Turkish defence industry on rise  From import dependency to export

Experts worldwide acknowledge that Türkiye has become one of the leading players in the arms market in recent years. Today, Ankara ranks 11th among the largest weapons producers, exporting to 185 countries. While Turkish arsenals were once replenished with Western weapons, today 27% of Turkish arms are directed to Europe, and 25% to the United States.

Twenty years ago, Türkiye's military production was 80% dependent on imports, but today the situation is the complete opposite: 80% of defence industry products are made from domestic components.

The defence industry has become an important source of income for the Turkish economy, with revenues reaching around $40 billion. Companies that produce weapons are constantly increasing their profits. For example, the company Aselsan increased its net profit by 530% in 2023. The export of Türkiye's largest defence company, Baykar, reached $1.76 billion.

Among arms importers, Turkish armoured vehicles, precision weapons, ships, and, of course, unmanned aerial vehicles, including the famous "Bayraktars," are highly popular.

The share of military production in Türkiye's total export income stands at 2.1%. By the end of 2024, Turkish defence exports had increased by 19% compared to the first 11 months of 2023.

Observers note several reasons for the success of Türkiye's defence industry. The development of the country's defence industry, starting from the 1920s, was led by prominent figures such as Mustafa Kemal Atatürk, Adnan Menderes, and Turgut Özal. In the 1960s, there was a firm understanding that Türkiye needed its own military production. A catalyst for this process was the embargo imposed by the West against Ankara in 1974, following Türkiye's military operation in Cyprus.

In the early 1980s, private defence companies were established from scratch, and they began actively collaborating with foreign partners to attract specialists, technologies, and capital. This also led to the creation of several joint ventures, which became one of the best models for technology transfer. Important roles were played by coordinating institutions such as the Turkish Armed Forces Foundation, established in 1987, and the Directorate of Defense Industry Development and Support (now the Defense Industry Agency since 2022).

A "top-down" strategy was developed in Türkiye, which involved the creation of a defence industry base, starting with platforms and extending to components and technologies.

Since 2013, Ankara has adopted a long-term military development program set to be completed by 2033. As part of this program, the country's defence sector has received significant funding, with Türkiye's military budget, ranging from 2.1% to 2.6% of GDP, being one of the largest among NATO member states. Every year, up to two billion dollars are allocated specifically for the development of new types of weapons.

Such substantial allocations were driven by the Turkish government's recognition of the dangers of relying on foreign arms supplies, especially considering the multi-vector and independent foreign policy that Ankara began pursuing under President Erdoğan.

In addition to funding, Türkiye has continued to develop its system of international cooperation, which has enabled the implementation of costly joint projects and access to foreign technologies. For instance, since 2008, Turkish company Otokar and South Korean company Hyundai Motor have been working together on the development of the Altay main battle tank. The aerospace company TUSAS launched the production of the T129 ATAK light attack helicopter with the help of the Anglo-Italian firm AgustaWestland.

Despite challenges in relations with Brussels and Washington, Ankara remains a part of the NATO alliance in military terms, granting it access to advanced Western technologies and the ability to train specialists at leading universities in Europe and the United States.

Finally, Turkish weapons have found their buyers. Diplomacy has played a significant role in promoting Turkish arms. Within the framework of the Gulf Cooperation Council (GCC), Ankara has managed to establish strong ties with the United Arab Emirates, Saudi Arabia, and Qatar. As a result of this cooperation within the GCC, significant defence contracts have been made. For example, Saudi Arabia allocated $3 billion for the purchase of Turkish unmanned aerial vehicles. This deal also serves as an example of Türkiye's readiness to exchange technologies with its partners and establish joint production facilities.

Experts note that the Turkish defence industry is not only a source of income for the Turkish budget but also an important tool of "soft power," through which Turkish influence reaches even the most remote countries in Asia, Africa, and Latin America. Turkish weapons are in service in countries such as El Salvador, Malaysia, Indonesia, Estonia, Ecuador, Chile, Brazil, and many others.

Despite the successes described above, Western experts highlight that Türkiye's defence industry faces a number of challenges that it will need to overcome in the coming years. On one hand, this pertains to the development of certain types of weaponry, primarily engines, submarines, and air defence systems. In these areas, Ankara is seeking technology donors that would allow it to establish its own production of these highly complex weapons.

The Chairman of Türkiye's Defense Industry Board, Fatih Altunbaş, stated that increasing investment in research and development of advanced technologies and component manufacturing is crucial today: "We need to increase domestic production and reduce dependence on foreign technologies in areas like composite materials, such as graphene, nanomaterials, and carbon fibre." He also noted that dependence on foreign components, such as semiconductors and microprocessors, still persists in Türkiye's defence industry.

However, it can now be said that the military industry developed in recent decades has permanently changed Türkiye, opening doors for it to join the club of advanced scientific and technologically developed nations. Factories, research centres, and thousands of highly skilled specialists have created a new industrial economy and a new society, one that is firmly focused on the 21st century.