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Turkish funds to invest $1B in projects to boost trade

Turkish funds to invest $1B in projects to boost trade

ANKARA: Turkey Investment Fund, set up last year by the Russian Direct Investment Fund (RDIF) and Turkey’s Sovereign Wealth Fund, aims to strengthen bilateral economic ties and increase investment flows between the two countries, according to the RDIF head.

In particular, the parties will focus on infrastructure, healthcare and information technology sectors, RDIF CEO Kirill Dmitriev told Anadolu Agency (AA) in an exclusive interview.

“The fund will see the RDIF and the Turkey Wealth Fund invest $500 million each, targeting the projects that strengthen trade, economic and investment ties between Russia and Turkey,” Dmitriev said.

“Sovereign wealth funds (SWFs) play an important role in providing capital to stimulate economic growth,” he said. “By investing in existing and developing businesses and major infrastructure and social projects they continue to have a positive effect on the local and global economies.”

“Furthermore, SWFs are enhancing mutual cooperation, acting as a sort of financial diplomat between countries when economic ties help to establish or further improve political relations between the states,” he added.

The RDIF, established in 2011 to co-invest alongside top global investors and act as a catalyst for direct investment in Russia, has concluded more than 50 deals to date.

“The fund invested and committed for this purpose 1.2 trillion rubles (around $20 billion) and has also attracted over $30 billion of foreign capital into the Russian economy through long-term strategic partnerships,” Dmitriev said.

The Turkey Wealth Fund was established in 2016 as the country’s sovereign wealth fund with aims to develop Turkey’s strategic assets, to develop their value and thereby provide funding for Turkey’s priority investments. Its portfolio – valued at around $40 billion – includes shares of some 15 giant companies from various sectors.