 Sharjah Islamic Bank (SIB) and the Turkiye Wealth Fund (TWF) announced the signing of an agreement to provide a Shariah-compliant Murabaha facility valued at $100 million, for a period of 3 years.
The agreement was facilitated by Dogan Investment Bank and marks the first time the Turkish Sovereign Wealth fund has launched financing from an international source in a form compliant with Islamic Shariah law.
“Turkiye is a fundamental part of our SIB’s strategy to diversify its investments and financial services, by offering the first-ever Islamic financial facility in partnership and cooperation with one of the world’s largest sovereign wealth funds, the Turkiye Wealth Fund,” said Mohamed Abdalla, CEO of Sharjah Islamic Bank.
“This confirms our strong confidence in the anticipated economic recovery in Turkiye and the return of business activities and economic activities in it to a path of growth and escalation once again.”
The CEO of the Sharjah Islamic Bank highlighted the strong economic and investment relations between the UAE and the Republic of Turkiye, which are witnessing the launch of new paths for sustainable commercial growth between the two parties, through the comprehensive economic partnership agreement signed between the two countries.
He added that the agreement of SIB with the TWF, being the primary owner of strategic assets, will help increase the depth of Islamic financing facilities in Turkiye. In return, it will enhance the SIB’s commitment to the responsibility of ensuring its operations comply with the rules and principles of Islamic Sharia.
“Through this transaction, conducted for the first time on behalf of TWF, we highlight our mission to support improvement and deepening in financial markets, as well as our vision for sustainable development,” said Arda Ermut, CEO and Board Member of TWF.
The Turkiye Wealth Fund (TWF) is the entity responsible for the sovereign ownership of strategic and high-importance assets in Turkiye, including Turkish Airlines, Ziraat Bank, HalkBank, Vakıfbank, Borsa Istanbul, Turkcell, Turk Telecom, Istanbul Financial Center etc.
Earlier today, Turkey’s central bank unexpectedly hiked interest rates from 45 to 50%, ten days before a nationwide local election, in a move that surprised markets worldwide.