Istanbul Financial Center (IFC)
Istanbul Financial Center
Table of Contents:
- About the definition and what is Istanbul Financial Center.
- Location and structure of the project in Turkey.
- About center progress.
- Constructive steps to be a model similar to successful global models.
- The goals and aspirations of the center.
- Gulf and foreign investment in Istanbul Financial Center.
Pentagon Turkey Economic
It is the largest comprehensive economic vital and integrated project in Turkey.
(IFC) can make Istanbul a great economic power. Furthermore, it can make it one of the largest and most important regional and global centers.
about the definition and what is Istanbul Financial Center:
The Turkish Pentagon project is a major financial and development integration process to make the center a leading and representative of major banks, institutions and banking sector. Such as: Ziraat Bank, Halk Bank, and public institutions. Such as SPK, TAO, BBDK, in addition to foreign capital and investments.
And to contribute to the great economic renaissance in Turkey, enhance production intensity, and improve Turkey’s position in terms of global finance.
The location and the structuring of Istanbul Financial Center project in Turkey:
(IFC) project actually started in 2009. Moreover, it is being equipped with the latest technological techniques, an advanced internet network, and the best logistical services, to manage the banking sector, banks and institutions and to be their headquarters.
The financial project is located in the Asian section of Istanbul. It contains of 4 sections including buildings that represent institutions, private companies, audit institutions.
Moreover, it includes buildings dedicated to the Turkish Central Bank and the main headquarters of Turkish government banks. Such as: Halk, Waqf, Ziraat Bank and Capital Markets Department (Spk).
Additionally, there are many headquarters of organizations, institutions and joint stock companies.
The total area of Istanbul Financial Center is 3.5 million square meters.
It is distributed among buildings, offices and departments of about 1.4 million square meters, and shopping and entertainment center of about 100,000 square meters.
There is also a center for conferences and lectures accommodates 100,000 people.
The financial center also houses a high-class 5-star hotel and a financial education center to provide information and exchange opinions and ideas.
There are also many green spaces and gardens.
In addition to an organized car park with a capacity of 126 thousand vehicles.
Also, the financial center in Istanbul accommodates 120,000 employees, and 75,000 visitors from clients and reviewers.
about the progress of the Istanbul Financial Center project:
The process of the completion of Istanbul Financial Center project are accelerating, efforts and funding are combined. Furthermore, the project organizers and contributors are seeking to inaugurate the center at the beginning of the next year 2022.
Moreover, it is planned to open and operate a large part of Istanbul’s financial district and transfer the headquarters of public banks and regulatory bodies to prefabricated buildings to start its actual activity in the middle of 2022 as planned.
In this regard, Peyami Ömer Özdilek declared:
“As Ziraat Financial Group, we aim to activate the Ziraat Towers as part of Istanbul Financial Center project, of which we are the largest contributor, by June 2022”.
Constructive steps for Istanbul Financial Center to be a model similar to the successful global models:
Focused studies and plans on Istanbul Financial Center focus on benefiting from successful experiences in some countries. Such as, Dubai and Hong Kong and taking encouraging and effective measures. In this regard, a law of 10 articles related to Istanbul Financial Center was prepared and sent to Parliament, and according to the draft law:
All financial institutions, which will operate in Istanbul Financial Center area, will be exempted from taxes. Such as,
- Activities of financial services related to the financial institutions that have obtained certificates of participation.
- Transactions and funds received.
- Papers and transactions related to activities within Istanbul Financial Center.
- In addition, no tax will be imposed on interests, profits, permits and rental certificates issued abroad.
- Moreover, there will not be an income tax for the wages of employees working in the center; At 60% for those with at least 5 years of professional experience abroad, and 80% for those with 10 years of experience abroad.
There are considerations to motivate foreign countries to invest and reduce the taxes on foreign investment companies.
Islamic banking is also encouraged to make Istanbul Financial Center an incubating environment. Undoubtedly, with Turkey’s long experience with the Islamic banking law and its banks, and the resulting huge and successful profits compared to other traditional banks.
objectives and aspirations of Istanbul Financial Center:
- Enhancing the position of the Turkish economy at the global level.
- Making Istanbul a city that attracts major international corporations and companies.
- Making Istanbul Financial Center one of the largest and best 10 centers in the world within a short period of time.
- Based on plans and studies, Istanbul Financial Center will provide an estimated income of 250 billion dollars in the coming years.
- The added value of the financial center that feeds the Turkish economy will reach 160 billion dollars after its operation.
Gulf and foreign investment in Istanbul Financial Center:
The importance of Istanbul drives foreign investors to seriously seek to finance the participation and contribution to the project. The major international companies and institutions will relocate their regional headquarters to Istanbul.
Moreover, (Islamic arbitration) will be active in the financial center for the first time.
In the context of the Gulf participation and its importance, the Turkish Presidential Finance Office accelerated the negotiations.
Moreover, it urged the representatives of the Gulf countries to take their place in the center of Istanbul.
The Presidential Financial Office opened an office in Qatar to encourage the contribution of Gulf investments.
Indeed, the Gulf investment contributions and their Islamic banks are a mainstay in it.
After confirming that Istanbul Financial Center will become one of the most important centers in the world,
Mr. Recep Tayyip Erdogan said: We want this project to become an important center in terms of Islamic finance, and we will finish our legislative work in this regard.
Gulf investors want to see the Islamic finance products they use in their countries. Therefore, the investments will increase automatically.
In this regard, Oyan, General Manager of (Kuveyt Türk Bank), said:
“Foreign investors who have money interest-free in the world see Turkey as an important partner and a country to invest in.
The financial center is a great opportunity for investment aspirations in line with the financial laws of each country. In addition to the Islamic banking law.
So.. As a result of foreign investments and raising interest; Capital and investment from global financial markets and countries where Islamic finance is common will increase.
Thus, the eyes of local and foreign companies and institutions are looking forward to opening the largest economic center in Turkey.
