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Introduction: The Strategic Imperative of Dual-Use Technologies in Türkiye
Dual-use technologies, often abbreviated as DUST, refer to materials, equipment, software, and innovations that can serve both military and civilian purposes. They represent one of the most complex yet vital intersections of modern industrial policy, where national security priorities converge with economic growth and technological advancement. In Türkiye, the development and regulation of dual-use technologies have taken on heightened importance as the country strengthens its position as both a regional security actor and a global manufacturing and technology hub.
Türkiye is an active participant in international export control regimes such as the Missile Technology Control Regime (MTCR) and the Wassenaar Arrangement (WA). These frameworks classify and control sensitive items to prevent their misuse or proliferation while allowing legitimate civilian trade and cooperation. The principles of these regimes are embedded into Türkiye’s domestic legal system through Law No. 5201 on the Control of Industrial Enterprises Producing War Weapons, Vehicles, Equipment, and Ammunition, its secondary regulations, and the Kontrole Tâbi Liste 2023, which mirrors the annexes of the MTCR and WA. This legal foundation ensures that technologies with dual potential are monitored with precision, balancing the need for security with the demands of commerce and innovation.
The strategic vision of Türkiye’s defense and industrial policy makes dual-use technologies a cornerstone of long-term national development. At the core of this vision lies the goal of enhancing sovereignty and security by fostering a strong, independent defense industrial base. An indigenous capacity to design, develop, and produce advanced technologies is seen not merely as a defense necessity but as a multiplier of Türkiye’s influence in international relations. This approach reduces dependence on foreign suppliers, thereby insulating critical national capabilities from embargoes or geopolitical shifts.
Economic growth and global competitiveness are equally central to Türkiye’s strategy. By supporting innovative and competitive technologies, the country aims to establish its defense and aerospace industries as globally recognized brands. The ambition is to position Türkiye among the world’s top ten defense exporters, leveraging dual-use innovations as drivers of broader industrial diversification and export capacity. Successful programs in aviation, space, and unmanned systems already demonstrate how defense technologies can be adapted to commercial markets, creating new revenue streams and reinforcing Türkiye’s integration into global supply chains.
Another pillar of this strategy is reducing foreign dependency by indigenizing critical systems and subsystems. Localization efforts are particularly visible in areas such as unmanned aerial vehicles (UAVs), communication technologies, and advanced materials. These efforts directly support both defense and civilian sectors, from secure national communications to industrial applications in transport, energy, and manufacturing. The indigenization of such technologies not only strengthens security but also enhances resilience in civilian industries that increasingly depend on advanced, globally competitive solutions.
The scope of this article is to explore how financing mechanisms and legal structures can effectively support projects that integrate dual-use technologies. While Türkiye’s policy vision is clear, the realization of this vision requires bankable financing strategies that attract both domestic and foreign investment without compromising national security obligations. This discussion will therefore examine the strategic sectors where dual-use potential is strongest, the legal and regulatory environment governing such projects, and the range of financing tools—from state-backed funds to international joint ventures—that can enable their success.
The Landscape of Dual-Use Technologies in Türkiye’s Strategic Sectors
Türkiye has identified dual-use technologies as central pillars of its industrial and defense strategies. These technologies sit at the intersection of civilian innovation and military capability, and their development is encouraged across a wide range of sectors. The country’s long-term plans, supported by the Presidency of Defense Industries (SSB) and other institutions such as TÜBİTAK, ASELSAN, and TAI, emphasize research and development in areas that inherently serve both civilian and defense purposes. This dual approach allows Türkiye to strengthen its sovereignty and security while simultaneously broadening its role in global technology markets.
One of the most prominent fields of focus is artificial intelligence and big data. These capabilities support civilian applications such as smart manufacturing, healthcare, and logistics, while also serving critical military functions including autonomous platforms, swarm intelligence for UAVs, and advanced decision-support systems. Next-generation communication technologies, including 5G and secure military communication platforms, illustrate the overlap where civilian networks and defense requirements converge, each benefiting from shared innovation and infrastructure.
Another key area is microelectronics and sensor technologies. Türkiye is working to advance its capacity in microprocessors, infrared detection systems, radiofrequency devices, and acoustic and quantum technologies. These are essential for military surveillance, targeting, and communications, but they also have significant civilian applications in medical devices, autonomous vehicles, and telecommunications. The pursuit of domestic capacity in these technologies reduces reliance on foreign suppliers while building globally competitive industries in high-demand sectors.
Advanced materials and manufacturing methods represent another core domain of dual-use potential. Türkiye has prioritized the development of composite structures, two-dimensional materials, and new alloy systems that are used in both civilian aerospace and military applications. Innovative manufacturing techniques, such as additive manufacturing and precision casting, not only serve the production of advanced weapon systems and aircraft but also enhance productivity and competitiveness in civilian industries like automotive and construction.
Space and aviation technologies provide some of the most visible examples of dual-use capability in Türkiye. National projects such as AKINCI, ANKA, AKSUNGUR, BAYRAKTAR TB-2, ANKA-III, and KIZILELMA demonstrate how unmanned aerial systems serve both defense operations and commercial services including cargo transport, disaster response, and agricultural monitoring. Similarly, satellite development programs enhance Türkiye’s intelligence and defense capacity while supporting civilian services such as weather forecasting, telecommunications, and navigation.
Cybersecurity has become an inseparable part of both national defense and civilian digital resilience. The development of local cybersecurity software and hardware ensures deterrence against external threats and strengthens the domestic technology base. The same systems that protect classified military data also underpin the cybersecurity of civilian infrastructure, financial institutions, and government services.
Energy technologies constitute another area where dual-use is pronounced. Innovative energy sources such as hydrogen, fuel cells, and nuclear power are subject to strict regulation because of their potential military applications. Nevertheless, these technologies are also essential to achieving civilian energy diversification and sustainability. Their development in Türkiye reflects the dual challenge of adhering to international non-proliferation rules while promoting national energy security.
The regulatory oversight of these sectors is rigorous and multifaceted. Türkiye manages dual-use controls through the Kontrole Tâbi Liste, which incorporates items listed in the Missile Technology Control Regime Annex and the Wassenaar Arrangement Munitions List. Under Law No. 5201 and its implementing regulation, production and export activities involving these items require specific permits and are subject to comprehensive oversight. Civilian exports are supervised by the Ministry of Trade, whereas military exports and sensitive dual-use technologies fall under the jurisdiction of the Ministry of National Defense and the Presidency of Defense Industries.
Classified projects require compliance with strict security measures under the Savunma Sanayii Güvenliği Yönergesi, codified as MSY 317-2(C). Facilities engaged in dual-use projects must obtain Facility Security Certificates (Tesis Güvenlik Belgesi), while individuals working on these projects must hold Personnel Security Certificates (Kişi Güvenlik Belgesi). These certifications ensure that sensitive projects are handled only within secure environments and by vetted individuals. For financiers and project sponsors, these requirements underscore the legal and operational prerequisites that must be satisfied before investments can proceed.
Through this combination of technological focus and regulatory discipline, Türkiye has positioned itself as a country that not only fosters innovation but also ensures that its dual-use developments remain compliant with international standards and national security priorities. This dual-track approach, linking advanced R&D with legal safeguards, creates a robust framework for integrating defense and civilian technologies while enabling investment opportunities that are both commercially attractive and legally secure.
Bridging the Divide: Mechanisms for Civil–Military Integration
The development of dual-use technologies in Türkiye does not remain confined within the boundaries of defense contracts. A deliberate strategy is in place to ensure that innovations created for defense purposes are transferred into the civilian economy, creating synergies that strengthen both sectors. This deliberate bridging is central to Türkiye’s policy objectives, allowing defense-driven R&D to generate broader social and economic benefits.
One of the principal mechanisms for achieving this is structured technology transfer. Defense industry achievements, such as advanced sensors, autonomous platforms, and secure communication technologies, are increasingly adapted for non-military uses. Unmanned aerial vehicles originally designed for reconnaissance and surveillance have found new applications in agriculture, logistics, and disaster response. Similarly, cyber defense tools developed to protect military communication networks are deployed to safeguard critical civilian infrastructure and financial systems. This dual deployment not only maximizes the return on public investment in defense research but also positions Türkiye as a global supplier of innovative commercial technologies.
Another mechanism involves awareness and collaboration programs designed to foster stronger connections between the defense industry and the civilian economy. Workshops, exhibitions, and joint seminars are organized to highlight defense sector capabilities and to encourage private industry participation in dual-use innovation. These events play a critical role in demonstrating to civilian stakeholders how technologies with a military origin can be adapted for industrial, academic, and societal applications.
Contractual obligations within defense procurement also function as tools for promoting dual-use development. Industrial Participation (Sanayi Katılımı, SK/O) and Technology Acquisition (Teknoloji Kazanımı, TÜK) obligations are routinely embedded into major defense contracts. These obligations require contractors, including foreign suppliers, to engage in activities such as technology transfer, research and development collaboration, and direct investment in Türkiye’s industrial base. By design, many of these obligations encourage the creation of technologies that straddle both defense and civilian applications, ensuring that the benefits of high-level defense projects are diffused across the national economy.
The role of the innovation ecosystem is equally important. Small and medium-sized enterprises (SMEs), particularly technology-intensive start-ups, are increasingly recognized as critical drivers of dual-use innovation. Their agility allows them to develop niche solutions that can be integrated into both military platforms and civilian markets. To support this, Türkiye has expanded public–private collaboration models with universities and research institutions, ensuring that academic R&D directly feeds into industrial applications. These collaborations help build a skilled workforce trained in strategic technologies, further enhancing the sustainability of the dual-use ecosystem.
Digital platforms such as the Yetenek Envanteri (YETEN) have also been created to manage human capital and technological capabilities across Türkiye’s defense and civilian sectors. YETEN operates as a database and coordination tool, enabling policymakers and industry leaders to map competencies, allocate resources effectively, and connect defense-driven innovation with potential civilian applications. In practice, this allows the government to identify talent pools and companies capable of contributing to dual-use projects, thereby facilitating more efficient collaboration between sectors.
Finally, the institutional architecture itself reflects Türkiye’s commitment to bridging the defense–civilian divide. Defense technoparks, specialized industrial clusters, and corporate spin-offs from major defense contractors and research institutions provide platforms for commercialization of dual-use technologies. These entities act as incubators, creating an environment where defense technologies can be transformed into marketable civilian products while ensuring compliance with security and export control regulations.
By combining legal obligations, institutional mechanisms, and ecosystem support, Türkiye has established a comprehensive framework that integrates the defense industry with the broader economy. This bridging approach ensures that investments in national security simultaneously serve civilian innovation and competitiveness, creating a sustainable cycle of technological advancement that benefits both sectors.
Project Finance and Investment Structures
Financing dual-use technologies in Türkiye requires an approach that blends national funding priorities, international cooperation, and private capital engagement. Because these projects often involve sensitive technologies that fall under strict regulatory regimes, the structuring of finance must carefully balance investor protections with compliance obligations. This section explores how Türkiye mobilizes financial resources to support dual-use development and the legal structures that underpin project finance in this complex environment.
At the national level, the Defense Industry Support Fund (SSDF) remains the central financial vehicle for major defense and dual-use projects. Revenues for the SSDF are sourced from taxes, fees, and special contributions, and the fund has been strengthened in recent years to generate annual income in excess of two billion U.S. dollars. It is used to support long-term projects of the Presidency of Defense Industries (SSB), including research and development, procurement, and technology acquisition activities. However, reliance solely on the SSDF has been recognized as a limitation, particularly during periods of revenue fluctuation. To mitigate this, Türkiye has sought to diversify financial instruments by involving other domestic institutions such as the Development and Investment Bank (Kalkınma Yatırım Bankası) and the Credit Guarantee Fund (Kredi Garanti Fonu). These entities have entered into credit protocols to enhance financing availability for technology-intensive projects, particularly for SMEs and start-ups engaged in dual-use innovation.
Export financing is another important pillar of Türkiye’s project finance architecture. Türk Eximbank provides export credits, guarantees, and insurance schemes that support defense industry products and services, many of which contain dual-use technologies. By enabling contractors to access working capital and risk mitigation tools, Eximbank enhances the international competitiveness of Turkish defense and technology companies. For smaller entities, grants and credits are made available upon approval from the Defense Industry Executive Committee (Savunma Sanayii İcra Komitesi, SSİK), thereby expanding opportunities for emerging enterprises to participate in dual-use projects.
International cooperation also plays a crucial role in financing large-scale and high-cost dual-use ventures. Türkiye has promoted state-to-state sales mechanisms and credit facilities that allow customer countries with budget constraints to acquire Turkish technologies. This approach not only strengthens Türkiye’s defense diplomacy but also creates new financial opportunities by blending export support with intergovernmental arrangements. Joint ventures and international consortia are increasingly used to pool resources for complex infrastructure or aerospace projects, spreading costs across multiple stakeholders while ensuring compliance with export control regimes. Offset obligations further reinforce this framework, requiring foreign contractors to engage in technological cooperation, direct foreign investment, or research and development activities within Türkiye. These obligations create additional investment channels that support the diffusion of dual-use technologies into the civilian economy.
Alternative financing models have also started to emerge as Türkiye broadens its financial ecosystem. Public offerings (halka arz) on the Turkish capital markets are becoming viable for established defense and technology companies, allowing them to attract retail and institutional investors while maintaining state oversight. Crowdfunding (kitle fonlaması) has been introduced as a legal mechanism for smaller technology-intensive companies, providing a means to convert strong public interest in the defense industry into tangible financial resources. Additionally, multilateral development banks such as the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) may participate in financing projects with significant civilian applications, such as renewable energy technologies, advanced materials, or cybersecurity infrastructure.
From a legal perspective, the structuring of project finance for dual-use projects must address unique challenges. Security interests can be created over assets such as equipment, intellectual property, or receivables, but pledges over strategic facilities or technologies are often restricted under Law No. 5201. Investors must be aware that certain assets cannot be transferred, pledged, or otherwise encumbered without prior approval from the Ministry of National Defense or the Presidency of Defense Industries. Foreign exchange rules and export proceeds regulations also play a significant role, requiring careful planning for projects involving international transactions. In some cases, government guarantees or co-investment models may be used to improve bankability, ensuring that lenders and investors have sufficient protection in the event of regulatory or market disruptions.
In practice, the financing of dual-use projects in Türkiye is neither purely private nor purely public. It is a layered system where national funds, export banks, and development institutions provide the foundation, while international joint ventures, offset agreements, and capital markets expand the available resource pool. This blended approach creates the financial capacity to support advanced technologies while ensuring that compliance with national security laws remains intact. For legal practitioners and investors alike, understanding these financing structures is essential for designing bankable projects that align with Türkiye’s industrial and strategic priorities.
Risk Allocation and Regulatory Interface
Financing projects that involve dual-use technologies in Türkiye inevitably exposes investors and stakeholders to a complex array of risks. These risks extend beyond conventional financial concerns and encompass regulatory, technical, and human capital challenges. Because dual-use projects straddle the boundaries of civilian and defense sectors, the legal framework governing their operation imposes obligations that can directly affect the feasibility, profitability, and sustainability of investments. Effective risk allocation, therefore, requires careful structuring of project documentation to ensure that parties understand their rights and obligations while mitigating exposure to unforeseen developments.
One of the most pressing risks is financial volatility. The Defense Industry Support Fund (SSDF), while critical to sustaining the sector, has experienced fluctuations in revenue due to changes in economic conditions. Declining contributions or slower-than-expected income generation can limit the fund’s ability to support long-term projects. This risk is amplified by Türkiye’s broader macroeconomic environment, where inflationary pressures and foreign exchange volatility increase project costs and reduce the value of allocated resources. For financiers, such dynamics create uncertainty about cash flow stability and repayment capacity, making diversification of financial resources and the introduction of private capital essential safeguards.
Legal and regulatory risks are equally significant. Projects falling under Laws No. 5201 and 5202 are subject to strict compliance obligations, including the requirement for facility and personnel security certifications under the Defense Industry Security Directive MSY 317-2(C). Any breach in compliance—whether through insufficient safeguards, lapses in certification, or inadequate TEMPEST protection for information systems—can result in suspension or revocation of operating licenses. Similarly, export control restrictions impose another layer of legal risk. Technologies listed under the Kontrole Tâbi Liste 2023 require prior authorization for export, and in some cases, are subject to embargoes or restrictions imposed by foreign governments. A project that relies on international collaboration may thus face disruptions if an export license is denied or revoked. These regulatory uncertainties must be accounted for in project agreements through robust compliance clauses and termination rights that protect both investors and contractors.
Technical and human capital risks also weigh heavily on dual-use projects. Despite rapid progress, Türkiye’s technological infrastructure remains under pressure to keep pace with the demands of next-generation defense and civilian applications. Inadequacies in testing facilities, production capacities, or secure communication systems can delay project timelines and increase costs. Furthermore, a shortage of highly qualified engineers and researchers in fields such as microelectronics, artificial intelligence, and quantum technologies creates bottlenecks in scaling innovation. This shortage poses a long-term challenge to both project sustainability and investor confidence. For this reason, investment in workforce training and institutional partnerships with universities becomes not only a strategic policy goal but also a risk mitigation measure embedded into project financing strategies.
Contractual allocation of risks is the primary legal tool used to manage these uncertainties. Change-in-law provisions are particularly important in dual-use projects, given the frequency of regulatory amendments affecting defense production, export licensing, and foreign investment screening. Lenders and investors typically require warranties and representations concerning export control compliance, ensuring that contractors bear the responsibility for maintaining valid licenses. Step-in rights are often negotiated, allowing lenders to assume control of a project in the event of regulatory failure, while termination clauses tied to license revocation provide additional security. Such measures ensure that financial institutions can preserve their investment even when the regulatory environment shifts unexpectedly.
The integration of risk management into project documentation reflects a recognition that dual-use projects cannot be treated as conventional commercial undertakings. They operate under heightened scrutiny from national authorities, are exposed to geopolitical developments, and depend on sensitive technologies that are subject to complex international regimes. As such, project finance structures in this sector must embed regulatory safeguards directly into their legal architecture, creating a balance between enabling investment and ensuring compliance.
Through a combination of diversified funding, strict adherence to regulatory directives, investment in infrastructure and human resources, and carefully negotiated contractual protections, Türkiye’s dual-use projects can navigate the challenges inherent to this sector. The ability to manage these risks effectively is what transforms sensitive defense-linked ventures into bankable and sustainable opportunities, making risk allocation and regulatory interface the backbone of financing dual-use technologies.
Market Trends and Institutional Signals
The trajectory of dual-use technologies in Türkiye is shaped not only by regulatory structures and financing mechanisms but also by observable market trends and institutional policies that signal the government’s priorities. These trends reveal the areas where innovation is most active, where funding is concentrated, and where civilian and defense integration is already producing results. For investors, understanding these signals is critical, as they highlight the sectors most likely to generate long-term growth and the institutional frameworks that will guide project development.
Unmanned aerial vehicles (UAVs) and satellite technologies remain at the forefront of Türkiye’s dual-use agenda. Platforms such as the Bayraktar TB-2, ANKA series, AKSUNGUR, AKINCI, and the next-generation KIZILELMA are internationally recognized as successful defense products. Yet their applications extend into civilian domains, including agriculture, cargo logistics, border monitoring, and disaster response. Similarly, Türkiye’s satellite programs, developed under the national space strategy, provide capabilities in intelligence and defense while simultaneously supporting telecommunications, meteorology, and navigation services. These sectors are likely to remain heavily prioritized, making them strong candidates for both domestic financing and international partnerships.
Secure communications and cybersecurity represent another major trend, reflecting the growing interdependence between defense and civilian digital infrastructures. Investments in encryption technologies, quantum communication systems, and national data protection platforms are designed to safeguard classified defense information while also protecting financial institutions, energy grids, and public services. Türkiye’s stated aim is to reduce reliance on foreign cybersecurity solutions by developing local software and hardware that can be applied across both sectors. For investors, this creates opportunities in one of the fastest-growing segments of the technology market.
The development of energy technologies demonstrates a similar dual-use orientation. Research into hydrogen fuel cells, advanced battery storage, and nuclear technologies is pursued not only to strengthen military endurance in the field but also to support Türkiye’s transition to more sustainable and independent energy sources. These projects are subject to strict export control regulations, given their potential military applications, but they also present long-term commercial opportunities that align with global energy transition trends. The intersection of defense needs and civilian sustainability goals ensures that financing in this area will continue to expand.
Institutionally, the Presidency of Defense Industries (SSB) plays the central coordinating role, supported by other agencies such as TÜBİTAK and technoparks located across the country. These institutions act as hubs where academia, start-ups, and established corporations collaborate on projects with dual-use potential. The government has encouraged a PPP-like model in these ecosystems, ensuring that public research investments feed directly into industrial applications and that private capital supports commercialization. This approach not only accelerates innovation but also creates a more predictable environment for investors who require clarity on institutional support and long-term policy commitments.
Public statements and policy documents provide additional signals. Türkiye’s Industrial Participation and Offset Guidelines, the National Space Program, and annual defense modernization strategies consistently emphasize dual-use applications. They reflect a clear intent to commercialize defense-driven technologies and to reduce the technological gap between civilian industries and defense contractors. These policies reassure investors that dual-use development is not a peripheral ambition but a central element of Türkiye’s industrial strategy.
Market trends also reveal increasing interest in civil–military mobility technologies, such as advanced composites for electric vehicles, next-generation batteries, and autonomous navigation systems. These technologies demonstrate how civilian industries like automotive and transport are merging with defense priorities in materials science and mobility infrastructure. The rise of such cross-sector technologies underscores the long-term vision of integrating dual-use principles across a wide array of industrial sectors.
Taken together, these trends and institutional signals highlight Türkiye’s commitment to fostering dual-use technologies as both a security imperative and an economic growth strategy. For financiers and legal advisors, they provide a roadmap to the sectors where investments are most likely to align with national priorities, enjoy regulatory support, and generate commercial viability. In this sense, market signals in Türkiye serve not only as indicators of industrial direction but also as assurances of long-term state-backed commitment to dual-use innovation.
The Role of Legal Counsel in Dual-Use Project Finance
Financing projects in dual-use technologies is never a purely financial exercise. It is, by nature, a legal endeavor shaped by national security laws, international export control regimes, and the sensitivities of intellectual property protection. In Türkiye, where dual-use development is both a strategic necessity and a commercial opportunity, legal counsel plays a central role in structuring bankable projects that can attract investment while complying with stringent regulatory frameworks.
At the foundation lies compliance with Türkiye’s primary legislation, most notably Law No. 5201, which governs the production, export, and transfer of war weapons, vehicles, equipment, and ammunition, and Law No. 5202, which sets the principles for developing the national defense industry. Legal advisors must ensure that project participants obtain the necessary permits, facility security clearances, and personnel certifications as required by the Defense Industry Security Directive, MSY 317-2(C). Any lapse in these requirements risks project suspension or revocation of licenses, which can have immediate financial consequences. For this reason, financing agreements must embed compliance obligations as legally enforceable covenants, ensuring that contractors and project sponsors bear responsibility for regulatory adherence.
Equally important is the alignment with international export control regimes. Türkiye’s Kontrole Tâbi Liste 2023 integrates the Missile Technology Control Regime and the Wassenaar Arrangement into national law, imposing restrictions on items that can be transferred across borders. For projects involving foreign investors or multinational consortia, legal counsel must also navigate the requirements of U.S. export controls, particularly the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR). Structuring contracts that account for overlapping jurisdictions requires expertise in both Turkish and international trade law, with careful drafting of clauses that define responsibilities for securing licenses, managing export restrictions, and mitigating embargo risks.
Legal counsel also plays a crucial role in designing investment and corporate structures for dual-use ventures. Joint ventures, licensing agreements, and offset arrangements must be drafted in ways that protect investors’ rights without infringing on national security sensitivities. For example, carve-outs are often required in financing documents to exclude strategic assets from pledges or transfers, in accordance with the restrictions under Law No. 5201. Similarly, shareholder agreements in defense-linked companies must account for foreign direct investment screening and restrictions on foreign ownership in sensitive sectors. Counsel must ensure that corporate governance structures respect these limitations while still offering investors a fair degree of protection and oversight.
Another area where legal expertise is indispensable is intellectual property management. Dual-use projects often involve technologies that are classified or subject to restricted transfer. Legal counsel must advise on how intellectual property rights can be licensed, shared, or collateralized without breaching security obligations. Agreements must clearly delineate between classified and unclassified components, ensuring that proprietary rights are respected while compliance with national directives is maintained.
In project finance documentation, lawyers are responsible for negotiating risk allocation provisions that respond to the unique challenges of dual-use projects. Change-in-law clauses, step-in rights for lenders, and termination provisions tied to license revocation are essential safeguards. Counsel must also draft representations and warranties relating to compliance with export controls and security directives, ensuring that lenders and investors can seek remedies in the event of breach. These clauses transform regulatory compliance from a background obligation into a central, enforceable element of the financial framework.
Finally, legal counsel must act as a bridge between investors and state authorities. Given that most dual-use projects in Türkiye involve interaction with the Presidency of Defense Industries, the Ministry of National Defense, and the Ministry of Trade, lawyers play a vital role in managing these relationships. They advise clients on how to approach licensing procedures, negotiate offset obligations, and interpret evolving regulatory requirements. Their guidance ensures that projects remain aligned with both state priorities and contractual commitments, creating an environment where private capital can engage confidently in sensitive sectors.
In sum, legal counsel is not merely a supporting actor in dual-use project finance but a central architect of the process. By ensuring full-spectrum compliance, structuring corporate and financial arrangements to meet regulatory standards, and protecting investors through carefully drafted agreements, lawyers make it possible for dual-use projects in Türkiye to attract capital while safeguarding national security. Without this legal framework, the inherent sensitivities of the sector would make large-scale investment impossible.
Conclusion: Türkiye’s Cross-Sector Future
Dual-use technologies in Türkiye represent far more than a technical category of innovation. They embody a strategic pathway through which the country seeks to secure its sovereignty, strengthen its defense capabilities, and at the same time transform its economy into a global competitor. By situating dual-use development at the heart of national industrial policy, Türkiye has created a framework where investments in security are also investments in growth, where defense research is deliberately channeled into civilian industries, and where innovation is designed to serve both state imperatives and commercial opportunity.
The drivers of this strategy are clear. Reducing foreign dependency by indigenizing critical systems has become a national priority, supported by comprehensive legal instruments such as Law No. 5201, Law No. 5202, and the Savunma Sanayii Güvenliği Yönergesi. At the same time, Türkiye has embedded itself in international regimes such as the Missile Technology Control Regime and the Wassenaar Arrangement, ensuring that its national regulations are consistent with global standards. This combination of sovereignty and compliance makes Türkiye both a secure and credible partner for international cooperation in sensitive sectors.
The financing of dual-use projects demonstrates the adaptability of Türkiye’s institutional framework. From the Defense Industry Support Fund to Türk Eximbank and the Development and Investment Bank, domestic resources provide the foundation, while international joint ventures, offset obligations, and emerging capital market instruments expand the range of funding options. The blend of state-backed stability and private capital flexibility ensures that projects of varying scale—from start-up ventures in cybersecurity to multi-billion-dollar aerospace programs—can secure the financing needed for sustainability.
Yet the complexity of this sector requires careful risk management. Economic volatility, regulatory constraints, technological gaps, and shortages of skilled personnel all present challenges that must be anticipated and mitigated. Project documentation and financing structures must therefore embed legal safeguards that address change-in-law risks, export control compliance, and the potential revocation of licenses. Investors must understand that projects in this field operate under a higher standard of scrutiny, where regulatory obligations are not peripheral but central to financial viability.
Looking ahead, Türkiye’s cross-sector future will likely be defined by continued integration of defense and civilian industries. Research in artificial intelligence, space, cybersecurity, energy, and advanced manufacturing will generate innovations that serve both the armed forces and the broader economy. The involvement of SMEs, universities, and technoparks will ensure that the ecosystem remains dynamic and competitive, while public–private partnerships will expand the commercialization of dual-use solutions.
For this future to be realized, sustained investment in human capital and infrastructure will be essential. Expanding the pool of skilled engineers and researchers, strengthening testing facilities, and developing secure digital systems are prerequisites for keeping pace with global technological change. At the same time, streamlining regulatory processes and expanding financial resources will help ensure that promising projects are not delayed by structural constraints.
In the final analysis, Türkiye’s approach to dual-use technologies shows how a country can transform a security imperative into an industrial modernization strategy. The careful blending of law, finance, and policy has created an environment where sensitive technologies can attract long-term capital while remaining under firm regulatory control. For investors, this means that projects in Türkiye’s dual-use sectors are not only feasible but also offer a unique opportunity to participate in the building of a globally competitive industrial base. For Türkiye, it means that the pursuit of sovereignty and security is inseparably linked with the pursuit of economic growth and technological leadership.
