Turkish construction sector secures largest market in Saudi Arabia

The Turkish construction industry has achieved remarkable success abroad, with Saudi Arabia becoming the largest market for Turkish contractors in the first nine months of 2024.

According to the October report by the Türkiye Contractors Association (TMB), Turkish contractors undertook projects worth $2.3 billion in Saudi Arabia during this period.

Check out the list of construction projects carried out with foreign companies in Türkiye.

International projects reach $11.8B in 9 months

The report reveals that from January to September 2024, the Turkish construction sector completed 161 projects overseas, totaling $11.8 billion. With these new projects, the total international project portfolio has reached 12,297 projects across 137 countries, amounting to $515.8 billion.

Algeria ranked second with $1.7 billion in projects, while Gabon secured third place with $1.2 billion.

Challenges facing construction sector

The third quarter of 2024 witnessed significant challenges for the construction sector, with the effects of disinflation becoming more pronounced.

The tightening policies and their impact on financing have been noted, with the report emphasizing the constraints on credit growth, high financing costs, and reduced liquidity as key factors that will limit the sector’s growth in the coming period.

One of the ongoing issues in international projects is the non-acceptance of Turkish bank guarantee letters abroad. TMB is actively working to resolve this issue to facilitate smoother operations for Turkish contractors.