Today, turkey seems to be a huge lucrative market for various construction projects, as construction market of turkey stands at around $350bn and provides ample opportunity to the contractors and consultants from the GCC market for getting involved (as per a new survey by Meed Projects).
The report says that a fast-growing population and a booming economy, led Turkey to accelerate a nationwide infrastructure programme, with major projects of US$135 billion in the transport sector alone.
The most noteworthy of these projects is the plan to build the biggest airport by area. The new Istanbul Airport would cost nearly $11bn in its initial phase, and will be established on a 76.5 square kilometre site, that is almost 35km away from the existing Atatürk airport. After its completion, it will have 6 runways, 4 terminal buildings and a capacity of 150 million passengers per year.
There are also plans for introducing a high-speed railway ($35bn) between Edirne and Kars. Alongside a $15bn nuclear power complex is also planned in the power sector.
Turkey has seen enormous investment from the Arabian Gulf, particularly through Emaar Properties, which is building a mall, a hotel and more than 1,000 homes at its Emaar Square project in Istanbul.
However, just because the construction sector of Turkey is active, does not necessarily mean that there is an affluence of opportunities for all. The market is specifically tough for contractors as it is the most competitive market in the world. Only China has more number of contracting firms in the 2014 ENR (Engineering News Record) ranking of the biggest 250 international contractors. On the other hand, Turkey has 42 firms on the list. According to the ranking, there are 62 Chinese firms, 31 US firms, 2 UK firms and 3 German companies.
Another company on the list of ENR is ‘Nurol Construction’, which is building a highway ($8bn) between the cities of Izmir and Gebze.
According to Ceyda Çarmikli Kiliçaslan, the executive board member of Nurol Reit, the construction sector has been a dynamic force in driving the Turkey’s economy over the last 15 years. Thus, Turkey is a great place to invest.
Owing to the urban regeneration work and major infrastructure projects, the construction market of turkey is definitely a promising one. The GCC firms can create enormous value in Turkey’s infrastructure and construction industry, if they choose the right partner to enter into the market.