French Direct Investments in the Ottoman Empire Before World War I

Abstract

Foreign direct investment entered into the Ottoman Empire to support and develop foreign trade. Europeans who wanted to sell their manufactured products and acquire raw materials were instrumental in the construction of trade-related infrastructure in this country. Therefore, the first French investments, like those of other countries, were made for constructing railways and ports. The growth of raw material production in primary commodities, finally led to an increase in the number of foreign service companies such as banks and insurance providers that served these transport and production facilities. The initial motivations of French investors were mainly economic as they tried to find new markets and secure a viable share in these markets before their international competitors. Motives gradually became political as the opinion about the disintegration of the Ottoman Empire got stronger by the end of the nineteenth century. The French government assisted its investors in obtaining important concessions for investments in Anatolia, the Balkans, and the Arab provinces of the Empire.