PwC Türkiye has been providing solid guidance to the Turkish business world for over 40 years within the context of the most effective roadmap to reach their targets. Inspired from our global strategy, The New Equation, we share sound insights with our business partners via our research studies covering hot topics. Accordingly, we conducted the first edition of our Overseas Investment Survey. The motivation for overseas investments of the resident companies abroad is invaluable for our economy. In this report, we focus on the key priorities, requirements and preferences of the companies which make a strong contribution to the development of the Turkish economy.
PwC Türkiye Overseas Investment Survey 2023
Overseas investment of the resident companies abroad has a crucial importance for international expansion and growth in a rapidly globalising world. While these investments enable companies to increase their competitive advantage and access different markets, they also play a facilitating role in strengthening international relationships, promoting innovation and reaching strategic business goals.
Beyond potential financial returns, overseas investments enable companies to adopt different business models while broadening their global vision, exploring new opportunities and establishing a presence in the global market. Investment management done by an effective roadmap together with accurate market analysis, strategies aligned with local dynamics, collaboration with national business partners and compliance with international regulations, raises global competitive advantage and meanwhile supports long-term sustainable growth.
Besides providing benefits to the companies, overseas investments also make economic contributions on a broader scale by bolstering the company recognition in the international markets.
Our report focuses on the overseas investments of resident companies abroad with the aim to provide a perspective for analysing the importance and the current status of overseas investments, and the contributions to companies’ operations in the international arena. PwC Türkiye Overseas Investment Survey offers valuable insights about the sectoral distribution of the resident companies, the main motivations for investing abroad, the locations preferences or investments, the requirements and priorities that arise at different stages of investment.
Key Findings
The regions preferred for overseas investment
Around 66% of the survey participants from Türkiye prefer Europe (30%), North America (USA and Canada,18%), and Eurasia (18%) for overseas investments. The countries preferred the most for overseas investment are Germany, Romania, USA, and Russia, summing up 54% in total.
Top 3 factors affecting location decision
Resident companies prioritise countries/regions that offer a significant market potential and geographical advantage, as well as an investor-friendly environment for overseas investment. Low-cost workforce, tax advantages and incentives are less determinative in investment location decisions.
Challenges of overseas investments
Survey participants highlight that availability of competent human resources, diverse business culture, absence of regulatory information, lack of insight about the local market, access to finance, and differences in legal processes as top challenges.
Conclusion: Factors to consider for overseas investment decisions
The survey results reveal Europe and USA are preferred more for overseas investments. Geographic position, market size, political stability, and regulations are top decisive factors behind the investment decisions.
Majority of the participant companies mention that overseas investments contribute substantially to their growth. Successful investments require considering many factors throughout the entire process, starting with an accurate strategy. Regarding the valuable experience of Turkish companies with successful overseas investments, we can sum up the important factors as follows:
Market research and analysis
Tax structure
Legal environment and regulations
Political and economic stability
Local business culture
Risk management
Financing
About the survey
PwC Türkiye conducted this survey regarding the overseas investments of outstanding companies in various industries. We asked for the opinions of executives about the current and potential overseas investments, and analysed their tendencies. The diversity of industries such as energy, metal, textiles, health, technology, and finance provided a general perspective for the research findings.
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