Posted 11:13 by pressnews

Since coming to power in 2002, the AK Party has been acting to transform the capital Istanbul into a hub for the Islamic banking industry

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Asharq Al Awsat - Lahem al Nasser - November 14, 2008 | [...] Another significant milestone in Turkish Islamic finance took place in November 2005, when the supervisory authority's approval of the Partnership Banks Law No. 5411. The law which complemented the principles of Islamic Shariaa governing this industry stipulated opening interest-free current accounts named Special Current Accounts [...] The assets of the Participation Banks Association of Turkey are expected to exceed US$ 25 billion in the next decade, constituting 10 percent of the entire assets of Turkish banks, according to a recent report by the Turkish Partnership Bank Association in March 2008. Since coming to power in 2002, the Justice and Development Party has been acting to transform the capital Istanbul into a hub for the Islamic banking industry, and a bridge linking the east and the west owing to its geographic location, and historical and religious backgrounds. It is indeed qualified for such a role due its strong legislative and organizational structure.
However, this alone is insufficient because the Turkish government still needs to be more open and flexible regarding laws governing foreign investment in the Islamic financial sector. This is because the Turkish banking laws prohibit foreign Islamic banks operating in Turkey, unless it is a joint venture with a local Turkish bank. There's no doubt that many Islamic financial institutions and Muslim investors who are interested in getting a foothold in the Turkish market shy away due to the costly requirements involved in terms of finance and manpower. (...]

Etiketler: AKP, Hamas, Muslim Brothers, muslim world