As a defence powerhouse, Turkey has been making huge progress over the last few years. This is due to a clear governmental strategy, backed by steadily growing defence expenditure, and increased private sector involvement and funding.
According to French daily Le Monde, in 2002, Turkey’s private defence industry turnover was worth a mere $1 bn: in 2022, it reached $11 bn. In five years, Turkish arms exports went from $2 bn (€1.84bn) to $7 bn in 2024 (€6.4bn).
The Stockholm International Peace Research Institute’s (SIPRI’s) yearbook ranked Turkey number 17 among global defence exporters in 2024. (vs. 19 in 2023), just under Canada, but above Spain.
Turkey’s military industrial complex is led by several main groups, including State-Owned Turkish Aerospace Industry (TUSAS or TAI), defence electronics group Aselsan, missiles manufacturer Roketsan, and privately-held drone-maker Baykar. Five Turkish defence firms appear in Defence News’s Top 100 list. Aselsan is ranked 43rd, Turkish Aerospace Industries (TAI) is 47th, Roketsan 71st, shipbuilder Asfat is 78th, and MKE (Mechanical and Chemical Industry Corporation), an incorporation of multiple defence companies, is 80th.
Among other aircraft such as the MALE drone ANKA, and the Hurjet advanced trainer, TAI is developing Turkey’s fifth-generation fighter jet platform Kaan, with a successful first flight last year, with the second prototype having recently entered full system integration, out of six being ordered.
Baykar is led by Erdogan’s son-in-law Selçuk Bayraktar and his brother Haluk. The company has become a symbol of Turkey’s hard power and private initiative. Their Baykraktar TB2 and TB3 tactical UAVs have been used in conflicts across the globe, especially in Ukraine, and became a best seller worldwide. In March, the Bayraktar Akinci, an armed medium-altitude, long endurance platform, flew equipped with Aselsan’s Murad AESA radar. The Akinci has successfully been exported to several countries including Pakistan, the UAE and Saudi Arabia. In April, a test flight of a Baykratar TB2 equipped with its own TM100 engine was successful. Baykar’s drones are cheaper than US Reapers ($5 mn for a TB2 compared to $30 mn). The company is also working on a loyal-wingman type called Kizilelma.
In the land sector, privately held Otokar (part of the Koç holding) has emerged a significant armoured vehicle manufacturer, with some export success. According to Austrian review Militär Aktuell, Turkey’s private defence sector now accounts for more than 2 000 companies and exports its products to 170 countries.
However, a 2024 report published by the Independent Industrialists’ and Businessmen’s Association (MUSIAD) of Turkey shows that the country is still reliant on foreign imports for critical components such as semiconductors, processors, or engines and transmissions systems used on platforms such as the Altay battle tank, or the T129 ATAK military helicopter (derived from Leonardo’s A129 Mangusta). Several embargoes as well as failed sales due to foreign veto on export or technology transfer have had Ankara rethink its industrial defence policy towards more self-reliance. According to various sources government’s domestic spending reduced the external dependency of the Turkish defence industry from 80-70% to 20-30%.
From Ankara to Jakarta: the expansion into Southeast Asia
Turkey’s defence industry is attractive to countries desiring to develop their armed forces away from direct US or EU influence, as Turkish weapons sales usually come with less strings attached. Affordability, combat-ready platforms and the possibility of co-production schemes also play a positive role. Despite issues integrating Turkish defence items with other components, they have made inroads in the Middle East and Africa. Lately Turkey has scored major sales in Asia, with Malaysia and Indonesia at the forefront. The latter has emerged as a key partner for Turkey’s defence industry. In 2025 alone, Indonesia bought 60 Bayraktar TB2 and 9 Akinci drones from Baykar, in an agreement which included setting up a joint drone factory with Republikorp. Jakarta also concluded contracts in July for two Istif-class stealth frigates from shipbuilding group TAIS Shipyards. Jakarta also reportedly signed a close to $8 bn order for 48 fifth-generation Kaan fighter jets. In August, Indonesia deployed a Khan missile platform, making it the first country in the area to operate the surface-to-surface system manufactured by Roketsan. The two countries have grown closer in recent years.
Another partner of Turkey in the region is Malaysia, which has signed a contract for 3 Anka-S MALE drones, along with planned defence technology transfer, the first of which was delivered last month. Malaysia has also expanded its navy through a Littoral Mission Ship programme based on the Ada-class corvette design from Turkey. This project will integrate their defence subsystems, such as Aselsan’s SMASH 30 mm gun, and is being managed by Turkey’s STM defence company, opening the way for further partnerships.
Discussions are currently underway for STM’s participation in the Multi-Role Support Ship Programme, a competitive bidding between defence companies for the Malaysian’s Navy new support ships planned for procurement between 2026 and 2040. Finally, Japan is currently considering a deal to buy Baykar’s Bayraktar TB2/TB3 drone, which led the former Japanese defence minister to visit Turkey at the end of August to discuss wider defence industry cooperation with state and private officials.
Not breaking off with the West
In July, Baykar completed the acquisition of Italian drone and plane-maker Piaggio Aerospace, to secure UAV and market access in Italy. This expansion into the Italian defence market was also backed by a Memorandum Of Understanding (MoU) signed this summer in Paris with Leonardo to create the LBA Systems Joint Venture. The MoU centres around the assembly of two UAVs produced by Baykar: the Kizilelma combat drone, in development since 2020, and the Akinci. The Kizilelma drone is aimed to equip the Turkish Navy, and as production has not yet begun, Leonardo would like to play a role in it. The LBA JV is also a way for Turkey to get closer to European players, implement some know-how transfer and synergies, comply with Italian export control regulations, as well as open some new markets.
Other deals with European countries involve Portugal, with which Turkey signed a $134 mn contract for naval supply vessels, Romania with a 2023 contract for over 1000 Cobra II vehicles from Otokar, and Spain with a co-production agreement for 30 Hurjet trainer jets at a $1.6 bn value.
According to Airbus Defence CEO Michael Schoellhorn, Turkey should soon imminently sign a contract to receive 40 Eurofighter, mostly from the UK, although it could include some second-hand typhoon sourced from Oman or Qatar.
Another on-and-off deal worth $7bn is for 40 Lockheed Martin F-16s fighters. It was re-discussed between Erdogan and Trump last week at the White House amid potential offers for local production, the lifting of F-35 sanctions and the end of US suspension of 10 Turkish companies which were on track to make F-35 parts worth about $12 bn, including the centre fuselage produced by Turkish Aerospace Industries. In the meantime, Turkey remains reliant on foreign engines and those protracted contracts only reinforce Ankara’s thirst for more self-reliance. Exports will be key for that. The next step will be to see if Ankara can maintain this build-up of its defence arsenal and if the defence industry can maintain its current growth with Chinese, South Korean, French or US competitors.
Written by ADIT – The Bulletin and republished with permission.
