Page 96 - Global Power Turkish Defence Industry

Turkey has announced another year of growing defence and aerospace export sales but it is still nowhere
near its goal of US$25 billion per annum by 2023. In 2018, export sales were less than 10% of the claimed
ambition. This, however, should not detract too much from the progress Turkey’s defence industry is making
in the export arena.

At the start of 2019, Undersecretary for the Defence Industry Directorate Ismail Demir said Turkish defence
and civil aerospace exports for 2018 were 17% up on the previous year, reaching a record US$2.035bn. For
the best part of a decade, the Turkish government has set itself the daunting target of hitting an annual
defence and civil aerospace sales and services export target of US$25bn by 2023. ‘Defence’ and ‘security’
exports are supposed to constitute US$5bn each of the total.
Since Turkey does not provide a breakdown by sub-sector for defence and aerospace exports, it is difficult
to know just how close Ankara is from its goals in each subcategory. The US$5bn ‘defence’ export sales
ambition is credible. However, growing the entire ‘defence and aerospace’ sector by a factor of 12 in the next
five years is less so.

While the official targets are confusing, what is clear is the progress Turkey is making towards becoming a
significant defence exporter.

Turkish export successes
Turkish defence exports over the past decade have typically been of wheeled armoured vehicles. Hundreds
of BMC’s Kirpi 4x4 patrol vehicle have been sold to Tunisia and Turkmenistan, while Otokar’s Cobra 4x4
armoured personnel carrier is now in service with countries such as Bahrain, Bangladesh, Mauritania and
Rwanda.

Whilst the quantity of vehicles exported during this time is noteworthy, these are relatively simple and
inexpensive systems, with many companies around the globe offering similar products in what is a crowded
market.
Defence-export contracts signed over the last 12 months, however, reflect the growing capability of the
Turkish defence industry. Frigates, attack helicopters and armed uninhabited aerial vehicles are more
complex than armoured vehicles and require a larger supply chain, as well as a more demanding post-
sales logistics and support service. These systems are now being produced in Turkey, where companies
such as ASELSAN, HAVELSAN and Roketsan produce combat systems and guided weapons. Despite this,
significant industrial capability gaps continue in areas such as marine and aircraft propulsion and in radars.
Static customer base
If the nature of the technology being exported is changing, the customer base is largely the same. Of
the 13 countries Turkey has reported delivering armoured vehicles to since 2010, 11 are both Muslim and
diplomatically friendly. These include Bahrain, Tunisia and Turkmenistan. Similarly, the major contract
signings of 2018 (see table) are also with longstanding allies, Pakistan and Qatar. To date, Turkey has not
been able to match its success in exporting defence equipment to Muslim nations elsewhere in the world.
For example, Turkey has yet to secure any significant defence exports to fellow NATO members.

96 TURKISH DEFENCE INDUSTRY