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Turkey Review

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Contractors sharpen focus on the Gulf

01 September 2009

THE Arabian Gulf region, where Turkish contractors have been active since the 1980s, will be the prime focus area for the next several years, as these firms build on their reputation and clinch some of the landmark infrastructure projects in the region.

Considering the business experience of Turkish companies, cultural proximity and infrastructural development in Gulf countries, it is assessed that Saudi Arabia, Qatar and the UAE will continue to be important markets for contracting services abroad in the next 10-year term.
According to a report by the Turkish Contractors Association (TCA), business volume with the region has reached $130 billion, forming 15.6 per cent of the total amount of business abroad. As seen in Table 1, the country where Turkish contractors have undertaken the largest volume of business is Saudi Arabia – 118 projects of nearly $6 billion by 26 Turkish companies in the period between 1980 and 2008.
Most of these projects are in the areas of infrastructure, building, industry facility, hydraulic works and transportation. Reports that new infrastructure projects of nearly $500 billion will be undertaken in Saudi Arabia in the next five to seven years is a motivation for Turkish companies to reinforce themselves in the market.
Some TCA member companies that have undertaken business in Saudi Arabia include Baytur, Borova, Enka, Eser, Eston, Gama, Gap, Garanti Koza, Guris, Kiska, Koray, MNG Holding, Nurol, Okan, Onur and Soyak. The top five projects undertaken are the second part of the water transfer link project in Shuqaiq; construction of 2,592 villas and infrastructure works in Makkah; a water transmission system in Asir; a water pipeline project (Phase Two) in the east of Jubail; and construction and mechanical works on Rabigh refinery.
The other two countries in which Turkish companies are interested are Qatar and the UAE. Companies that have undertaken many large projects in the areas of highway, airport and seaports in Qatar have also been involved in the construction of various buildings and industry facilities.
The construction of the terminal building complex of New Doha International Airport in Qatar, undertaken by TAV, is one of the most important transportation projects undertaken by Turkish companies there. On the other hand, Qatar Convention Centre project undertaken by Baytur is the biggest building project undertaken by Turkish firms in the country.
With its strong economic performance, Qatar offers significant opportunities for Turkish companies. The total amount of projects undertaken by Turkish companies in Qatar has exceeded $5 billion within the last five years. Also considering the fact that the total value of all ongoing or planned projects in the country is $142 billion as of 2007 and that this figure has increased by 20 per cent compared to last year, Turkish companies are looking at the potential of the market in Qatar more closely.

Link for Table 1:

TCA member companies that have undertaken projects in Qatar include Aska, Atilla Dogan, Baytur, Dorce Prefabrik, Fernas, Gama, STFA, TAV, Tekfen and Yuksel. The top five projects by TCA member companies in Qatar are New Doha Airport terminal building complex with A, B and C landing decks; Qatar Convention Centre project; second and third contracts for the North highway; construction of Dock 7 at Mesaieed port and related works; and expansion of the gabro port.
The total value of the 26 projects undertaken in the UAE in 2008 by Turkish companies is over $3 billion, which makes the UAE the third leading country for Turkish contractor companies in 2008 – and this figure will gradually rise in the next few years.
TCA member companies that have undertaken business in the UAE include Baytur, Dorce, Gama, Guris, Kayi, MG Holding, Nurol, STFA, TAV, Yapi Merkezi and Yuksel. The top five projects undertaken by TCA member companies in the country are Dubai metro project; Dubai World Trade Centre project; Jumeirah Village housing project; Palm Jumeirah housing project; and 101-storey Marina 101 Skyscraper project.
Besides these GCC states, Turkish companies have also undertaken various projects in Oman, Kuwait, Yemen and Bahrain.
The joint venture formed by TAV Insaat and CCC (Athens) has undertaken the construction of the airfield and infrastructure of Muscat Airport. On the other hand, Enka is one of the contractors involved in Al Madina Al Zarqa (The Blue City) which is taking shape in Muscat. Besides, 30 per cent of the Duqm Port project in Duqm city in Oman has been undertaken by STFA Insaat.
The Turkish Contractors Association (TCA), a non-profit organisation, was established in Ankara in 1952 and represents the leading companies in the Turkish construction sector. The business volume of TCA members, which number 141, covers 70 per cent of the projects realised at home and 90 per cent of those completed abroad by Turkish construction companies. Turkish contractors have completed around 5,000 projects in 70 countries since the beginning of the 1970s. The business volume of these projects is around $130 billion.
Nearly 75 per cent of TCA members offer contracting services of international standards, home and abroad, operating in the areas of tourism investment, building materials and construction equipment manufacturing and engineering.