Istanbul as an international finance centre

By bne IntelliNews September 27, 2010

Global Business Reports on behalf of bne -

Turkey is by far the biggest market in its region and a natural financial hub for the fast growing countries of the Balkans and the Caucasus. So the Turkish government has launched a programme to transform Istanbul into an international financial centre (IFC).

A long-term project, the plan is to first turn the city into a regional centre for finance and then an international one. And Istanbul has a lot going for it: an expanding international presence, an ideal location between east and west, and a fast growing and extremely capable financial industry staffed by local professionals.

While EFG Securities Chief Economist Baturalp Candemir is very supportive, he feels time is of the essence: "Turkey and Istanbul has a golden opportunity to become a regional and international financial centre. New instruments must be created and the legislative framework must be defined and implemented immediately. It has to be done during these next three years, otherwise we could miss the opportunity."

Kare Yatirim CEO Ümit Kumcuoglu is cautiously optimistic: "Turkey has quite an unpredictable tax regime, which is perceived as a big risk for capital. If we look at how England became a financial centre, Turkey's savings rate is still too low to support a major money centre. The banking infrastructure in Turkey is very strong and Istanbul is still regaining its cultural appeal. The growth of the domestic savings rate in Turkey on one hand will affect the success, alongside the perceived tax regime stability and the safety of Turkey as a liberal democratic country."

While there is significant competition from neighbours in the region and the country still needs to reach a critical mass of savings and ensure the current stability continues, the potential is real. Already one of the world's great cultural cities, it would be a natural step for Istanbul to become one of world's financial centres too.

Related Articles

Turkey approaches day of reckoning on economic reform

Kivanc Dundar in Istanbul -   The unexpected success of President Recep Tayyip Erdogan’s Justice and Development Party (AKP) in this month’s general election should bring much-desired political ... more

Macedonia kept on hold as Balkans edges towards EU goal

Clare Nuttall in Bucharest -   Macedonia’s EU accession progress remains stalled amid the country’s worst political crisis in 14 years, while most countries in the Southeast Europe region have ... more

Turkey and America seen on course for confrontation in Syria war

John Davison of Exaro - Military action by Turkey against Kurdish rebel forces in Syria raises the prospect of a direct clash with the ... more

Dismiss