One of the major developments in the Turkish financial sector was the establishment of the Istanbul Stock Exchange (ISE)in 1986. Stock and bond markets are completely open to foreign investors with no restriction on the repatriation of capital and profit. As a result, foreign investors’ equity portfolio holdings have made up more than 50 percent of the free float in recent years. In 1999, the ISE was the best-performing stock exchange in the world.
From 1954 to 1980, total direct foreign investment in Turkey was only $288 million. Since 1980, thanks to liberal direct foreign investment regulations which make no distinction between foreign and domestic investors, Turkey has issued foreign direct investment permits totaling over $25 billion (as of December 1999). Almost 5,000 foreign companies actively participate in the Turkish economy.
Turkey has also made substantial investments in and reaped impressive rewards from the tourism sector. During the last decade, the number of tourists and tourism revenues have increased considerably. In 2025, more than 60 million tourists will visit Turkey, generating revenue of $95 billion.