IFC Strategic Approach
The proliferation of global trade and accelerating capital movements necessitate the presence of institutionalized financial institutions. As well as financial centers such as New York, London, and Frankfurt in developed countries, there are also important financial centers in rising economies such as Dubai, Singapore, and Hong Kong. Türkiye also plans to establish an institutionalized framework for its initiatives in this area and intends to be active in the area of finance. We have created the main umbrella that will mediate the formation of action plans together with sub-projects as part of the IFC strategic approach.
"Financial centers" are effective and sustainable tools for strengthening the weakened ties between the financial sector and the real economy in the global ecosystem, which experienced unsound financial growth, particularly after the 2008 global financial crisis. Furthermore, as the center of gravity of the global economy and financial system starts to move eastward and growth dynamics along the transatlantic axis slow down, Istanbul is one of the strongest candidates for becoming a global center in this new state of affairs. Istanbul has also historically been both a geographical and a commercial bridge between the East and the West. The IFC stands out as a key alternative in the region because Türkiye carries the same potential to establish the same ties among the financial markets.
Istanbul's strategic location gives it the potential to become a hub for financial markets, Meanwhile, FinTech and Participation Finance stand out as the two most important focus points of the IFC strategic approach. We believe that the global financial system will evolve in the future into a system where models such as participation financing will have a greater share. Therefore, making IFC an ecosystem that supports real assets-based trade will create more healthy financing not only for Istanbul, but also the entire global financial system. The newly founded ecosystem will also help to increase the potential to attract investments by facilitating international capital flow, bringing idle savings into the economy by guiding them to new financial instruments, and establishing financial stability with the financing of large infrastructure projects. Also, the IFC is expected to be a new provider of funds for selectively supporting industries critical to Türkiye that are prioritized in economic policies and for increasing the efficiency of economic policies.
Strategic Coordination
Efforts are under way to bring the IFC to life in line with the duty assigned to the Finance Office of the Presidency by Presidential Decree number 1, and coordination has been provided for a holistic consultation process to identify the IFC's needs and road map so it can advance quickly.
We exchanged information and opinions with stakeholders in IFC and, as a result of these communications, we established the “IFC Action Plan Workshop” to produce an all-inclusive common mind that covers all stakeholders. Talks with the relevant institutions regarding the components of the IFC Action Plan created as a result of this workshop have revealed the need for an inclusive Istanbul Financial Center Law" to meet the IFC's needs for action items that can be considered specific to the IFC. Studies for the legal infrastructure were also completed following meetings with the relevant institutions and organizations, and Istanbul Financial Center Law Number 7412 was enacted after being published in the Official Gazette issue 31880 dated June 28, 2022.
The Finance Office of the Presidency is thus carrying out the strategies that will generate maximum benefit from the IFC in coordination with all stakeholders as part of an organic process.
