The Islamic finance industry has been on the rise with the Islamic banking sector growing throughout crises. Turkey’s Islamic banking sector is said to have shown just a moderate growth compared to its actual potential and global developments. The country’s Islamic banks are said to grow further depending on whether they’re able to improve investments, and to find sources of mid- to long-term funding for their investment activities. In the Islamic finance industry Sukuk, a form of Shariah-compliant securitization, emerged as a viable form of finance for both sovereign and corporate entities that seek for Shariah-compliant long-term financing sources. Since the international breakthrough in 2001, Sukuk certificates have been increasingly issued in various jurisdictions throughout the Middle East and Asia, and in parts of the western world. The upward rise supposedly represents the need of Islamic financial institutions for longer-term funding sources to overcome their short-term liquidity constraints.
This paper provides a comparative analysis (quantitative and qualitative) of developments and the current state of applications of Sukuk financing in Turkey and the global Islamic finance sector. Sukuk markets have surely become one of the main sections of the Islamic finance industry. Islamic banks in Turkey just recently tapped the market, though. In line with trends in global Sukuk issuances, Turkish Sukuk were sponsored by corporate entities and of the Ijarah and Murabaha Sukuk types. However, sovereign / quasi-sovereign Sukuk issuance has been globally on the rise lately. In the near future, this trend could happen to be also true for the Turkish Sukuk market.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Literature Review
- Developments of the Islamic Banking Sector of Turkey
- Market Size and Sectoral Developments
- Market Participants
- Sukuk – Islamic Capital Market Securities
- Definition
- Securitization in Sukuk
- Issuance of Sukuk
- Contracts Underlying Sukuk – Types of Sukuk
- Structures of Sukuk
- Developments of Global Sukuk Markets
- Global Sukuk Issuance
- Sovereign, Quasi-Sovereign, and Corporate Sukuk Markets
- International and Domestic Sukuk Markets
- Global Sukuk Market by Underlying Contract
- Developments and Current State of Sukuk Applications in Turkey
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This term paper examines the development and current state of Sukuk financing in Turkey, comparing it to the global Islamic finance sector. It aims to provide a foundation for further evaluation and research. The main objective is to conduct a comparative analysis, both quantitative and qualitative, of Sukuk applications in Turkey and globally. The paper focuses on the following key themes:- The growth and potential of Turkey’s Islamic banking sector.
- The emergence and evolution of Sukuk as a Shariah-compliant securitization instrument.
- The key drivers and trends in global Sukuk markets.
- The specific characteristics and challenges of Sukuk applications in Turkey.
Zusammenfassung der Kapitel (Chapter Summaries)
The paper begins by reviewing significant publications in the field of Islamic finance, particularly focusing on Sukuk and securitization. Chapter 3 delves into the Turkish Islamic banking sector, outlining its growth from 2000 to 2010. Chapter 4 provides a detailed analysis of securitization in Sukuk, encompassing issuance, underlying contracts, and structural types. Chapter 5 examines global Sukuk markets, encompassing issuance volumes, issuer classifications, and the distinction between domestic and international markets. Finally, Chapter 6 provides a comprehensive analysis of Sukuk applications in Turkey.
Schlüsselwörter (Keywords)
This term paper primarily focuses on Islamic finance, Islamic banking, Sukuk, and securitization within the context of Turkey’s economic and financial environment. It explores the growth and potential of Islamic finance, specifically examining Sukuk as a viable long-term financing tool. The paper also investigates the characteristics and challenges of implementing Sukuk in Turkey, analyzing both domestic and international market developments. Additionally, the paper considers the roles of various market participants, including sovereign, quasi-sovereign, and corporate entities.- Quote paper
- Atilla Yücel (Author), 2012, Islamic Finance Application in Turkey in Comparison with Other Countries: Developments and Current State of Sukuk, Munich, GRIN Verlag, https://www.grin.com/document/194276
