German insight: Turkish defence industry surges in global markets, asserting dominance

Turkish defence industry has developed rapidly in the last decade and its products have proved its military power many times.

Tükiye is striving for dominance in armaments and defence policy. It wants to depend less and less on third-country partners to produce logistical, technical, conceptual and military systems, Caliber.Az reports, citing the German Institute for International and Security Affairs (SWP).

Ankara focuses on domestic production rather than foreign procurement. Weapons projects such as the development of the TB2 UAV, ATAK helicopter, Altay tank, ANKA-3 stealth attack drone or KAAN stealth fighter show that Ankara is guided by three guiding principles:

1. Systematic stimulation is a "know-how attack" through cooperation with technology parks, start-ups and universities.
2. Increasing independence from foreign manufacturers.
3. Continuous increase of export capabilities of own weapon systems.

In particular, the application of the latter two principles means that the higher the rate of domestic arms production, the lower Türkiye's export restrictions.

With the (temporary) cessation of arms imports by the Turkish Armed Forces and exclusion from cooperation projects due to various restrictive measures, Ankara has turned to expanding its own military industry.

To ensure its sustainability, Türkiye reorganised its arms policy in the shadow of its international sanctions policy. This change in strategy was also reflected in reforms that institutionally changed Türkiye's defence and security policy.

In particular, the Defence Industry Agency joining the presidency in 2018 and exempting the institution from budgetary obligations allows the agency to promote certain defence projects. In other words, sectors of the Turkish economy are increasingly turning to the defence sector.

Export potential is critical to the profitability of Turkish arms production. Ten years ago, the country's defence industry exported weapons systems worth $1.9 billion. In 2023, exports reached $5.5 billion, setting a new record.

The business model of Turkish defence companies such as Baykar, TUSAŞ, Roketsan, STM and Aselsan is based on selling their products to countries and regions that were closed to Türkiye a decade ago, especially the African continent, Asia (including Taiwan) and more recently Latin America.

The companies in question have a global presence, an extensive product portfolio in the civilian and military sectors, and have proven the effectiveness of their weapon systems in various conflict zones. Finally, it should be noted that the defence equipment produced in Türkiye is also cost-competitive and increasingly in demand internationally.

With the TB2 UAV, Türkiye has become an important player in the international arms export league. Ankara has thus gained importance in various conflict zones and export markets. This includes a geographical reorientation of the strategic partnership and a reassessment of Western alliance commitments.

Although the focus of Ankara's arms policy is increasingly shifting to domestic development and production, there are still security and defence projects in joint venture groups with NATO partners. An example is the NATO-Intel FS2 project.