The outbreak of the war in the Middle East has boosted real estate investments by foreign investors in Türkiye by 28.3% on an annual basis in March, April and May, according to a report on Thursday citing data from the Turkish central bank.

At the same time, Turkish nationals’ real estate investments abroad, which reached a record high of $2.6 billion in 2025, have dropped in recent months, the data shared by Central Bank of the Republic of Türkiye (CBRT) in its recent balance of payments data shows.

The figure rose 44.4% year-over-year in January to $208 million and climbed 18.4% in February to $225 million.

However, the war, which broke out at the end of the month, caused overseas residential property purchases by Turkish nationals to decline from March onward. Turkish nationals’ real estate purchases abroad declined 18% year-over-year to $187 million in March.

In April, that figure decreased 19.4% to $187 million and in May, it dropped by a whopping 40% to $143 million, the lowest level in 29 months.

Accordingly, the total value of overseas real estate investments by Turkish nationals in March, April and May fell 26% to $517 million, while real estate investments by foreign nationals in Türkiye increased.

Non-residents paid $590 million to purchase real estate in Türkiye, marking a 29.3% year-on-year increase.

The figure rose 62.4% to $242 million in March, 17.1% to $164 million in April, and 7.6% to $184 million in May despite the nine-day Eid al-Adha holiday.

Bayram Tekçe, president of the Istanbul-based Real Estate Services Exporters’ Association (GIGDER), told Anadolu Agency (AA) that in recent years, Turkish nationals have traditionally invested in residential property abroad, particularly in Dubai and Greece, but the war in the Gulf and Athens’ stance toward Ankara have affected those investments.

“The attacks in Dubai in March virtually halted real estate purchases, leading to a decline in sales, while Greece’s hostile stance against Türkiye and its cooperation with Israel and the Greek Cypriot Administration, as well as its efforts to deploy armed troops on the islands, affected the Turkish appetite for purchasing real estate in the country,” he said.

Tekçe said Russian nationals made more real estate purchases in Türkiye than last year, as bureaucratic processes have been streamlined to facilitate the process.

Burak Ustaoğlu, a global real estate expert, meanwhile, said that investors adopted a more cautious stance toward overseas purchases and postponed their investments following the war in the Gulf, particularly in Dubai, where Turkish investors had shown strong interest prior to the outbreak of the conflict.

“The war and the risk perception led to a temporary hesitation, not only in Dubai but across all overseas real estate investments,” he said, noting that investors have yet to fully abandon their overseas investment plans and are instead waiting for uncertainties to subside.

Ustaoğlu stated that Türkiye’s recently implemented economic policies and steps taken to strengthen its financial stability encouraged some domestic investors to opt for opportunities at home, rather than abroad.

He said Türkiye still offers attractive opportunities for foreign buyers because housing prices are competitive in foreign currency terms compared with many other countries, while Ankara’s diplomatic engagement on the global stage has reinforced confidence in the country.

“The perception of Türkiye as a stable and trustworthy country prompted foreign visitors to monitor the country more closely,” he said.

Ustaoğlu noted that Türkiye’s real estate market currently offers significant price advantages at present as many construction firms offer their completed and immediately available homes for highly competitive prices due to a slowdown in demand, creating opportunities for long-term investors.

He added that recently, investors from the Gulf, Russia, Azerbaijan and Kazakhstan, in particular, have exhibited increased interest in Turkish real estate offerings.

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Türkiye’s central government budget shifted to a surplus by posting an excess of TL 114.2 billion (around $2.4 billion) in June, reversing the deficit registered in the same month last year, official data showed on Thursday.

Budget revenue jumped 66.0% year-over-year to nearly $32.1 bilion in current prices, fueled by a 72% increase in tax collections, data from the Treasury and Finance Ministry showed.

Expenditures increased 12.6% to some $29.7 billion, data revealed.

The primary balance, which excludes interest payments, registered a surplus of $6.7 billion in June, compared with a deficit of $1.15 billion in the same month last year.

Non-interest expenditures increased 23.9% year-on-year to $25.3 billion, while interest payments fell 26.9% to $4.3 billion.

Tax revenues surged 72% year-on-year to $28.05 billion.

Income tax revenues rose 145.7%, domestic value-added tax (VAT) receipts increased 89.6%, and value-added tax collected on imports climbed 53.1%.

Meanwhile, corporate tax revenues increased 31.8%, and special consumption tax receipts edged down 0.1%.

In the January-June period, central government budget expenditures rose 32.7% year-on-year to $185.5 billion, while revenues increased 39.1% to $165.5 billion.

The budget thus posted a deficit of $20 billion during the first half of the year, compared with a deficit of around $20.8 billion in the same period of 2025.

Tax revenues in the six months increased 38.7% to $140.7 billion.

Interest expenditures rose 31.7% to $31 billion, while non-interest expenditures increased 32.9% to $154.5 billion.

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The U.S. will impose ⁠a 25% tariff on most imports from Brazil starting July 22, the U.S. Trade Representative’s office said on Wednesday, the first action under the Trump administration’s new tariff strategy that could eventually ​affect dozens of countries.

The new program, launched after the U.S. Supreme ​Court tore ⁠down the centerpiece of Trump’s tariff system earlier this year, is based on investigations into unfair trade practices under Section 301 of the U.S. Trade Act.

Close to 80 trade investigations have been opened by the USTR office and a new wave of tariffs could be imposed on dozens of countries, including China, the EU, India, Japan, South Korea and Mexico.

Wednesday’s announcement follows a proposal by the Trump administration in June to impose a punitive tariff of 25% on many imports from Brazil after deciding its practices were unfair on a range of issues from digital trade to illegal deforestation.

“Extensive negotiations with Brazil over the past year have not resolved these issues, but we remain open to continuing negotiations with Brazil to bring about long-needed ⁠changes ⁠to the problems identified in this investigation,” U.S. Trade Representative Jamieson Greer said in a statement.

Brazilian President Luiz Inacio Lula da Silva said the U.S. decision was without any justification.

Brazil would immediately begin proceedings to invoke instruments provided for under the “Reciprocity Law” and revisit the matter within the framework of the WTO dispute settlement mechanism, he said on X.

U.S. Secretary of State Marco Rubio, who was accused by Lula of being anti-Latin America when the U.S. tariffs were proposed in June, blamed the Brazilian president and said, “Lula and his government have not negotiated with the U.S. in good faith.”

“For the ⁠past year, Lula has put his own ego ahead of making a deal for the welfare of the Brazilian people, and these tariffs are the price for that,” Rubio said in a strongly worded post on X.

The tariffs would apply to thousands of Brazilian imports, including sugar, agricultural machinery, apparel, electrical machinery, paper and steel.

The ​U.S. said it would exempt all the products proposed for exemption in the June notice, except high-purity dissolving pulp and non-pharmaceutical applications of certain products.

The exemptions include beef, coffee, rare ⁠earths, energy products, aircraft ‌and aircraft ‌parts.

The U.S. also added organic honey, pig iron, unflavored instant coffee and ⁠some other products to the list of exemptions on Wednesday.

The investigation ‌into Brazil, opened last July, cited several alleged unfair practices, including illegal deforestation and Brazil’s instant payment system, Pix, which the U.S. ​government argues disadvantages credit card companies.

Brazil ⁠vehemently rejected all the allegations.

Brazil has also been included in a separate ⁠Section 301 investigation by the USTR, due to conclude on July 24, into connections to forced labor in ⁠the supply chains of ​dozens of countries.

The probe is expected to result in an additional 12.5% tariff, bringing the total burden for Brazilian products to 37.5%.

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Hungary’s former foreign minister has resigned his seat in parliament and taken an executive position with Chinese electric vehicle maker BYD, he announced in a social media post on Wednesday.

Peter Szijjarto, who served as Hungary’s top diplomat for nearly 12 years in the government of former Prime Minister Viktor Orban, wrote on Facebook that he had received “a highly prestigious offer” from the world’s top electric carmaker “to fill an international position.”

“BYD is one of the greatest success stories in the automotive industry over the past 20 years,” Szijjarto wrote. “Starting today, I will continue to work as the executive responsible for the group’s external relations and the development of new business lines.”

Szijjarto lost his position as foreign minister after Orban and his far-right Fidesz party lost a landslide election in April to the pro-European Tisza party and its leader, Prime Minister Peter Magyar.

Since then, Szijjarto had been absent for most parliamentary votes and rarely appeared in public or posted on social media. He has held a seat in Parliament since 2002.

In 2023, Szijjarto announced that his now-employer BYD would open its first European factory in Hungary – allowing the conglomerate to skirt European Union import tariffs on Chinese electric vehicles imposed to protect the continent’s domestic auto manufacturing sector.

As Hungary’s foreign affairs and trade minister, Szijjarto played a central role in talks with BYD on bringing the plant to Hungary, and said at the time that the decision came after 224 rounds of negotiations between the company and Hungary’s government.

Szijjarto called the project “one of the largest investments in Hungarian economic history,” and said the government would provide financial incentives to BYD for building the plant.

While in office, Szijjarto and Orban opposed EU tariffs against Chinese products and sought major investment from Beijing, opening a series of Chinese EV battery manufacturing plants across the country.

Orban’s government and Beijing also jointly developed a rail corridor between Hungary and Serbia that is part of China’s “Belt and Road” global trade initiative.

While foreign minister, Szijjarto maintained close relations with Russia despite its full-scale invasion of Ukraine on Feb. 23, 2022. Breaking with nearly all of his EU counterparts, he frequently traveled to Moscow to negotiate agreements on purchasing Russian oil and gas, and to meet with Russian Foreign Minister Sergey Lavrov, whom he referred to as his “friend.”

Szijjarto was awarded the Russian Order of Friendship in 2021 by President Vladimir Putin, one of the highest state honors that can be received by a foreign citizen.

He was embroiled in controversy during Hungary’s 2026 election campaign when The Washington Post reported that he made regular phone calls to Lavrov during high-level EU meetings with “live reports on what’s been discussed.”

Szijjarto dismissed the report while acknowledging that he conferred with Lavrov before and after EU foreign minister meetings about their agenda and decisions.

In March, Orban’s government launched espionage charges against a prominent Hungarian investigative journalist for activities he carried out while investigating Szijjarto’s communications with Lavrov. Those charges were dropped after Hungary’s new government took office.

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Ukraine’s Parliament ratified the free trade agreement (FTA) with Türkiye on Tuesday, a key step toward the pact’s entry into force and paving the way for deeper economic ties.

The agreement was signed during President Recep Tayyip Erdoğan’s visit to Ukraine in February 2022. It completed Türkiye’s ratification process in 2024.

“Another historic milestone has been reached in the Türkiye-Ukraine Free Trade Agreement,” Trade Minister Ömer Bolat said.

Bolat added that the Ukrainian Parliament’s approval opens a door to “a new era of economic and trade cooperation” between the two countries.

The agreement is expected to enter into force after being signed by Ukrainian President Volodymyr Zelenskyy.

Bilateral trade between Türkiye and Ukraine reached $6.2 billion in 2024 and increased to $6.6 billion in 2025, according to official data.

Trade rose a further 10% year-over-year in the first half of 2026 to around $3.2 billion.

Under the agreement, around 90% of bilateral trade will be liberalized on a reciprocal basis, Bolat said, adding that it will boost the competitiveness of Turkish exporters in the Ukrainian market.

The minister said the agreement would also facilitate trade in services, strengthen logistics operations, support Turkish contracting services and provide a more transparent and secure legal framework for reciprocal investments.

Bolat said the deal would bring the two countries closer to their jointly declared target of increasing bilateral trade to $10 billion, a goal set by Erdoğan and Zelenskyy.

The two leaders met in April, before Zelenskyy arrived in Ankara last week for the NATO summit.

Meanwhile, Foreign Minister Hakan Fidan was due to arrive in Kyiv on Wednesday, in a visit expected to focus on strengthening bilateral ties, advancing efforts toward a lasting peace, and enhancing regional security.

Fidan last visited Ukraine in late May 2025. He was scheduled to be received by Zelenskyy on Wednesday and hold meetings with Foreign Minister Andrii Sybiha, Presidential Office head Kyrylo Budanov and National Security and Defense Council Secretary Rustem Umerov.

During the meetings, Fidan was expected to discuss steps to deepen the Türkiye-Ukraine strategic partnership and expand cooperation in areas including economy, energy, and defense.

He is also expected to stress the importance of sustaining diplomatic efforts toward a lasting peace in Ukraine and reiterate that Türkiye remains ready to bring Ukraine and Russia back to the negotiating table.

NATO member Türkiye has sought to maintain good relations with its warring Black Sea neighbors, pitching itself as a key go-between and possible peacemaker between the two.

It has played a role in brokering several prisoner swap deals between Russia and Ukraine and helped put in place a deal in 2022 to ensure grain could be shipped safely from Ukraine’s Black Sea ports. The accord remained in effect for a year.

Istanbul was the venue of peace talks between Russia and Ukraine in the early weeks of the conflict four years ago.

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Türkiye increased foreign arrivals by 21% between 2019 and 2025, making it the fourth-fastest-growing destination among leading tourism markets, according to an Organisation for Economic Co-operation and Development (OECD) report.

International tourist arrivals across OECD countries reached a record 847 million in 2025, up an estimated 3.4% from a year earlier, extending the sector’s recovery after an 8.1% increase in 2024, the OECD said in its Tourism Trends and Policies 2026 report.

The report noted that geopolitical tensions, conflicts in the Middle East, shifting travel preferences and extreme weather events continue to shape the global tourism outlook.

Security concerns, rising travel costs and uncertainty over cancellations have encouraged travelers to favor familiar and lower-cost destinations, while airlines and tourism operators are reassessing plans for 2027 and beyond.

Among countries that surpassed pre-pandemic tourism levels, Japan recorded the strongest growth in international arrivals between 2019 and 2025, with a 34% increase, followed by Norway at 28% and Denmark at 22%.

Türkiye ranked fourth with a 21% rise in international visitor numbers, placing it among the countries that have expanded tourism demand most significantly since before the COVID-19 pandemic.

The OECD said roughly one-third of member countries expect tourism performance in 2026 to exceed 2025 levels and set new records, although geopolitical risks, economic uncertainty and climate-related challenges remain key concerns for the industry.

Firuz Bağlıkaya, chair of the Association of Travel Agencies of Türkiye (TÜRSAB), said tourism is among the sectors most sensitive to geopolitical developments, health crises, natural disasters and economic volatility.

“Türkiye has a strong tourism ecosystem that has successfully managed numerous global and regional crises,” Bağlıkaya said, attributing much of that resilience to the experience of travel agencies and industry stakeholders.

He said the industry’s future growth should be measured not only by visitor numbers but also by spending per tourist, average length of stay, sustainability of tourism revenues and overall contribution to the economy.

Türkiye welcomed a record 52.78 million foreign tourists in 2025, while total visitor numbers rose to a new all-time high of 63.94 million.

Tourism revenues increased 6.8% to $65.23 billion, surpassing the government’s Medium-Term Program (OVP) target of $64 billion.

For 2026, the government is targeting $68 billion in tourism revenue.

Tourism is a vital industry that Türkiye relies on to help flip its chronic current account deficit to a surplus. The sector contributes about 10% to the country’s gross domestic product (GDP) and accounts for about 5% of total employment.

TÜRSAB’s Bağlıkaya said Türkiye should focus on expanding higher-value tourism segments, including cultural, gastronomic, health, convention, sports, faith-based, cruise and rural tourism, to spread tourism activity throughout the year and increase visitor spending.

He added that Türkiye’s goal of generating $100 billion in tourism revenue will require a greater emphasis on quality and value creation rather than volume alone.

Bağlıkaya also highlighted cruise tourism as one of the highest-spending segments and said Türkiye could strengthen its position by integrating its cruise ports more closely with Istanbul Airport, one of the world’s leading aviation hubs.

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