Turkish firms will considerably increase their investments abroad in 2011, according to a top official at Ernst&Young, quoted by the local media.

Eastern European countries, such as Greece and Romania, are the main destinations for these companies' plans A number of Turkish companies have set their sights on investing abroad this year, especially in southeastern European countries, according to a top official from one of the four auditing giants in Turkey.

'I foresee Turkish firms investing about $1 billion abroad through transactions between 50 and 200 million dollars,' said Müşfik Cantekinler, the institutional financing department chief of Ernst & Young in a recent interview. Most of the investments will take place in Turkey's neighboring regions, especially the Balkans, he added.If certain Turkish firms invest above $200 million, the total foreign investment from Turkey might be even higher by year's end, he said.

Turkish businesspeople are also following investment opportunities abroad, Cantekinler said. Investors from Turkey are particularly interested in 'small, medium' investments worth between 50 and 150 million dollars in countries such as Greece and Romania, he said. 'For example, a Turkish food company ... asked us to 'particularly find companies in Europe where we can invest,'' Cantekinler said. Turkish firms are willing to invest abroad in sectors such as real estate, cement, construction components, food and telecommunications, he added.

Cantekinler also said certain Turkish companies had asked for consulting help to invest abroad even eight months ago. Some firms want to make strategic investments in Greece, including companies active in tourism and other sectors, he said. 'There are also Turkish food companies that are looking to invest in Greece.'Major telecommunications firms are also interested in investments in Eastern Europe, where most telecom companies are state-run, he said.Turkish investors are also interested in Malta's tourism and seaports, Cantekinler said. '2011 will be a year in which Turks will also invest abroad.'

FDI to Turkey still low

Foreign direct investment to Turkey will be below Ernst & Young expectations, according to Cantekinler. 'Investment flowing to Turkey this year until June is expected to total $7 billion,' he said, adding that this would imply a maximum foreign direct investment of $20 billion by year's end. 'We were expecting some 25 to 30 billion dollars investment at the beginning of the year.'Investors, however, have shown a lot of interest in Turkey even though the figures suggest the opposite, said the auditing company's department chief.

He said foreign investors that he had met abroad were retaining the same interest in Turkey. 'There is a serious domestic consumption, domestic demand in Turkey. This actually whets foreigners' appetite,' he said. The first thing foreign investors notice when they come to Turkey is the domestic demand, he added.

Foreign investors are strategic ones; they come to Turkey with serious intentions, said Cantekinler. About half of the Turkish population is below the age of 30, which is the first thing investors consider while making decisions. Thus, they believe whatever is related to consumption or energy will sell, the department chief said.

'Strategic investors ... think 'My market will be Turkey, the Turkish people,'' Cantekinler said.

Turkey is also planning large investments in infrastructure, such as a third Bosphorus bridge, a third airport in Istanbul, highways, double highways and many tunnels, Cantekinler said. Thus, investment worth about $30 billion is waiting on the table and many foreign investors see these as important economic activities, he added.

Sursa: http://www.actmedia.eu

Tags: turkey turkish cantekinler abroad investors invest billion foreign investment investments greece young romania firms ernst companies