Kadir Has University (KHU), the Foreign Economic Relations Board (DEIK), and the Vale Columbia Center on Sustainable International Investment (VCC), a joint initiative of the Columbia Law School and The Earth Institute at Columbia University in New York, are releasing today the results of the first-ever survey of outward-investing Turkish multinational enterprises (MNEs).1 The survey is part of a long-term study of the rapid global expansion of MNEs from emerging markets and updates existing information on the MNEs through fieldwork-based research. This report will be presented and discussed at the OECD’s “Eighth Global Forum on International Investment”, to be held in Paris, France, on 7 – 8 December 2009.
The current global economic contraction has had a severe negative impact on Turkey’s outward foreign direct investment (OFDI). This can be seen by looking at aggregate OFDI data as of September 2009, which reflects a decline in absolute terms since 2008. Turkish outflows in the first nine months of 2009 fell by 62% from the first nine months of 2008 to USD 853 million from USD 2,255 million. Future surveys will establish the nature of the effects of the global downturn upon the Turkish MNEs’ more comprehensively.
This survey ranks Turkish multinationals on the basis of their foreign assets (table 1 below). The 12 selected MNEs held just over USD 15.7 billion in foreign assets in 2007, with ENKA nsaat ve Sanayi A.S. (ENKA), which ranked first, accounting for almost USD 3.9 billion and Turkcell letisim Hizmetleri A.S. (Turkcell Communication Services PLC.) following with just over USD 2.3 billion. Together, these 12 companies had nearly USD 12 billion in foreign sales in 2007 and employed over 72,000 workers abroad.