ASELSAN, Baykar & TUSA? on list of world giants amidst rise of global arms sales

By News Centre

The Stockholm International Peace Research Institute (SIPRI) in Sweden has published the 2023 revenues of the world’s largest 100 arms manufacturers. Turkish companies ASELSAN, Baykar, and TUSA? were included in SIPRI's "Top 100 Arms Producers" list. The total revenues of Turkish companies reached $6 billion, marking a 24% increase. The report, which highlights Turkiye’s defense initiatives and successes, states that the growth in Turkish firms' arms sales is linked to domestic demand and the war in Ukraine.

The report notes that "Turkiye has long aimed for self-sufficiency in its defense industry" and links the growth in Turkish firms' arms sales to domestic demand and the Ukraine war.

According to CNBC-e, Baykar, which increased its revenue by 25% to $1.9 billion in one year, climbed 10 places to 69th in the "Top 100" list. The report highlights the widespread use of Baykar's unmanned aerial vehicles (UAVs) in Ukraine, stating, "Baykar exported UAVs to Ukraine or for delivery to Ukraine through other countries." Last year, 90% of Baykar's revenue came from exports.

TUSA?, which rose 10 places to 78th, was the Turkish arms producer with the highest revenue increase, at 45%. The company made 31% of its $1.7 billion sales from exports.

ASELSAN, which increased its revenues by 12%, ranked 54th. Unlike the other two Turkish producers, ASELSAN's revenue from exports was minimal, with the majority of its $2.4 billion sales coming from the Turkish security forces.

SIPRI reports that the world's top 100 defense equipment producers increased their arms sales by 4.2% to $632 billion, while the global economy grew by 3.1% in 2023, according to IMF data. Thus, growth in the arms industry outpaced global economic growth.

SIPRI also noted that U.S. manufacturers on the list increased their sales by 2.5% to $317 billion compared to the previous year.

This increase followed a 3.5% decline in arms sales in 2022, which SIPRI attributed to labor shortages, supply chain disruptions, and rising costs, making it difficult for many companies to meet increased demand due to Russia's invasion of Ukraine.

Sales by European companies (excluding Russia) remained roughly unchanged at $133 billion in 2023, but order intake increased, with some groups seeing a rise in demand linked to the war in Ukraine.

Earlier this year, SIPRI reported a 7% increase in global military spending in 2023, the highest annual increase since 2009.

SIPRI stated, "In general, smaller producers were more effective in responding to new demand linked to wars in Gaza and Ukraine, rising tensions in East Asia, and rearmament programs elsewhere." Russian groups on the list, including state-owned Rostec, achieved the largest overall increase, reaching $26 billion with a 40% rise. SIPRI researcher Lorenzo Scarazzato said, "The arms revenues of the top 100 arms producers still do not fully reflect the scale of demand, and many companies have launched recruitment campaigns, indicating optimism about future sales."