Sharjah Islamic Bank Provides First Islamic Financial Facility for Turkiye Wealth Fund

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The Turkiye Wealth Fund (TWF) provided a Shariah-compliant Murabaha facility worth $100 million USD over a period of 3 years. This agreement, facilitated by Dogan Investment Bank, marks the first time the Turkish Sovereign Wealth Fund has launched financing from an international source in compliance with Islamic Shariah law.

Mohamed Abdalla, CEO of Sharjah Islamic Bank, highlighted the bank’s keenness to expand partnerships, diversify business sectors, and introduce innovative products according to its five-year strategy for 2024 – 2028.

The agreement with TWF aligns with SIB’s strategic plan to diversify its asset base. Abdalla emphasized the strong economic and investment relations between the UAE and Turkey, stating that the agreement will contribute to sustainable commercial growth between the two parties. He also mentioned that the agreement will help increase the depth of Islamic financing facilities in Turkey while ensuring compliance with Islamic Sharia principles. Arda Ermut, CEO and Board Member of TWF, commented on the transaction, emphasizing the fund’s mission to support improvement and deepening in financial markets and its vision for sustainable development.

TWF aims to become a significant player in Islamic finance by diversifying instruments in this field and building a prosperous cycle. Overall, the agreement signifies a significant step in Islamic finance and highlights the growing collaboration between the UAE and Turkey in the financial sector.