Financial centres in Europe’s emerging economies have seen a reduction in both inward and outward foreign direct investment (FDI) in recent years. The top 10 hubs in the region comprising central and eastern Europe, Turkey and Cyprus attracted a total of $1.6bn inward investment between March 2014 and February 2017 – a value less than half the amount registered in the previous three years, according to estimates by greenfield investment monitor fDi Intelligence. Outward FDI also halved over the same period.
Despite a conspicuous drop in capital expenditure and number of projects, Istanbul continues to lead the inward FDI ranking, with $235m and seven projects. Political turmoil in Turkey has undoubtedly muted international investors’ enthusiasm for the country as well as its main financial centre in recent years.
