In Turkey, Islamic mortgage aims to offer a halal financing solution to Turkish Muslims and non-Muslims living in Turkey who wish in the context of Islamic sharia to use Islamic financial products in Turkey.
Turkish Islamic finance is fully organized and takes into account all aspects of its functioning and introduces a dualism in the financial sector. Despite the significant privileges granted to Islamic financial institutions, they do not succeed in the past in competing with conventional banks.
Turkey’s Islamic banking sector in Turkey reached 6.1% of the country's bank credit market and the sector is becoming increasingly competitive towards traditional banking services in Turkey.
Turkey’s sharia banking sector accounted for only 2% of banking services in the country in 2002, today it is three times larger. This growth is due to the arrival of several lenders from the Gulf region and the growth of the largest Islamic lending institutions in Turkey. Islamic banking assets in Turkey amounted to about $ 40 billion in 2014 and have grown by 15 to 20% over the last decade.
In Turkey, the growth rate of Islamic loans far exceeded that of conventional loans, which they have experienced an increase of only 13% recently. Islamic loans should be between $ 80 billion and $ 120 billion in 2019.
TURKEY'S ISLAMIC MORTGAGE LENDERS