TODAY’S – Turkish contractors to lose TL 10 bln abroad amid conflicts

Turkish contractors to lose TL 10 bln abroad amid conflictsThe volume of work Turkish contractors engage in abroad is likely to fall by a value of TL 10 billion in 2014, a report published in a prominent business daily on Tuesday has shown, stating that a 37 percent decrease is expected to take place in the export of construction services this year as result of regional conflicts in neighboring countries such as Ukraine, Iraq and SyriaAccording to the Dunya business dailyand#39s report, which was prepared with recent statistics from the Economy Ministry and the Turkish Contractors Association (TMB), the volume of work that Turkish contractors carried out in the first 11 months of this year totaled TL 20.4 billion.

Combining this figure with a monthly average of TL 2 billion for December, the total volume of work is expected to hover around TL 22 billion in value in 2014.The value of construction services and projects carried out abroad by Turkish companies amounted to TL 32.

6 billion in 2013 and TL 29.7 billion in 2012.

In terms of the number of projects, Turkish contractors carried out 406 projects in 2013 and 484 in 2012, revealing that even though the number of projects had been decreasing, the total volume showed an increase between 2012 and 2013. Nonetheless, the figures in 2014 reveal that both the total volume and the number of projects have dropped.

The number of projects that Turkish construction firms engaged in abroad in the first 11 months this year reached a total of only 209.TMB President Mithat Yenigun stated that while the average scale of individual projects continues to increase, the total value and the number of projects dropped this year as a result of recent developments in Iraq and Libya as well as the Middle East overall, where Turkish firms had previously had a strong presence.

Highlighting that, in addition to risks in Middle Eastern markets, the sanctions imposed by Western countries on Russia — a crucial market for Turkish firms — as well as possible delays in the projects in the top markets of Turkey due to falling oil prices pose a threat for the sector, Yenigun added.Yenigun pointed to sub-Saharan countries rich with natural resources and a heightened need for investment as potential markets for Turkish construction firms.

However, he said Turkish companies have recently faced an obstacle with the Ebola epidemic, which may create a problem for Turkish investments in AfricaYenigun called the Ebola epidemic a threat to global security but maintained that efforts will continue to diversify projects in African countries.Yenigun also added that the construction services of Turkish firms have grown in the last 10 years, both in size and quality.

Dunyaand#39s report also says that, given the trend of an increase in the size and scale of projects, the total volume might have reached TL 35 billion for 2014 if the activities of Turkish firms had not decreased due to regional conflicts, amplifying the magnitude of the loss.

SOURCE: Today’s Zaman