Sharjah Islamic Bank (SIB) and the Turkey Wealth Fund (TWF) have signed an agreement to provide a Shariah-compliant Murabaha facility worth $100 million for 3 years.
This agreement, facilitated by Dogan Investment Bank, marks the first time the Turkish Sovereign Wealth fund has launched 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.
Mohamed Abdalla expressed the SIB’s keenness to expand partnerships, diversify business sectors, and introduce innovative products according to the bank’s five-year strategy for 2024 – 2028. This agreement with the TWF falls within the SIB’s strategic plan to diversify its asset base.
Mohamed Abdalla CEO – Sharjah Islamic Bank
“Turkey 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 Turkey Wealth Fund. This confirms our strong confidence in the anticipated economic recovery in Turkey 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 Turkey, 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.
Abdalla further 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 Turkey. 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, achieving the interests of customers, and contributing positively to the effective financial ecosystem on the local, regional, and global levels.
From his part, Arda Ermut commented on the transaction, stating that, “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. As TWF, we continue our efforts to become a significant player in Islamic finance, diversifying instruments in this field, and building a prosperous cycle. We sincerely thank all stakeholders involved in this process.”
The Turkey Wealth Fund (TWF) is the entity responsible for the sovereign ownership of strategic and high-importance assets in Turkey, including Turkish Airlines, Ziraat Bank, HalkBank, Vakıfbank, Borsa Istanbul, Turkcell, Turk Telecom, Istanbul Financial Center, and so on.
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