The Islamic Development Bank (IDB) will seek a strategic stake in Turkey’s main stock exchange and collaborate on developing a gold trading platform for use by majority-Muslim countries, part of a broad agreement signed recently, Reuters reported
The Saudi-based IDB did not specify a size or timeframe for the acquisition of share capital in Borsa Istanbul, but said in a statement the move was part of wider efforts to develop Islamic finance in Turkey.
The IDB and Borsa Istanbul would also seek to develop an integrated gold trading platform to be established within the stock exchanges forum of the Organisation for Islamic Cooperation.
The agreement aims to expand the use of interest-free financial products to fund large infrastructure projects, in particular through Islamic bonds, or sukuk.
The IDB said it was also working alongside Turkey’s General Directorate of Foundations to establish the first Shariah-compliant bank dedicated to Islamic endowments, to be named Vakif Katilim, which would have a size of $300mn.
The Saudi-based IDB has said the move is part of wider efforts to develop Islamic finance in Turkey.
