Local content in defense industry reaches 82 pct: VP Yılmaz

ANKARA

Türkiye’s defense sector has reached an 82 percent local content rate, improving from a position of being nearly 80 percent dependent on foreign sources two decades ago, Vice President Cevdet Yılmaz told parliament’s budget committee on Dec. 1.

Yılmaz said the industry has expanded from 56 companies and 62 projects in 2002 to more than 3,500 companies and over 1,400 projects today, adding that the sector now provides around 100,000 qualified jobs.

According to Yılmaz, Türkiye is now “one of the world’s top three countries” in unmanned aerial systems, a global frontrunner in electronic warfare and among the limited group of nations capable of building their own warships.

Defense and aviation exports, which stood at $248 million in 2002, rose to $7.2 billion in 2024, marking a 30 percent year-on-year increase, he said.

In the first nine months of the year, exports reached $6 billion, placing Türkiye 11th globally in defense exports. Five Turkish companies made it into this year’s list of the world’s top 100 defense firms.

Yılmaz noted that Ankara aims to further expand the sector under the 12th Development Plan, targeting 150,000 employees, $26 billion in turnover and $11 billion in exports.

Touching on digital resilience, Yılmaz said Türkiye’s Cyber Security Directorate will play a central role in strengthening national digital sovereignty.

He also pointed to rapid growth in the country’s startup ecosystem, which he said has become a strong regional hub.

Investments in Turkish startups reached just $815 million between 2010 and 2020, but have surged to $5.6 billion since 2021, averaging $1 billion annually — a sign, he said, that Türkiye is firmly on the radar of global venture capital.

In 2024, Türkiye ranked 12th in Europe and 3rd in the MENA region for early-stage investments. Over the last five years, 455 venture capital funds have raised $2.3 billion in the country.

Despite an 11 percent global decline in foreign direct investment, Türkiye recorded a 9.7 percent annual increase, reaching $11.7 billion last year.