Turkiye and Qatar sign $1 billion contract to jointly build Istanbul-class frigates for Indonesia
Asia-Pacific, Middle East, News January 22, 2026 Comments Off on Turkiye and Qatar sign $1 billion contract to jointly build Istanbul-class frigates for Indonesia7 minute read
Turkish defense consortium TAIS Shipyards has signed a $1 billion memorandum of understanding with Qatar’s Barzan Holding for the construction of two Istanbul-class, also known as Istif or I-class, frigates for Indonesia.
The agreement was signed during the DIMDEX 2026 International Maritime Defense Exhibition in Doha on January 20, 2026, and marks a significant step in deepening Turkiye-Qatar defense cooperation while advancing a complex, partnership-based naval export program tied to Indonesia’s naval modernization efforts.
The MoU was signed in the presence of Qatari Deputy Prime Minister and Minister of State for Defense Affairs Sheikh Saud bin Abdulrahman bin Hassan Al-Thani and Presidency of Defense Industries Chairman Professor Dr. Haluk Gorgun, underlining the political and strategic weight attached to the project by both sides.
TAIS Shipyards is a joint venture comprising Anadolu Shipyard, Sedef Shipyard, and Sefine Shipyard and serves as a consolidated platform representing Turkiye’s national shipbuilding capabilities in large-scale naval programs.
The frigate agreement emerged as one of the most prominent naval developments of DIMDEX 2026, an exhibition increasingly used to finalize complex defense-industrial frameworks rather than merely showcase concepts.
According to defense reporting surrounding the exhibition, Barzan Holding is acting as a contracting and program-management entity on behalf of an international end-user, with Indonesia identified as the recipient of the vessels.

This structure reflects a growing trend in naval procurement, where financing, risk-sharing, and industrial coordination are handled through third-party defense investment vehicles rather than traditional buyer-to-builder contracts.
The approach allows client navies to acquire advanced surface combatants without bearing the full financial and programmatic risk upfront, while also enabling shipbuilders to secure export orders through structured partnerships.
A preliminary agreement between TAIS Shipyards and Indonesia for the I-class frigates had already been signed in July, making the Istanbul-class the first export variant of Turkiye’s newest frigate design. The DIMDEX 2026 MoU is widely seen as the step that formalizes the commercial mechanics and implementation pathway for the program.
Increasing Defense Cooperation
Professor Dr. Haluk Gorgun said the agreements signed at DIMDEX 2026 reflected the depth of strategic cooperation between Turkiye and Qatar. “These new steps are a concrete reflection of the strategic vision built between the two countries,” Gorgun said.
“When strategic cooperation comes up, defense cooperation is at the forefront. As Turkiye, with our advanced capacity, we continue our work to produce platforms and systems that Qatar may need, as well as solutions for both Qatar and third countries,” he added.
In parallel with the frigate MoU, cooperation agreements were signed between Barzan Holding and several major Turkish defense firms, including MKE, ASELSAN, STM, ASFAT, and TAIS.
These agreements cover ammunition production, systems engineering, naval platforms, technology sharing, and the development of sustainable industrial partnerships, reinforcing Turkiye’s position as a comprehensive defense supplier rather than a single-platform exporter.

Barzan Holding also announced a separate $1 billion deal with TAIS Shipyards tied to naval programs for the Indonesian Armed Forces, further emphasizing Doha’s role as a facilitator of international defense projects extending beyond Qatar’s own force structure.
Turkiye Dominates DIMDEX 2026
Turkiye is participating in DIMDEX 2026 with 47 defense industry companies, making it the most represented country at the exhibition. The scale of participation highlights Ankara’s growing emphasis on defense exports, industrial diplomacy, and the use of major international exhibitions as venues for closing deals rather than simply marketing products.
DIMDEX has increasingly positioned itself as a hub for naval and maritime security cooperation, particularly for countries seeking flexible procurement models and multi-national industrial arrangements. The TAIS-Barzan-Indonesia framework exemplifies this shift.
I-class Frigate Capabilities
The Istanbul-class frigate was developed under Turkiye’s MİLGEM program as an enlarged and more capable evolution of the Ada-class corvettes. The class is intended to replace the ageing Yavuz-class frigates in Turkish service while also offering an export-ready multi-role surface combatant.
The frigate measures 113.2 meters in overall length, with a beam of 14.4 meters and a draught of 4.15 meters. Displacement is approximately 3,150 tons. Powered by a combined diesel and gas propulsion system in a CODAG configuration, the vessel can achieve speeds exceeding 29 knots and has an endurance of around 5,700 nautical miles at a cruising speed of 14 knots, a key advantage for sustained patrol and escort missions across wide maritime areas.
The design emphasizes advanced anti-air warfare capabilities and full-spectrum operational flexibility. Sensors and systems include a 3D search radar, AESA radar systems, electro-optical sensors, fire control radars, navigation and low probability of intercept radar, and an integrated electronic warfare suite featuring ESM, ECM, decoy systems, laser warning, and infrared search and tracking.

Underwater warfare capabilities are supported by a hull-mounted sonar, torpedo countermeasures, underwater ambient noise reduction, and degaussing systems designed to reduce magnetic signatures against submarine threats. The frigate’s stealth features include a low radar cross-section design and hardened, fire- and damage-resistant sensor arrangements.
Armament includes a vertical launch system for surface-to-air missiles, a national surface-to-surface missile system, torpedo launchers, a 76 mm main gun, a close-in weapon system, and two 25 mm stabilized guns. The vessel also provides naval gunfire support and can conduct surveillance, maritime patrol, and inspection of exclusive economic zones.
Aviation facilities include a helicopter platform and hangar capable of accommodating two S-70 Seahawk helicopters, along with two rigid-hulled inflatable boats. The frigate is designed to operate with a core crew of 123 personnel.
Indonesia’s Naval Modernization
For Indonesia, the I-class frigate acquisition fits into a wider effort to modernize surface combatant capabilities and maintain a persistent presence across one of the world’s largest archipelagos.
Indonesia is simultaneously inducting new platforms and pursuing diverse industrial partnerships to reduce reliance on any single supplier. Earlier this year, the Indonesian Navy inducted the first of four Thaon di Revel-class frigates built by Italian shipbuilder Fincantieri.
In parallel, Indonesia is constructing two domestic frigates based on the Arrowhead 140 design developed by a British firm. The Turkish-designed I-class adds another layer to this diversified modernization strategy, offering long-range endurance and a network-centric combat system well suited to Indonesia’s operational environment.

Turkish Defense Exports Hit Record Levels
Gorgun also highlighted record growth in Turkiye’s defense industry, underscoring the export momentum behind deals such as the I-class frigate program. “In 2024, the total contract amount we signed was $10 billion. In 2025, this figure reached $17.8 billion. This indicates growth of approximately 80%,” he said.
According to Gorgun, the sector recorded 28% growth and $7.1 billion in exports in 2024, followed by 48% growth and more than $10 billion in exports in 2025. He attributed rising international demand to technological capability, competitive pricing, and confidence in Turkiye as a long-term defense partner.
“We started 2026 rapidly as well. I think our exports can increase even more compared to the previous year. This momentum will continue to grow,” he said.
Turkiye has previously exported MİLGEM Ada-class corvettes to Pakistan, Ukraine, Malaysia, and Romania, establishing a track record that strengthens the credibility of the I-class frigate as an export platform.




















