ICD SIGNS USD 30 MILLION SHARIAH-COMPLIANT LINE OF FINANCING WITH TÜRKIYE EMLAK KATILIM BANKASI TO ADVANCE SME DEVELOPMENT IN TÜRKIYE

14/05/2026
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  • ICD has signed a USD 30 million Shariah-compliant Line of Financing (LOF) with Türkiye Emlak Katılım Bankası A.Ş., marking ICD's first thematic financing in Türkiye.
  • The four-year facility will channel Shariah-compliant financing to small and medium enterprises (SMEs) across Türkiye, supporting private sector development and economic diversification.
  • Fifty percent of the facility is allocated to thematic projects aligned with the United Nations Sustainable Development Goals, including SDG 9, SDG 8, SDG 3, and SDG 17.
  • The transaction represents the beginning of a new partnership between ICD and Emlak Katılım, a state-owned participation bank with  126 branches and a growing national footprint.

 

Türkiye, 14 May 2026 - The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank (IsDB) Group, has signed and fully disbursed a USD 30 million Shariah-compliant Line of Financing (LOF) with Türkiye Emlak Katılım Bankası A.Ş., formalizing the agreement on 13 April 2026 in Türkiye. The facility, structured over a four-year tenure, marks ICD's first thematic financing in Türkiye and is designed to expand SME access to Islamic finance, reinforcing private sector development in one of the IsDB Group's key member countries.

The LOF facility strengthens Emlak Katılım's medium-term funding base, enabling the bank to channel Shariah-compliant financing to a broad range of small and medium enterprises pursuing growth and development objectives across Türkiye. The Turkish economy relies heavily on SMEs as a primary engine of employment, economic growth, and poverty reduction, and expanded access to finance for private sector entrepreneurs remains essential for long-term economic diversification. By directing resources through a participation bank with a dedicated focus on corporate, retail, and agricultural financing, ICD ensures that the facility reaches enterprises with meaningful development potential.

As part of its commitment to inclusive and sustainable development, ICD has allocated 50 percent of the facility to thematic projects with measurable impact aligned with the United Nations Sustainable Development Goals. The facility directly invests in SDG 9 (Industry, Innovation, and Infrastructure) and actively engages SDG 17 (Partnership for the Goals), while generating indirect impact across SDG 8 (Decent Work and Economic Growth) and SDG 3 (Good Health and Well-being). These allocations are designed to address critical socio-economic and environmental challenges, targeting vulnerable populations, promoting meaningful employment opportunities, enhancing access to essential services, supporting climate resilience, and fostering innovation through resilient infrastructure. The transaction aligns with ICD's channel development strategy and its Operations Plan commitment to advancing private sector development across member countries.

The facility also carries significance for the broader development of Islamic finance in Türkiye. Emlak Katılım is one of nine participation banks currently operating in the country, and the partnership with ICD further promotes awareness and adoption of Shariah-compliant financial products domestically. Türkiye's participation banking sector continues to grow in strategic importance, and multilateral development finance partnerships of this nature contribute to deepening the country's Islamic finance ecosystem in a meaningful and sustainable way.

This transaction reflects ICD's sustained focus on deploying Shariah-compliant financing instruments that generate real economic impact across its 56 member countries. By partnering with institutions such as Emlak Katılım, ICD advances its mandate to support private sector growth, strengthen financial intermediation, and contribute to the long-term development goals of its member economies through responsible, development-oriented Islamic finance.

 

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About Türkiye Emlak Katılım Bankası A.Ş: Türkiye Emlak Katılım Bankası A.Ş. was originally established in 1926 as a government bank to support infrastructure projects and currently operates as a state-owned participation (Islamic) bank. The bank commenced its Shariah-compliant banking activities on 21 March 2019. Its primary activities include collecting funds through profit-sharing accounts and providing financing for corporate, retail, and agricultural sectors, with a special focus on the latter. As of September 2025, the bank has expanded to 126  branches and employs 1,832 staff.

For more information, visit www.emlakkatilim.com.tr.

 

About the Islamic Corporation for the Development of the Private Sector: The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral development finance institution and member of the Islamic Development Bank (IsDB) Group. Established in November 1999 and headquartered in Jeddah, Saudi Arabia, ICD supports economic development in its 56 member countries by providing financial assistance to private sector projects in accordance with Shariah principles. With an authorized capital of USD 4.0 billion and more than 25 years of operational excellence, ICD complements IsDB's activities by promoting capital market development, best management practices, and enhancing the role of market economies. ICD holds strong credit ratings of A2 by Moody's, A+ by Fitch, and A by S&P.

 

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For media inquiries, contact: icd.communication@isdb.org