Türkiye and UK Sign Deal to Deepen Islamic Finance Ties

MoU signed at London summit aims to expand trade, export financing, and education collaboration between the two countries

By Abdullahi Yusuf

Türkiye and the United Kingdom have signed a Memorandum of Understanding (MoU) to bolster cooperation in Islamic finance, marking a significant step in deepening economic and financial ties between the two nations.

The agreement was finalized during the UK-Türkiye Islamic Finance Forum in London, with the Participation Banks Association of Türkiye (TKBB) and UK Export Finance (UKEF) as signatories. The pact envisions collaboration on export financing, trade development, education initiatives, and alignment with global Islamic finance standards.

TKBB Chairman and Vakif Katilim Bank CEO Mehmet Ali Akben said the agreement could unlock mutual benefits for both countries.

“Currently, participation finance accounts for about 8% of Türkiye’s banking sector. Our target is to grow this share to 15%,” Akben noted.

He emphasized Istanbul’s emergence as a key financial center alongside London’s established position in global finance. “This partnership will enable deeper cooperation in trade, export finance, and education. We believe Islamic finance will also become more accessible to wider audiences in Türkiye,” he said.

Akben highlighted the limited global footprint of Islamic finance, which represents roughly 1% of the international financial system. “This figure should rise substantially. There’s untapped potential in Muslim-majority countries, but achieving this requires internationally recognized standards and increased visibility for local institutions,” he explained.

He also stressed that in an era of global trade tensions, strategic partnerships like this one could play a vital role in ensuring sustainable growth.

The MoU includes provisions for technical support, stakeholder engagement, and joint projects to advance the Islamic finance ecosystem in both countries.

(Reporting based on information from AnadoluAgency)

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