BAE's $440 Million Credit Flow to Turkey

Banks from the United Arab Emirates are Investing in Turkey

Banks based in the United Arab Emirates (UAE) are facilitating the flow of approximately 440 million dollars worth of new corporate loans to the Turkish economy. These loans have been offered to large companies in Turkey by Emirates NBD Bank PJSC and Dubai Islamic Bank PJSC (DIB) in the past five months.

Major Agreements and Investments

The loans include prominent Turkish companies such as Turkcell and A101. DIB has also executed an Islamic financing agreement for Turkish Airlines.

UAE's Investment Agreements and Banking Relations

Although the 51 billion dollar investment commitment from the UAE in 2023 has been overshadowed by recorded failures, banks have become the main vehicle for capital flow between Turkey and the UAE during this process.

UAE banks have started to hire Turkish bankers by opening local offices to increase their presence in the Turkish market. This situation is seen as a sign that the banking sectors of both countries will strengthen further.

Offering More Attractive Opportunities

Kaan Kiziroğlu, managing partner of Istanbul-based consultancy firm Servo Capital, stated that Gulf banks have made Turkey more attractive compared to their internal market rates, noting that the 250 basis points premium is quite striking compared to competing markets.

Attention to Upcoming Agreements

Baran Işık, Country Manager of DIB Turkey, emphasized that they are considering large-scale Islamic financing projects for state institutions and state-related organizations, and they expect new agreements to be announced in the coming months.

The Importance of Local Offices

Local offices are enhancing the presence of UAE-based organizations in the Turkish market, supporting strategic moves such as Emirates NBD expanding its ownership of DenizBank A.Ş. and DIB's 25% stake in digital bank TOM Group.