Defense industry exports surge following President Erdogan’s Gulf tour
President Erdogan’s recent Gulf tour invigorates the defense industry’s export trajectory, approaching the ambitious 2023 target of $6 billion.
President Erdogan’s diplomatic visit to the Gulf region has facilitated a surge in defense industry exports, resulting in significant collaborative agreements. Baykar, a prominent player in the sector, secured a significant contract with Saudi Arabia for the renowned Akıncı UAV, while Aselsan successfully executed an overseas export of goods valued at $123 million.
Additionally, Otokar’s potential substantial agreement with Kazakhstan further underscores the increasing demand for Turkish defense equipment in the international market. Moreover, MKE’s commendable export performance of $400 million in the first half of this year surpasses the entirety of the previous year’s exports, which amounted to $34 million.
Turkey-Kazakhstan joint production prospects
Kazakhstan’s interest in procuring over 800 armored combat vehicles from Turkish military land platform manufacturer Otokar, with a budget exceeding $4 billion, sets the stage for potential joint production ventures. Additionally, the export and cooperation agreement between Baykar and the Saudi Arabian Ministry of Defense for the Bayraktar AKINCI UAV is set to bolster the latter’s air and naval forces, fostering technological advancement and potential collaboration in this high-tech sector.
Forecasts suggest that the recent collaborative agreements are likely to bear fruit in July, with both countries set to embark on “technology transfer and joint production” initiatives to bolster their respective high-tech capabilities. The defense industry’s strong performance in the initial five months of this year, achieving $2 billion in sales, signifies progress towards its target of $6 billion in exports.
National defense products in high demand
The demand for national defense products has witnessed an impressive upswing, illustrated by MKE’s remarkable progress, surging from a modest $34 million in exports last year to a remarkable $400 million during the first half of 2023. Additionally, Aselsan’s substantial export of goods valued at $123.5 million to an undisclosed international customer demonstrates the industry’s ability to attract substantial interest globally, further contributing to the sector’s prosperity. While specific delivery dates remain undisclosed, the recent surge in export agreements and the momentum gained from President Erdogan’s diplomatic efforts in the Gulf region are expected to fuel the defense industry’s sustained growth and prominence on the international stage.
