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Türkiye Anticipates Surge in Foreign Investments Post-Election

Turkish Treasury and Finance Minister Mehmet Simsek. (The minister’s account on X)
Turkish Treasury and Finance Minister Mehmet Simsek. (The minister’s account on X)
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Türkiye Anticipates Surge in Foreign Investments Post-Election

Turkish Treasury and Finance Minister Mehmet Simsek. (The minister’s account on X)
Turkish Treasury and Finance Minister Mehmet Simsek. (The minister’s account on X)

Türkiye expects a substantial increase in international investments, notably in mergers and acquisitions, after the upcoming March 31 elections.
Turkish Treasury and Finance Minister Mehmet Simsek has anticipated a substantial surge in foreign investments and capital flow into the country in the aftermath of the upcoming local elections, slated for March 31.
Asserting that Türkiye currently stands near the lowest volatility range of exchange rates among developing nations, Simsek underscored on Saturday in statements to the press the importance of maintaining macroeconomic stability, particularly price stability, as a key strategy to bolster long-term growth potential.
Between June and September, Türkiye witnessed a favorable shift in capital flows, recording an inflow of $4.9 billion, a stark contrast to the flow of $2.9 billion during the initial five months of the year.
The public and private sectors have remarkably enhanced access to global market financing.
Furthermore, the Turkish bond index has exhibited a robust performance compared to other developing nations.
Simsek also brought to light that Türkiye’s foreign currency reserve accumulation peaked at $98.5 billion in May, marking an increase of approximately $36 billion.
This signifies the highest reserve level since 2014, which stood at $134.5 billion. The demand for Turkish Lira loans continues to be high, despite the limited requests for foreign currency loans.
Simsek expressed his belief that the demand for Turkish assets will notably grow in the upcoming months, especially post-election.
In addition to this, the minister unveiled plans to partially finance reconstruction efforts in regions impacted by the February 6 earthquake. This will be achieved through the issuance of long-term special bonds with a 10-year maturity, priced within standard market rates.
Simsek rounded off the discussion by addressing the reevaluation of tax exemptions for corporate deposits protected from exchange rate fluctuations, which are set to expire on June 30, 2024.
He also touched upon the ongoing normalization of monetary policy, which could potentially eliminate the need for such incentives.

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Positive Outlook for Saudi Stock Market Next Week

A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)
A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)
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Positive Outlook for Saudi Stock Market Next Week

A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)
A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)

Saudi Arabia’s Tadawul All Share Index (TASI) ended the second week of March with a slight decline for the third consecutive week, closing down 0.73% at 11,725.88 points, compared to the previous week's close of 11,811.11 points.

In an analysis of the market performance during the week ending March 13, Dr. Suleiman Al-Humaid Al-Khalidi, a financial market analyst, told Asharq Al-Awsat that the market experienced a sharp decline not seen in years, coinciding with a drop in global markets, particularly in the US, where $2 trillion in value was wiped out in a single day.

This accounted for roughly 60% of the total market value of the Saudi stock market.

Al-Khalidi noted that the key player in the Saudi market is the banking sector, especially Al-Rajhi Bank's shares, which showed resilience and did not follow the downward trend. This was attributed to the strong profits reported by the banking sector in 2024.

The primary factors contributing to the market’s decline include global economic pressures, particularly US tariffs on most global economies, ongoing global uncertainty, and the Federal Reserve's tight monetary policies, he explained.

These factors have significantly impacted liquidity flows into financial markets. Additionally, fluctuations in global oil prices, despite recent stability, have also played a role.

This downturn has been accompanied by caution among sovereign wealth funds, investment institutions, and some portfolios in injecting new liquidity or altering their positions until there is more clarity in the financial markets, he went on to say.

Moreover, Al-Khalidi said that the Saudi stock market has not accurately reflected the true strength and size of the Saudi economy, which has grown to SAR 4 trillion, up from SAR 600 billion in 2016, before the launch of Vision 2030.

Additionally, the country’s GDP has reached approximately $1.1 trillion.

Looking ahead to the market's performance in the coming week, he noted that there are strong support levels at 11,550 points, followed by 11,450 points.

These levels could help shift the market toward an upward trajectory and better reflect the robust growth of the Saudi economy.

Al-Khalidi emphasized that the banking and energy sectors could play a leading role in driving the market higher, pushing the index beyond this week’s closing levels.

He also pointed out that some stocks are hitting new lows, presenting significant investment opportunities for those seeking safe havens with steady returns in the Saudi market.