Istanbul: Trkiye aims to rank among the world's top five countries in the participation finance sector, Treasury and Finance Minister Mehmet Simsek announced, underscoring the country's economic resilience against global shocks. Speaking at Anadolu's Participation Finance Summit at the Istanbul Financial Center, Simsek highlighted Trkiye's current position among the top 10 globally in the participation finance sector.

According to Anadolu Agency, Simsek stated that the government's goal is to elevate the country into the top five under President Recep Tayyip Erdogan's leadership. He noted that the global participation finance sector is projected to grow to nearly $10 trillion in assets by 2030, up from approximately $6 trillion in 2024. Simsek characterized the sector as less volatile and capable of meeting significant global demand and emphasized the Treasury and Finance Ministry's commitment to expanding the participation finance ecosystem.

Simsek pointed out the significant growth in the share of participation banks in Trkiye's banking sector over the past two decades, with deposits rising from 3 percent to 11 percent and asset size increasing from 2.4 percent to 10 percent. Loans also rose from 4 percent to 8 percent. He noted that participation finance institutions outperform conventional banks in return on equity, capital adequacy, and asset quality. Simsek encouraged stakeholders to look beyond banking to include areas such as fund management and insurance in participation finance. He stressed the importance of positioning the Istanbul Financial Center as a global 'Participation Finance Center.'

Simsek also addressed energy issues, stating that Trkiye has diversified its oil and natural gas supply sources to prevent disruptions. He emphasized that the country has minimal dependence on the Strait of Hormuz for energy needs. While acknowledging that global oil price fluctuations could impact Trkiye's Medium-Term Program, he assured that the government is implementing necessary measures to maintain the program's course. He cited Trkiye's economic resilience, noting a budget deficit-to-national income ratio of 2.9 percent last year and a public debt-to-national income ratio of around 24 percent, which is lower than many peer countries.

Simsek further mentioned that the Central Bank of the Republic of Trkiye increased its gross reserves from $100 billion to $166 billion, covering more than five months of imports and providing a strong buffer against external shocks. He added that the total market value of companies listed on Borsa Istanbul recently rose from $425 billion to $516 billion.