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.
Ground is set to be broken in late summer on a $10bn pipeline that will carry Azeri natural gas to Turkey and on to Europe, as energy security remains a key issue in the region.
The tourism industry in Turkey could see stormy weather this summer with a sharp slowdown in arrivals from Russia and some European countries, combined with a weaker domestic market due to the sluggish economy.
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