Record-breaking investment from the UK will help Turkey build a new railroad
The United Kingdom announced the largest export finance deal for the kingdom. According to it, a record investment will go to Turkey to build a railroad. The new high-speed line will connect Ankara with the port of Izmir, which is located in the western part of the country.
The main goal of the states’ cooperation is to help Turkey reduce its greenhouse gas emissions. The United Kingdom is in a position to provide the necessary funds and support to modernize Turkey’s transportation industry to make it less carbon-dependent.
UK representatives point out that Turkey is an important partner for the Kingdom. Therefore, the deal, which will be implemented in the civil infrastructure construction sector, is valuable for both sides. According to the agreement, London will provide Ankara with a 2.1 billion euro loan, which will be used to build the railroad. The length of the high-speed electric line will be 503 km. In addition, the project involves the development of infrastructure along the entire length of the new railroad. For this purpose, the parties will enter into contracts worth hundreds of millions of pounds to install modern signaling systems, electrification, and the necessary equipment. The latter will be produced by British companies.
The key investors in the large-scale project are two banks – the local Standard Chartered and Credit Suisse from Switzerland.
It should be noted that Britain is not the only country that is interested in investing in Turkey. According to data from last year, this country ranked second in economic growth, following only the United Kingdom. Ankara was able to survive the pandemic thanks to the diversification of its sources of investment. The amount of investment in the Turkish economy in 2021 increased by almost 81% to 14.1 billion dollars. From 2003 to 2021, more than $239 billion was invested in the country.
The reason for the surge of interest in Turkey was its recovery from the pandemic. The state’s economy has demonstrated excellent resistance to crises and rapid recovery. In addition, Ankara is open to new projects and cooperation, for which it creates favorable conditions. Thanks to this, the country has increased the inflow of investments not only from European countries but also from Asia and the Middle East. The volume of investments from EU countries is about 60%, from Asian countries more than 23%, from the USA – 16% and from the Middle East – 9%. The leaders in the direct investment sector were the UK, the Netherlands, and the USA. Experts predict that interest in the country and its markets will only grow, as evidenced by the British project, which has become a record for the kingdom in terms of investments.