Turkey has undergone a profound economic transformation over the last decade and its economic fundamentals are quite solid. Currently it is the 17th largest economy in the world and the 6th largest economy in Europe with a GDP of approximately USD 800 billion in 2014.
Turkey’s emerging economy presents a need for infrastructure investments in various sectors. The main industries include, but are not limited to, construction, residential and non-residential buildings, transportation and energy.
Regarding the infrastructure sector, the government allocated USD 26 billion in 2013. 30 percent of this budget is for the transportation sector, followed by education, energy, healthcare, and agriculture. Some of the major targets are as following:
- Having an export volume of USD 500 billion and being one of the top ten economies in the world
- Increasing the length of high-speed railway lines to 10,000 km from 888 km with a 25 percent CAGR
- Achieving 8,000 km of motorways, from 2,155 km, during 2015
- Increasing the passenger capacity of airports from 165 million to 400 million by 2023
- Accomplishing a 32 million TEU handling capacity for container transport
- Having a 10 million DWT shipbuilding capacity
- Increasing the number of marinas to 100 with a yacht capacity of 50,000
As regards the energy sector, Turkey aims to increase its installed power capacity to 100,000 MW by 2023, up from 71,430 MW in 2015. The aforementioned targets in the energy sector require significant infrastructure investments in Turkey and offer ample opportunities for investors.
New plans and targets also continue for urban renewal projects. Since the enactment of the Urban Transformation Law No. 6306, the Turkish government has decided to retrofit and renovate buildings that are vulnerable to damage from natural disasters, which includes 6.5 million residences, with a budget of USD 400 billion.