Scholars have argued that megaprojects’ turn away from issues of employment, and mass housing are among the core traits of neoliberalism. Turkey, though once seen as a paragon of neoliberalism, problematizes this generalization. Erdoğanist megaprojects have created jobs and residence for millions, and garner consent. ‘Embedded neoliberalism’, a concept frequently used to explain increasing state involvement under neoliberalism, sheds light on the governing AKP’s power, but is insufficient in explaining its core dynamics. Whereas the ‘embedded neoliberalism’ literature downplays the role of the government as a producer, the ‘state capitalism’ literature, as applied to Turkey, overrates the extent to which this country has moved away from neoliberalism. The concept ‘neoliberal statism’ (which puts the emphasis on the consent-generating and political aspects of the new economy) better captures the AKP’s path. Megaproject-driven growth and popular consent, however, are restricted by vulnerabilities that also afflict neoliberal statism as a broader growth strategy.