BMI's Executive Summary

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The earthquake of 1999 resulted in huge expenditure on reconstruction efforts and started the consolidation phase of the Turkish construction industry. The economy (and the construction industry in particular) is expected to gather momentum in the run-up to Turkey's anticipated accession to the EU in 2015. Large infrastructure projects involving investment of billions of dollars have been planned or are under way. Due to Turkey's recent achievements and security provided under the prospects of EU membership, foreign direct investment (FDI) has increased substantially since 2005, reaching US$19bn in 2006 alone from an average of US$1bn between 1990 and 2003.

Rising demand has led to a shortage of residential dwellings, as a result of which construction of more than 400,000 new housing units is required each year up to 2010 to meet the housing needs of a growing population. The government is taking many initiatives to improve infrastructure of the fast-growing tourism sector over the coming years and is encouraging private investment. Turkey is a major producer of building materials such as cement, structural steel, bricks, timber and glass. The nation is among the leading manufacturers of cement in Europe and existing cement companies are looking at acquisitions or setting up new plants or enhancing capacities at existing plants to increase business activities.

However, widespread corruption and non-adherence to international building standards are hampering the progress of the Turkish construction industry. High levels of external debt and reliance on domestic and international portfolio investment to support the balance-of-payments position lead to a precarious situation on the macro-economic front. The country's current US$10bn standby deal with the International Monetary Fund (IMF) expires in May 2008.

Despite this, this report forecasts an average growth of 9.2% for the construction industry over the 2008- 12 period.

Contents

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Chapter 1 – Industry Trends And Developments

Market Overview

Turkey's Economy In 2006

Turkey's Construction Industry In 2006

Major Companies

Some Recent Investment Initiatives

Chapter 2 – Key Projects

Transport

Utilities

Tourism

Residential And Commercial Construction

Turkey — Major Infrastructure Projects

Chapter 3 – Business Environment

Introduction

Business Attractiveness Rankings — Methodology

Breakdown Of Ratings

Breakdown Of Components

Regional Overview

Turkey: Business Environment Ranking

Politics — Long–Term Risk

Structural Economic Risk

Competitive Environment

Anticipated Sector Growth

Chapter 4 – SWOT Analysis

Turkey Infrastructure Industry SWOT

Turkey Political SWOT

Turkey Business Environment SWOT

Turkey Economic SWOT

Chapter 5 – Industry Forecast Scenario

Table: Turkey — Infrastructure Industry Forecast

Risks

Chapter 6 – Macro–economic Outlook

Growth Slows At End of 2006

Prospects For 2007 and Beyond

Risks To Outlook

Table: Balance of Payments, US$bn

Chapter 7 – Competitive Landscape

Table: Key Players

Chapter 8 – Company Monitor

Tekser Construction

Gama Industry

STFA Construction

Enka Construction & Industry

Chapter 9 – BMI Forecast Modelling

How We Generate Our Industry Forecasts

Construction Industry

Sources

Competitive Landscape for Middle East & Africa Infrastructure Reports: Sample of Companies Ranked

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Comparative company analyses and rankings by sales, % market share, employees, registration date and ownership structure. Company profiles include fully researched senior executives and contact details, business activity and leading products and services. SWOT (strengths, weaknesses, opportunities, threats) of the state’s business environment, infrastructure sector, politics and economics, which carefully evaluates the short- and medium-term issues facing the industry.

Network of Middle Eastern & African Infrastructure Sources

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BMI's Middle Eastern & African Infrastructure Reports are based on an extensive network of multilateral organisations, government departments, Infrastructure industry associations, chambers of commerce and company reports. Information sources include: