President Recep Tayyip Erdoğan on Friday stressed the injustices inherent in the current global system and emphasized the significance of participation finance, while also slamming the failure of international systems in light of Israel’s atrocities in Gaza.
Speaking at the Albaraka Islamic Finance Summit in Istanbul, Erdoğan affirmed Türkiye's role as a bridge between financial markets and stressed ongoing efforts to increase the share of participation finance, also known as Islamic finance, within the country, alongside completing necessary regulatory measures.
He pointed to the growing wealth disparity worldwide, and said international systems have lost balance.
"Today, wealth inequality has reached its highest level globally. The richest 1% of the world's population holds nearly half of the total global wealth. Income justice has deteriorated and inequality is at its peak," he noted.
The president stressed that the global system must be redesigned with all its elements according to today's realities and called for a creation of a more balanced, fairer and inclusive system.
"The balance in the international system has been lost, and uncertainty has increased," Erdoğan asserted.
He pointed to Israel's mass killings in Gaza as a stark display of the global order's inadequacy.
Israel's relentless strikes on the Palestinian enclave have killed at least 35,800 people, mostly women and children, according to local health authorities.
The war started following the Palestinian resistance group Hamas' incursion on southern Israel on Oct. 7, which killed around 1,200 people, according to Israeli tallies.
"The structures responsible for maintaining order worldwide have once again revealed their unjust nature," said Erdoğan.
"There is currently no institutional mechanism capable of protecting the oppressed, stopping the oppressor and preventing tyranny," he noted.
“We insist that the global system must be redesigned to reflect contemporary realities. We must all join hands to create a more balanced, fairer and more inclusive system. Where there is no justice, there can be no peace and tranquility."
Erdoğan said everyone should acknowledge that the capitalist system, which he says further weakens the vulnerable and enriches the oppressor, "will not remedy our ailments."
He noted that participation finance remains below the desired level.
"We have a culture of out-of-system savings, often referred to as 'under-the-pillow' savings. We have sought to integrate these savings into the economy, yet our institutions have not developed convincing financial products to persuade the public to bring their under-the-pillow gold into the economy," the president said.
Erdoğan stressed the need to elevate the participation finance system to its deserved status.
"This requires a change in our perspective on finance. Participation finance is seen as a way to manage savings according to religious sensitivities. It offers significant opportunities for our country's development and financial independence,” said the president.
“Our goal is to increase the share of participation finance in banking assets to 15% in the short term," he said, up from the current rate of around 9%.
"In the coming period, we aim to crown this accumulation with a dedicated participation finance law. Our preparatory work is ongoing," he added.
The two-day Albaraka Islamic Finance Summit is hosting over 1,500 participants from 75 countries.
Erdoğan stressed the significance of such an event in Türkiye and the role of the country's metropolis.
"Historically, as a commercial and cultural bridge between East and West, Türkiye is now playing the same role in financial markets," the president noted.
The landmark Istanbul Finance Center, which Türkiye opened last year, has become a symbol of the country's efforts and vision, he added.
Erdoğan said that international investors have confirmed that Istanbul has great potential in both conventional and Islamic finance.
"We will make Istanbul a global financial and participation finance center. No one who has trusted Türkiye has regretted it. No entrepreneur aiming to win by helping others win has ever felt remorse later. Hereafter, we will further our cooperation on a win-win basis."
