The Islamic Development Bank Group (IDBG) and Borsa Istanbul have signed a Memorandum of Understanding (MoU) to provide a general framework to facilitate cooperation and collaboration among the parties in fostering Islamic Finance in Turkey and other IDB Member Countries. The MoU was signed under the auspices of the President of Republic of Turkey, H.E. Recep Tayyep ERDOĞAN during the 32nd Ministerial Session of the COMCEC held in Istanbul, Turkey on 23 November 2016.
The following will constitute the areas of cooperation among the Parties:
(i) Explore opportunities for IDB’s strategic stake acquisition from Borsa İstanbul’s share capital.
(ii) Cooperate in terms of an integrated gold trading platform to be established within the umbrella of Organization for Islamic Cooperation Member States’ Stock Exchanges Forum.
(iii)Support each other in introducing innovative interest-free financial products (i.e. instruments to finance large infrastructure projects (PPP projects) to the investor community in the region and seek ways to enhance the Sukuk infrastructure.
(iv)Work on generating alternatives for liquidity management of participation banks through the utilization of aforementioned PPP products in accordance with Islamic finance principles.
(v) Bring their efforts together to form an international Islamic Finance Board in Turkey
(vi) Seek to develop opportunities to exchange information, expertise and technical know-how, as well as together provide consultancy/advisory to third parties pertaining to Islamic Finance in order to contribute to the improvement of non-interest finance in Turkey and the broader region.
It is worth noting that IDB Group is actively supporting the Government of Turkey in its initiatives to boost Islamic Banking Industry and has contributed to the establishment of Albaraka and KuveytTurk participation banks through equity investments. IDB is also fostering innovative solutions such as the establishment of the first Islamic bank for waqf foundations (Vakif Katilim) with General Directorate of Foundations (GDF) for US$300 million. Moreover, IDB Group is also actively supporting the efforts to enhance Istanbul as a Global Financial Center. Borsa İstanbul introduced the Sukuk (lease certificates) of the Islamic Development Bank (IDB), under its MTN USD 6.5 billion, on its Debt Securities Market Outright Purchases and Sales Market.
© Press Release 2016
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