FOREIGN DIRECT INVESTMENTS IN TURKEY

During the globalization process, the foreign capital investment became more important proceeding for each and every country. A well-known expert is Robert C. FEENSTRA stated on Foreign Direct Investments (“FDI”), “FDI combines aspects of both international trade in goods and international financial flows, and it is a phenomenon more complex than either of these.”. Due to FDI contributes to economical growth, employment and technological development and exportation centered production of the country where invesments are made, the lawmaker decided to provide advantages for investors by legislation. Thus, the FDI is protected and motivated by the international treaties and national invesment regulations. Furthermore, FDI makes essential differences on developing relationships among remote countries.

In this way, The Republic of Turkey has tried to take an active role in FDI as an invested country. The lawmaker started to give safeguards to foreign investors by legislations. Therefore the rate of invesment has been increased rapidly in last three years. To prove that, International Investors Association (“YASED”) declared that FDI has started to increase in recent years.

The legal system of the FDI is restricted in Turkey by the Foreign Direct Investment Law numbered 4875 and dated 17.06.2003. The legislation that we mention is designed as a legal guidebook for investors. FDI Law is formed from 7 Articles that settle rights and obligations of international investors.

“Mutual Protection and Promotion of Investments Agreement” (“MPPI”) can be applied also for the rights and liabilities of foreign investors in Turkey. This mutual international agreement has been signed with other 80 countries included Turkey. However 64 of these agreements became effective which means the investors can only apply these mutual contract clauses.

Hukuk Desteği (Legal Support)