141
Figure 4.13: Timeline of Turkey’s Sukuk Regulation
Sources: Undersecretariat of Treasury, CMB
The revisions released in the second Communiqué allow varying sukuk structures. The
domestic sukuk market has seen an unprecedented spike in lease certificates since then. As
depicted in Chart 4.46, total Turkish sukuk issuance increased from USD350.0 million as at
end-2011 to USD3.0 billion as at end-2016. The viable solution to diversify sukuk structures
which are accorded tax neutrality were key in growing Turkey’s sukuk issuance. As at end-June
2017, a steady pipeline of sukuk issuance by the public and private sectors supported Turkey’s
USD1.6 billion contribution to total global sukuk issuance.
Chart 4.46: Turkey’s Sukuk Issuance vs Global Sukuk Issuance (2011-June 2017)
Sources: CMB, Eikon-Thomson Reuters
Domestic Market – Public Sector Issuance
In 2001, Turkey felt the brunt of the financial crisis when its public debt hit a peak of 77% of
GDP while the inflation rate came in at a record 68.5%. The Turkish government had
consequently implemented strategic economic reforms to combat its rising public debt and