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The Participation Banks Association of Türkiye (TKBB) and U.K. Export Finance (UKEF) have signed a Memorandum of Understanding (MoU) to deepen cooperation in Islamic finance, with a focus on export credit, trade, education, and international standardization.
The MoU was formalized on Tuesday during the U.K.-Türkiye Islamic Finance Forum in London. The agreement outlines plans for sustained technical collaboration, regular dialogue between stakeholders, and participation in joint projects aimed at enhancing the Islamic finance ecosystem in both countries.
Speaking to Anadolu Agency, TKBB Chairman and General Manager of Vakif Katilim Bank, Mehmet Ali Akben, said that participation finance—Türkiye’s equivalent of Islamic banking—currently represents about 8% of the national banking sector. He stated that the association’s initial goal is to raise this share to 15%.
Akben noted that London remains a global financial hub and highlighted the recent completion of Türkiye’s own financial center in Istanbul. He emphasized the strategic importance of strengthening ties in Islamic finance, especially in areas such as trade, export finance, and education.
"We believe that this MoU will enable deeper collaboration between the two countries in trade and export finance, education, and alignment with international standards," Akben said.
Akben also pointed to the limited global footprint of Islamic finance, which accounts for just 1% of the international financial system. He argued that this share should grow substantially, particularly by unlocking potential in Islamic countries and promoting internationally recognized standards.
He added that the partnership between TKBB and UKEF could enhance global visibility for local financial institutions and strengthen resilience amid international trade tensions.
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