IslamicFinance.de

Qatar Islamic Bank (QIB) has entered into exclusive discussions to acquire a stake in Turkey’s Bank Asya. QIB is seeking to finalise the transaction within the next few months, subject to obtaining the required regulatory approvals. The Qatari bank did not say what stake it might buy or disclose any other details. Bank Asya had said earlier it had started talks on a strategic partnership with QIB and planned to complete the process soon. It gave no further details. The Islamic bank has been in focus since state-owned companies and institutional depositors have reportedly withdrawn 4 billion lira ($1.8 billion), or some 20 percent of the bank’s total deposits. Bank Asya said it had weathered the mass deposit withdrawals and was not at risk.

Istanbul-based participation bank Kuveyt Türk, which raised its profit by 20 percent to 300 million Turkish Liras last year, announced ambitious plans for 2014. The lender is aiming to reach 320 branches across Turkey, opening a branch in Qatar and establishing a bank in Germany in 2014. In addition to this, it is planning to issue a Malaysian ringgit- or dollar-denominated sukuk in Malaysia, according to Kuveyt Türk CEO Ufuk Uyan. The Istanbul-based bank has applied to Germany’s Federal Financial Supervisory Authority (BaFin) in order to carry out its loan and deposit operations in Germany in October. The bank has opened 47 branches within Turkey, extending the number of its branches operating domestically and abroad to 267.

Turkey’s large infrastructure investments may boost the country’s Islamic finance sector. Turkey’s mega projects like bridges, airports, and Kanal Istanbul are compatible with the Islamic financing structure, according to ?brahim Turhan, chairman of Turkey’s stock exchange Borsa Istanbul. Moreover, the private sector’s sukuk export needs are believed to increase due to the large infrastructure investments on the agenda. Bank Asya is planning to export at least 125 million Turkish Liras of additional sukuk before the year ended, while Albaraka Türk is mulling exporting over $200 million worth of sukuk within the last quarter or at the beginning of next year. Non-interest financial tools are accorded a great importance in Turkey’s bid to make Istanbul a global financial center as well.

Kuwait Finance House (KFH) in collaboration with Kuveyt Turk (KFH Turkey) has launched a new Turkish real estate financing service. This service provides KFH customers with an end-to-end solution to their Turkish real estate requirements, tailored to their specific needs. It will support them searching for properties in Turkey, providing assistance on negotiation of an acquisition price, competitive Islamic real estate financing and offering post-sales services, should investors need to manage the properties in their absence. A specialized section has been established by KFH in Kuwait City, in order to support customers purchasing real estate in Turkey. This office acts as a contact point and provides customers with the relevant administrative services related to Turkish real estate, like document gathering and handling, information distribution and logistics handling.