Türkiye’s state-owned enterprises are set to invest approximately 754.2 billion Turkish liras in 2027, concentrating public capital in oil and gas production, railways, electricity transmission and pipeline infrastructure. The program, published in the Official Gazette on October 20, matters to international investors because it identifies where Ankara expects the largest state-led projects, procurement requirements and infrastructure bottlenecks to emerge. It also shows that the most significant opportunities will sit at the intersection of public policy, regulated markets and technically demanding project execution.
Energy and Transport Dominate the Program
Presidential Decision No. 11898 establishes the 2027 General Investment and Financing Program for 20 state economic enterprises and three other majority state-owned companies. According to the Official Gazette figures reported by Hürriyet Daily News and Anadolu Agency, Turkish Petroleum Corporation, or TPAO, received the largest investment target at 353.8 billion liras.
Turkish State Railways, or TCDD, follows with 122.7 billion liras. The Turkish Electricity Transmission Corporation, TEİAŞ, is assigned 75.7 billion liras, while pipeline operator BOTAŞ is expected to invest 70 billion liras. TCDD Taşımacılık, the state passenger and freight operator, has a target of 45 billion liras, and the General Directorate of State Airports Authority, known as DHMİ, is allocated 26 billion liras.
The four largest enterprises account for about 82.5 percent of the entire program. TPAO alone represents almost 47 percent. When TPAO, TEİAŞ and BOTAŞ are combined, energy-related enterprises account for roughly two-thirds of the total. TCDD and TCDD Taşımacılık together represent another 22 percent.
This concentration provides a clearer investment signal than the headline number alone. Türkiye is directing the bulk of its state-enterprise capital toward domestic energy production, energy security, transmission capacity and rail-based logistics. For foreign companies, the immediate commercial implications are likely to arise through engineering contracts, specialized equipment, digital systems, technical services, joint ventures and supply-chain localization rather than equity investment in the state enterprises themselves.
The 754.2 billion-lira figure is an investment target, not a guarantee that the full amount will be contracted or spent during 2027. Enterprise budgets, project readiness, financing conditions, procurement timetables and administrative approvals can all affect execution. Foreign suppliers should therefore distinguish between a published appropriation ceiling, an approved project and an active tender.
A Large Nominal Increase, but a More Modest Real Expansion
The 2027 target is about 11 percent above the approximately 679.3 billion liras allocated to state enterprises under the 2026 investment program. Türkiye’s 2025 allocation was about 405.6 billion liras, according to Anadolu Agency, meaning the nominal program has expanded rapidly over two years.
Inflation substantially changes the interpretation. Central Bank of the Republic of Türkiye Governor Fatih Karahan said in May 2026 that the bank expected year-end inflation of 26 percent in 2026 and 15 percent in 2027. The government’s 2027 to 2029 Medium-Term Program, introduced in September, also places continued disinflation at the center of economic policy.
Because investment programs cover flows throughout the year, year-end inflation forecasts cannot be used as a direct deflator. Even so, an 11 percent nominal increase does not necessarily represent a significant increase in real purchasing power. Exchange-rate movements are equally important because drilling systems, compressors, turbines, signaling equipment, control systems and other high-technology inputs are often imported or priced with reference to foreign currencies.
Investors should consequently evaluate individual project budgets in their contractual currencies. A lira appropriation may lose equipment-purchasing power if the currency depreciates more quickly than anticipated. Conversely, local production and lira-denominated labor can become more competitive for companies with euro or dollar revenue.
The program also imposes financial discipline. State enterprises are instructed to limit commercial borrowing and financial liabilities, collect receivables promptly and pay debts on time. Pricing and tariffs remain subject to applicable legislation and must take account of the government’s economic program, financing needs and financial targets.
That combination creates a recurring tension. BOTAŞ and electricity enterprises perform commercial functions, but energy tariffs also affect inflation and household finances. Turkish business newspaper Dünya reported that BOTAŞ’s financing requirement for 2027 approaches 312 billion liras, while electricity producer EÜAŞ has a projected financing need of about 246.2 billion liras. TPAO’s projected borrowing requirement is 120 billion liras, according to a summary of the Official Gazette decision.
These figures do not mean that the enterprises will necessarily borrow the full amounts. They do demonstrate why counterpart risk, payment arrangements and tariff policy remain relevant even when the customer is state-owned.
TPAO’s Allocation Reflects the Push for Domestic Production
TPAO’s 353.8 billion-lira target continues the expansion of Türkiye’s upstream energy program. The company was allocated about 332.6 billion liras for 2026, making it the largest state-enterprise investor for a second consecutive year.
The principal policy objective is to reduce exposure to imported hydrocarbons by expanding production in the Black Sea and southeastern Türkiye. Energy and Natural Resources Minister Alparslan Bayraktar said in April 2025 that the first phase of the Sakarya gas field had reached approximately 9.5 million cubic meters of daily production. The ministry’s plan called for a floating production platform to support a second phase and ultimately raise production toward 20 million cubic meters per day, with a longer-term goal of 40 million cubic meters per day in 2028.
The Presidency of Strategy and Budget’s 2026 annual program also reported that oil production in the Gabar Mountain area had reached about 81,000 barrels per day. TPAO’s 2027 capital allocation is therefore linked to an operating expansion already under way, rather than a single speculative exploration campaign.
Potential openings include offshore subsea systems, drilling services, seismic technology, production equipment, inspection, maintenance, specialist vessels, industrial software and safety systems. Yet upstream procurement carries demanding qualification requirements. Suppliers may need internationally recognized technical certificates, proven operating references, Turkish-language documentation and after-sales capability inside the country.
Foreign companies must also consider customs classification, temporary-import rules, withholding taxes, permanent-establishment exposure and the allocation of liabilities between an overseas supplier and its Turkish contractor or subsidiary. Establishing a local company may improve staffing, invoicing and participation in domestic supply chains, but it also brings corporate, tax, employment and reporting obligations. This is where company incorporation, legal and tax compliance, import-export facilitation and on-the-ground project management become material parts of market entry.
BOTAŞ’s 70 billion-lira program adds another layer. Türkiye’s 2026 investment schedule included work related to the Tuz Gölü gas storage expansion, the Western Black Sea gas pipeline and the modernization of pipelines and associated facilities. These types of projects create demand for compressors, valves, metering systems, cybersecurity, storage engineering and environmental services. Companies must nevertheless verify which projects remain active in the final 2027 investment schedule, as the enterprise-wide allocation does not identify each contract.
Rail and Grid Spending Could Unlock Private Investment
TCDD’s 122.7 billion-lira target and TCDD Taşımacılık’s 45 billion-lira allocation underline the government’s continued emphasis on rail. President Recep Tayyip Erdoğan said at the October 2026 opening ceremony for the Çerkezköy-Kapıkule high-speed line that Türkiye’s railway network had reached 13,919 kilometers. He also said the government aimed to increase the number of provinces with direct high-speed rail access from 14 to 27 by the end of 2028.
Transport Minister Abdulkadir Uraloğlu reported that Turkish railways carried approximately 283 million passengers across high-speed, conventional, regional and urban services in 2025. The commercial opportunity extends beyond civil construction to signaling, electrification, rolling-stock components, maintenance systems, station technology and logistics services.
TEİAŞ’s 75.7 billion-lira allocation may be even more important for renewable-energy investors. At the end of August 2026, TEİAŞ reported national installed capacity of 126.9 gigawatts and 77,525 kilometers of transmission lines. Türkiye’s renewable-energy roadmap targets 120 gigawatts of combined wind and solar capacity by 2035, which will require additional substations, transmission corridors, storage and digital grid management.
In August 2025, the World Bank approved a financing package consisting of a €625 million International Bank for Reconstruction and Development loan, a €32.8 million Clean Technology Fund loan and a $2 million grant for Türkiye’s Transforming Power Transmission System Project. The bank said the program would modernize substations, expand lines and underground cables, upgrade TEİAŞ’s control systems and enable approximately 1.7 gigawatts of additional renewable capacity.
World Bank Country Director Humberto Lopez described grid modernization as essential to reducing fossil-fuel import dependence and unlocking private investment. In June 2026, the bank approved another €400 million for distributed wind, solar and battery projects, with a target of enabling 1,579 megawatts of renewable capacity and mobilizing up to $405 million in private capital.
Public transmission expenditure therefore has a multiplier effect. A private solar, wind, storage or industrial electrification project is viable only if grid capacity, connection rights and dispatch arrangements are available. Investors need to assess the relevant substation, connection timetable and curtailment risk before acquiring land or ordering equipment.
Governance, Procurement and Execution Risks
The presidential decision requires state enterprises to improve efficiency and profitability, follow corporate-governance principles, prioritize research and development, and monitor production technologies. These provisions are relevant to foreign technology providers, but their effectiveness will depend on implementation.
The OECD’s 2025 Economic Survey of Türkiye found that state enterprises are present in almost half of the country’s business sectors and that the governance framework does not always ensure a level playing field. It recommended clearer ownership rationales, stronger board independence, formal return targets and better separation between the state’s ownership and regulatory functions.
For investors, this is not simply an institutional debate. State-owned enterprises may simultaneously be buyers, infrastructure operators and influential participants in regulated markets. Tender terms, technical approvals, tariffs and access decisions can therefore interact in ways that require careful stakeholder mapping.
Foreign bidders must determine whether a procurement falls under the standard Public Procurement Law, a sector-specific regime or an exemption. Registration on the Electronic Public Procurement Platform, document legalization, bid security, Turkish-language submissions and consortium rules can affect eligibility. Localization, technology-transfer and domestic-service requirements may also influence bid strategy.
Government relations and regulatory liaison are particularly relevant at this stage, provided they are conducted through transparent and compliant channels. Companies need a clear map of the enterprise, line ministry, regulator, procurement authority, local administration and financing institution involved in each project.
What This Means for Foreign Investors
The 2027 program should be treated as a sector map, not as a ready-made order book. It points toward strong demand in upstream energy, pipelines, rail systems and power transmission, but commercial success will depend on identifying funded projects and entering before tender specifications are finalized.
A practical market-entry process begins with matching the investor’s technology to named projects, procurement cycles and local competitors. The next decision is whether to export directly, appoint a representative, establish a Turkish company or create a joint venture. Company incorporation and corporate structuring should account for tender eligibility, tax exposure, employment needs and the treatment of intellectual property.
Investment-incentive analysis is also necessary. Türkiye introduced a restructured incentive regime through Presidential Decree No. 9903 in May 2025, and the Investment and Finance Office says 432 incentive certificates were issued to international investors in 2025, covering 109.5 billion liras of investment. Depending on sector, location and technology, qualifying projects may receive customs-duty or VAT relief, tax reductions, financing support or infrastructure assistance.
Legal and tax compliance must be integrated with import-export planning, particularly where equipment requires certification, temporary admission or specialized customs treatment. Expo representation can help foreign suppliers meet potential partners and public buyers before procurement begins, while project management becomes essential once equipment, permitting, construction and commissioning schedules converge.
The central opportunity is clear: Türkiye is using its state enterprises to reinforce energy security and transport infrastructure. The central caution is equally clear: nominal allocations, regulated tariffs, foreign-exchange exposure and complex procurement rules can separate an announced program from a bankable contract. Investors that combine sector research with disciplined incorporation, incentives, compliance, government-relations and execution planning will be best positioned to convert the 754.2 billion-lira target into viable long-term business.