Comment: Turkey is a tempting target

* username: rupertbu

Turkey’s economy took a beating last year. Gross domestic product in the first nine months dropped a whopping 8 per cent. Unemployment is in double digits and government finances in deficit. By these measures, the year ahead looks challenging.

With the country’s political leaders looking southwards to the Middle East and seeking to ease relations with neighbours such as Syria, investors from the Arab world are eyeing Turkey. The country could also provide some Arab countries with a road map of reform to follow, especially those without significant oil reserves.

Middle Eastern investment in Turkey by non-private equity firms has been substantial. The largest foreign direct investment in Turkish history was the $6.6bn purchase of Turk Telecom in 2005 by Saudi Oger.