Turkish Tax News
Diyadin YAKUT
22 November 2016Diyadin YAKUT

All obstacles before Islamic finance to be lifted

Stating that the overall market value of companies registered with Istanbul Stock Exchange totals approximately 600 billion liras, Deputy Prime Minister Nurettin Canikli revealed the Government plans to lift current administrative and economic obstacles before Islamic finance to further deepened Turkish financial markets by attracting a bigger proportion of international funds that seek a stable and secure place.

Since the expansion of the market of Islamic finance and the scope and extend of its attractiveness for international investors commands utmost importance and provides a vast potential for a sound economic development, Minister Canikli pointed out that the Government has already embarked on a number of measures in the context of clearing out legal and administrative obstacles within the legislation that might hinder desired level of development.

Telling that currently around 450 thousand people have invested in Turkish Islamic finance market so far, Canikli informed that they have amended the article dealing with the exemption regarding the Sukuk issuance in the Turkish Corporate Tax Law in this regard.

Canikli also contended that Turkey, as an important country and developing economy is lagging behind in terms of the sheer volume and share of Islamic finance considering that Turkey ranks 7th among 9 biggest Islamic finance markets that total 1,9 trillion dollar globally. He went on saying that after all financial instruments and products tailored according to Islamic finance rules are regulated by Turkish financial markets authority Capital Markets Board(SPK), Turkey will initially be able to increase the share of Islamic finance from 4,7% to 15%.

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