In a decisive move to bolster Türkiye's economic and agricultural landscape, the Islamic Corporation for the Development of the Private Sector (ICD) (www.ICD-ps.org) has partnered with Vakıf Katılım Bankası A.Ş. (Vakıf Katılım) to provide USD 30 million in financing dedicated to small and medium-sized enterprises (SMEs) and corporate entities in the agriculture sector.
This USD 30 million Commodity Murabaha Facility marks a significant step forward in ICD's mission to foster sustainable economic development within its member countries. By channeling resources into Türkiye's agriculture sector, a key pillar of the nation's economy, this partnership aims to enhance food security, promote innovation, and drive the growth of SMEs, which are vital to the country's economic resilience.
Catalyzing Growth and Innovation in Agriculture
Türkiye's agriculture sector plays a crucial role in feeding the nation and contributing to its GDP. However, access to capital has often been a stumbling block for SMEs and corporate entities looking to innovate and expand. The financing provided by ICD through Vakıf Katılım will address these challenges by offering much-needed capital to drive growth, modernize operations, and adopt sustainable practices.
This initiative is not just about funding, it's about empowering the agricultural community in Türkiye to reach new heights, ensuring that farmers and agribusinesses have the tools they need to thrive in an increasingly competitive market. The resulting boost in productivity and innovation will have a ripple effect, strengthening the entire economy.
Strategic Alignment with National Goals
This collaboration is perfectly aligned with Türkiye's national objectives of increasing agricultural productivity, ensuring food security, and supporting SME growth. Vakıf Katılım, established in 2015 as one of Türkiye's nine Participation (Islamic) banks, will leverage this facility to extend financial support to eligible projects. This effort underscores Vakıf Katılım's commitment to promoting Participation (Islamic) banking and contributing to the economic development of Türkiye.
Key Highlights of the Agreement:
- Funding Amount: USD 30 Million
- Target Sector: Private sector projects, with a strong emphasis on agriculture and SMEs
- Objective: To fuel business growth, drive innovation, and enhance food security in Türkiye
- Strategic Alignment: Supports ICD’s Private Sector Channel Development Strategy and Türkiye's national development goals
A Future-Ready Agriculture Sector
The partnership between ICD and Vakıf Katılım represents more than just a financial transaction; it is a shared vision for a future-ready agricultural sector in Türkiye. By enabling access to financial resources, this initiative will help bridge funding gaps, stimulate innovation, and foster a more robust and diverse economy. It is a powerful demonstration of how targeted financial support can lead to sustainable development, improved livelihoods, and a stronger national economy.
Distributed by APO Group on behalf of Islamic Corporation for the Development of the Private Sector (ICD).For further details, please contact:
Nabil El-Alami
Communications&Corporate Marketing Division Manager
nalami@isdb.org
About Vakıf Katılım Bankası A.Ş.:
Vakıf Katılım Bankası Anonim Şirketi is one of the nine Participation (Islamic) banks in Türkiye, established in 2015. The bank, 99% owned by the Republic of Türkiye Directorate General of Foundations (DGF), began its operations in 2016 and is dedicated to promoting the growth of Participation (Islamic) banking and supporting the economic development of Türkiye.
About the Islamic Corporation for the Development of the Private Sector (ICD):
ICD, a member of the Islamic Development Bank (IsDB) Group, focuses on supporting economic development and private sector growth in its member countries through Shariah-compliant financing and investment solutions. ICD is highly rated by international credit agencies, including A2 by Moody’s, A+ by Fitch, and A- by S&P.
