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Iran's contruction sector promising for Turkey

SEDA TABAK
ISTANBUL
Published

The nuclear deal reached between the five permanent members of the U.N. Security Council - the U.S., the U.K., France, Russia and China plus Germany - known as the P5+1 - and Iran has aroused expectations for the removal of sanctions on Iran in the short term. The agreement has been welcomed by the construction sector, which is slated to enter a new period with the elimination of sanctions. The expectations have turned the course of the construction industry to Iran, which offers significant opportunities in a good number of fields, including major tourism projects and mass housing projects because of demands that have accumulated in the country over many years. Iran's $100 billion worth of frozen assets abroad - due to the embargo - have the potential to enable major cash inflow into the sector.

In addition to Turkish construction companies, expectations for the elimination of sanctions have also whetted Western building firms' appetites. Competition between Turkish and Western European construction firms will be seen in the upcoming days. The sector's representatives suggest that Iran's integration into the international market is a golden opportunity for the construction sector. They argue that the removal of the embargo will lend impetus to foreign sales in the Turkish construction sector and that construction costs will drop with Iranian building sector brands entering the market. Hamit Demir, the CEO of Demir İnşaat, said Iranian investors would also start to invest outside of Iran in the new period, adding that Turkey should make a move to attract them to purchase houses in Turkey. "We expect that the new government to be formed will make use of this opportunity and open Turkey up to the Iranian market, which is worth around $150 billion," Demir continued.

Uğur Dumankaya, the CEO of Dumankaya İnşaat, stated there would be significant dynamism in the sector with the inclusion of Iran in foreign sales in the upcoming days. Sales in the sector will soar, he said, adding that Turkish companies will also enter and invest in the Iranian market in the near future.

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