Istanbul: Financial crises cannot be prevented unless the world shifts to an economic and financial paradigm centered on justice, morality, production, and fair sharing, Turkish President Recep Tayyip Erdogan said on Friday.
According to Anadolu Agency, Erdogan emphasized the need for alternative approaches in the global economic and financial system during his speech at the 3rd Global Islamic Economy Summit in Istanbul. He reiterated Trkiye's long-standing call for a more equitable international order to also apply to economic relations. He stated, "When we say 'a fairer world is possible,' we mean humanity is not condemned to a single system in economy, international relations."
Erdogan expressed concerns over the mounting challenges in the global and regional environment, noting that the climate of trust and stability in Trkiye's region is increasingly compromised by war, crises, fraternal strife, and uncertainty. He proposed participation finance as a viable alternative, describing it as a fairer and safer model not only for Muslims but for the whole world.
Highlighting Trkiye's latest steps to strengthen its investment environment, Erdogan mentioned a comprehensive legal regulation that recently came into force, launching a competitive incentive program aimed at boosting the country's attractiveness for investors. He noted that participation finance and related capital market instruments have gained significant ground in Trkiye's financial system.
In the first quarter of 2026, the market value of companies included in the participation index reached 36% of the total market value of companies traded on Borsa Istanbul, Erdogan reported. He also emphasized the role of state-backed participation finance institutions, noting that Emlak Katilim had become one of the most dynamic actors in the sector. "We aim to publicly offer Emlak Participation Bank," he added.
Erdogan also announced plans to merge Ziraat Participation, Vakif Participation, and Halk Participation banks, stating, "With the combination of their strengths, the sector will gain a different momentum." He underscored the comprehensive framework of participation finance, which includes banking, capital markets, insurance, savings finance, and social finance, capable of contributing to the construction of a new global financial architecture.
He emphasized the significance of Fintech and participation finance as the two pillars of the Istanbul Financial Center, reflecting the importance placed on developing this system. Erdogan concluded by expressing Trkiye's commitment to transforming the country into a strong hub where investment, production, and financial instruments converge. He mentioned ongoing preparations for the Participation Finance Strategy Document covering the 2027-2030 period, noting the steady growth in the number of institutions and transaction volume in Trkiye's participation finance sector.