Islamic tools offer a “key” to get out of the economic woes the world is now facing, Turkey’s president said on Sunday.
“Over-financing has created a bloated economic model, which acts only over concern about unearned income, without considering social and human costs,” Recep Tayyip Erdogan told the 12th International Conference on Islamic Economics and Finance via a video link.
Though addressing long-term developments, his remarks took place against the backdrop of economic fallout from the coronavirus pandemic.
“To finance long-term large infrastructure investments, the use of products such as sukuk should be expanded,” Erdogan added, referring to Islamic bonds.
“Contrary to what has been promised, the distribution of income and wealth is gradually deteriorating all over the world, and the gap between the countries widened,” he also said.
“Every crisis that started in the financial sector quickly spreads to the real sector and creates an army of the new unemployed,” he warned.
Earlier this year, credit rating agency Moody’s announced that Turkey’s Islamic banking assets are set to double within a decade, as government initiatives drive growth in the sector.
Turkey has positioned itself to be a hub for participation banking and Islamic finance.
Turkey provided medical assistance to 125 countries
Erdogan said that Turkey is among the countries that is getting over the pandemic period with the least damage.
“In addition to meeting the needs of our own people, we have provided medical assistance to 125 countries around the world,” he said.
Pointing out the country’s first-quarter growth of 4.5%, Erdogan said that Turkey has shown that it distinguished itself positively from other countries not only in the health sector but also in the economy.
“With the realization of the normalization calendar, production, trade, and tourism [sectors] have started to revive,” Erdogan added.
As of Saturday, Turkey confirmed almost 176,700 coronavirus cases while recoveries surpassed 150,000. The virus killed nearly 4,800 people in the country.
Since originating in China last December, the pandemic has claimed over 430,500 lives in 188 countries and regions.
The US, Brazil, and Russia are currently the world’s worst-hit countries.
Some 7.81 million cases have been reported worldwide, while some 3.72 million people have recovered so far, according to figures compiled by the US' Johns Hopkins University.