Turkish Contractors Association has 65 years of history. Could you give brief information on the Association? Turkish Contractors Association (TCA) is one of the oldest independent, non-profit,
professional organizations in Turkey. The Association was founded in 1952 in Ankara and represents the leading construction and contracting companies in the country. As one of Turkey’s oldest NGOs, TCA has became a well-respected international organization thanks to its strong cultural roots, globallyactive members and extensive international network. The Association currently comprises of 140 companies, almost all of these companies work as international contractors and many are well-known global players.
The businessvolume of TCA members encompasses nearly 70% of all domestic and 90% of all international contracting work done so far by Turkish construction companies. TCA is extremely selective in accepting new members. Only the companies fulfilling certain legal, technical, financial and experience related criteria can become a member to the Association. They also have to guarantee that they will comply with the ethical standards of TCA. We strongly believe that high business standards and client satisfaction are extremely important for long term success and long-lasting partnerships based on mutual trust.
The Turkish Contractors Association is an active member of international sector organizations, undertaking executive positions on their boards. The Association is a member of 5 professional international organizations, including the Confederation of International Contractors’ Association (CICA), European Construction Industry Federation (FIEC), European International Contractors (EIC), Federation of Contractors from Islamic Countries (FOCIC) and World Water Council (WWC).
Could you tell us about the international activities of Turkish construction companies? Starting their international activity with the Libyan market in the early 70s, the Turkish contractors have spread across the globe in more than four decades. From the beginning of 1970’s up to present, Turkish contractors have completed 8830 projects in 113 countries, with a total business volume of
around 335 billion US Dollars. More than 90% of the international projects of TCA members are concentrated in three regions: Eurasia, Middle East and North Africa. They have positioned themselves as market leaders and enjoy a well established reputation in many countries within these regions. Overall, 1866 projects accounting for more than 86.3 billion US Dollars have been undertaken so far in the Middle East, representing 25.7% of the total amount of international business volume of Turkish contracting companies
Turkish contractors have undertaken both housing and infrastructure projects in theregion. They have built motorways, railways, bridges, tunnels, dams, hydro-electrical and thermal power plants, industrial buildings, large scale oil and natural gas pipelines, petrochemical refineries and compounds, seaports and airports, large-scale social housing projects, hotels and convention centers in the continent. With vast natural resources and fast urbanization, Gulf region is expected to maintain its promising position offering great business opportunities for overseas contracting services. 3. Could you tell us about the experience of your members in the oil and gas market? In the 2000s, Turkish contractors have diversified their markets and projects, increased the annual international business volume by more than 10 times, created a remarkable trend of competitiveness and tended to become a global brand in certain types of projects. In this respect, the coming years are likely to be a new era for Turkish contractors to further increase their competitiveness through proven expertise. As of today, Turkish contracting companies successfully compete on 5 continents, offering affordable services of high quality. They are open to enhancing international partnerships not only in the field of contracting, but also in construction industry investments, ranging from the production of building materials to infrastructure, housing, industrial plants and tourism projects in the African, Eurasian and Middle Eastern countries. Turkish contractors continue to increase their competitiveness with extensive know-how and experience gained in all kinds of challenging projects and in all forms of business environments. Within time, investments in oil and gas exporting countries, which are geographically close and culturally familiar to Turkey, increased as a result of booming oil prices and this development created attractive business opportunities for the Turkish contractors. In this respect, in the period of 1972-2016, the share of housing projects in the overall international business decreased gradually, whereas the shares of road/bridge/tunnel, commercial center, airport, socio-cultural facility, industrial plant, petrochemical plant and tourism facility projects increased substantially. As of today, combined share of petrochemical plant, industrial plant and power plant investments account for more than 18% of all Turkish international contracting services. What are the main rules of doing business in Turkey? What would you advise to foreign companies that are interested in entering Turkish market? Fully integrated with global markets, Turkey today is the world’s 18th largest economy. Despite the global economic crisis and increased geopolitical risks, the Turkish economy has displayed resilience and grew 4% last year. Such a growth rate above the EU average was attained mostly through a young and dynamic population, local and foreign investments, and the reform agenda, for further strengthening the economic structure. Moreover, fiscal discipline and a strong banking sector will continue to be the fundamental elements of Turkey’s economic stability.
In order to promote foreign investment, the Turkish government provides various tax and non-tax incentives to foreign investors, in line with those provided to domestic companies. These include customs and VAT exemptions on various imported or locally delivered goods, including machinery and equipment, as well as priority regions which offer incentives such as free land and energy support. Foreign ownership is unrestricted, with no pre-entry screening requirements. As President of TCA, what is your final message to all the potential investors and about Turkey and the construction sector? I genuinely believe that those who work in the construction industry not only shape our built environment but also build bridges between times, places, cultures and people, leaving long-lasting evidences behind. Turkey has long-standing historical and cultural relations with Gulf countries, dating back centuries. As a group of business people on the crossroads of three continents and working globally, TCA members are very much open to international partnerships and cooperation.
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