logo
Turkiye's booming defence industry

Turkiye's booming defence industry

Al Jazeera17-03-2025
Turkiye has always placed a premium on its defence, initially buying then developing its own weapons.
The owner of NATO's second-largest standing army has also emerged as a notable weapons exporter, with some iconic products on the international market.
Turkiye's exports increased year on year to reach $7.1bn in 2024 – from $1.9bn a decade prior – with customers across Europe and the Middle East.
What's behind this growth? What are Turkiye's capabilities? And why is it important? Here's what we know:
When did Turkiye move to domestic production?
Turkiye has sought military self-sufficiency for a while, a gradual process that saw it establish the Defence Industry Development and Support Administration Office (SAGEB) in 1985.
For years, SAGEB focused on international collaboration in research and development. But as Turkiye came up against restrictions on what weapons it could purchase and how it could use them, that switched to local production.
In the 2010s, it switched focus to domestic design, resulting in a huge increase in domestic defence production.
Today, thousands of Turkish defence manufacturers span land, air, and naval capabilities, which is being increasingly recognised internationally.
Have you heard about Turkish drones?
Perhaps the most famous Turkish unmanned aerial vehicle (UAV) is the iconic Bayraktar TB2, first deployed in 2014, one of the most widely purchased Turkish defence products.
There are several others, however, including the medium-altitude long-endurance Anka-S, which has a payload of 200kg (441lb), and the Vestel Karayel tactical UAV with a 70kg (154lb) payload.
The country is also working on its 'Steel Dome' (Celik Kubbe), described as a system that, augmented by AI, can identify and intercept any airborne threat.
Additionally, work is ongoing on the first domestic fifth-generation fighter, the Turkish KAAN, which aims to replace aging American F-16s in the Turkish Air Force.
What else is in Turkiye's catalogue?
On the ground, Turkiye's armoured vehicle production is spearheaded by the Altay main battle tank, designed to rival Western models such as the German Leopard or the US Abrams.
The army also has a mine-resistant vehicle, the Kirpi (Hedgehog), widely used in counterinsurgency operations, as well as modern infantry fighting vehicles like the FNSS Defence Systems' Kaplan and the Pars.
There's also naval production, with MILGEM (Milli Gemi Projesi, or the National Ship Project), which was set up in 2004 to produce the next generation of Turkish naval class ships.
MILGEM has produced state-of-the-art Ada-class corvettes and Istanbul-class frigates, with plans for more advanced warships and submarines.
Most remarkable is the amphibious drone-carrying assault ship, the TCG Anadolu, the largest ship in the Turkish navy, which was deployed in 2023.
Finally, there's a long list of smart munitions, air defence systems, and missiles, such as the Bora short-range ballistic missile and the long-range Atmaca (Hawk) missiles.
Why the interest in arms manufacturing?
Turkiye's push to develop military hardware can be said to be as much a result of outside forces as internal drivers.
In the mid-1970s, the United States put an arms embargo on Turkiye over its military intervention in Cyprus.
In the early 1990s, Germany instituted an export ban on arms to Turkiye, saying armoured cars it sold to Turkiye had been used domestically when the contract had specified they could only be used against an attack by a non-NATO state.
Then in 2020, the US sanctioned Turkiye over its purchase of the Russian S-400 air defence system, by which time Turkiye was already established as an arms manufacturer.
Today, there are about 3,000 weapons companies in Turkiye.
So how much is Turkiye exporting?
Exports have increased so they now comprise 1.7 percent of global arms exports, putting the country in 11th place for the period from 2020 to 2024 in the ranking of the world's defence exporters, according to the Stockholm International Peace Research Institute (SIPRI).
According to monitors, during the last year, Turkiye's exports reached 178 countries, marking a 103 percent increase compared with 2015-2019.
Its main customers in the 202-2024 period were the United Arab Emirates, Pakistan and Qatar, according to SIPRI.
As for its most famous export, the Bayraktar medium-altitude long-endurance drone has reportedly been exported to at least 31 countries, including Iraq, Ukraine, Kenya, Bangladesh and Japan.
Last year, its manufacturer Baykar announced the investment of $300m in developing its own jet engines, aiming to take on more component production and avoid international supply chain challenges.
It aims to develop an in-house engine for its Akinci drone, then a turbofan engine for Kizilelma, an unmanned air-to-air combat vehicle that is under development. So far, both use Ukrainian engines.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Turkey to receive Eurofighter jets after Germany, UK agreements
Turkey to receive Eurofighter jets after Germany, UK agreements

Qatar Tribune

time3 days ago

  • Qatar Tribune

Turkey to receive Eurofighter jets after Germany, UK agreements

dpa Berlin/Istanbul The German government has cleared the way for the export of Eurofighter Typhoon jets to Turkey, removing a key obstacle to a major arms deal involving the United Kingdom. German government spokesman Stefan Kornelius confirmed in Berlin on Wednesday that the Defence Ministry has sent written authorization to Ankara. The Turkish government must now decide whether to proceed with the order, he said. The move follows an earlier announcement on Wednesday by the UK and Turkey, which signed a letter of intent to advance a potential deal for the sale of 40 Eurofighters. The jets are assembled in Britain as part of a multinational consortium involving Germany, Italy and Spain, meaning all four countries must approve any export deal. The British Defence Ministry called the agreement a 'significant step forward,' saying it would bolster NATO's deterrence capabilities and support thousands of defence jobs. British Defence Secretary John Healey described the potentially multibillion-pound deal as a 'major milestone.' Turkey seeks to modernize air defence Turkey, which was ejected from the US-led F-35 fighter jet programme in 2019 after acquiring Russia's S-400 missile defence system, is seeking to diversify its defence procurement. US officials argued at the time that the S-400 could compromise sensitive F-35 stealth data and pose a security risk. The Turkish Defence Ministry told dpa on Wednesday that the planned Eurofighter purchase is not linked to the F-35 dispute, but is part of a broader strategy to modernize its air force. Analysts have noted that Ankara will need to invest in new infrastructure and training before the jets can be delivered and become operational. Export policy shift in Berlin Germany's involvement in the Eurofighter consortium had previously stalled the deal, as Berlin had not signed off on the necessary export licences. Arms deliveries to NATO partner Turkey have long been politically sensitive in Germany, due to concerns over Ankara's human rights record and foreign interventions. After Turkey's 2016 military operation in Syria, Berlin significantly scaled back arms exports.

Turkish central bank returns to easing, cuts key rate to 43%
Turkish central bank returns to easing, cuts key rate to 43%

Qatar Tribune

time3 days ago

  • Qatar Tribune

Turkish central bank returns to easing, cuts key rate to 43%

Agencies The Turkish central bank lowered on Thursday its key policy rate by 300 basis points (bps) to 43%, slightly above the general market consensus, resuming an easing cycle as inflation in the country continued to ease in recent months. The Central Bank of the Republic of Türkiye (CBRT) said the underlying trend of inflation 'remained flat in June,' with leading indicators suggesting 'a temporary rise in monthly inflation in July due to month-specific factors.' The bank has also reduced its overnight lending rate from 49% to 46% and the overnight borrowing rate from 44.5% to 41.5%, it said in a written statement following the Monetary Policy Committee (MPC) meeting. Annual inflation was at 35.05% in June – down from 35.41% in May – and lowest since late 2021, according to official data. Inflation has dropped consistently from a peak of 75% in May last year. 'Recent data indicates that the disinflationary impact of demand conditions has strengthened,' the bank said. Going forward, the central bank said it would determine the 'step size' of future monetary easing 'prudently' and on a meeting-to-meeting basis. The cut, which markets read as 'sizeable,' came after the bank earlier in April raised its key interest rate to 46% due to market fluctuations following the arrest of Istanbul's mayor. Most estimates, including those from financial institutions and polls, expected the central bank to cut rates by 250 basis points on Thursday, although they varied between 250 bps and 350 bps. The lira currency remained stable after the decision at 40.48 to the dollar. The bank also underlined that the potential impact of geopolitical developments and rising trade protectionism on the disinflation process 'are being closely monitored.' Repeating its statement from the previous meeting, it also again cited that inflation expectations and pricing behavior 'continue to pose risks to the disinflation process.' It also pledged that the tight monetary policy stance, 'will be maintained until price stability is achieved,' adding this would 'support the disinflation process.

Turkey inflation expectations down ahead of key rate meeting
Turkey inflation expectations down ahead of key rate meeting

Qatar Tribune

time6 days ago

  • Qatar Tribune

Turkey inflation expectations down ahead of key rate meeting

Agencies Inflation in Turkey is forecast to fall to 29.66% as of the end of the year, according to a survey by the country's central bank on Monday that showed expectations continued to improve ahead of a key policy rate meeting this week. The projection is down from 29.86% expectation in June and 30.35% forecast in May, according to the Survey of Market Participants for June by the Central Bank of the Republic of Turkey (CBRT). Aggressive monetary tightening since mid-2023, combined with favorable energy prices, has helped reduce Turkey's annual inflation rate by more than half over the past year. The inflation lastly dipped to 35.05% in June. Monthly inflation was 1.37%, with price declines in key categories such as food and beverages reinforcing the central bank's view that a disinflation trend is taking hold. The central bank has repeatedly cited expectations as one factor determining the course of its monetary policy. In May, it maintained its year-end mid-point estimate for the consumer price index (CPI) at 24%, with an upper band of 29%. Turkish officials continue to emphasize that inflation will remain within this forecast band. The better-than-expected June inflation print renewed expectations that the central bank would return to an interest rate-cutting cycle at the meeting of its Monetary Policy Committee (MPC) this Thursday. All but one of the 17 economists in a Reuters poll forecast the bank to cut the policy rate this week. The median forecast was for a 250 basis-point cut to 43.50%, with predictions ranging from 42.50% to 44.50% among those expecting an easing step. Thirteen respondents expected a cut of 250 basis points, while one predicted the bank to hold rates at 46%. Most expect rate cuts to continue in the months ahead, with the policy rate falling to 36% by the end of 2025, according to the bank's survey. The monetary easing is likely to continue through at least the third quarter of 2026, an earlier poll of economists showed. If delivered, the move would mark the first cut since a surprise 350 basis-point hike in April, which reversed an earlier easing cycle. That tightening helped stabilize markets after the jailing of Istanbul Mayor Ekrem Imamoğlu sent Turkish assets and the lira sharply lower in March. Imamoğlu was arrested pending trial over graft charges. Morgan Stanley also expects a 250 basis-point cut this month, followed by three additional cuts of the same size to bring the policy rate to 36% by year-end. Markets see inflation 12 months from now falling to 23.39%, the CBRT survey showed on Monday. That is down from 24.56% in the June survey. The 24-month inflation outlook edged down from 17.35% to 17.08%, the bank said. On the currency front, participants revised their year-end dollar/lira forecast slightly upward to 43.72, from 43.57. The 12-month forecast for the exchange rate also rose from 47.04 to 47.70.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store