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In order to further support the development of Islamic finance and Takaful in Turkey, several
strategies and initiatives are defined in the 11 th Development Plan (SBB, 2019) as well. For
instance:
 “The position of interest-free finance will be strengthened in the country’s financial
system;
 Diversified products and services, as well as human resources, will be developed in the
interest-free finance arena;
 Various financial instruments and mechanisms will be established to support policy
development processes;
 Rules and regulations will be developed for the implementation of new business models
and windows in order to expand participation banking;
 Awareness of the interest-free finance system will be enhanced by providing more
information to the public about the functioning of the interest-free finance system and
financial products;
 An integrated data reporting infrastructure will be established;
 A set of regulations will be developed to increase the variety of products and services
related to the interest-free finance system;
 Platforms based on lease certificate, electronic product certificate or stock portfolio
will be developed to carry out commodity Murabahah transactions in Turkey;
 The use of lease certificate (Sukuk) issues in the financing of public investments will be
augmented;
 Regulations will be revised to provide ease of application in the use of asset leasing
companies (special purpose vehicles) in issuing lease certificates;
 Audit standards for interest-free finance will be developed;
 Standardisation of the terminology of instruments and institutions related to interest-
free finance will be ensured;
 Interest-free finance corporate governance systemwill be established and aligned with
international best practices;
 Legislation and institutional structure will be developed to encourage participation
insurance (Takaful), and operations will be expanded to address all types of risk
groups;
 Participation reinsurance (Re-Takaful) fund will be introduced and developed to
prevent the flow of national resources abroad.”
Moreover, the 11th Development Plan has set a market share target for Islamic banking as 7%
for the end of the Plan period, 2023. This will have a positive effect on Takaful industry (SBB,
2019), as Takaful is an important component of the Istanbul Finance Centre Plan.
In 2009, the Turkish government revealed its “Strategy and Action Plan for Istanbul as an
International Financial Centre”. This is to prepare the ground for making of Istanbul a global
financial centre by 2023. In order to promote this project, some requirements are needed. They