ICD, Türkiye Wealth Fund and Catalyst Group cooperate to develop mortgage sector of Turkey
May 3rd, 2017 — Türkiye Wealth Fund (“TWF”), The Islamic Corporation for the Development of the Private Sector (“ICD”), the private sector arm of IDB Group, and Catalyst Group (“Catalyst”) have entered into a Joint Strategic Collaboration to develop the mortgage sector in Turkey. The collaboration will focus on identifying specific primary and secondary market interventions which have multiplying effects on the economy and act as an enabler to home ownership.
Mr. Khalid Al Aboodi, CEO of ICD stated “The growth of the mortgage sector in member countries is an important objective for ICD and is a significant driver for any economy. Strategically, further development of the mortgage sector in Turkey will provide a myriad of positive benefits to the economy notwithstanding the profound impact home ownership has upon individual families.”
Mr. Mehmet Bostan, Chairman and CEO of TWF said, “Development of the mortgage ecosystem is required to meet the growing housing requirements for Turkey. This collaboration is aimed at the identification of specific models to deploy with the assistance of our collaboration partners. Turkey will invest billions of dollars for different industries in the next decade. The housing sector will grow together with these investments. The Fund will contribute to economic growth together with this value increase and contribute to the diversity and depth of the capital markets. Capital markets will continue to expand within this growing ecosystem.”
Mr. Nazih Al Naser, the Vice Chairman of Catalyst, said “We are pleased to provide our collaboration partners our expertise in Islamic mortgage finance”. He added, “The Turkish housing sector is reliant on capital markets for sustained liquidity and growth. Supporting the mortgage sector directly increases liquidity while unlocking significant multiplying effects across the overall economy of Turkey.”
The general framework of the collaboration contemplates TWF as sponsor, the ICD as Lead Arranger, and Catalyst as the Technical Advisor. The initial scope includes a comparative study of mortgage ecosystems globally and the development of a master development plan for the mortgage sector.