Despite some recent turbulence, Turkey has strong fundamentals that underscore its potential for long-term economic growth. With a young population of 77.7m, a strategic location within four hours’ flying time of 1.5bn consumers and a diversified economy, the country has much to offer investors.
Earlier this month Saudi Arabia’s Riyad Bank closed a $750m “sustainability” sukuk (Islamic bond), the latest in a wave of high-profile issuance across different regions. ESG-related sukuk are set to see rapid growth in 2022, even as the broader sukuk market softens.
The Turkish economy remained relatively resilient in 2015, despite continued weakness among leading trade partners, instability along and within its borders, and a rising tide of Syrian refugees.
The return to single-party government and a commitment to fast track economic reforms have boosted investor confidence in Turkey, though rising inflation and low growth rates could hamper the prospect of renewed fiscal and political stability.
With double-digit increases in profits and assets reported mid-year, Turkey’s banking sector remains relatively unscathed amidst ongoing political uncertainty, renewed security threats and a slowing economy. However, as borrowing costs rise, ratings agency Standard & Poor’s (S&P) predicts a cooling in the country’s banking climate.
Turkey’s IT sector is in the midst of a busy and prosperous period marked by rapid, widespread development in internet services, infrastructure investment and ecommerce activity. Internet growth is being driven by extensive fibre-optic expansion, increased adoption of 3G mobile internet and planned nationwide 4G network services that will...
What factors are driving demand for IT services and infrastructure in the Turkish market?
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