Turkey’s Defense Industry Keeps Growing — Here’s What That Means for Your Portfolio
Why does this matter beyond patriotic headlines? Because Turkey’s defense industry has become one of the few sectors growing in hard currency terms while the rest of the economy battles inflation and a weak lira. Companies like ASELSAN, ROKETSAN, and TAI are booking contracts in dollars and euros — a natural hedge in an economy where the local currency loses value year after year. For investors, this is not a niche story anymore.
The numbers tell the real story: Turkey’s defense exports have climbed from roughly $250 million a year in the early 2000s to over $5.5 billion today. The government target is $10 billion by 2028. When a sector is doubling its export base every few years, it creates a ripple effect — jobs, subcontractors, engineering demand, and equity value. Görgün’s statement is short on specifics, but the direction is clear: this sector is one of Turkey’s most serious industrial bets for the next decade.
💬 Levent KAYIRA Commentary
Ekonomik Gündem Analysis: From my years managing portfolios at Turkish banks, I watched defense stocks go from afterthoughts to portfolio anchors. ASELSAN alone has grown from a niche electronics supplier to a company with a market cap that competes with Turkey’s largest private banks. That shift didn’t happen by accident — it was built on consistent government procurement budgets and a deliberate localization strategy.
The key number to watch is the domesticity rate. Turkey has pushed its domestic defense procurement ratio from around 20% in 2002 to over 80% today. Every percentage point of that shift means dollars staying inside the Turkish industrial ecosystem rather than flowing to Lockheed or BAE Systems.
For retail investors, ASELSAN (ASELS) and TUSAŞ remain the most liquid entry points. But the smarter play is looking at second-tier suppliers — companies feeding components into these primes — where valuations are less stretched. Defense budgets are sticky; they don’t disappear in a rate cycle or a political transition. In a Turkish market where predictability is rare, that consistency has real value.
Görgün’s statement is brief, but the underlying trend it confirms is durable. This sector earns in hard currency, grows with government backing, and exports to markets from Central Asia to Africa. That combination is hard to find anywhere else on the Istanbul exchange.
Kaynak: Google News Ekonomi