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ARTICLE · 29 APRIL 2014

Islamic Compliant Project Finance In Turkey

Herdem Attorneys at Law
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Islamic finance has been gaining ground in global markets as well as in Turkey throughout the recent years.

TurkeyFinance and Banking
Safak Herdem
Safak Herdem
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Islamic finance has been gaining ground in global markets as well as in Turkey throughout the recent years. In this regard what is especially important for the business world is the transformation of Islamic finance from simple financial tools to highly specialized tools for project finance. Specifically the real estate companies resort to the Islamic financing methods to finance their high capital investment requiring projects. A recent example is the USD$ 200 million worth Sukuk issuing by one of the giants of the Turkish real estate industry for the project finance purposes.

Given their interest free nature it is no surprise that such instruments of Islamic finance have increasingly been utilized for project finance purposes. The Islamic ban on interest payments had led to safer investments methods where the highly dubious activities of slicing up different kinds of subprime mortgages and combining them to create a whole new kind of , potentially toxic and risky,

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