JPMorgan executive's take on Turkey: 'It is not receiving strategic interest from the West'

Speaking at the Invest in Türkiye forum held in London, JPMorgan Managing Director Gökhan Özkan said that there has been increased interest in Turkey recently in fixed-income securities, and that capital flows have accelerated. On the other hand, he pointed out that while deposit interest rates offer carry trade opportunities, they negatively affect capital markets and merger and acquisition activity.

According to a report by Ceren Dilekçi from Bloomberg, Özkan noted that when looking at merger and acquisition activity in Turkey, while interest in Turkey between 2004 and 2014 came primarily from Europe, North America, and Asia, there has been more interest from the Middle East over the last 10 years due to volatility.

'WE ARE NOT SEEING STRATEGIC INTEREST FROM THE WEST'

Noting that Turkey has not reached sufficient saturation in the context of merger and acquisition activity, according to Özkan, this situation is also reflected in the stock and fixed-income securities markets.

JPMorgan Managing Director Özkan said, "In the sale of the Rabobank Group's subsidiary in Turkey, which we are brokering, local players, fintech companies, holdings, and one or two Middle Eastern or Asian companies showed interest. We are not yet seeing strategic interest from the West."

Noting that they expect activity to revive with the return to orthodox economic policies and disinflation, JPMorgan Managing Director Özkan said, "When this process is behind us, Western markets will also show interest. But until that happens, we think the Middle East is the key market. If inflation is brought under control, we will be much more optimistic about Turkey in 2025-2026."