“Participation finance offers a more just and safer model for the entire world”
Addressing the 3rd Global Islamic Economy Summit, President Erdoğan said: “Participation finance, an integral part of Islamic finance, offers a more just and safer model for not only Muslims but the entire world. I see participation finance, which covers fields such as banking, capital markets, insurance, savings finance and social finance, as a robust structure that could contribute to the formation of a new global financial architecture.”
President Recep Tayyip Erdoğan delivered a speech during the 3rd Global Islamic Economy Summit at Istanbul Financial Center.
“THE IRAN-CENTERED WAR NEGATIVELY IMPACTS THE ENTIRE WORLD”
President Erdoğan said: “In recent years, we as the Islamic world have been grappling with many crises on various fronts concurrently. The Israeli atrocities in Gaza, the West Bank, and East Al-Quds continue despite the ceasefire. The Zionist massacre network is relentlessly extending its occupation and expansionist policies day by day from southern Lebanon deep into Beirut. The Iran-centered war, with the passage through the Strait of Hormuz coming to a standstill, negatively impacts not only the brotherly countries in the Gulf but also the entire world. The environment of trust and stability in our geography is unfortunately being increasingly undermined by the ramifications of the wars, crises, infightings and uncertainties. We are going through days when a global inflection has been underway particularly in the fields of economy and finance, and when tremors are being felt by almost every country, regardless of their level of development.”
“THE CURRENT GLOBAL SYSTEM HAS SQUANDERED COUNTLESS OPPORTUNITIES”
President Erdoğan continued: “At this point, I would like to share an alarming figure with you. A report recently released by the Institute of International Finance shows that the global indebtedness for the first quarter of 2026 has reached $350 trillion. For how long this debt burden can be sustained is a serious question that needs to be answered in terms of global economy’s future. I have to express it openly and clearly that you cannot heal wounds that actually necessitate a surgical operation through palliative dressing. The current global system has unfortunately squandered countless opportunities irresponsibly over the past two decades. The global financial architecture, built upon debt and interest, has opted to sweep the problem under the carpet through palliative steps instead of addressing the root causes in the wake of the 2008 crisis.”
“At the current stage we have arrived, we can all see the following fact that financial crises cannot be averted without transitioning to an economic and financial paradigm centered on the principles of justice, morality, production and fair sharing. We cannot prevent the recurrence of similar problems at various intervals unless the problems resulting from the system itself remain unresolved. Our observation that the World is bigger than five concerns not only the international conjuncture that disregards rules and values, but also the economic trade relations grounded in inequality and exploitation. Likewise, what we also mean by our motto, a fairer World is possible, is that we as the family of humanity are not helpless, nor are we bound to one single system, both in economy and international relations,” President Erdoğan stated.
“WE CONSIDER THE PARTICIPATION FINANCE SYSTEM TO BE A STRATEGIC ELEMENT IN TERMS OF TÜRKİYE’S ECONOMIC DEVELOPMENT”
“Where there is interest, there is no prosperity. Where there is exploitation, injustice, and unethical and immoral competition, there is no prosperity. Prosperity can find no room for itself in an environment where profit maximization and consumption greed alone are cherished while welfare and justice are excluded,” President Erdoğan stressed. “Islamic finance is centered around values such as justice, morality, ethics, altruism, risk sharing, sustainability and social welfare, prioritizing not only economic development but also the strengthening of the social body and the protection of the environment. It encourages charity, mutual assistance, solidarity, and protecting disadvantageous groups. Effectively explaining these values of ours to global economic actors, as well as amending, fixing and revising the current system under the light of these merits must be a primary mission for all of us as Muslims.”
President Erdoğan continued his remarks as follows: “Participation finance, an integral part of Islamic finance, offers a more just and safer model for not only Muslims but the entire world. I see participation finance, which covers fields such as banking, capital markets, insurance, savings finance and social finance, as a robust structure that could contribute to the formation of a new global financial architecture. We consider the participation finance system to be a strategic element in terms of Türkiye’s economic development and financial stability. The fact that one of the two supporting pillars of the Istanbul Financial Center is fintech and the other is participation finance lays bare the importance we attach to the improvement of this system.”
