Participation banking

Islamic banking in Turkey and MENA Participation banking is a name given to Islamic banks mainly in Turkey, as well as in the broader MENA region. There are participation banks in Turkey, Pakistan, Bangladesh, Indonesia, Saudi Arabia, Malaysia, the UAE and other Gulf countries. Core principles Participation banks operate on Islamic financial principles distinguished from conventional banking: Prohibition of interest (riba): Prohibiting interest is necessary for but may guarantee Shari'ah compliance Risk sharing: Banks and customers share both profits and losses from investments Asset-backed financing: All transactions must be backed by real economic activity Prohibition of uncertainty (gharar): Ambiguous or uncertain transactions are not allowed Ethical investment: Avoiding speculative transactions and trading in impermissible products such as alcohol History Participation banking share of assets in the Turkish banking sector was 2.13% in 2000, 5.1% in 2012, and reached 7.8% or 717.3 billion TL in 2021. In 2020, top total sukuk issuers included: Malaysia, Saudi Arabia, and Indonesia. According to Ernst & Young, the assets of global participation banking reached US $930 billion in 2