Turkey Wealth Fund Secures $600M Murabaha Deal with Kuwait Finance House
TWF
The Turkey Wealth Fund (TVF) has signed a $600 million Murabaha financing agreement with a consortium of banks from Kuwait Finance House (KFH)—marking another major step in Türkiye’s strategy to deepen its financial markets through Islamic finance.
Strengthening Islamic Finance Ties
In a statement, TVF emphasized that the deal aligns with the strategic vision of President Recep Tayyip Erdoğan, who also chairs the fund’s board. The agreement highlights TVF’s commitment to expanding Türkiye’s access to global Islamic financial instruments and increasing the depth and diversity of the national capital markets.
The agreement, which includes no collateral or state guarantees, will have a 5-year maturity and serves as an example for other Turkish institutions looking to tap into the $5 trillion global Islamic finance sector—a market that continues to grow rapidly.
Why This Matters
This Murabaha deal further consolidates TVF’s growing presence in the Islamic finance domain, which already includes projects like Participation Insurance, Participation Finance, and Istanbul Financial Center. TVF has also been utilizing Sukuk (Islamic bonds) and Murabaha (cost-plus financing) instruments to attract interest-compliant capital.
The fund announced that, with this new agreement, its total Islamic financing volume now exceeds $1.8 billion.
Turkey-Kuwait Financial Ties Deepen
The transaction also reflects a strengthening financial partnership between Türkiye and Kuwait, showcasing both countries’ growing cooperation in interest-free financial instruments.
TVF noted that the financing was obtained on favorable terms, thanks to its strong credit profile, reputation in international markets, and robust investor relations.
