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Türkiye is reorienting its foreign economic agenda toward the West, Treasury and Finance Minister Mehmet Simsek said Tuesday, citing a strategic shift after a decade marked by geopolitical stagnation.
“We are turning westward again. We are emerging from 10 years of geopolitical inertia and continue close cooperation with the U.S., the EU, and the UK,” he said during the opening of the Islamic Finance Summit in London, co-organized by the Participation Banks Association of Türkiye and UK Export Finance.
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Simsek emphasized Türkiye’s readiness to work with Western allies on reconstruction efforts in war-affected regions. Noting the ongoing conflicts in Ukraine and the Middle East, he stated, “We hope the wars in Ukraine and the Middle East will end, and there will be a need for rebuilding. Why not do it together—British architects and Turkish contractors?”
He described these post-conflict areas as emerging frontiers for economic engagement, with both the U.K. and Türkiye well-positioned to play leading roles in infrastructure, construction, and planning.
In his keynote speech at the Islamic Finance Summit, jointly organized by the Participation Banks Association of Türkiye and UK Export Finance, Simsek presented Islamic finance as a robust and ethical alternative to conventional financial systems. He noted that the global Islamic finance market has grown to $5.3 trillion but still makes up only about 1% of total global financial assets.
Türkiye currently ranks 10th among 136 countries on the Islamic Finance Development Index. Simsek said the country aims to break into the top five and encouraged further collaboration with the U.K. in this domain. He emphasized that Islamic financial tools offer enhanced stability and liquidity during economic crises.
Simsek offered a brief overview of Türkiye’s macroeconomic indicators, highlighting an increase in foreign reserves and a downward trend in inflation. The country’s net foreign exchange reserves have risen by $89 billion since May 2023, reaching levels considered adequate by international standards.
Inflation has dropped from 72% last year to 35%, and the government aims to bring it into single digits by 2027. Türkiye’s public debt remains relatively low at around 25% of gross domestic product (GDP), and while this year’s budget deficit target of 3.1% may not be met due to weaker-than-expected revenue, Simsek maintained that overall fiscal discipline remains intact.
Looking ahead, Simsek outlined Türkiye’s ambitions in high-tech investment, including artificial intelligence, fiber infrastructure, and data centers. He said the country ranks ahead of many emerging markets in AI readiness but still lags behind advanced economies.
Türkiye’s manufacturing capacity, supported by a young and skilled population, was also highlighted as a core strength. Simsek added that Türkiye now ranks second only to London in the European mobile gaming ecosystem, with over 850 active startups and several high-profile exits exceeding $100 million.
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