The 3rd Global Islamic Economy Summit brought together leading figures from the worlds of participation finance and sukuk in Istanbul under the theme “Capital in the Islamic Economy: Structuring Wealth for Sustainable Development". Hosted by AlBaraka Forum in collaboration with the Investment and Finance Office, Türkiye Wealth Fund, Istanbul Financial Center, the Islamic Cooperation Youth Forum and Ibn Haldun University, the four-day event featured discussions on the future of Islamic finance and its role in the evolving global economy.
Speaking at the official opening ceremony held at Halkbank Headquarters in the Istanbul Financial Center, President Recep Tayyip Erdoğan shared key insights on global economic developments and the growing importance of participation finance. Erdoğan noted that global debt reached USD 350 trillion in the first quarter of 2026, emphasizing the need for a new economic and financial paradigm centered on justice, ethics, production and equitable distribution.
Highlighting the principles of Islamic economics, President Erdoğan said the system is built on values such as justice, morality, risk-sharing, sustainability and social welfare, supporting not only economic development but also social cohesion and environmental protection. He described participation finance as an integral component of Islamic economics and a fairer and more secure model for the global financial system.
President Erdoğan stated that participation finance, encompassing banking, capital markets, insurance, savings finance and social finance, could make a significant contribution to the development of a new global financial architecture. He stressed that Türkiye views participation finance as a strategic pillar of both economic development and financial stability, noting that one of the two key pillars of the Istanbul Financial Center is fintech, while the other is participation finance.
Underscoring Türkiye's ambition to become a global nexus of investment and finance, President Erdoğan also highlighted recent reforms designed to strengthen the country's investment environment. President Erdoğan announced that with the recent incentive program, the corporate tax base deduction applied to export revenues generated by participation finance institutions operating in the Istanbul Financial Center has been extended until 2047. Additional measures include extending exemptions on financial activity fees from five years to twenty years, as well as introducing tax incentives covering banking and insurance transaction taxes, stamp duties and qualified international employees.
President Erdoğan further noted that revenues generated by companies operating in the Istanbul Financial Center from transit trade and overseas intermediary activities are now exempt from corporate tax, while the newly established One Stop-Shop began operations at the center recently. President Erdoğan also revealed that preparations are underway for the Participation Finance Strategy Document covering the 2027–2030 period.
Pointing to the sector's continued growth, President Erdoğan stated that participation banking assets have exceeded TRY 4.7 trillion, increasing the sector's share of the banking industry to 9.5 percent. Türkiye currently hosts ten participation banks, including three digital banks, while sukuk issuances reached TRY 614 billion by the end of 2025. President Erdoğan noted that participation-based investment funds, pension funds, exchange-traded funds and savings finance institutions all recorded significant growth, reflecting rising demand for Islamic financial instruments from both public and private sector participants.
According to President Erdoğan, these developments demonstrate the strengthening position of participation finance within Türkiye's financial system and reinforce the country's ambition to become a leading global center for Islamic finance.