Turkey's giant projects to fuel Islamic finance boom

04 September, 12:34

    (ANSAmed) - ISTANBUL, SEPTEMBER 4 - Turkey's large infrastructure investments may boost the country's Islamic finance sector which has already been witnessing a boom, daily Hurriyet reports quoting the country's top capital markets officials as saying. "Islamic finance tools may be benefited from in (financing of) in Turkey's mega projects like bridges, airports, and Kanal Istanbul. These projects are compatible with the Islamic financing structure," Ibrahim Turhan, chairman of Turkey's stock exchange Borsa Istanbul said yesterday, speaking at the Islamic Finance News Roadshow. Vahdettin Ertas, Capital Markets Board (SPK) chairman, also said that they "believed" the private sector's sukuk, an Islamic compliant bond, export needs would increase due to the large infrastructure investments on the agenda. Currently, the Treasury's sukuk exports have outpaced USD 5 billion, while the private sector has exported more than USD 1.5 billion. During the ceremony, Bank Asya said it was planning to export at least USD 60 million of additional sukuk before the year ended, while Albaraka Turk said it was mulling exporting over USD 200 million worth of sukuk within the last quarter or at the beginning of next year. In the past 10 years, the non-interest finance sector grew around 15% and the number of countries in which financial bodies operating in compliance with Islamic finance rules could be found has surpassed 70, Ertas stressed. "It's expected to exceed USD 1.9 trillion by the end of this year," he said. Islamic finance has been sublimated as a safe haven during the financial crisis that sparked skepticism towards interest-oriented finance. (ANSAmed).

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