Gabriel cautioned its citizens against traveling to Turkey while threatening to take measures that could hinder German investment in the country.

Last week, German media reported that Turkish authorities handed Berlin a list of almost 700 German companies, including Daimler and BASF, that were accused of having links to the US-based Turkish cleric Fethullah Gulen, accused by the Turkish government of masterminding last July's failed coup.

Ankara immediately withdrew its requests from Germany via the Interpol, adding that German companies based in Turkey were not under investigation.

Prominent German companies such as Daimler AG, Deutsche Bank, Siemens, Volkswagen and Axel Springer SE have remarkable investments in Turkey.

Kemal Sahin, board chairman of the Sahinler Holding, who also attended the Turkish prime minister's meeting with German business executives, said the political dispute should be resolved between two countries since it will have adverse affect on future German investments here.

At the meeting, Turkish minister of economy told the participants that they plan to hold meetings with CEOs of firms investing in Turkey in fall at the headquarters in Germany in order to remove their concerns.

In 2016, the trade volume between the two countries reached 35 billion US dollars.

Germany is the biggest exporter of tourists to Turkey. A total of 5.5 million German tourists visited Turkey in 2015, though the number dropped to only 3.8 million in 2016.

Ahmet Insel, an economist and daily Cumhuriyet columnist, emphasized that although German companies have not withdrawn their current investments in Turkey, it would be difficult for Turkey to attract new investment from now on.

Other investors from western countries could also be deterred from making investments in Turkey by the treatment of German companies.

Turkish economy could slow down in the upcoming period, Insel warns, citing the decline in direct foreign investment in recent years, partly because of Turkish government's strained ties with some foreign countries.