Infrastructure & Construction 

The Government of Türkiye’s (GoT) support of the construction sector has ensured its lasting growth over several decades. This sector is a pillar of the Turkish economy, demonstrating its strength through both domestic and international projects. Globally, Turkish contractors, along with construction material and machinery manufacturers, play a key role in driving the nation’s exports. Recent data indicate that the sector is responsible for nearly 30% of the country’s GDP. From the 1970s to the present, Turkish contractors have taken on over 12,000 projects in 137 markets worth over $534 billion. Turkish contractors continue to have a strong presence in markets throughout Europe, the Middle East, Africa, and other CIS region by offering highly skilled and diversified services. Among ENR’s Top International Contractors List, there are 42 Turkish companies, placing Türkiye second after China and ahead of the U.S.

Table: Turkish international contracting services (1972-2024)

Earthquake and Seismic Technologies 

Türkiye sits on a major earthquake zone, and with a major Istanbul earthquake considered inevitable, there are significant opportunities for U.S. companies offering earthquake and seismic technologies. Advanced solutions such as early-warning systems, structural monitoring, earthquake-resistant construction materials, and retrofitting technologies can help Turkish cities and industrial facilities better prepare for and mitigate seismic risks. U.S. expertise in disaster resilience and engineering innovation positions American firms to partner with local authorities, construction companies, and infrastructure developers, delivering life-saving technologies while expanding their presence in a high-demand market.

Considering the lasting impact of the February 2023 earthquakes in Southern Türkiye, regional reconstruction is expected to take several years. Turkish and international organizations like the European Bank for Reconstruction and Development (EBRD), World Bank, and United Nations have focused on building resilient urban infrastructure in the aftermath of the earthquakes. The World Bank alone has provided $4 billion to aid for reconstruction. EBRD has implemented the majority of its initial €1.5 billion (approximately $1.8 billion) response to the earthquake, with its focus shifting to infrastructure projects in affected regions.

Digital Infrastructure

Türkiye is rapidly entering the era of smart city technologies, achieving notable progress in recent years. Ministry of Environment, Urbanization and Climate Change along with numerous municipalities have been adopting advanced technologies to streamline operations, enhance sustainability, and improve overall efficiency across sectors, including transportation, public safety, and communications. 

While Türkiye is making significant strides in implementing smart city technologies, the market still trails the U.S. and many European cities in terms of smart city project volume and scope. Among the opportunities for U.S. companies is Türkiye’s demand for extensive infrastructure development and system upgrades to enable the integration of digital technologies. Retrofitting existing urban environments with smart solutions can be both complex and costly, requiring careful planning and coordination. Ongoing challenges include limited funding, a shortage of qualified human resources, and underdeveloped geographical information systems (GIS) infrastructure, which pose obstacles to investment. However, several international finance institutions offer funding programs to support Türkiye’s continued development of sustainable smart city solutions. 

Air – Waste - Water Infrastructure Technologies

While Ministry of Environment, Urbanization and Climate Change is the main regulator for waste management as well as for maintaining and improving water and air quality; local municipalities are tasked with managing purification of drinking water, wastewater and sewage treatment, solid waste management and recycling. 

Preventing water loss is a key priority for Türkiye, a country prone to drought. The water utilities of some large and industrialized cities have implemented SCADA systems to identify water losses and network failures. However, this system needs to be expanded to less developed regions of Türkiye as well. There are opportunities for U.S. manufacturers of desalination and atmospheric water generation technologies, as the country is bordered by seas on three sides.

Türkiye is mostly in line with European legislation regarding solid waste management and recycling; however, it still lacks source-separated waste collection. Government buildings, including public schools and hospitals, are expected to transition to source-separated waste collection. Although waste separation and recycling facilities exist, further development of regional solid waste processing, recycling facilities, and sanitary landfills remain necessary. The GoT also plans to remediate and upgrade existing unsanitary landfills. Several Turkish cities are also implementing waste-to-energy projects, creating significant opportunities for U.S. companies in this sector.

Türkiye, with a robust plastic manufacturing industry experiencing strong demand for raw materials, became a major plastic waste importer after China stopped purchasing. Regulations for such imports often change due to political headwinds arising from the improper disposal of imported plastic waste by irresponsible actors. Greenpeace Türkiye and similar NGOs campaigning against plastic waste imports successfully pressured the government to introduce new restrictions. Plastic recycling companies can now import only 50% of their raw materials to encourage the use of locally sourced plastic waste. Türkiye has also banned the import of ethylene polymer plastics and mixed plastic waste. 

The plastic industry is pressuring the government to revise these regulations to maintain the competitiveness of the Turkish plastic sector. In 2025, the government plans to fully implement plastic bottle collection by incentivizing the public through deposit payback. Plastic bottle deposit systems have been launched in larger cities, with nationwide deployment currently underway. The waste management industry is open to foreign expertise and technologies offered by U.S. companies. Sector contacts indicate that U.S. companies specializing in advanced waste management technologies have opportunities in the Turkish market.

Türkiye has made significant progress in monitoring air quality, operating a national network of over 380 fixed stations and several mobile units that provide real-time data across the country. The main sources of ambient air pollution are coal-fired power plants, motor vehicles, and industrial activities, with urban areas particularly affected by traffic emissions. To reduce sulfur dioxide emissions, the government is requiring the installation of flue-gas desulfurization units in new and many existing coal-fired power plants, creating opportunities in the air pollution control market. 

Opportunities

Türkiye holds opportunities for U.S. companies active in construction and infrastructure industries. Given high inflation, Türkiye is a very cost-sensitive market, but third-party financing may help ease some of the financial pressures influencing official decision-making. U.S. companies can make significant contributions while securing profitable projects by strengthening and constructing resilient buildings and infrastructure by providing advanced earthquake-resilient technologies. U.S. companies can work closely with Türkiye’s well-developed construction sector to form partnerships and explore additional opportunities both in Türkiye and in third markets.

In 2024, EBRD, one of the largest institutional investors in Türkiye, invested €2.6 billion (approximately $2.7 billion) in country’s economy, energy investments and earthquake-related projects boosting the momentum. This marks a 4% increase from €2.5 billion in 2023 and €1.6 billion in 2022. Notably, 93% of these funds were directed towards the private sector, underscoring the EBRD’s commitment to fostering private enterprise and economic resilience in Türkiye. In total, the EBRD’s cumulative investment in Türkiye surpassed €22 billion by the end of 2024, with over 460 projects and trade finance lines supported. This is a prime example of third-party financing opportunities for U.S. companies.

In 2024, the Bank led a partnership with the Turkish Ministry of Industry and Technology to launch the Türkiye Industrial Decarbonization Investment Platform (TIDIP), with additional support from the World Bank Group and the International Finance Corporation. The platform’s goal is to mobilize US$5 billion investments by 2030.

The upcoming EU Carbon Border Adjustment Mechanism (CBAM), set to begin in 2026, creates strong opportunities for U.S. companies selling energy and efficiency technologies to Turkish industrial manufacturers as well. As Turkish exporters from sectors like steel, aluminum, cement, and fertilizers face higher costs under CBAM, there is growing demand for solutions that reduce emissions and improve energy efficiency. U.S. firms can provide advanced carbon-reduction technologies, energy optimization systems, and emissions monitoring tools, helping Turkish manufacturers stay competitive in the EU market. 

Resources

• Turkish Contractors Association - https://tmb.org.tr/en
• Ministry of Environment, Urbanization and Climate Change - https://www.csb.gov.tr/en
• World Bank in Türkiye – www.worldbank.org/en/country/Türkiye
• European Development Bank of Reconstruction (EBRD) – https://www.ebrd.com/Türkiye.html
   

For further information on this section or for more on potential opportunities, contact:

Yaprak Cakilcioglu
Sr. Commercial Specialist
Design and Construction & Smart City Technologies & Environment and Water Sectors Leader
U.S. Commercial Service, Türkiye
Yaprak.Cakilcioglu@trade.gov