Türkiye, UK sign MoU to boost Islamic finance cooperation

LONDON

The Participation Banks Association of Türkiye (TKBB) and the UK Export Finance (UKEF) on Tuesday signed a Memorandum of Understanding (MoU) aimed at strengthening cooperation in Islamic finance.

The agreement was formalized during the UK-Türkiye Islamic Finance Forum, which was hosted by UK Department for Business and Trade in cooperation with TKBB, and seeks to enhance collaboration between the two countries in areas such as export financing, trade, education, and alignment with international standards.

The MoU outlines plans for mutual technical support, ongoing communication between stakeholders, and participation in joint projects within the participation (Islamic) finance sector.

Speaking to Anadolu, TKBB Chairman and Vakif Katilim Bank's General Manager Mehmet Ali Akben highlighted the potential benefits of the deal for both countries.

"The share of participation finance in Türkiye’s banking sector is currently around 8%. Our initial goal is to increase this to 15%," he said.

Akben noted that London remains a major global financial hub, and pointed out that Türkiye has completed the development of its own financial center in Istanbul.

"We attach great importance to mutual cooperation in this context. We believe that this MoU will enable deeper collaboration between the two countries in trade and export finance, education, and alignment with international standards. We also believe that Islamic finance will become more accessible to a broader audience in Türkiye as a result," he added.

Akben also underlined the global underrepresentation of Islamic finance, which he said accounts for just 1% of the financial system worldwide.

"This share must increase significantly. To achieve this, there is a substantial untapped potential in Islamic countries. What’s needed is the establishment of internationally recognized standards and greater global visibility for local institutions. Given the ongoing trade wars across the world, we can clearly see the importance of such partnerships," he added.