PARTNER-UP FOR INTERNATIONAL GROWTHTURKISH CONSTRUCTION INDUSTRY INSIGHTS 2019

Turkey

2019 April

AND STAKEHOLDERS ARE NOW LOOKING FOR INTERNATIONAL MARKETS

EXECUTIVE SUMMARY

Turkish construction has year after year grown at rates between

6 – 9 % annually the past 10 years and along the way given

birth to multiple international contracting companies. Currently

there are 8 Turkish companies in ENR’s top 100 contractors

in the world.

Internationally, Turkish contractors have undertaken more than

9 000 projects in 122 countries between 1972 and 2018,

totalling a value of 375 billion USD.

The international revenue of the top 8 Turkish contractors

alone amounted for 11.6 billion USD in 2017. Additionally,

Turkish contractors also have a high percentage of

international revenue, averaging at 78%, of their total revenue.

This creates vast opportunities for Swedish companies

looking to expand both into Turkey and internationally

through Turkey.

In this report we present the current state of construction in

Turkey.

We look forward to hear from you in the near future to discuss

your international expansion strategies.

HISTORIC GROWTH

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

50

100

150

200

250

300

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Construction Sector GDP Value by Years

Value (Billions TRY) Share of GDP(%)

25 APRIL, 2019BUSINESS SWEDEN 2

TURKISH CONSTRUCTION HAS GROWN EXCEPTIONALLY

Billions TRY Share of GDP (%)

Turkish construction industry has been a locomotive sector for the country with

an average annual GDP growth rate of approximately 6% from 2002 to

2017. The construction sector stands for approximately 9% of the Turkish

economy, or 266 billion TRY* as of 2017, and as such during the past two

decades multiple large stakeholders have emerged now hungry to grow

internationally, which opens up possibilities for Swedish companies.

SOURCE: TURKSTAT, BUSINESS SWEDEN RESEARCH *1 TRY = 1.63 SEK AS OF 2019-04-10

INTERNATIONAL OPPORTUNITIES FOR SWEDISH COMPANIES THROUGH TURKEY

TOP CONTRACTORS

The Turkish construction market consists of hundreds of contractors active

both domestically and internationally. Below we have listed the top

contractors according to ENR Top 250 2018.

25 APRIL, 2019BUSINESS SWEDEN 3

8 CONTRACTORS AMONG THE TOP 100 IN THE WORLD

SOURCE: ENR 2018, BUSINESS SWEDEN RESEARCH

ENR

2018

Rank

ENR

2017

Rank

Contractor

2017

Int. Revenue

($ mil)

2017

Total Revenue

($ mil)

36 38RENAISSANCE

CONSTRUCTION3 638 4 679

68 85 LIMAK INSAAT 1 550 2 420

70 76 TAV CONSTRUCTION 1 455 1 585

73 92 GAP INSAAT 1 200 1 405

79 72 ENKA INSAAT 1 117 1 195

82 78 YAPI MERKEZI INSAAT 1 000 1 139

86 86 ANT YAPI 934 1 037

98 112TEKFEN

CONSTRUCTION776 1 331

Int. % of

Revenue

77%

64%

91%

85%

93%

87%

90%

58%

There are a total of 8 Turkish contractors in the top 100 of ENR’s 2018

list of top contractors by revenue with Renaissance Construction, with a

total revenue of approximately 4.7 billion USD, at the top.

We believe that there are two key take-aways from the list. The first one is

that Turkish contractors are growing at an alarming speed each year

and the second is the high percentage of international revenue they

generate, reaching an average of 78%*.

This means that Turkish contractors are growing and establishing a

strong foothold in the international construction markets, which

means opportunities for Swedish companies looking to expand

internationally.

This is where the strength of Business Sweden comes into play. With

our international presence and network into the Turkish construction

industry, Business Sweden can help your company identify the right

stakeholders and decision makers along with providing detailed insights

of the products and solutions Turkish contractors are looking for.

Together with our help your company can seize new international

market opportunities by targeting Turkish contractors.

*Average of the top 8 contractors

BUSINESS SWEDEN

DOMESTIC GOVERNMENT FUNDED MEGA PROJECTS IN TURKEY ARE IN THE PIPELINE

INFRASTRUCTURE

Canakkale

1915 Bridge

Quick facts:

Longest main span(2,023 km) of any suspension bridge in the world

Bridge Length: 4,608 m

88 km motorway (including the Bridge)

Investment size: $2.8 Billion with BOT

Kanal

Istanbul

Quick facts:

Sea-level waterway connecting the Black Sea with Sea of Marmara

43 km long, 25 m deep and 150 m wide

6 bridges

New satellite cities

Grand Istanbul

Tunnel

Quick facts:

Triple-deck with 17.5 m in diameter and 4.5 km in length

2×2 lane highway and dual line metro

30km metro line with 13 stations and 16 km highway

Izmir Bay

Crossing

Quick facts:

Transportation project connecting south and north Izmir

12.6 km long

1 903 m submerged tunnel

880 artificial land

Infrastructure Health Transportation Residential

BUSINESS SWEDEN

TURKEY IS INVESTING MORE THAN 14 BILLION EURO IN ITS HEALTHCARE INDUSTRY BETWEEN 2015-2020

HEALTH

Istanbul Ikitelli

Integrated Health Campus

Quick facts:

Expected bed capacity: 2 682

Expected Area Size: 1 million square meters

Expected Completion: 2020

Sanliurfa

Integrated Health Campus

Quick facts:

Expected bed capacity: 1 700

Expected Area Size: 430 thousand square

meters

Investment Size: 675 million EURO

Infrastructure Health Transportation Residential

Overview & Outlook:

One of Turkey’s strategic goals is

to increase the quality of

healthcare in the near future.

Couple of reasons is the growing

population and middleclass.

Currently, compared with its

OECD peers healthcare

expenditure as a share of GDP is

around 6% (Sweden around 12%

in comparison)

As such, Turkey is investing in

its healthcare industry primarily

by increasing its number of state

of the art hospitals.

In total 21 new hospitals will be

built where 9 are already

operational and 12 more to be

built. Current investment size of

approximately 14.5 billion EURO

stretching from 2015-2020.

BUSINESS SWEDEN

TURKEY IS BECOMING THE HUB OF AIR TRANSPORTATION WITH ITS AIRPORT INVESTMENTS

TRANSPORTATION

Airway

Transportation

Quick facts:

The Istanbul New Airport is currently operational,

though many stages of construction still awaits for it

to reach full capacity.

Additionally, many more domestic airports are

steadily upgraded, for example Turkey’s second

largest Airport which recently increased its capacity

from 30 to 41 million.

Railway

Investments

Quick facts:

Turkey has a national target of increasing its railway

transportation infrastructure and is currently investing

heavily in the industry.

More than 3-4 thousands of km of railways are

targeted to be installed until 2023 along with the

necessary electrification, signaling and

telecommunication solutions.

Infrastructure Health Transportation Residential

Overview & Outlook:

Due to an increasing population,

influx and increasing tourism and

national goals to make Turkey a

transportation hub in the region

and globally, Turkey has since 2013

invested billions of Euros into

transportation.

Its most recent crown jewel being the

Istanbul New Airport. The total

investment estimation when

completed is 36 billion USD.

Complete construction for full

capacity and add-on services such as

logistics centers and airport metro

stations are expected to finalize

sometime during 2027.

In addition to the airway investments

in Turkey, the railway industry is

also under strategic development.

Turkey is aiming to lay an additional

13 000 km of tracks until 2023 and

6 000 km more after that until 2035.

GOVERNMENT ALSO FUNDS RESIDENTIAL & OFFICE BUILDING INVESTMENTS

RESIDENTIAL & OFFICE BUILDINGS

Airport City

Quick facts:

Investment size: 6 billion EURO

Expected Area Size: 10 million square meters

Tender Start: 2019-2020

Istanbul International

Finance Center

Quick facts:

Investment Size: 5 billion USD

Expected Area Size: 3.2 million square meters

Expected Completion: 2023

Infrastructure Health Transportation Residential

Overview & Outlook:

Residential and commercial

construction has since the past 10

to 15 years been the heart of the

Turkish construction industry.

As a result Turkey has given birth to

multiple international contracting

companies, such as Rönesans

Holding.

And in spite of challenging macro

economics during 2018, Turkey’s

investments in large scale

construction projects are still

ongoing.

Two such projects are, the Airport

City which will be a residential and

office campus built on a 10 million

square meter area directly

connected to the Istanbul New

Airport. Total investment size is

expected to be 6 billion EURO. A

second project of significant

magnitude is the Istanbul

International Finance Center, which

is under construction and expected to

finish around 2023.

MARKET STRUCTURE & KEY STAKEHOLDERS

Business Sweden in Turkey has an established network and relationships with various actors within the

Turkish construction industry. Depending on your company’s go-to-market needs, the right channel

strategy can be identified and implemented.

25 APRIL, 2019BUSINESS SWEDEN 8

BUSINESS SWEDEN KNOWS THE MARKET STRUCTURE AND HAS AN ESTABLISHED LOCAL NETWORK

Project

Owner

Contractor /

Consortium

Ministries &

AssociationsConstruction

Consultants

MEP

Consultants

Environ-

mental

Consultants

SUB

Contractors

ESCO’s

Architects

Distri-

butors

Financial

Institutions

CONTACT US

25 APRIL, 2019BUSINESS SWEDEN 9

+43 664 235 15 25

Edin.Erkocevic@business-sweden.se

www.business-sweden.se

Edin Erkocevic

Trade Commissioner & Country Manager to

Turkey Business Sweden