Türkiye has seen a rebound in investor sentiment in recent weeks, supported by improved financial indicators and falling inflation, Treasury and Finance Minister Mehmet Simsek said on Tuesday.
Speaking at the Qatar Economic Forum, Simsek said foreign direct investment (FDI) had increased over the past year, reflecting renewed confidence in the Turkish economy.
“FDI has picked up in the past 12 months,” he said, noting Türkiye’s large economy, developed infrastructure, skilled workforce, and strong regional integration.
Simsek said Türkiye remained well-positioned to benefit from the eventual stabilisation of global markets, amid lingering uncertainty around trade policies and inflation. “When the dust settles, investors will seek resilient economies. Türkiye is one of them,” he said. “It remains a top candidate for FDI inflows.”
He added that falling inflation was helping improve predictability in the Turkish market.
Addressing concerns over market volatility earlier this year, Simsek said the government’s economic programme was on track and yielding results.
“Inflation is still high but has fallen to its lowest level in 40 months,” he said. “In the last two weeks, foreign exchange reserves have recovered, and investor confidence is returning. Credit Default Swap (CDS) spreads have dropped by over 90 basis points.”
Simsek said Türkiye’s tight monetary and fiscal policy had laid the foundation for a sustained disinflation process, though some sectors had faced temporary disruptions. “No economic treatment is without side effects,” he said. “That’s why we extended support to labour-intensive export sectors earlier this year.”
He said the government was exploring targeted solutions to mitigate short-term disruptions while maintaining the broader reform path. “The essence of our programme is to lower inflation and create the conditions for sustainable, high growth.”
Turning to regional developments, Simsek welcomed U.S. President Donald Trump’s recent announcement on lifting sanctions against Syria, calling a stable and prosperous Syria a “significant gain” for both the region and Türkiye.
Simsek also referenced the PKK’s reported decision to disarm and dissolve, stating that Türkiye had spent an estimated $1.8 trillion over the past 50 years combating terrorism.
“These developments will be transformative,” he said. “They represent an opportunity to shift resources toward more productive, development-focused sectors. Geopolitics, once a drag, could now become a strategic advantage for Türkiye.”