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Turkish firms eye $150-bln global building boom

by Abdülkadir Karakelle

Mar 29, 2014 - 12:00 am GMT+3
by Abdülkadir Karakelle Mar 29, 2014 12:00 am
ISTANBUL — The Turkish construction sector experienced a dramatic increase in construction projects abroad in recent years. In parallel with the rise in the number of such projects, revenue collected from the projects increased. According to information from the Ministry of Economy, the number of projects undertaken by Turkish contractors was 270 in 2003 and rose to 390 in 2013. Revenue from projects abroad by Turkish companies was $17 million (TL 37.26 million) in 2003 and increased to $82 million in 2013. The figure reached $94 million in March 2014.

The Turkish construction sector experienced a dramatic increase in recent years of construction projects abroad. In parallel with the increase in the number of such projects, revenue collected from the projects increased. According to information from the Ministry of Economy, the number of projects undertaken by Turkish contractors was 270 in 2003 and rose to 390 in 2013. Revenue from projects abroad by Turkish companies was $17 million (TL 37.26 million) in 2003 and increased to $82 million in 2013. The figure reached $94 million in March 2014.
The cost of Turkish contracting projects abroad from 1971 to 2003 was $50 billion, rising to $277.7 billion as of March 2014. The cost of projects undertaken by Turkish contractors last year in various parts of the world was $31.8 billion. The total amount of work undertaken in the last 10 years was $224.4 billion. What is more, 38 of the biggest 250 contracting companies in the world are Turkish companies, with Turkey ranking second in the sector after China.

Ömer Ayberk Cengiz, who owns a medium-sized construction company, said Turkish construction small and medium enterprises (SMEs) have the capacity to undertake more projects abroad. "The government should encourage construction SMEs to attend tenders abroad by mediating between foreign governors and construction SMEs," said Cengiz.

Burhan Özdemir, a contractor, spoke to Daily Sabah about the Turkish construction sector's export potential. Özdemir pointed out that the construction sector contributed more than $30 billion of Turkey's total exports in 2013, which was around $151 billion. "It means the construction sector comprises nearly 20 percent of total exports on its own. As it is known that Turkey wants to reach $500 billion in exports by 2023, logically, the construction sector's exports should triple by 2023, which corresponds to $150 billion," Özdemir said. He added, "To achieve this aim, the government should take some responsibility by promoting contractors for projects abroad." To facilitate this, Özdemir suggested state-owned construction institutions should sign up for large construction projects abroad and deliver these projects to construction SMEs via subcontracts. "In this way, we can reach our export targets," he added.
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