Türkiye and the IFC offer an array of opportunities for companies operating in the participation finance sector. Developed thanks to the country’s economic reforms and aided by interest-free financial products and services, Türkiye is a world leader for participation finance, ranking in second place internationally for private sector sukuk (interest-free bond) exports.
Participation banking currently holds a market share equal to 8 percent of the Turkish banking industry, breaking records in 2020 due to the TRY 60 billion net profit recorded for the sector. This notable feat was achieved following an annual growth of 26.5 percent despite the adverse global market conditions. The Turkish participation banking sector aims to achieve a market share of 15 percent by 2025 by maintaining its rapid growth trend.
The global participation finance sector is predicted to be worth approximately $3.7 trillion by 2024 with alternative services increasingly being offered, including lease certificates (sukuk) and sharia compliant insurance systems (takaful). The United Arab Emirates and Saudi Arabia, both leading centers of interest-free financial operations, are two regions particularly interested in Türkiye as a new hub for interest-free finance companies and world-leading participation finance capabilities. This greater awareness of Türkiye’s participation banks has significantly increased both their influence in the region and total sukuk exports which amounted to TRY 40 million in 2020.
The IFC offers an exclusive platform, incorporating all key players in the financial sector (including international regulatory agencies), for participation banks and their customers who want to seize the latest and most exciting opportunities across interest-free finance.