Two Track Development: The Future of Islamic Finance in Turkey

Abstract:     
The potential for Islamic finance in Turkey is immense. With the right strategies, not only will more people move towards Islamic finance, which has positively occurred in other parts of the Muslim world, but also more investors will utilise the services provided by such banks. In order to fulfill this potential, these banks need to open up and create links with the international financial markets in general and the global Islamic finance sector in particular, provided that a positive working environment is provided for them. For instance, participation banks can provide a largely untapped financial market to the excess capital accumulated in the Gulf in recent years. The recent interest from Gulf Islamic finance institutions looking to penetrate the Turkish market is a clear indication of this opportunity, which will contribute to the development and growth of Islamic finance in Turkey.

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working papers series