Resilient Performance Despite Global Economic Challenges and Geopolitical Risks
In the first half of 2024, Turkish contractors undertook $7.6 billion worth of projects abroad, demonstrating the sector’s resilience amid global economic challenges and geopolitical risks such as the COVID-19 pandemic and the Russia-Ukraine war, according to data compiled from the Ministry of Trade.
In 2019, the sector managed 545 projects valued at $20.1 billion overseas. However, the adverse economic impact of the pandemic saw the value of these projects decrease to $16.6 billion in 2020, with 385 projects undertaken. As the effects of the pandemic waned, project value surged to $31.1 billion in 2021, marking one of the highest annual figures since 2012 and 2013.
In 2022, Turkish contractors handled 505 projects worth $19.9 billion. Despite ongoing global economic challenges and the Russia-Ukraine conflict, the sector recorded $28 billion in project value across 431 projects last year.
In the first six months of 2024, Turkish contractors undertook 82 projects abroad, totaling $7.6 billion. The average project value in this period reached approximately $92.3 million, showing a significant increase from previous years.
Russia Tops Project Destinations
Since 1972, Turkish contractors have executed 12,207 projects worth $511 billion in 137 countries. Russia remains the top destination, accounting for 20% of the total project value at $102.3 billion. Turkmenistan follows with a 10.5% share and $53.4 billion in project value, while Iraq ranks third with a 6.8% share and $34.7 billion in project value. Libya and Kazakhstan follow, with projects worth $30.9 billion and $29 billion, respectively. Saudi Arabia stands out with $28.2 billion in projects, representing a 5.5% share.
Turkish contractors have also made significant inroads in Algeria ($21.3 billion), Qatar ($20.3 billion), Azerbaijan ($19.3 billion), and the UAE ($13.2 billion).
Infrastructure and Housing Lead Project Types
Among the various types of projects undertaken, road, tunnel, and bridge construction projects account for the largest share at 13.9%. Residential projects follow closely at 13.8%, with energy plants (8.6%), commercial centers (7%), and airport investments (6.5%) also making significant contributions.
Competitive Edge in International Markets
On the global stage, Turkish contractors continue to shine. According to Engineering News-Record (ENR) magazine, which ranks the world’s top 250 contractors based on the value of international projects undertaken, Turkiye has seen its representation grow from 8 firms in 2003 to 40 firms in 2023. Notably, 6 Turkish firms were listed among the top 100, and 2 made it into the top 50. In terms of the number of firms, Turkiye ranks second only to China.
Source: Trthaber / Prepared by Irem Yildiz