Sharjah Islamic Bank (SIB) and the Türkiye Wealth Fund (TWF) recently signed an agreement for a $100 million Shariah-compliant Murabaha facility for three years. Facilitated by Dogan Investment Bank, this agreement marks a significant milestone as TWF embarks on its first venture launch financing from an international source in a form compliant with Islamic Shariah law.
Mohamed Abdalla, CEO of Sharjah Islamic Bank, and Arda Ermut, CEO and board member of TWF, signed the agreement.
Strategic objectives and vision
Abdalla highlighted the bank’s strategic plan for 2024-2028. He also emphasized the bank’s dedication to diversifying its investments and introducing innovative products. Moreover, the bank is keen on expanding partnerships and diversifying its business sectors. By venturing into Islamic finance with TWF, SIB aims to tap into new markets. Moreover, it seeks to contribute to Türkiye’s economy and diversify its asset base.
Commenting on the agreement, he stated: “Türkiye is a fundamental part of 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 Türkiye Wealth Fund.”
Economic relations
The agreement between SIB and TWF reflects the robust economic and investment ties between the UAE and Türkiye. As both countries witness the signing of economic partnership agreements, the collaboration opens avenues for sustainable commercial growth and strengthens bilateral relations.
Abdalla added that the agreement with TWF will support the growth of Islamic financing facilities in Türkiye. In turn, it will enhance the bank’s commitment to ensuring its operations comply with Islamic Sharia. Hence, this achieves the interests of its customers and contributes to the effective financial ecosystem on the local, regional and global levels.
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Islamic finance in Türkiye
For his part, Ermut underscored TWF’s mission to deepen financial markets and support sustainable development through diversified financial instruments. By entering the realm of Islamic finance with SIB, TWF aims to enhance the depth of Islamic financing facilities in Türkiye. Moreover, it seeks to contribute to the country’s financial ecosystem and foster economic prosperity.
The TWF is responsible for the sovereign ownership of strategic and high-importance assets in the country. This includes Turkish Airlines, Ziraat Bank, HalkBank, Vakıfbank, Borsa Istanbul, Turkcell, Turk Telecom, Istanbul Financial Center etc.
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