Turkish Aerospace Industries (TAI) is in the "final stages" of negotiations with Saudi Arabia over the kingdom's potential participation in Türkiye's next-generation KAAN fighter program, with a decision expected this year, the company's CEO told Breaking Defense on Feb. 12.
"It is in the final stages of decision-making process," Turkish Aerospace Industries General Manager Mehmet Demiroglu said at World Defense Show (WDS) 2026.
"We are hoping to reach a milestone this year, the start of a program at any level," he added.
Demiroglu said the deal could amount to a sale of approximately 20 aircraft — a "small squadron"—or it could involve sharing parts of production.
"The models and the feasibility studies require certain numbers. If you want to build something here, like a final assembly line, that feasibility study suggests that it should be at least 50 planes," he said.
"To further develop future systems like sixth-generation and beyond, or build something here locally that will also add up, but for a sixth-generation fighter, and looking at about a Saudi size, it will be a sizeable number," TAI CEO noted.
Demiroglu said Turkish Aerospace has discussed "pretty much everything, with the timeline, with the benefit, with the cost, all the feasibility studies is there," and the company is waiting for Saudi Arabia to decide on the model of purchase and cooperation.
Saudi Arabia's Vision 2030 mandates 50% defense production in the kingdom by 2030, driving foreign companies to propose localizing production.
"This is an ambitious goal, with like five years left, and for defense companies to start production at some level here in the Kingdom, it will take time, but we are fully supporting it," Demiroglu said.
Riyadh has not publicly announced how it plans to upgrade its fighter fleet.
Saudi Arabia currently flies Boeing-made F-15 fighters and Eurofighter Typhoons, and was cleared in November to purchase F-35 fifth-generation jets, though there has been little news on that front.
Demiroglu said he expects no delays for KAAN's F110 engine made by U.S.-based General Electric, despite potential trade barriers.
"We already have 10 engines, enough to cover all our prototypes. We don't have any problem in terms of development," he said, adding that the first batch will be delivered to the Turkish Air Force in early 2029.
"We are expecting engines from the US, and it is in the final stage of approval, as we speak. Based on our communication with Turkish government authorities, like foreign affairs and also the U.S., we don't see any problem with the delivery or export license of those engines," the CEO stated.
"We should receive the approval, maybe this month, maybe next, for the first batch Block 10 and 20," he added.
Using the F110, the KAAN is considered a 4.5-generation fighter. Turkish Aerospace plans to equip Block 30 aircraft with a domestically produced engine to achieve fifth-generation capabilities.
"It's a challenging project. It's a very high-end engine in terms of design, in terms of material, in terms of manufacturing, and our goal is 2032 for first test, and 2033 is the final delivery," Demiroglu said.
Meanwhile, Turkish Parliament Foreign Affairs Committee Chairman Fuat Oktay said his delegation received "positive feedback" from U.S. congressional leaders on KAAN engine production during meetings in Washington.
"The main topic we focused on was KAAN engines—the F-110s, which are actually the F-16 engines," Oktay said.
"We clearly stated that we are already working on our own engine and will reach the stage where we can use our own engines within 3-5 years," he added.
Oktay emphasized that the engine issue has "no connection whatsoever" with CAATSA or NDAA sanctions, allowing for faster progress and potential cooperation.
"We received extremely positive feedback on this issue from both Jim Risch and Brian Mast and other counterparts we met," Oktay noted.
At World Defense Show, two ANKA-3 unmanned aerial vehicles (UAVs) flanked the KAAN display, marketed as collaborative combat aircraft.
"That's part of the sixth-generation discussion, for sure. Because when you talk about the sixth generation, it means manned-unmanned teaming is an essential part of it," Demiroglu said.
He said Turkish Aerospace has two ANKA-3 prototypes flying, with an updated design offering improved range, payload and radar cross section going into production.