Türkiye aims for top 5 in global participation finance

Türkiye aims to rank among the world’s top five countries in participation finance sector, Treasury and Finance Minister Mehmet Simsek said, highlighting the country’s economic resilience against global shocks.

Speaking at Anadolu’s Participation Finance Summit at Istanbul Financial Center, Simsek said Türkiye currently ranks among the top 10 countries in the global participation finance sector.

He said the government aims to move the country into the top five under the leadership of President Recep Tayyip Erdogan.

Simsek said the global participation finance sector is expected to reach nearly $10 trillion in assets by 2030, up from about $6 trillion in 2024.

He described the sector as less volatile and capable of meeting significant global demand.

The minister said the Treasury and Finance Ministry will continue efforts to expand the participation finance ecosystem.

Simsek noted that the share of participation banks in Türkiye’s banking sector has increased significantly over the past two decades.

He said deposits in the sector rose from 3 percent to 11 percent, while asset size increased from 2.4 percent to 10 percent during the same period.

Loans also increased from 4 percent to 8 percent, he added.

According to Simsek, participation finance institutions outperform conventional banks in return on equity, capital adequacy and asset quality.

He also urged stakeholders to view participation finance beyond banking by including areas such as fund management and insurance.

Simsek underlined the importance of positioning Istanbul Financial Center as a global “Participation Finance Center.”

Hormuz and energy crisis

The minister said Türkiye has diversified its oil and natural gas supply sources to avoid supply disruptions.

He added that the country has almost no dependence on the Strait of Hormuz for its energy needs.

Simsek said global oil price fluctuations could affect Türkiye’s Medium-Term Program, but noted that the government is taking necessary measures to keep the program on track.

He highlighted the resilience of the Turkish economy, saying the budget deficit-to-national income ratio stood at 2.9 percent last year.

Public debt-to-national income remained around 24 percent, significantly lower than many peer countries, he added.

Simsek also said the Central Bank of the Republic of Türkiye increased gross reserves from $100 billion to $166 billion.

He said the reserves now cover more than five months of imports, providing a strong buffer against external shocks.

The minister added that the total market value of companies listed on Borsa Istanbul recently rose from $425 billion to $516 billion.