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Defense Industry
The geographical position of the Republic of Turkey, at the heart of the most unstable triangle in the world—the Balkans, Caucasus and the Middle East, makes it imperative to maintain a strong and modern military.  Turkey is expanding its national defense industry to support its armed forces.  Turkey is a member of the United Nations (UN), North Atlantic Treaty Organization (NATO), Organization for Security and Cooperation in Europe (OSCE), the Euro-Atlantic Partnership Council (EAPC) and the Western European Union (WEU).

The Ministry of Defense's (MOD) which plans to modernize its armed forces is financed mainly by the national budget and the Defense Industry Support Fund and partly by foreign military loans and contributions in connection with the Conventional Forces in Europe Treaty.  The Turkish Ministry of Defense budget is approximately 3.6 percent of the GNP on average and around 12 percent in the Consolidated Budget, which is the highest spending in NATO.  The average allocation of the MOD budget is as follows:

Organizations:

Proportion of the MOD Budget:

Turkish General Staff

7.7 percent

Ministry of National Defense

7.3 percent

Land Forces Command

49.5 percent

Naval Forces Command

13.9 percent

Air Forces Command

21.6 percent

The allocation of the 609,700 persons serving in the armed forces is divided among the army (495,000), navy (54,600) and air force (60,100).  In general, one-third of the MOD allocation (about USD 2.6 billion) is spent on foreign procurement expenditures and military-related investments.

Turkey began its defense-related modernization program in 1984 with coproduction of F16 fighter aircraft, armored infantry fighting vehicles and light transport aircraft.  Turkey will remain a good market for U.S. off-the-shelf products.  Receptivity to U.S. defense products in the Turkish market is high.  During the next 25 to 30 years, a significant number of combat weapons and equipment currently in the Turkish Armed Forces (TAF) inventory needs to be modernized or replaced with systems incorporating new technologies.  The cost of all these systems, including operation and maintenance, is approximately USD 150 billion.  During this period, the army ground forces will need USD 60 billion, the navy USD 25 billion, and the air force USD 65 billion in arms and equipment.  Future Turkish armed forces' requirements continue to include main battle tanks, wheeled armored vehicles, tank transport and rescue vehicles, the pedestal mounted Stinger program, army tactical missile system (ATACMS), artillery upgrades, UAVs (unmanned aerial vehicles), combat aircraft, airborne early warning aircraft (AEW), search and rescue helicopters, fast patrol boats, submarines, mine hunter vessels and maritime patrol and surveillance aircraft.

Turkey's domestic defense industry was given a big boost with the establishment of the Under Secretariat for Defense Industries (SSM), which is responsible for the development and modernization of the Turkish defense industry.  To meet new opportunities, U.S. companies should diversify their product bases to include equipment with defense, industrial, and commercial applications.

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