Participation Banks Deploy TL119.5bn Sukuk in H1 2026: Liquidity Surge in Islamic Capital Markets

Turkey’s participation banks have injected a historic wave of liquidity into capital markets by issuing TL119.5 billion worth of sukuk in the first half of 2026.

Sukuk Surge: TL119.5 bn and the Numbers

■The TL119.5 bn issuance alone accounts for 13.9% of the cumulative TL861.5 bn sukuk volume recorded since 2013.

■The largest single issuance was TL197.8 bn by Ziraat Participation Bank.

■Currently, TL68.3 bn of live sukuk are outstanding in the market.

■Average maturity stood at 139.97 days.

Investor Segmentation and Distribution Channels

■87.97% sold directly to qualified investors; 7.52% via public offering; 4.52% through allocated sales.

■Issuances were split into TL776.3 bn management‑contract, TL78.1 bn hybrid, TL5.9 bn trade‑based, and TL1.2 bn ownership‑based structures.

Currency Diversity: Dollar and Ringgit Take the Lead

■In USD‑denominated sukuk, Kuwait Turkish led with $2.532 bn, followed by Albaraka Turkish ($1.095 bn) and Türkiye Finans ($1.0 bn).

■Ringgit issuances featured Türkiye Finans (MYR1.2 bn) and Kuwait Turkish (MYR0.8 bn).

■Euro‑denominated issuance was a single €250 million by Ziraat Participation Bank.

Zeynep Turan – Consumer Finance and Mortgage Credit Strategist: The surge in sukuk issuance underscores the strong credit quality and transparent balance sheets of participation banks, reinforcing confidence among domestic and foreign investors. Yet, this liquidity influx should translate into downward pressure on loan interest rates; otherwise, consumers may not see lasting improvements in mortgage and credit‑card pricing. The market must balance sustainable growth with cost‑control to foster competitive financial products.