President Recep Tayyip Erdoğan spoke at the Istanbul Finance Center Opening Ceremony.
Stating that the center of gravity of global finance is shifting more and more from the west to the east, Erdoğan said, “In this context, the increasing commercial competition between Asia and Europe and the geopolitical position of our country open new windows of opportunity for Istanbul. “We took our targets one step further with the ‘Turkish Economy Model’, which is based on growth through current account surplus. We believe that Istanbul, which historically served as both a geographical and commercial bridge between the east and the west, has the potential to establish the same link between the financial markets today.” used the phrases.
Regarding the Istanbul Financial Center, President Erdoğan said, “This center will create a new financial ecosystem in Istanbul, the meeting point of three continents.” used the phrase.
“Istanbul Finance Center will contribute to our country’s economy as domestic and foreign financial institutions start to operate in the region.” President Erdoğan said, “The real value of this center, how strategic and visionary it is, will be understood much better in the coming years.” he said.
Minister Nabati: It will also have a share in the reduction of financing costs
Speaking at the opening ceremony, Minister of Treasury and Finance Nureddin Nebati wished Istanbul Finance Center to bring good luck and said:
“Istanbul Finance Center will accelerate the development and deepening of our financial markets as a global sectoral interaction and innovation center as well as being a campus with unique features for financial institutions. This strong ecosystem will also have a share in attracting new investors to our country and reducing financing costs.”
Pointing out that IFC will constitute an important platform for financial institutions to make breakthroughs in areas such as digital financial services and sustainable finance, Nebati said, “It will also be an important source of synergy in terms of bringing international sustainable funds to our country and providing green financing to our real sector. Istanbul Finance Center” Another important contribution of the company is that it will enable our Istanbul to become a global center in the fields of participation finance and Islamic banking.” said.
In this transformation process, a wide range of financial institutions and organizations such as banks, capital market institutions, participation finance companies, financial investment and portfolio management companies, and insurance companies are under the umbrella of IFC. under Stating that they have combined them in a single location, Nebati continued his words as follows:
“We will also focus on areas such as portfolio management, wealth management and project finance operating within the international financial services sector. On the other hand, we will create a wide ecosystem, especially consultancy, IT, telecommunications and technology companies, that will support these financial activities. This giant will emerge. It is obvious that the ecosystem will also make significant contributions to our country’s financial services exports.By 2036, we anticipate that IFC will increase our country’s total financial services exports nearly three times and that its total contribution to the gross domestic product will be approximately 130 billion dollars in 15 years. We also aim to create a total of 102 thousand additional qualified employment for the center within the year.”
“We also provide various discounts, exceptions and tax advantages”
Minister Nebati stated that they also provide various discounts, exemptions and tax advantages to make IFC competitive, and that in addition to these incentives, they also published the Participation Finance Strategy Document, which covers the complementary elements of the ecosystem, and that they also help the participation finance institutions to make Istanbul a financial center. He also stated that they completed the establishment of Katılım Finans Bail Anonim Şirketi as of the end of last month in order to increase its impact.
A good model for the financial hub: Dubai
The regional rival of IFC, Dubai International Financial Center (DIFC), can give an idea about what Istanbul can do.
Located in Dubai, the second largest Emirate of the United Arab Emirates, DIFC was established in 2004 on a total area of 272 acres. Providing the opportunity to do business with 72 countries with a population of approximately 3 billion and a GDP of 8 trillion dollars, DIFC works with a particular focus on the Middle East, Africa and South Asia (MEASA). The official currency is the dollar and the official language is English in the region, and 100 percent foreign ownership is one of the features that make the financial center attractive. Another important feature that makes the financial center attractive to investors is that companies are exempt from corporate tax within the region for up to 40 years.
Private legal system
DIFC, which aims to provide investors with a safe investment environment and wants to eliminate the concerns of investors in this regard, is governed by a series of special and independent laws independent of the United Arab Emirates’ own legal system. Disputes at the Center are resolved by laws based on English law and written in English. In cases of uncertainty, English law is used instead of this law. DIFC courts, composed of judges from various nationalities such as England, Singapore and Hong Kong, try to ensure the safety of international investments. The longest litigation period of the courts, which aim to conclude the cases as soon as possible, is 2 months.
Managed by the Dispute Resolution Authority, the system consists of the DIFC courts as well as the Arbitration Institute. The rules of the London international arbitration center apply at the center, which was established with the partnership of the arbitration institute within the DIFC, the London International Arbitration Center and the Dubai International Financial Center Authority. The center is administered by the London International Arbitration Centre.