Turkey's Banking Association has announced that the net profits of participatory banks, also known as Islamic banks, are expected to reach around $1.9 billion by the end of 2025. These figures come at a time when the Turkish government is reaffirming its commitment to expanding the country's presence in the global participatory finance market, which is estimated to be worth approximately $4 trillion.
During the Anadolu Agency's participatory finance summit held at the Istanbul Financial Center, the Chairman of the Association, Mohammed Ali Akben, emphasized that the participatory banking sector has continued to grow despite global economic challenges and structural changes in supply chains.
Event Details
Akben explained that the Turkish economy has achieved growth for the 22nd consecutive quarter, finishing 2025 with a growth rate of 3.6%. This growth has occurred despite the repercussions of protectionist policies and the uncertainty affecting the global economy.
He noted that there are currently 11 participatory banks operating in Turkey, with total assets amounting to approximately $95 billion. Their market share in the banking sector has risen to 9.2% by the end of 2025, compared to 8.1% the previous year.
Background & Context
Turkey is striving to enhance its position in the participatory finance market, which is viewed as an alternative to the traditional interest-based banking system. Participatory finance relies on principles of partnership, profit-sharing, and leasing, making it an attractive option for many investors.
In this context, the Head of the Investment and Finance Office at the Turkish Presidency, Burak Daglioglu, stated that the country will continue to develop the participatory finance sector and increase its share in the global financial system. He confirmed that Turkey currently represents only about 1% of the global participatory finance market.
Impact & Consequences
These figures indicate Turkey's success in expanding its Islamic finance base, as the government bets on international cooperation to increase its presence in this field. The Investment and Finance Office organized collaborative visits to several countries last year, including the United Kingdom, Azerbaijan, Malaysia, and Indonesia, aiming to develop partnerships in the Islamic finance sector.
Turkey is also seeking to establish itself as a regional hub for Islamic economics, which could contribute to attracting foreign investments and enhancing economic growth.
Regional Significance
Turkey's success in this area presents an opportunity for Arab countries to strengthen their partnerships in Islamic finance. Arab nations can benefit from Turkey's experience in developing participatory finance systems, which can help achieve sustainable development goals.
In conclusion, the continuous growth in profits of participatory banks in Turkey reflects the increasing trend towards Islamic finance, opening new avenues for regional and international cooperation in this field.