President Erdogan says Islamic finance can lead the world out of global economic crisis.

World Grigory Matyunin 15-Jun-2020
Turkey President Erdogan
ID 122058671 © Gints Ivuskans | Dreamstime.com

Islamic finance can lead th world out of the crisis, Turkey’s president said on Sunday . “Over-financing has created a bloated economic model, which acts only over concern about unearned income, without considering social and human costs,” Recep Tayyip Erdogan told the 12th International Conference on Islamic Economics and Finance via a video link.

“To finance long-term large infrastructure investments, the use of products such as sukuk should be expanded,” Erdogan added, referring to Islamic bonds.

“Contrary to what has been promised, the distribution of income and wealth is gradually deteriorating all over the world, and the gap between the countries widened,” he also said.

President Erdogan said the loss of nearly 440,000 lives worldwide can’t be attributed to the pandemic alone, saying many countries have an economic system that protects only strong and the rich.

“Contrary to what has been promised, the distribution of income and wealth is gradually deteriorating all over the world, and the gap between the countries widened,” the president said.

“In some countries, people without health insurance were left to die,” he said.

“In recent days, behind the street events in some western countries, along with racism, there are injustices brought to light by the pandemic,” Erdogan said while questioning the economic model of some of the powerful nations.

“Even the most prosperous countries have difficulty in providing masks to their citizens and cannot provide minimum health services,” he said.

Earlier this year, credit rating agency Moody’s announced that Turkey’s Islamic banking assets are set to double within a decade, as government initiatives drive growth in the sector.

Turkey has positioned itself to be a hub for participation banking and Islamic finance. “We aim to make Istanbul centre of Islamic finance and economy,” Mr Erdogan said.