Turkey’s Wealth Fund Gains Major Financing from Kuwait-Led Group

The Turkey Wealth Fund (TWF) has secured a major financial deal worth 600 million US dollars. The agreement comes through a five-year murabaha financing arrangement with a group of banks led by Kuwait Finance House. This is one of the largest and longest financing deals of its kind for the fund and shows the growing trust of international lenders in Turkey’s economic plans.

What is Murabaha Financing

Murabaha is a type of Islamic financing that follows Sharia principles. Instead of charging interest, the bank buys an asset and sells it to the borrower at an agreed profit. This method is widely used in Islamic banking around the world.

What makes this deal special is that it is unsecured. This means the Turkey Wealth Fund did not have to offer any collateral or guarantees to get the money. Receiving such a large loan without collateral shows the strong financial position of the fund and the trust it has earned in global markets.

Part of a Bigger Strategy

This is not the first time the Turkey Wealth Fund has used Islamic financing. In the past few years, the fund has been increasing its use of Sharia-compliant funding to diversify its sources of capital and strengthen ties with Gulf countries.

Some of the major Islamic financing deals by TWF include:

• In March 2024, TWF signed its first international Islamic finance deal for 100 million US dollars with Sharjah Islamic Bank.

• In October 2024, it issued its first Sukuk Al Ijarah, raising 750 million US dollars.

• In January 2025, the fund increased this sukuk by 250 million US dollars, bringing the total to 1 billion US dollars.

• In February 2025, it signed another murabaha financing deal for 150 million US dollars with Dubai Islamic Bank.

With the new 600 million US dollar agreement, the total Islamic financing raised by TWF has now crossed 1.8 billion US dollars.

Why This Deal Matters

There are several reasons why this new financing deal is important for Turkey and the Turkey Wealth Fund.

Diversifying Funding
By using Islamic finance, the fund is not relying only on traditional loans. This gives it more options and helps protect it from changes in global markets.

Building International Confidence
Securing a large unsecured loan shows that lenders believe in the fund’s ability to manage its finances well and repay on time.

Strengthening Ties with the Gulf
The deal strengthens economic relations between Turkey and Kuwait, as well as other Gulf countries. This could lead to more cooperation in trade, investment, and development projects.

Positioning Istanbul as a Financial Hub
Deals like this support Turkey’s goal of making Istanbul a leading center for Islamic finance. It brings more attention from investors and financial institutions in the Middle East and beyond.

About the Turkey Wealth Fund

The Turkey Wealth Fund was set up in August 2016 to manage and grow the country’s strategic assets. It owns shares in important companies in banking, energy, telecom, transport, and other sectors.

Some of its key holdings include:

• Major banks like Ziraat Bank, Halkbank, and Vakıfbank

• Turkish Airlines

• Telecom companies such as Turkcell and Türk Telekom

• Energy companies like BOTAŞ and Türkiye Petrolleri

• Mining and agricultural firms such as Eti Maden and Çaykur

The fund’s assets were worth about 317 billion US dollars in 2023. Its main goal is to increase the value of these assets, invest in large projects, and support Turkey’s long-term growth.

How This Financing Will Be Used

While the fund has not shared exact details on how the new financing will be spent, such funds are usually used for:

• Supporting large infrastructure projects in transport, energy, and technology

• Strengthening existing companies and helping them expand

• Investing in new strategic sectors to boost economic growth

• Managing short-term financial needs without selling valuable assets

Given the size and term of the deal, it is likely that the money will help the fund in both short-term operations and long-term investments.

With this new agreement, the Turkey Wealth Fund has shown that it can secure large-scale financing under competitive terms. This will likely encourage other international banks and investors to work with the fund.

In the coming years, we may see more Sharia-compliant financing from the fund, including new sukuk issuances and other long-term facilities. This could further strengthen Turkey’s financial position and help it attract investment from the Middle East, Asia, and beyond.