This document provides an overview of the Turkish construction industry. It discusses the industry's growth rates, employment levels, and contribution to GDP. It also examines supply and demand factors as well as upcoming urban transformation projects that will stimulate growth. Additionally, it outlines the history and global competitiveness of Turkish contracting firms, which have undertaken nearly 6,500 international projects valued at over $206 billion. Turkish contractors are active in 94 countries and 31 ranked among the top international contractors in 2011.

1. TURKISH CONSTRUCTION
INDUSTRY AT A GLANCE
BANCO SABADELL
Oficina de Representación
Estambul
November 2012

2. Contents
1. General Information related to the Sector................................................1
1.1 Growth Rate…………………………………………………………………………………………….…..1
1.2 Employment rate in the sectors………………………………………………………….………1
1.3 GDP and Construction Sector Growth Rates………………………………………….…..2
1.4 Construction Permits & Certificate of Occupancy……………………………………….2
1.5 Supply and Demand Factor in Construction Sector……………………………………3
1.6 Dynamics that will arouse the sector in Turkey………………………………………….4
2. Turkish Contracting in International Market……………………..……………….……..…..5
2.1 Brief Overview……………………………………………………………………………………………..5
2.2 History………………………………………………………………………………………………………....7
2.3 Turkish International Contracting Services in 2010 and 2011…………………14
2.4 Turkish International Contracting Services (1972 – 2011)……………………..16
3. Turkish Constractors Association……………………………………………………………………..19
3.1 TCAs objectives………………………………………………………………………………………….19
3.2 International Cooperation Agreements…………………………………………….………19
4. Forecasts for Construction Sector…………………………………………………………………….21
ANNEX
LIST OF MAIN CONSTRUCTION COMPANIES………………………………………….23
SOME SAMPLE TENDERS FROM GOVERNMENTAL INSTITUTIONS.................24

3. 1. General Information related to the Sector
1.1 Growth Rate
The construction sector showed 0,4% growth during the first quarter of the year and
increased it to 1,5% as of the first half of 2012. Although there is an increase in the
sector it is still one of the four slowest growing sectors during 1H2012.
One of the main reasons of it is the sector decreases faster than the economy. The
other main reason is the forecast of the sector during the first half of the year
decreased the construction licensing and housing demand.
Sectors Growth Rate (%)
Electricity, Gas, Hot Water production and
distribution 7,1
Real Estate, Renting 7,0
Transportation, warehousing and
communication 4,5
Fishing 4,2
Agriculture, livestock and forestry 4,2
Financial Intermediaries' activities 4,0
Production Industry 3,1
House Ownership 1,7
Construction 1,5
Mining 1,4
Retail and Wholesale business 0,9
Source: Turkish Statistical Institute
1.2 Employment rate in the sectors
The decrease on the growth in the industry also affected the employment in the
sector. There was a 7,4% increase on employment rate compared with 2011 July
and 2012 July in the construction sector where it is 26% in agriculture and 18,9% in
industry.
Total
2011 July 2012 July
Number % Number %
Economical Activities 24,953 100 25,498 100
Agriculture 6,705 26,9 6,638 26,0
Industry 4,710 18,9 4,777 18,7
Construction 1,879 7,5 1,882 7,4
Services 11,659 46,7 12,201 47,9
1

4. 1.3 GDP and Construction Sector Growth Rates
Public investments during the first quarter of 2012 remained the same as last year
but it decreased 6,3% during the second quarter and decreased 3,6% during the
first 6 months of the year.
Related to the private sector investments after having 3,1% increase during first
quarter it just grew 1,9% during the second quarter and the over all growth during
the first 6 months was just 2,5%.
25
20
18 .3
15
11.2
10 9.2
5.7
8.5
4.7 GDP Growth
5
3.1 Rate
0.7 1.5
0
2007 2008 2009 2010 2011 2012H1
-5 -4.8
Construction
- 8 .1
-10 Sector Growth
Rate
-15 - 16 .1
-20
1.4 Construction Permits & Certificate of Occupancy
The construction permits increased 37% and given certificate of occupancy
decreased to 5,1% during the second quarter.
56,1% of the construction permits given to housing, 26,0% given to others and
17,9% is given to joint use areas
Construction Permits
Indicators Change ratio(%)
between the first
half of 2011 &2012
2012 2011 2010 2012 2011
Number of 47,299 43,632 50,905 8.4 -14.3
Buildings
Area (m2) 72,176,471 52,674,678 60,451,484 37.0 -12.9
Value (TL) 49,615,698,592 33,322,512,025 34,259,065,045 48.9 -2.7
Number of 349,226 276,327 308,008 26.4 -10.3
houses
Source: Turkish Statistical Institute
2

5. Certificate of Occupancy
Indicators Change ratio(%)
between the first
half of 2011 &2012
2012 2011 2010 2012 2011
Number of 40,417 44,467 37,040 -9.1 20.1
Buildings
Area (m2) 46,225,485 48,712,555 39,063,413 -5.1 24.7
Value (TL) 30,735,607,275 29,980,020,485 21,351,305,168 2.5 40.4
Number of 239,460 251,643 190,098 -4.8 32.4
houses
Source: Turkish Statistical Institute
1.5 Supply and Demand Factor in Construction Sector
The biggest problem of the housing sector is supply and demand imbalance. In other
words the gap between the number of the house on sale and the sold ones are
getting higher.
Because of the decrease on the sale of houses, the stock in the sector is above 800
thousand and this number may reach to 1 million at the end of the year. The change
on the house sale as of August 2012 in total Turkey is 2,44%. The stock decrease
rate was 6,06% on July 2011 where it is just 1,61% as of July 2012.
Change (%) on the House sale, August 2012
Source: REIDIN
3.5 3.11 3.06
2.9
3
2.44 2.35
2.5 2.29
2.14
2
1.5
1.07
1
0.5
0
Turkiye Adana Ankara Antalya Bursa Istanbul Izmir Kocaeli
Stock Decrease Rate (%)
7
6 .0 6
6
5
4 .2
4 3 .4 3
3 .0 7
3 2 .5 6
2 .14
1.8 6 1.6 8
2 1.5 4 1.5 1 1.6 1
1.4 1
1.0 1
1
0
Jul-1 1 -A ug 1 -Sep Oct-1 No v- 1 -Dec Jan-1 Feb-
1 1 1 1 1 2 M ar- A pr-1 M ay- Jun-1 Jluy
2 2
3
11 12 12 12 2012

6. 1.6 Dynamics that will arouse the sector in Turkey
Urban transformation project : It started on 5th of October 2012, first in
Istanbul. The other cities included to project are Adana, Afyon, Ağrı, Amasya,Ankara,
Aydın, Balıkesir, Bilecik, Bitlis, Bolu, Bursa, Çanakkale, Denizli, Düzce, Edirne, Elazığ,
Erzurum, Gaziantep, Hakkari, Hatay, Đstanbul, Đzmir, Kahramanmaraş, Kırıkkale,
Kırşehir, Kocaeli, Malatya, Nevşehir, Samsun,Sinop, Tekirdağ, Tunceli and Van. There
are almost 19 million houses in Turkey. It was forested that 6-7 million houses will
be rebuild or strengthened. This mega project will be a impulsive force not only to
the sector but also the Turkish economy.
Increasing the public investments, taking precautions in order to refresh the
domestic demand and private sector investments will be the other dynamics that
spur the sector.
4

7. 2. TURKISH CONTRACTING IN THE INTERNATIONAL MARKET
2.1 Brief Overview
Construction plays a crucial role in Turkey’s economic development, accounting for
well over 6% of GDP and employing some 1.5 million people. When the direct and
indirect impacts on other sectors are taken into account the share of the construction
sector in the Turkish economy reaches 30% and the employment rate (excluding
agriculture) reaches %10.
After a period of rapid growth in the 1980s, the Turkish construction sector
witnessed a significant decline between 1993 and 2001; however, as a result of
policies adopted after the two economic crises of 1999 and 2001 the sector
experienced the start of a recovery in 2002. Increased economic stability, decreasing
exchange and interest rates and attractive long-term loans stimulated a demand for
housing, playing a major role in this process; and consequent growth rates of 13.9%
in 2002, 7.8% in 2003, 14.1% in 2004, 9.3% in 2005 and 18.5% in 2006 made
construction the number one contributor to the economic growth of Turkey. By 2007
the growth rate of the construction sector reached 5.7% for the year; however,
Turkey and its construction sector, suffering under the effects of the global crisis,
experienced a decrease of 8.1% in 2008, followed by a further 16.1% decline in
2009. 2010 was a recovery period for both the construction sector and Turkish
economy. In 2010, construction sector made remarkable progress and grew by
18.3%. The growth trend in the industry continued in 2011 as well and reached
11.2% by the end of the year.
GDP Growth Construction Sector
Rate (%) Growth Rate (%)
1999 -3.4 -3.1
2000 6.8 4.9
2001 -5.7 -17.4
2002 6.2 13.9
2003 5.3 7.8
2004 9.4 14.1
2005 8.4 9.3
2006 6.9 18.5
2007 4.7 5.7
2008 0.7 -8.1
2009 -4.7 -16.1
2010 9.2 18.3
2011 8.5 11.2
The constantly growing global competitiveness of Turkish contractors and
construction products and the foreign exchange revenues generated as a result,
contribute significantly to the balance of payments of Turkey.
5

8. Up until the end of 2011, Turkish contractors have undertaken almost 6500 projects
in 94 countries, with a total value of some 206 billion USD. On the other hand Turkey
is among the world’s top 12 producers of building materials such as cement, glass,
steel and ceramic tiles.
The research team that prepared “The Strategic Plan for The Turkish Construction
Industry” in 2004 noted in its final report that "In no other country with the same
per capita income is it possible to find a construction sector that is as competitive as
the Turkish construction sector".
As is the case with many other export-oriented economic activities in Turkey, the
unique geographical location of Turkey at the crossroads of three continents –
Europe, Asia and Africa – contributes a great deal to the global competitiveness of
Turkish construction products and contracting services abroad. That said, Turkey’s
strength in the field is not only due to its location, as the country also boasts cost
effective service at international standards, high client satisfaction, credibility in
partnerships, extensive knowledge and vast experience in a wide variety of projects,
familiarity with the business environments in the nearby regions, qualified manpower
and a calculated risk-based approach to business.
In 2011, 31 Turkish contracting companies ranked among “The World’s Top 225
International Contractors" announced by the leading international industry magazine
"ENR - Engineering News Record". With this number Turkey ranked second in the
world after China.
COUNTRY 2011 2010 2009 2008
China 51 54 50 51
Turkey 31 33 31 23
Italy 23 22 26 22
USA 22 20 25 35
Japan 13 13 15 16
Spain 13 11 11 11
S. Korea 11 12 13 11
France 5 5 5 5
India 5 3 2 2
England 4 4 5 4
Germany 4 4 4 5
Other 43 44 38 40
The investment environment in Turkey is becoming increasingly attractive for both
local and foreign investors, and a positive growth rate in construction is expected in
the years ahead.
The Turkish construction sector companies are active in almost every country in the
Eurasian market of 580 million people, covering an area of 26 million km2.
6

9. With a vast experience in international collaborations across 94 countries Turkish
contractors are open to building and enhancing international partnerships not only in
the field of contracting, but also in construction industry investments, ranging from
the manufacture of construction materials to infrastructure, housing, industrial plants
and tourism projects. The extensive know-how and experience gained through
working abroad for nearly four decades, in all kinds of challenging engineering
projects and in all forms of business environments is among the distinctive strengths
of the Turkish contractors.
2.2 History
The Anatolian Peninsula, on which Turkey is located, has a history that dates back to
8000 B.C., when the earliest human settlements emerged. The region has been the
birthplace of 13 major civilizations, which flourished and left behind many
magnificent sites and structures. The incredible richness and diversity of Turkey’s
cultural heritage is an important factor that fostered the maturity of a building
tradition in Turkey that has developed over millennia – from the Hittites to the
Romans, Byzantines, Seljuks and Ottomans.
The development of the Turkish construction sector over the last 90 years since the
foundation of the Turkish Republic can be evaluated in five successive periods:
Preparation, internal market activity, international activity, market and product
diversification and global competition. The first two periods continued until the
beginning of the 1970s.
After the foundation of the Turkish Republic in 1923, and along with the ambitious
modernization process that accompanied the political and social reforms, important
infrastructural and industrial investments were made all over the country. In the
1920s special measures, including the employment of foreign experts in public
agencies, had to be undertaken by the government to overcome the shortage of local
engineers and architects. Under the influence of these public policies, and partly due
to the economic crisis witnessed in Europe in those years, many European engineers,
architects and entrepreneurs came to Turkey; and in 1925–1926 at least one third of
the 28 construction companies established in Istanbul were European in origin.
The 1930s marked the arrival of the first generation of Turkish engineers, who in the
following decades founded many large-scale construction companies and had great
success in the realization of many challenging projects, both in Turkey and abroad.
The political change that Turkey experienced in 1950 and its accession to NATO in
1952 were important milestones in the history of the Turkish construction sector in
terms of the infrastructure investments that followed. In the same period, the first
wave of Turkish engineers were graduating from universities and beginning their
careers in an environment that offered great opportunities for the establishment of
their own companies; and it was those businessmen that founded the Turkish
Contractors Association (TCA) in 1952, making the organization one of the oldest
NGOs in the Turkish construction sector.
Water supply projects during the 1950s, and energy projects and the construction of
large dams and power plants in the late 1960s and early 1970s provided many
opportunities to Turkish Contractors to develop their activities throughout Anatolia.
7

10. 1970–1979 Period
In the 1970s Turkish contractors began pursuing business opportunities in foreign
markets for the first time, launching projects first in Libya in 1972, for which they
would import the necessary technology from European countries; and in less than 10
years their activities had extended to countries in the Middle East. With a share of
72.53% in the overall business volume it was Libya that was by far the number one
market for Turkish contractors in this initial period of international business, followed
by Saudi Arabia (15.45%), Iraq (7.25%), Kuwait (4.71%), Greece (0.06%) and Iran
(0.01%).
The major field of activity in this period was housing (32.1%), followed by seaport
(%18.1), industrial plant (15.6%), road/bridge/tunnel works (11.7%), and urban
infrastructure projects (8.2%).
Distribution of International Works by Country (1972-1979)
1972-1979
COUNTRY (%)
Libya 72.53
S. Arabia 15.45
Iraq 7.25
Kuwait 4.71
Greece 0.06
Iran 0.01
TOTAL 100.00
Distribution of International Works by Nature of Work (1972-1979)
1972-1979
FIELDS OF ACTIVITY (%)
Housing 32.1
Seaport 18.1
Industrial Plant 15.6
Road/Bridge/Tunnel 11.7
Urban Infrastructure 8.2
Irrigation 4.0
Treatment Plant 2.9
Administrative Building 2.7
Power Plant 1.6
Other 3.0
Other: Military Facilities, Soc. Cult. Facilities, Commercial Centers, Airports, Drinking
Water
8

11. 1980–1989 Period
The 1980s was an important decade in the restructuring of Turkey’s economic status.
Starting in 1983, the country passed through a major change from the closed
economy of the 1970s to a market economy, which had been introduced only very
recently in some Western countries. Together with the convertibility of Turkish
currency and the termination of many restrictions on the economy, new agencies,
such as the Mass Housing Administration and the Public Participation Administration,
were founded, and new concepts, such as privatization and the liberal economy,
were integrated into the country’s economic system. In the same period Turkey
commenced with its own substantial infrastructure investments. Ataturk Dam (2400
MW) the Turkish Motorway Program (more than 2000 km) and telecommunication
investments provided excellent opportunities for Turkish firms to cooperate with
international partners, and thus improve their technical and managerial skills and
become acquainted with the global finance system.
At the end of the 1980s the political change in Eastern Europe provided further
opportunities to Turkish contractors. Many companies oriented themselves more
towards the Russian Federation and the former Soviet states, given the country’s
strong cultural relationships with its Central Asian neighbors. In the same period
they extended their activities to other markets, including Jordan, Yemen, Iran, Saudi
Arabia, the United States, Tunisia, the United Arab Emirates and Kuwait.
Despite a relative decrease in proportion (55.2%), the majority of foreign business
continued to be in Libya, with Saudi Arabia (23.4%) and Iraq (11.5%) ranking
second and third, maintaining the position they had occupied during the first decade.
The emergence of the former Soviet states as a potential market was a new
development that occurred at this time (3.8%).
During this period the shares of housing (36.7%) and urban infrastructure projects
(17.2%) increased, as well as road/bridge/tunnel (7.0%) and irrigation projects
(5.4%).
Distribution of International Works by Country (1980–1989)
1980-1989
COUNTRY (%)
Libya 55.2
S. Arabia 23.4
Iraq 11.5
Russian Federation 3.8
Yemen 1.5
Jordan 1.4
Other 3.2
Other: TRNC, Iran, Kazakhstan, Georgia, United States, Ukraine, Tunisia, United
Arab Emirates, Algeria, Kuwait
9

12. Distribution of International Works by Nature of Work (1980-1989)
1980-1989
FIELDS OF (%)
ACTIVITY
Housing 36.7
Urban Infrastructure 17.2
Road/Bridge/Tunnel 7.0
Irrigation 5.4
Health Facilities 4.1
Pipe Line 3.6
Industrial Plant 3.5
Seaport 3.4
Dam 3.3
Soc. Cult. Facilities 3.0
Other 12.8
Other: Drinking Water, Commercial Centers, Tourism Facilities, Treatment Plants,
Administrative Buildings, Depots, Airports, Petrochemical Plants, Power Plants,
Energy Transmission Lines, Military Facilities
1990–1999 Period
In the 1990s, economic depressions and political uncertainties in the countries of the
Middle East and Libya forced Turkish contractors to turn their attention to other
countries in the nearby regions, with the new focus being predominantly on the
Commonwealth of Independent States, Eastern Europe and Asian countries. Many
large-scale projects in the Russian Federation, Ukraine, the Caucasus, Central Asia,
Germany and Pakistan were realized at this time.
In the 1990–1999 period the projects completed in the Russian Federation and in the
other CIS states accounted for almost 60% of the country’s international business.
Market diversification was the major trend that characterized this decade. While the
share of the Russian Federation increased (to 34.5%), Libya’s share saw a drastic
decrease (to 13.7%), followed by Kazakhstan (7.8%) and Turkmenistan (6.7%);
while Pakistan (6.6%), Uzbekistan (3.9%), S. Arabia (3.1%), Azerbaijan (2.6%),
Bulgaria (2.6%), the United States (2.5%) and Croatia (2.2%) emerged as new
markets. Other important developments were the considerable decrease in the
proportion of works in Saudi Arabia and the disappearance of Iraq from the scene.
Despite a decrease in the share of housing works (24.9%) compared to the previous
period, housing continued to be the number one activity in this period as well. This
was followed by road/bridge/tunnel works (12.7%), industrial facilities (9.0%) and
commercial centers (8.1%).
10

13. Distribution of International Works by Country (1990-1999)
1990-1999
COUNTRY (%)
Russian Federation 34.5
Libya 13.7
Kazakhstan 7.8
Turkmenistan 6.7
Pakistan 6.6
Uzbekistan 3.9
S. Arabia 3.1
Azerbaijan 2.6
Bulgaria 2.6
USA 2.5
Croatia 2.2
Kuwait 2.0
Germany 1.8
Belarus 1.7
Ukraine 1.1
Israel 1.0
Other 6.2
Other : Egypt, Kyrgyzstan, Jordan, TRNC, Romania, Georgia, Moldova, Poland, Chile,
United Arab Emirates, Latvia, Ethiopia, Syria, Bosnia-Herz., Malaysia, Lebanon,
Tajikistan, Morocco, Sudan, Armenia, Algeria, Philippines, Ghana, Albania, Mexico,
Kosovo, Malawi, Thailand, Iran, Indonesia, Lithuania
Distribution of International Works by Nature of Work (1990-1999) 10
1990-1999
FIELDS OF (%)
ACTIVITY
Housing 24.9
Road/Bridge/Tunnel 12.7
Industrial Plant 9.0
Commercial Center 8.1
Tourism Facilities 5.9
Soc. Cult. Facilities 5.7
Administrative
Building 5.3
Health Facilities 5.2
Petrochemical Plant 5.0
Power Plant 3.3
Urban Infrastructure 3.0
11

14. Seaport 2.3
Airport 2.1
Pipe Line 2.0
Irrigation 1.9
Other 3.9
Other: Depots, Energy Transmission Lines, Treatment Plants, Dams,
Telecommunications, Military Facilities, Railways
2000–2011 Period: "Booming Global Competitiveness"
During the last decade, the annual volume of business undertaken abroad increased
from 2.4 billion USD in 2002 to 25.0 billion USD in 2007. In the following years,
under the effects of the global crisis, this figure decreased to 19.3 billion USD in
2011.
Turkish International Contracting Services
30.0
25.0 24.3
25.0 22.6 22.3
20.6
19.3
20.0
15.0
11.3 11.2
10.0
4.2
5.0 2.4
0.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Total Project Value (Billion USD $)
During 2000 – 2011 period, the internal and external forces and factors that have
contributed to this rapid development can be grouped under the following three
categories: The attractiveness of business opportunities abroad; reduced business
opportunities in Turkey; and the increasing competitiveness of Turkish contractors:
• Domestic investments decreased significantly after the crisis in 2001.
Furthermore, the "abnormally low tenders" in bids created unfair competition for
qualified companies and forced them out of the internal market, eventually
turning their attention to the international market and pursuing aggressively
business opportunities in other countries.
12

15. • Having realized large-scale infrastructure projects in cooperation with foreign
partners in Turkey between 1985 and 2000, Turkish contracting firms had gained
significant experience in the fields of project management, contract management
and production to international standards.
• As a result of booming oil prices, investments increased in the oil and gas
exporting countries. This process created attractive business opportunities for
Turkish Contractors given their geographical proximity and their familiarity with
local business environments, providing additional advantages in competition.
The combination of above factors would drive the annual international business
volume of Turkish Contractors to grow at a pace that far surpassed annual targets.
In this period, market diversification and specialization in certain types of projects
were the major trends. The number of countries in which Turkish Contractors was
working increased considerably, causing the percentage of work in each country to
decrease relatively.
In the aftermath of the interventions in Afghanistan and Iraq, the rebuilding
activities in these countries were closely followed by Turkish contractors, and as a
result, Iraq in particular has become one of the most important markets for Turkish
contractors in recent years.
Top Ten Markets in the Last Three Years
2011 Project Value (USD Share (%)
Russian Federation 3,415,989,629 17.7
Turkmenistan 3,270,248,734 17.0
Iraq 1,883,588,448 9.8
Kazakhstan 1,709,778,089 8.9
Saudi Arabia 1,294,933,645 6.7
Venezuela 1,093,234,222 5.7
Azerbaycan 955,778,258 5.0
Oman 739,130,897 3.8
Qatar 593,859,664 3.1
Afghanistan 507,534,656 2.6
2010 Project Value (USD) Share (%)
Turkmenistan 4,252,048,273 19.0
Libya 2,460,471,259 11.0
Iraq 2,285,079,179 10.2
Russian 8.1
Federation 1,797,186,755
Oman 1,699,245,366 7.6
Iran 1,111,767,635 5.0
13

16. Georgia 1,007,734,462 4.5
Qatar 907,181,946 4.1
Morocco 745,010,740 3.3
Azerbaijan 738,503,055 3.3
2009 Project Value (USD) Share (%)
Libya 4,210,110,925 18.9
Turkmenistan 2,673,831,063 12.0
Algeria 2,392,501,250 10.7
Qatar 1,525,668,780 6.9
Kazakhstan 1,484,465,350 6.7
Iraq 1,272,140,254 5.7
Russian Federation 1,268,846,692 5.7
Jordan 1,008,628,659 4.5
Saudi Arabia 919,861,968 4.1
Poland 845,950,000 3.8
Russian Federation, Turkmenistan and Iraq have continued to be the leading markets
for Turkish contractors over the last three years, with the total share of these 3
countries amounting to around 40%. In 2011, because of the affects of “Arab
Spring” Libya and other Northern Africa markets shrinked drastically
2.3 Turkish International Contracting Services in 2010 and 2011
The year 2010 was full of challenges for the Turkish international contractors due to
the negative impacts of the global financial crisis on the world markets. In 2011
however, they had to deal with new and more serious problems that followed the
civil upheavals in the North African and Middle East Regions where their international
works were heavily concentrated. The Arab Spring created serious negative impacts
on the Turkish contractors both in terms of decreasing business opportunities and
the losses encountered in the ongoing construction works in Libya.
In 2010, Turkish Contractors have undertaken 577 projects in 50 countries, totaling
22.3 billion USD, with Turkmenistan ranking first (19.0%), followed by Libya
(11.0%), although Libya’s share has witnessed a dramatic decrease. These are
followed by Iraq (10.2%), the Russian Federation (8.1%), Oman (7.6%), Iran
(5.0%), Georgia (4.5%), Qatar (4.1%), Morocco (3.3%) and Azerbaijan (3.3%).
Road/bridge/tunnel projects (12.6%), housing (12.4%), sport facilities (Olympic
complexes, stadiums, ski centers etc.) (10.8%), energy projects (power plants,
natural gas combined cycle power plants, wind turbines etc.) (7.1%) and tourism
facilities (6.4%) took an important place in the breakdown of the business
undertaken by the sector in 2010.
14

17. In 2011 additional threats accompanied the growing negative effects of the global
financial crisis -such as the debt crisis in USA and Europe, the civil upheavals in
North Africa and the Middle East that turned into a civil war in Libya and was
followed by the military operation carried out by the NATO , the overthrow of the
government and the establishment of the new one. All of these had substantial
negative effects on the Turkish contractors whose international works were heavily
concentrated in the Middle East. Although to a limited extent, this also caused a
shrink in the annual volume of new contracts of Turkish contractors abroad.
However, considering the devastating impacts of the political instabilities that
prevailed across their major markets the new international contracting business of
19.3 billion USD undertaken by Turkish contractors in 2011 is regarded as an
important achievement.
In 2011, Turkish contractors have undertaken new projects totaling 19.3 billion USD.
With a share of 17.7%, Russian Federation has been the leading market for Turkish
contractors, followed by Turkmenistan (17.0%), Iraq (9.8%) and Kazakhstan
(8.9%). One of the most important new developments was Venezuela’s becoming a
new market for Turkish contractors and ranking sixth among the top markets with a
share of 5.7% in the total annual business.
Distribution of International Works by Country (2011)
Country Total Project Value (USD) (%)
Russian Federation 87 3,415,989,629
Turkmenistan 63 3,270,248,734
Iraq 43 1,883,588,448
Kazakhstan 24 1,709,778,089
S. Arabia 9 1,294,933,645
Venezuela 2 1,093,234,222
Azerbaijan 46 955,778,258
Oman 8 739,130,897
Qatar 13 593,859,664
Afghanistan 37 507,534,656
Other 120 3,797,872,023
Total 452 19,261,948,265
Road/Bridge/Tunnel (13.8%) has been the number one activity in 2011 followed by
the Housing, Tourism Facilities, Transport (other) and Power Plant.
Distribution of International Works by Nature of Work (2011)
Fields of Activity Total Project Value (USD) (%)
Road/Bridge/Tunnel 2,655,824,391 13.8
Housing 2,527,640,026 13.1
Tourism Facilities 1,600,871,702 8.3
Transport (other) 1,233,438,794 6.4
Power Plants 1,098,535,985 5.7
15

18. Commercial Centers 922,867,860 4.8
Petrochemical Plants 839,740,350 4.4
Airports 752,626,357 3.9
Soc./ Cult. Facilities 714,679,809 3.7
Administrative 710,639,549 3.7
Building
Other 6,205,083,442 32.2
Total 19,261,948,265 100.0
2.4 Turkish International Contracting Services (1972 – 2011)
In the 1972–2011 period, with a share of 17.8%, the Russian Federation has been
the leading market for Turkish contractors, followed by Libya (12.9%) and
Turkmenistan (10.8%). Despite the fact that the Russian Federation share has
decreased in recent years due to the negative effects of the global financial crisis, it
has maintained its position as the largest market for Turkish contractors in terms of
total projects undertaken between 1972 and 2011 (first 9 months).
1972-2011 (9
months)
Country Number of Total Project Value (USD) (%)
Projects
Russian Federation 1,373 37,191,894,135 18.0
Libya 525 26,300,480,672 12.7
Turkmenistan 722 23,613,414,163 11.4
Kazakhstan 372 14,850,683,052 7.2
Iraq 631 11,946,108,521 5.8
S. Arabia 157 9,761,747,015 4.7
Qatar 66 7,669,491,738 3.7
UAE 95 7,427,771,878 3.6
Romania 166 6,113,823,739 3.0
Algeria 174 5,914,496,807 2.9
Other 2,161 55,618,295,478 26.9
Total 6,442 206,408,207,198 100.0
Within the period between 1972 and 2011, the shares of CIS, Middle-Eastern and
African countries in the overall international business volume of Turkish contractors
were 44.1%, 24.5% and 19.7% respectively. In other words, the total share of CIS-
Middle East-Africa countries reached almost 88%.
16

19. In this period, significant progress was made in terms of the scope and size of projects
being undertaken. Market, product and business diversification continued unabated,
while several companies started specializing in certain project types, such as
international airports, railways and urban rail systems. In the neighboring regions,
where local companies are far more experienced and thus more competitive in house
building, Turkish contractors tend to specialize on more sophisticated projects.
Another important trend in recent years has been the growing interest of Turkish
contractors in direct investments and property management projects in the neighboring
countries.
Throughout the period 1972- 2011, the share of housing projects in the overall
international business of Turkish contractors decreased gradually whereas the shares of
projects such as roads/bridges/tunnels, commercial centers, airports, industrial plants,
increased significantly.
17

20. 1972-2011
Fields of Activity Total Project Value (USD) (%)
Housing 27,426,466,175 13.3
Road/Bridge/Tunnel 23,620,602,121 11.4
Commercial Center 14,014,030,352 6.8
Airport 13,363,723,654 6.5
Industrial Plant 12,213,268,055 5.9
Tourism Facilities 10,887,427,067 5.3
Petrochemical Plants 10,504,134,563 5.1
Power Plants 9,271,340,706 4.5
Administrative Buildings 9,146,900,623 4.4
Education Facilities 7,671,425,084 3.7
Other 68,288,888,798 33.1
Total 206,408,207,198 100.0
18

21. 3. TURKISH CONTRACTORS ASSOCIATION
The Turkish Contractors Association (TCA) is an independent, non-profit professional
organization based in Ankara-TURKEY. The association was founded in 1952 and
represents the leading construction companies in Turkey. The business volume of its
members encompasses nearly 70% of all domestic and 90% of all international
contracting work done so far by Turkish construction companies.
3.1 TCAs Objectives
• To increase the competitiveness of its members in the national and
international markets.
• To contribute to the achievement of an economically productive, socially
responsible and environmentally sound development in the construction
industry.
• To provide counsel to the government agencies on legal, economic and
technical issues that are related to the construction industry.
• To build and enhance strategic alliances with public and private bodies both
within and outside Turkey.
• To defend and promote the interests of its members.
• To encourage cooperation and mutual support among its members.
• To promote professional standards and business ethics.
• To raise public awareness on industry related issues.
3.2 International Cooperation Agreements
The Contractors National Committee in the Concil of SAUDI ARABIA 25.12.2011
Saudi Chambers - CNC
Egyptian Federation for Construction and Building EGYPT 05.12.2011
Contractors - EFCBC
Thai Contractors Association Under H.M. The King's THAILAND 23.09.2011
Patronage
The Singapore Contractors Association - SCAL SINGAPORE 07.05.2010
The Master Builders Association Malaysia - MBAM MALAYSIA 07.05.2010
Asociacion Empresas Constuctoras de Ambitio SPAIN 05.04.2009
Nacional - SEOPAN
Polish Association of Construction Industry POLAND 16.09.2008
Employers
China International Contractors Association-CHINCA CHINA 17.06.2007
Ethiopian Class-One Contractors Association ETHIOPIA 08.02.2007
Construction Contractors Association of Ethiopia - ETHIOPIA 24.06.2005
CCAE
British Consultants and Construction Bureau - BCCB UNITED 10.10.2003
19

22. KINGDOM
Confederation of Indian Industry-CII INDIA 16.09.2003
China International Contractors Association-CHINCA CHINA 27.08.2003
The Russian Federation Association of Contractors RUSSIAN FED. 16.10.2002
All Pakistan Contractors Association PAKISTAN 28.02.2002
The Romanian Builders and Contractors Association - ROMANIA 04.11.1999
ARACO
Bulgarian Association of General Contractors-BAGC BULGARIA 20.10.1999
Egyptian Federation for Construction and Building EGYPT 26.07.1999
Contractors - EFCBC
National Association of Spanish Construction SPAIN 22.03.1999
Companies - SEOPAN
Government of Punjab, Pakistan PAKISTAN 02.07.1998
UAE Contractors Association - UAECA UAE 13.05.1998
Kuwait Contractors Union-KCU KUWAIT 03.12.1997
International Contractors Association of Korea-ICAK S. KOREA 28.10.1997
China International Contractors Association-CHINCA CHINA 28.06.1995
Malay Contractors Association-MCA MALAYSIA 28.09.1994
From the beginning of the 1970's up to the present, Turkish contractors have
completed almost 6000 projects in 89 countries. Their business volume abroad has
reached approximately 188 Billion US Dollars.
In addition to offering contracting services at international standards both within and
outside Turkey, nearly 75% of TCA members are also active in various fields of
construction industry investments, manufacturing, engineering and consulting.
Besides the TCA, 94% of its member companies operate with the quality system
certificate.
20

23. 4. FORECASTS FOR CONSTRUCTION SECTOR
The growth during the coming 10 years will be seen on Asia Pacific, South
America, Middle East, Africa (mainly north Africa and below desert part of Africa)
and East Europe. Especially in Nigeria, India, China, Vietnam and Russia. Also
with the support of EU Poland will be in the list of 10 growing countries in the
construction sector
The locomotive of the growth will be the infrastructure. Housing will follow up it
because of the increase on the population. In addition to that increase on the oil
prices will positively affects the countries in order to fasten the investments. (e.g.
Nigeria).
The construction sector will remain on decreasing side in Western Europe. The
most effected countries are : Slovenia (-18,3%), Portugal (-18,2%), Spain (-
16,1%) and Italy (-14,2%). The highest increases are seen in Hungary (7,7%),
Bulgaria (3%), and Germany (2,2%) during July 2012
On south Amerika side, because of FIFA World Cup on 2014 and Olympics on
2016 construction in Brazil will be arouse.
21

24. ANNEX

25. LIST OF MAIN CONSTRUCTION COMPANIES
Enka
Gama
Rönesans
Ant Yapı
STFA
Tefken
TAV
Polimeks
Yüksel
Nurol
Kayı
Onur
Cengiz
Yapı Merkezi
Baytur
Güriş
Doğuş
Yaşar Özkan
GAP
Betatek
Çukurova
Yenigün
Rasen
Suma
Atlas
Makyol
Alarko
Metag
IC Đbrahim Çeçen
Eser Taahhüt
Limak
TML
Öztaş
23

26. SOME SAMPLE TENDERS FROM GOVERNMENTAL INSTITUTIONS
General Directorate of Highways Tenders:
1- Siirt Pervali motorway
Tender dated 31.10.2012
2- Production and montage of traffic signs in North Cyprus
Turkish State Railways (TCDD) Tenders
1- Ankara Train Station Construction
Tender date: 20.12.2012
2- Ankara-Istanbul 2. Stage High Speed Train Line Construction work of
Karakoy-Bozuyuk and Vezirhan-Inonu Stations
Tender date: 19.10.2012
24