In the 1990s, Turkey’s trade and investment in the region was largely concentrated in Romania and Bulgaria, which had relatively larger markets and cordial relations with Turkey. In the 2000s, the growth of the Turkish and Balkan economies and the signing of free trade agreements led to remarkable growth in bilateral trade with all countries in the region. As the Balkan economies offered a more suitable climate for foreign investors, Turkish companies showed more interest in the region, investing in various sectors such as banking, energy, mining, communications, transportation and construction. Although the majority of Turkish investments are still concentrated in Romania and Bulgaria, Turkey is among the four countries with the largest stock of foreign investments in Kosovo and Albania.
Turkey’s development assistance to the Balkans also increased significantly after the mid-2000s. To address infrastructure issues, promote economic growth, and foster good-neighborly relations, Turkey continued to provide assistance to public institutions, municipalities and NGOs in the Balkan countries in the form of financial support, materials, vehicles and knowledge transfer. After natural disasters and during the global Covid-19 pandemic, Turkey has provided the people of the Balkans with food, vaccines, medicine and shelter.
While continuing its participation in various regional cooperation platforms, Turkey also launched multilateral dialogue mechanisms during the 2000s to resolve political issues in the Balkans and promote cooperation. Among these, the trilateral dialogue mechanism with Bosnia and Herzegovina and Serbia has produced the most tangible results. Most recently, at the initiative’s summit in October 2019, the construction of the Belgrade-Sarajevo highway, built with Turkish support, was officially launched.
