Islamic Development Bank seeks strategic stake in Turkey’s Borsa Istanbul
ISTANBUL - ReutersThe Islamic Development Bank (IDB) will seek a strategic stake in Turkey’s main stock exchange and collaborate on developing a gold trading platform for use by majority-Muslim countries, part of a broad agreement signed on Nov. 23.
The Saudi-based IDB did not specify a size or timeframe for the acquisition of share capital in Borsa Istanbul, but said in a statement the move was part of wider efforts to develop Islamic finance in Turkey.
The IDB and Borsa Istanbul would also seek to develop an integrated gold trading platform to be established within the stock exchanges forum of the Organization for Islamic Cooperation.
The agreement aims to expand the use of interest-free financial products to fund large infrastructure projects, in particular through Islamic bonds, or sukuk.
The IDB said it was also working alongside Turkey’s General Directorate of Foundations to establish the first sharia-compliant bank dedicated to Islamic endowments.