Turkish Defense Industry Targets Global Expansion Through SME Empowerment

Ender Öztürk

September 30, 2026

Muttalip Tütüncü, General Secretary of SAHA Istanbul, recently appeared at the AA Technology Desk, supported by ROKETSAN, to discuss the evolving landscape of the Turkish defense industry. He explained that while the sector has flourished within domestic boundaries, it has now reached a pivotal stage where international expansion is essential for sustainable growth. With Turkish defense exports having officially surpassed the $10 billion mark, the strategic focus is shifting toward integrating small and medium-sized enterprises into the global supply chain. This initiative aims to transform local subcontractors into independent, high-tech exporters capable of competing on the world stage.

The Number of SAHA Istanbul Members Continues to Grow

Established in 2015 by just 27 companies, SAHA Istanbul has rapidly expanded to become one of Europe’s largest defense and aerospace clusters. Today, it encompasses more than 1,400 members, the vast majority of which are SMEs. Tütüncü noted that this growth was not the result of an aggressive recruitment policy but rather a natural reflection of the developing technological ecosystem in Turkey.

The primary objective of this massive cluster is to ensure that these companies do not merely exist as parts of a domestic supply chain. Instead, the goal is to empower them to develop their own unique products and secure a foothold in international markets. By doing so, the industry ensures that its growth is not dependent solely on a few major national contractors.

Small and Medium Enterprises Learn How to Export

Traditionally, large-scale platforms in the Turkish defense sector are developed by major lead contractors. SMEs have historically played the role of subcontractors, providing sub-components and specialized manufacturing services. However, to capture a larger share of the global market, this traditional model is undergoing a significant transformation.

The focus has shifted toward turning these SMEs into direct exporters. Through the International Competitiveness Development (URGE) project, supported by the Ministry of Industry and Technology, companies are receiving the necessary guidance to enter foreign markets. Furthermore, SAHA Academy provides sectoral training and MBA programs to enhance the commercial and managerial capabilities of these firms, ensuring they are prepared for the complexities of global trade.

New Market Opportunities for Small Defense Firms Emerge

The changing nature of modern warfare is creating unique opportunities for smaller companies. While massive platforms remain the domain of large contractors, there is an increasing demand for cost-effective, high-tech, and rapidly deployable systems. This shift is particularly visible in the rise of unmanned systems and low-cost sensors that have proven effective in recent conflict zones.

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Instead of merely producing parts for larger systems, Turkish SMEs are being encouraged to develop independent products that address specific battlefield needs. By focusing on autonomous solutions, electronic systems, and specialized ammunition sub-systems, these smaller firms can find niche markets where they can compete independently on a global scale.

Turkish Companies Use the Coopetition Model to Compete

One of the most innovative approaches being promoted by SAHA Istanbul is the concept of “coopetition”—a blend of cooperation and competition. This model encourages Turkish firms to stop competing against one another in international tenders and instead combine their strengths to offer more comprehensive solutions.

For instance, a company specializing in software can collaborate with another focused on sensors and a third specializing in mechanical infrastructure. By forming a consortium, these companies can present a united front and a stronger technical proposal to international buyers. This strategy is vital for SMEs that may lack the resources to handle massive integrated projects on their own.

Global Interest in Turkish Defense Technology Increases

The success of Turkish defense products has fundamentally changed how the world views the nation’s technological capabilities. Tütüncü highlighted that countries which previously imposed embargoes or supply restrictions on Turkey are now seeking strategic partnerships. He cited Canada as a prime example of this shift.

Following restrictions on drone camera systems, ASELSAN developed the ASELFLIR-500 and ASELFLIR-600 series, which are now being offered to the global market. Today, technical and ministerial delegations from Canada regularly visit Turkey to discuss strategic cooperation. This demonstrates that reducing external dependency can lead to the creation of highly competitive export products.

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Dual-Use Technologies Help Local Companies Expand

Another strategic growth area involves dual-use technologies, where defense innovations are adapted for civilian applications. For example, high-end camera technology developed for armed drones can be repurposed for civil security systems. This allows companies to diversify their revenue streams and maintain R&D investments even during periods of lower defense spending.

Looking ahead, SAHA Istanbul is also targeting the space and civil aviation sectors. Technologies developed for defense—such as propulsion, navigation, and radar—are directly applicable to space exploration. Turkey is set to host the 77th International Astronautical Congress in Antalya, which will serve as a major platform for showcasing these capabilities. Additionally, as global aircraft manufacturers look for new production hubs, Turkey’s established defense infrastructure positions it as a prime candidate for the civil aviation supply chain.

How do you think the rise of Turkish defense SMEs will impact the global balance of power in the next decade? Share your thoughts on the future of “coopetition” in the comments below.