138
Box 4.12: Turkey’s Medium-Term Programme (MTP) (2018-2020)
The main objectives of the MTP are to maintain
macroeconomic stability, to increase human capital
and labor quality, to enhance high value-added
production, to improve the business and investment
environment and to increase the institutional
capacity in the public sector, to increase employment
and improve income distribution.
In this framework; decreasing inflation, sustaining
fiscal discipline and improving current balance,
raising the quality of education, increasing the skills
and productivity of the workforce, making the labor
market more flexible, increasing the value-added
production and exports based on innovation,
facilitating business and investment processes, legal
foresight in business and trade disputes and
structural reforms aimed at strengthening
institutional capacity in the public sector are quite
important.
Growth and employment priority policies and
measures:
A. With the purpose of achieving high growth rates
in the future, and increasing quality of growth:
 Sustaining low single-digit inflation.
 Keeping current account deficit at
sustainable levels.
 Increasing domestic savings and
investments further.
 Allocating resources to the manufacturing
industry. Increasing quality of exports.
 Raising production infrastructure and
technology level.
 Improving the quality of labor force
and increasing labor market flexibility
are important issues.
B. For an economic structure that is growing
at a high and stable rate during the
Programme period:
 Sustaining macroeconomic stability.
 Qualified employment creation.
 Increasing high value-added
production.
 Improving the suitable environment
for private sector investments and
further easing of doing business.
Increasing the institutional capacity of the public
in order to support the private sector are aimed.
Priority policy areas of the MTP:
1. Sustaining macroeconomic stability.
2. Improving the quality of the human capital
and labor force.
3. High value-added production.
4. Improving business and investment climate.
5. Strengthening institutional quality and
service delivery in public sector.
Source: Ministry of Development, Turkey (2017, October)
Table 4.18: Turkey’s Participation Banks (as at end-June 2017)
Full-fledged
Islamic banks
Date of incorporation Total assets
(USD million)
Total deposits
(USD million)
AlBaraka Turk November 1984 9.6 6.2
Kuveyt Turk March 1989 15.1 10.5
Turkiye Finans December 2005 10.5 5.7
Ziraat Katilim May 2015 3.3 2.3
Vakif Katilim February 2016 2.7 2.1
Source: Participation Banks Association of Turkey
According to an empirical study by Jobarteh & Ergec (2017), the economic success of Turkey in
recent years is attributable to the rise of its Islamic finance sector. Table 4.19 outlines the
historical development of Islamic finance industry in Turkey since 1983 until 2016.