By Mahmut Cil and Emir Yildirim
ISTANBUL (AA) - The International Finance Corporation (IFC) has invested about $23.5 billion in Türkiye over the past decade, supporting the country’s private sector for more than 50 years, a vice president from the institution told Anadolu.
“Türkiye stands out in the region as a country brimming with potential -- driven by a dynamic private sector, increasingly skilled workforce, and a proven ability to adapt to evolving technologies and global trends,” said Riccardo Puliti, regional vice president for the Middle East and Central Asia at the IFC.
Puliti said Türkiye’s business environment shows “resilience and agility, enabling Turkish firms to navigate challenges and seize new opportunities in a rapidly changing world.” He added that the IFC is “proud to be part of that journey,” noting that Türkiye has become a leader in innovative finance.
“Recently, we supported the country’s first-ever digital bond issuance by Isbank to channel financing to thousands of small businesses in earthquake-affected regions -- a milestone for digital financial innovation in emerging markets,” he said. “We also invested in Türkiye’s first blue bond issuance by QNB, alongside a green bond, to help tackle climate adaptation and promote sustainable water resource management.”
- 'Macroeconomic stability gives confidence to private sector to plan, invest in long-term'
Puliti said Türkiye’s recent steps to strengthen macroeconomic stability, especially efforts to curb inflation, have created a more favorable environment for private investment.
“This stability matters because it gives the private sector the confidence to plan and invest in the long term,” he said. He added that stable conditions help deepen capital markets that channel savings into productive ventures.
“In fact, according to a WBG (World Bank Group) study, reducing exchange rate volatility, which is one of the indicators of macroeconomic stability, can boost foreign direct investment (FDI) inflows and economic growth,” he said.
"For IFC, it has enabled us to significantly scale up our commitments, delivering record investments in the last two fiscal years, as part of our collective WBG effort to support Türkiye's development agenda, with each institution bringing distinct strengths."
Puliti noted that the International Bank for Reconstruction and Development (IBRD) complements this work by improving infrastructure and legal frameworks through public-sector partnerships. “The IBRD portfolio in the country has doubled over the past three years,” he said.
He noted that the Multilateral Investment Guarantee Agency (MIGA), another WBG institution, mitigates risks and plays a complementary role by attracting foreign capital to strategic sectors.
- Job creation central to Türkiye’s long-term growth
Puliti cited a World Bank Development Committee report that said economies like Türkiye have significant potential due to their young, increasingly educated populations.
“Yet, with 1.2 billion young people set to enter the global labor market over the next decade, the challenge is to ensure that enough quality jobs are available to meet rising aspirations and drive inclusive growth,” he said.
Puliti noted that Türkiye’s unemployment rate stood at 8.5% in September, with youth unemployment around 16%.
“The latest WBG regional Jobs and Prosperity Economic Update underscores the urgency of job creation in Türkiye: as the country’s working-age population grows, its biggest opportunities lie in tradable services and logistics, upgrading global value chain–linked manufacturing, renewable energy, and digital and ICT-enabled sectors,” he said. "These areas can deliver high productivity jobs and help Türkiye meet its climate and competitiveness goals."
He added that “a 2023 study by UNDP and ILO estimates that investments in energy efficiency and renewable energy could create more than 300,000 new jobs in Türkiye by 2030.”
Puliti emphasized that IFC’s job-creation approach focuses on financing micro, small, and medium-sized enterprises (MSMEs), which account for about 70% of total employment. Since 2019, IFC has supported over 100,000 jobs through SME programs, he said.
- Supporting resilience, recovery after 2023 earthquakes
Puliti said strengthening Türkiye’s resilience against natural disasters is a “pressing priority.”
“The country recorded 1,257 extreme weather events in 2024 -- the second highest in 64 years -- and it was also the hottest year in more than five decades,” he said. “The region affected by 2023 earthquakes is home to over 470,000 private enterprises -- 99% of which are MSMEs. These overlapping challenges and trends underscore the urgent need for infrastructure and businesses that can withstand future shocks.”
He said the IFC has been financing MSMEs in earthquake-stricken provinces, improving resilient logistics and production infrastructure, and backing investments in climate-related adaptation projects.
“We also support projects that integrate adaptation measures, such as the Antalya Airport expansion, which incorporates designs to cope with heat and water stress,” he said.
- Renewable energy key to reducing costly imports
Puliti said Türkiye’s expansion of renewable energy and improved efficiency are not only environmental but also economic needs.
“By scaling renewable energy investments, Türkiye can reduce its reliance on costly energy imports, strengthen energy security, and free up resources for growth,” he said.
“This shift also makes the country more competitive globally, as exporters prepare to meet new carbon-related requirements such as the EU’s Carbon Border Adjustment Mechanism (CBAM), which is particularly important given Europe is Türkiye’s main export destination,” he added.
He mentioned that the IFC contributes to the public and private sectors' search for solutions in the country's sustainable development journey.
"One example is the Türkiye Industrial Decarbonization Investment Platform
(TIDIP), launched in collaboration with the Ministry of Industry and Technology and IBRD, IFC and the EBRD, which aims to deploy $5 billion in investments for low-carbon manufacturing," he said.
Three pillars of IFC’s Türkiye vision
Puliti said the IFC’s strategy in Türkiye is built on three pillars: job creation, resilient energy and infrastructure, and a stronger financial sector.
The first focuses on job creation in manufacturing, agriculture, tourism, and healthcare. "We plan to do this through debt and equity financing, as well as financing for SMEs through local banks," he said.
The second involves developing robust energy, transportation, and municipal infrastructure “to help communities in their daily life while strengthening business competitiveness.”
The third aims to deepen and stabilize the financial sector, making it more competitive and resilient.”
“By improving access to finance, we aim to help businesses grow and, in turn, support economic development and job creation across the country,” he said.
“As the WBG, by working hand-in-hand with the government and private sector, I believe we can turn these efforts into meaningful impact for Türkiye,” he added.