Fitch Predicts Turkey's Leadership in Global Sukuk and Emerging Market Borrowing for 2024

Fitch Ratings confirmed Turkey's leading role in global sukuk and emerging‑market borrowing for 2024.

New Dynamics in Turkey's Sukuk Strategy

Fitch positioned Turkey's growing sukuk issuance volume and diversification as a key tool for regional investors to balance their portfolios. In this context, local platforms such as the Istanbul Stock Exchange and the Securities Commission have upgraded infrastructure, easing access for international investors.

Fitch's Assessment Criteria and Rating

■Credit Rating: Fitch assigned BBB‑ to Turkey, providing a rating aligned with investor risk profiles.

■Liquidity Analysis: The expanding external borrowing volume reduces liquidity risk, while depth in the sukuk market generates a positive effect.

■Macroeconomic Indicators: Core metrics—inflation, current‑account deficit, and foreign‑exchange reserves—play a decisive role in Fitch's rating.

Global Investors’ Appetite for Turkey

■U.S. and European funds are increasing their exposure to Turkey's stable sukuk market and attractive yields.

■Middle‑East and Asian investors are closely monitoring new issuances due to the Sharia‑compliant structure of sukuk.

■Index funds aim to boost emerging‑market weighting in Turkey to optimize risk‑return balance.

Markets view this development as part of Turkey's strategy to lower external borrowing costs and diversify capital inflows. The easing pressure on SME financing, accelerating commercial‑credit growth, and the impact of macro‑prudent measures on the banking sector signal a concurrent improvement. Nevertheless, global rate volatility and geopolitical risks compel close monitoring of sukuk demand sustainability.