Business

Turkish contractors undertake $6.5 billion of work abroad

The amount of projects undertaken by the Turkish contracting industry abroad in the January-May period was $6.5 billion. From 1972 until the end of May, the sector took part in 11,745 projects worth $479.5 billion in 133 countries.

According to the compilation made from the Ministry of Commerce data, from 1972 until the end of May, the overseas contracting sector undertook 11,745 projects worth $479.5 billion in 133 countries.

Despite the serious political instability, cyclical problems and the effects of the Covid-19 outbreak in the target countries in 2020, the sector received 371 jobs worth $16.2 billion.

In 2021, in parallel with the decrease in the negative impact of the epidemic on the world economy, the total cost of the projects undertaken by Turkish companies abroad increased to $30.7 billion. The number of projects undertaken during this period was recorded as 443.

The overseas contracting industry spent the last year under the shadow of global economic problems and the Russia-Ukraine War. In this period, the number of projects undertaken by the sector was 492, and the total project cost was $19.1 billion. The average cost of projects undertaken last year was calculated as $38.8 million.

The sector undertook 96 projects in the January-May period of this year. The cost of the projects undertaken during this period was recorded as $6 billion 459 million 199 thousand. The average cost of the projects undertaken in the first 5 months of the year was calculated as $67.2 million.

Russia and Turkmenistan are at the top of the list

Russia ranked first with a share of 20.4% in the distribution of projects undertaken abroad by contracting companies since 1972, by country. To date, $97.9 billion of projects have been carried out in the country in question.

Turkmenistan followed Russia with a share of 10.6%. The amount of projects undertaken in this country amounted to $50.8 billion. Iraq ranked third with a 6.9% share and $33.1 billion of projects undertaken. These countries were followed by Libya and Kazakhstan.

The Saudi Arabian market, which the contracting industry focuses on to get more shares, also stood out with a 5.2% share and a project cost of $24.9 billion.

Looking at the areas where the most projects were undertaken to date, it was seen that housing projects took the first place with a share of 13.9%. The cost of these projects was $66.6 billion.

Housing projects were followed by highways, tunnels and bridges with a share of 13.5% and a project value of $64.7 billion.

The energy sector ranked third in the works undertaken abroad with a share of 8.5%. The amount of projects undertaken by this sector to date has exceeded $40.5 billion.

Turkish contractors have undertaken $34.7 billion of trade center and $30.7 billion of airport projects abroad so far.​​​

International competition

On the other hand, in the list showing the world’s top 250 contracting companies, determined annually by the ENR magazine based on the total cost of international projects undertaken in the past year, Turkiye took its place with only 8 contracting companies in 2003, while it showed up with 42 companies in 2022. 8 of these companies in the 2022 issue of the magazine found their place among the top 100 companies in the aforementioned list, while 2 Turkish companies entered the top 50. Turkiye ranks second in the list after China in terms of the number of companies.

Source: Trthaber / Prepared by Irem Yildiz

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