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Around the world, sovereign wealth funds are typically built on long-term surplus revenues. Governments that earn sustained budget surpluses from commodities like oil and natural gas channel excess income into national investment vehicles to stabilize their economies against price volatility.
Norway’s fund, established after major petroleum discoveries in the 1970s and now exceeding $2 trillion, remains the most prominent example. Similar models dominate the Gulf, where states rely on hydrocarbon revenues to build large portfolios. Major Asian economies such as China and Japan also operate vast funds grounded in foreign-exchange reserves and export surpluses.
Last February, President Donald Trump ordered the creation of an American wealth fund and initiated the necessary legal groundwork.
Against this backdrop, in less than 10 years, Türkiye assembled one of the world’s 10 largest sovereign wealth funds, reaching a reported size of more than $360 billion. This rapid expansion reshaped the ownership structure of major national companies, many of which were transferred under the Türkiye Wealth Fund (TWF). Today, the country’s largest banks, flagship airlines, and core energy and telecom firms sit within this portfolio.
The scale is striking when viewed against national indicators. With Türkiye’s gross domestic product (GDP) estimated at around $1.3 trillion in 2024, the fund’s size represents roughly 30% of the national economy. What makes this rise more notable is the timeline: the fund was established only in 2016, one month after the July 15 coup attempt, through emergency-era legislation.
Although the fund began with a modest ₺50 million in initial capital, its expansion accelerated as major assets were transferred from the Treasury and other state-seized entities. The TWF operates as an anonymous company governed by private law, a structure that allows it to function with the flexibility of a corporate entity.
This framework was not unfamiliar to many of the enterprises later transferred into the fund. Several major state-owned companies, particularly in banking, telecommunications, and aviation, were already subject to private-law provisions before joining the TWF and had long operated through corporate boards, internal auditing mechanisms, and sectoral regulatory oversight.
The governance model places the fund under the chairmanship of the president, who appoints all board members. Decision-making is therefore centralized within a clearly defined institutional structure. While the companies remain state-owned, their coordination under a single strategic portfolio allows them to be managed with unified priorities and long-term investment planning, and can be used for geopolitical positioning and foreign policy tools.
Aligning key national assets under a streamlined corporate system that can respond quickly to financial opportunities, investment needs, and global market dynamics also gives an edge of flexibility for a Türkiye-sized country.
Sovereign wealth funds are generally built on accumulated national savings. In commodity-exporting countries, they manage surplus revenues to stabilize state finances and prepare for future downturns. In export-driven Asian economies, they function as vehicles for managing foreign reserves and long-term strategic investments.
Türkiye lacks both types of foundations. It does not generate sustained surpluses from natural-resource exports, nor does it regularly record budget or current-account surpluses. For decades, fiscal deficits have been the norm.
Rather than growing from excess revenue, the fund expanded through the transfer of key state enterprises into its portfolio. These assets form the backbone of its valuation and give it influence across banking, telecoms, energy, transportation, and natural resources.
This consolidation explains how Türkiye ascended into the global top-10 list without the classical economic conditions that typically produce such funds.
The TWF’s legal foundation outlined several objectives: deepening capital markets, bringing public assets into effective economic use, securing external financing, and participating in large strategic investments.
One of the clearest components, “bringing public assets into the economy”, foreshadowed the transfer of major state-owned enterprises into the fund.
Beyond economics, the wealth fund framework carries geopolitical value. As seen in the Gulf, China, and Singapore, sovereign funds can operate as arms of statecraft, investing in strategic sectors abroad, supporting allies, or building long-term leverage in foreign markets.
One of the clearest examples came last September, when the headline topic of the Trump–Erdogan White House meeting, the planned investment for 200 Boeing aircraft, was backed by this very company at the center of the deal.
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Another purpose is that the TWF model increases Ankara’s borrowing capacity. By pooling high-value state enterprises under a single umbrella, the fund creates a balance sheet that is larger, more diversified, and therefore more capable of attracting international lenders.
By operating outside traditional public-finance constraints, the fund can also borrow against its assets. This creates opportunities for investment in large infrastructure or energy projects while keeping the associated liabilities off the central government's balance sheet. The model mirrors certain international sovereign practices but adapts them to Türkiye’s economic and political context.
Like any large institution, the fund is not immune to the kinds of corruption risks that demand vigilance. Allegations of misconduct said to have taken place a month before the fund’s official launch in November 2016 remain before the courts, with some individuals placed under house arrest as proceedings continue. Still, if the Türkiye Wealth Fund is to expand and mature into a stronger vehicle for national strategy, greater transparency will only reinforce its growth.
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