Istanbul: With its structure based on the fair sharing of risk, supporting production, and making a direct contribution to the real economy, participation finance represents an approach that evaluates economic activities within the framework of social benefit and equity, the Turkish vice president said on Thursday. Participation finance has moved beyond being a practice limited to specific regions and has become a rapidly growing field on a global scale, Cevdet Yilmaz stated.
According to Anadolu Agency, speaking on Thursday at the opening ceremony of the Participation Finance Summit, organized by Anadolu at the Istanbul Financial Center, Yilmaz highlighted that special regulations implemented and market infrastructures developed in key financial centers -- including the Gulf countries, Malaysia, and Indonesia, as well as the United Kingdom, Luxembourg, Hong Kong, and Singapore -- are supporting the international expansion of the participation finance ecosystem. The summit features panels on the future strategies of participation banks and Trkiye's participation economy, participation-based investment products, and the role of digitalization in participation finance's future.
The summit was organized through a collaboration between Anadolu and the Participation Banks Association of Trkiye, with contributions from Turkish participation lenders such as Vakif Katilim, Kuveyt Turk, Ziraat Katilim, Emlak Katilim, Albaraka, Turkiye Finans, Dunya Katilim, Hayat Finans, TOM Bank, and Adil Katilim. Yilmaz noted that Islamic finance assets, which were valued at $2.5 trillion in 2018, increased to $6 trillion in 2024 and are projected to reach $9.7 trillion by 2029. He added that Trkiye ranked 23rd among 82 countries in the Islamic Finance Development Index in 2012 and is expected to rise to 10th place among 140 countries by 2025, with approximately $127 billion in Islamic finance assets, ranking 9th globally.
Mehmet Ali Akben, head of TKBB, pointed out that participation banking in Trkiye is led by 11 lenders serving customers through 1,506 branches and 22,733 employees as of March 2026. Participation banks' total assets reached 4.3 trillion liras ($95 billion), with a net profit of 86 billion liras ($1.9 billion) by the end of 2025. Akben emphasized that participation banks' sustainable balance sheet structure, customer-centric service approach, and investments in digital infrastructure support the scaling of participation banking. He also mentioned the development of lease certificates, which have become a significant tool for liquidity management for participation banks.
Ahmet Burak Daglioglu, head of Trkiye's Investment Office, stated that the global participation finance sector is estimated to be worth $4 trillion, accounting for about 1% of the world's total financial system. He expressed optimism about growing the sector in Trkiye through international cooperation opportunities.
Ambassador Sohail Mahmood, secretary-general of the Developing-8 Organization for Economic Cooperation (D8), praised the summit for its insightful discussions on the sector's growth in Trkiye. He emphasized Trkiye's rising role in the global economy, particularly in participation banking, and commended Anadolu Agency for organizing the summit.
Alain Nounke, manager for Central Asia and Trkiye at the International Finance Corporation (IFC) of the World Bank Group, expressed satisfaction with the participation in the event and support for the growth of participation banking in Trkiye. He noted the IFC's engagement with banks like Albaraka in its Global Trade Finance Program and its interest in modernizing the sector. High-level government representation underscored the national priority placed on Islamic finance.