An Analysis On Istanbul's Potential To Become A Regional Islamic Finance Center

Islamic finance is an ethical and justice-based approach to the dilemmas of conventional economic systems. Islamic finance, which takes its basic source from the Qur'an and Sunnah, offers an economic understanding that focuses not only on making money, but also on human welfare and social justice. With its basic principles such as the prohibition of riba (interest), profit-loss sharing, asset-based transactions, and ethical investment criteria, Islamic finance has increasing importance in the global financial system. In particular, its resilience against the recent economic crises and its sustainable development goals contribute to the worldwide interest in this model. Islamic finance stands out as a holistic economic approach that goes beyond a mere banking practice, acts with a sense of social responsibility, and considers human dignity and social welfare.Türkiye culminated the results of its will to make Istanbul a financial center with the Istanbul Finance Center Law No. 7412. The Istanbul Finance Center, whose real estate concept has been completed, continues its activities rationally and systematically with the efforts of the political will in order to fulfill the requirements of being a financial center . Istanbul carries the vision of a financial center with its geopolitical location, legal infrastructure, service model suitable for technological transformation, investment ecosystem, and business climate, for international investors, its diversity of Islamic instruments and risk-sharing-based structure in instruments, qualified manpower at the level of regional financial centers, its fintech applications (blockchain smart sukuk, etc)., and innovation capabilities. It has to contend with global crises, political instability, declining investor confidence and other geopolitical risks. In conclusion, Istanbul's financial center strategy is not only a technical infrastructure, but also an economic, political, and cultural transformation project. The success of the Istanbul Financial Center will depend on the harmonious integration of flexibility, innovation, and sustainable policies. In this context, Istanbul deserves the title of Islamic Finance Center, akin to a determined marathon runner completing a long race. It should not be forgotten that Istanbul's goal in Islamic finance requires a comprehensive strategic vision. Istanbul's competitive strength is driven by factors such as its demographic wealth, the constructive approach of the government, its institutional infrastructure, its legal base, and its technological innovation capability. Türkiye’s strategy to develop participation banking, its focus on ethical investment instruments based on digital financial technologies, and the development of models based on risk-sharing principles strengthen Istanbul's strategic position in the national and regional Islamic finance ecosystem. However, in order to compete with well-established financial centers such as London, it is critical to continuously improve the regulatory system, raise public awareness on Islamic finance, and design sustainable and innovative financial products.