5th Ordinary General Assembly of SAHA Istanbul Held in Istanbul

The 5th Ordinary General Assembly meeting of the SAHA Istanbul Defense, Aerospace, and Space Cluster was held on 6th May at the Süleyman Demirel Cultural Center of Istanbul Technical University (ITU) Campus in Ayazağa-Istanbul.

Haluk BAYRAKTAR, the Chairman of the Board of SAHA Istanbul, provided the press with an update on recent developments related to the SAHA Istanbul cluster and SAHA EXPO before the General Assembly. Noting that SAHA Istanbul, which was established in 2015 with 27 founding member companies, has now grown to become the largest industrial cluster in the European Union, he added, “The primary objective of our cluster as a non-governmental organization is to strengthen our defense industry and guide the companies willing to engage in this sector. Currently, SAHA Istanbul has 938 companies and 26 universities within its network. Of these, 80% are small to medium-sized companies, with only a few large-scale ones. SAHA Istanbul plays a critical role in ensuring successful companies from the private sector to support those new to the defense and aerospace industry and fostering collaboration between them. The third SAHA EXPO was held last year, with over 900 companies participating in the event. Numerous high-level delegations from various countries were also present.

SAHA EXPO is an organization in which our companies participate not on a platform basis, but on a subsystem and technology basis. The agreements signed during SAHA EXPO amounted to 1.2 billion USD, mainly for exports. As an NGO, our goal is to support companies in establishing a cost-effective, robust, and sustainable structure. At SAHA Academy, we train young professionals in management and organize events to increase their industry-specific competencies. Through SAHA Initiative, we aim to support new ventures. Recently, we established the National Space Committee within SAHA Istanbul to contribute to Türkiye's efforts in space technologies.”

Following the press conference, Haluk BAYRAKTAR, SAHA Istanbul Chairman of the Board delivered the opening speech of the 5th Ordinary General Assembly of SAHA Istanbul and made a presentation to the participants about the global and Turkish defense industry. Stating that global military expenditures grew by 6.7% in 2022, BAYRAKTAR said, "The US, China, and Russia are the biggest military spenders. Due to the Russian-Ukraine war, military expenditure is enhancing particularly in such as North America, the Middle & East Europe. The top 10 countries with the highest military spending in 2022 account for 76% of the world's total military spending. While Ukraine ranks 11th with the increase in expenditure in 2022, Türkiye ranks 23rd with its military expenditures, which have been gradually decreasing over the years by decreasing its imports thanks to the increase in indigenization rate.”

During his presentation, BAYRAKTAR presented a list of the top five countries in terms of defense industry exports on a country-by-country basis. According to the list, the United States ranks first with $800 billion, followed by China with $293 billion, India with $76 billion, the UK with $68 billion, and Russia with $65 billion. The total defense industry expenditure of these five countries is $1.3 trillion, while the total defense expenditure of all countries in the world is $2.13 trillion as of 2022.

In his presentation, SAHA Istanbul Chairman of the Board Haluk BAYRAKTAR also shared information about the upward and downward trends in the world's top exporting countries. “The top 5 exporting countries continue to hold an average total share of 76% of exports. The United States currently accounts for 45% of global defense industry exports. However, Russia's share has decreased significantly due to embargoes. In 2018, Russia had a 25% share of global defense industry exports, but in 2022, this share dropped to 8.8%, and it is expected to decline further. This situation presents significant potential, and the exports that will be freed up from there create one of Türkiye's biggest potential areas in export sales. In 2018, Türkiye's export share in the world defense industry was 0.9%, but it has now increased to 1.2%, indicating a 30% increase.”

In his presentation, BAYRAKTAR also stated that Türkiye has increased its revenue with the increase in defense exports. “While Türkiye's military expenditures have been decreasing over the last 4 years, its share in GDP fell from 2%-2.5% to 1.2% in 2022. Türkiye makes up less than 1% of the world's overall military expenditures. Despite a reduction in military spending, our industry saw revenue growth by focusing on exports. The wide product portfolio, high quality, and competitive pricing are the most critical drivers of this success. We also see the benefits of the national technological move here.”

According to BAYRAKTAR, the defense and aerospace industry has achieved a compound annual growth rate of 9.9% over the last 10 years, leading to revenue of USD 12.2 billion in 2022. BAYRAKTAR also mentioned that due to the pandemic and supply chain disruptions, the sector's exports lagged behind imports in foreign trade in the past period and added that the sector's foreign trade balance turned positive in 2020 and maintained its growth trend, excluding passenger aircraft purchases in the last two years. BAYRAKTAR also shared important data on the balance between exports and imports. "In 2022, our defense and aerospace industry mainly imported components and parts, except for passenger aircraft. In response to this, our sector's foreign trade in terms of sales is based on the export of air, land, and naval platforms, and system-level products. While the export/import coverage ratio was 88%, this ratio rose to 187% when passenger aircraft purchases were excluded."

Following the opening speeches, the agenda items were addressed, including the Establishment of the Assembly Board, Discussion and Approval of the Activity Plan and Annual Estimated Budget Draft, Reading out the Balance Sheet and Income and Expenditure Statement, Reading out the Audit Board Report, Acquittal of the Board of Directors, Acquittal of the Audit Board, Discussion and Approval of the Work Plan and Annual Budget Draft, Discussion and Approval of the By-Law Amendment Proposals, Discussion and Approval of the Application for Public Benefit Organization Status, and Election of the Board of Directors and Audit Boards.

After the election of the Board of Directors, the new board members, including both full and substitute members, were announced. The new board is made up of the following names: