“Participation finance is a fairer and safer model not just for Muslims but for the entire world,” Erdogan told the audience at the recently concluded “Third Global Islamic Economy Summit.”

Ziraat Katilim, Vakıf Katilim, and Halk Katilim banks would be consolidated, with the goal of creating “significant synergy” in the Islamic financial sector.

Erdogan also announced plans for an initial public offering (IPO) of another participation bank, Emlak Katilim, which he said would allow Turkish citizens to become partners in the venture’s growth. The institution was restructured in 2018 from Emlak Bank and has since become a key player in Turkey’s Islamic financial ecosystem.

While describing Islamic finance as being based on justice, ethics, risk-sharing, sustainability, and social welfare, the president also said that “participation finance” and related capital market instruments have gained ground in Turkey’s financial system over the years.

“In the first quarter of 2026, the market value of companies included in the participation index reached 36% of the total market value of companies traded on Borsa Istanbul. The active asset size of 10 Turkish participation banks, three of which are digital, currently stands at more than TL 4.7 trillion (over USD 100 billion),” Erdogan said.

“Their market share within the banking sector has reached 9.5%,” he added further.

Referring to global financial risks, Erdogan cited Institute of International Finance (IIF) data showing that global debt reached USD 350 trillion in the first quarter of 2026.

“How sustainable this debt burden is remains a serious question that must be answered for the future of the global economy,” he noted.

He stressed structural problems and recurring financial imbalances can only be solved by the deeper implementation of reforms.

“You cannot treat conditions that require surgery with a simple bandage. Financial crises cannot be prevented without transitioning to an economic and financial paradigm centered on the principles of justice, ethics, production, and equitable distribution,” Erdogan said.

He called for increased criticism and objections toward the current global financial architecture, stating more effort should be exerted to bring concrete alternatives into realization.

“The more we embrace the principles set forth by the Islamic economy, and the more we make this model our focal and starting point, the faster we will reach our goals,” Erdogan concluded.

The post Turkey to merge its state-owned Islamic banks, announces Erdogan appeared first on International Finance.

The demand will also be driven by supportive economic environments in core Islamic finance countries and by the United States Federal Reserve’s likely continuation of monetary easing policies.

“Overall, we expect issuance to reach USD 270-USD 280 billion, including foreign currency issuance of USD 100-USD 110 billion,” said the rating agency’s Islamic Finance Head Mohamed Damak.

In 2025, the sukuk market remained concentrated among a few issuers, with GCC countries Saudi Arabia and the UAE accounting for 45% of issuance volume, followed by Malaysia.

“While we do not expect this structure to change significantly, we have seen interest from new issuers, with some successfully entering the market, such as Egypt,” the senior official added.

S&P expects new issuers to tap the Islamic finance market in 2026 to diversify their investor base and secure more competitive pricing than conventional bonds.

Also, global sukuk issuance increased to USD 264.8 billion during the year, up from USD 234.9 billion in 2024, underpinned by strong performance from Malaysia, Saudi Arabia, Turkey, the UAE and Bahrain.

In fact, Saudi Arabia was the second-largest contributor to last year’s growth tally, with USD 72.5 billion in sukuk issuance, including USD 38 billion in foreign currency, rising 35% from 2024. Additionally, the Kingdom’s banking sector issued more than USD 15 billion in sukuk, including nearly USD 12 billion in foreign currency-denominated sukuk, to continue funding “Vision 2030” initiatives.

The UAE, on the other hand, contributed USD 22.1 billion in issuance, of which USD 19 billion was in foreign currency.

“Real estate developers, particularly in Dubai, were among the UAE’s top issuers as they sought funds to finance land acquisition and launch new construction projects amid favourable demand trends. The report also highlighted downside risks to the outlook, including the possibility of a major spike in geopolitical risk, which could reduce investors’ appetite for sukuk and bond issuances from the GCC,” Damak concluded.

The post UAE, Saudi Arabia to lead sukuk issuances in 2026: S&P appeared first on International Finance.

The recognition highlights POTAS’ growing contribution to strengthening international fuel supply networks and its strategic investments in advanced storage infrastructure. The company’s state-of-the-art fuel farm at Antalya Airport, completed in 2024, exemplifies this vision, expanding capacity and integrating next-generation digital fuel management systems that align with the highest global standards of safety and efficiency.

POTAS CEO Hüseyin Hilmi Aslanoğlu said, “This recognition is not only a reflection of our technical excellence, but also of our ability to form long-term partnerships built on trust, transparency, and shared goals. We believe that operational reliability and open collaboration are the true cornerstones of sustainable growth in the aviation energy sector.”

Aslanoğlu is an established name in the Turkish aviation sector, as he possesses more than 20 years of experience in the aviation fuel sector. He previously held key leadership roles at Turkish Fuel Services, İGA Istanbul Airport, THYOPET Aviation Fuels, and Turkish Airlines.

Under his leadership, POTAS has expanded its infrastructure and service capacity, establishing itself as a benchmark in fuel storage and supply excellence. His vision focuses on innovation, reliability, and sustainability, establishing the venture as a trusted regional energy partner for global carriers.

The award-winning partnership, a joint venture between ATS Antalya Akaryakıt Dağıtım AŞ and Petrol Ofisi AŞ, led to the establishment of POTAS. This venture combines engineering excellence with strategic planning, ensuring that fuel storage and supply operations can effectively meet the growing demands of international carriers and airport authorities. The Antalya facility, one of the most advanced in the region, utilises automated monitoring systems, redundant safety layers, and data-driven performance analytics to optimise every stage of its operations.

POTAS will continue to expand its footprint across Turkey’s key aviation hubs, serving as a trusted partner to both national and global airlines. Its approach integrates technical innovation, financial discipline, and a steadfast commitment to safety and compliance, all supported by a corporate culture built on integrity and collaboration.

“At POTAS, our mission is to create the most reliable and sustainable aviation energy ecosystem in the region. Through strategic partnerships, we’re building not just capacity, but resilience, preparing for the aviation industry’s energy transition with the financial and operational strength it demands,” CFO Çağıl Koçhan added.

Also, before joining POTAS, Koçhan served as CFO at EY Turkey, where he led the firm’s national finance organisation and managed complex budgeting, reporting, and operational finance structures. The financial industry veteran also held senior audit roles at Deloitte and later assumed executive leadership roles at Bimed Teknik Aletler, overseeing corporate finance transformation and strategic financial planning.

With nearly two decades of experience in financial management and audit, Koçhan is recognised for building agile financial structures that support corporate growth and long-term strategic vision.

As the aviation sector accelerates modernisation and decarbonisation efforts worldwide, POTAS’ focus on innovation, partnership, and sustainability positions it at the heart of Turkey’s transformation into a regional aviation energy logistics hub.

The “Best New Strategic Partnership in Fuel Storage and Supply – Türkiye 2025” stands as a testament to POTAS’ ability to merge local expertise with global standards, reaffirming its role as an international benchmark for reliability, safety, and excellence in aviation fuel operations.

The post POTAS elevates fuel storage standards with advanced infrastructure appeared first on International Finance.

Last month, Turkey’s solar-powered electricity supply surpassed gas-fired electricity output for the first time, thanks to a surge in solar capacity, and the nation’s first nuclear reactor is expected to begin production in the coming months.

To effectively store the excess energy generated by wind and solar farms, especially during high-demand periods, Turkey is rapidly implementing utility-scale battery systems. The country aims to achieve a battery storage capacity of 80 gigawatt-hours (GWh) by 2030.

Turkey’s reliance on gas and other fossil fuels for power generation seems to be decreasing due to the growing supply of clean energy and the expansion of battery storage capacity. As a result, those bullish on the gas market may need to explore other growth opportunities.

Path Of Growth

World Bank data noted that Turkey’s GDP has grown by an average of 4.7% per year since 2019, which is more than four times the growth rate of the Eurozone and almost double the growth rate of the global economy during the same period.

According to Ember data, the nation’s electricity usage increased by 14% between 2019 and 2024, contrasting sharply with the roughly 5% decline in electricity demand throughout the European Union for the same period.

The data further revealed that Turkey’s electricity demand, which exceeded 340 terawatt-hours (TWh) in 2024, has been primarily driven by government spending on infrastructure as well as the growth of heavy industry and manufacturing.

In recent years, Turkey’s energy consumption has also increased due to the reshoring of several heavy industries from other parts of Europe, such as some German steel and cement production.

Cutting Gas

Despite this consistent growth in power consumption, gas-fired generation has decreased over the last three years, with alternative power sources displacing natural gas in Turkey’s generation system.

According to Ember, 36% of Turkey’s utility electricity supply last year came from coal-fired power plants, making them the nation’s single largest source of electricity.

Key to coal’s staying power has been cheap shipments from Russia, which has struggled to find willing buyers for its energy products since being slapped with sanctions in 2022 following its invasion of Ukraine.

Russian coal exporters have lowered their prices relative to other coal vendors in order to guarantee consistent purchases by Turkey’s power suppliers. As a result, they have been able to secure a significant portion of Turkey’s coal purchases since 2022.

In fact, according to statistics from commodity intelligence firm Kpler, Russia has provided almost 88% of Turkey’s coal imports thus far in 2025, up from an average share of 24% from 2018 to 2021.

However, Turkey’s demand for more expensive natural gas has decreased as a result of the consistent supply of inexpensive coal. Last year, gas-fired power plants provided only 19% of the country’s electricity.

Another 22% came from hydro dams, while the next largest sources of electricity in Turkey were wind farms (11%) and solar farms (7%).

Is There A Rebound?

Turkey’s gas-fired power generation increased by 52% in the first half of 2025 compared to the first half of 2024, giving bulls in the gas market cause for confidence.

The current gas-fired generation peaks, however, are still below earlier gas-fired production spikes, indicating that Turkey’s power companies are still cautious about depending too much on gas to generate energy.

Clean power supplies are also increasing. Last month, the combined production of solar and wind farms produced a record 30% share of electricity supplies, and solar generation this year has increased by 47% compared to the same period last year.

Additionally, Turkey’s first nuclear power plant is only a few months away from starting production on the first of four planned reactors. Once operational, the Akkuyu plant will provide utilities with a fresh supply of clean power, which can be deployed on command instead of gas or coal power to help balance system needs.

Furthermore, according to Global Energy Monitor (GEM), nearly 90% of the approximately 13,000 megawatts (MW) of new power capacity being built or in the pre-construction stage comes from renewable energy sources.

With over 4,800 MW being constructed, nuclear facilities are the single largest source of new capacity in the near-term development pipeline.

According to GEM data, wind farms account for the second-largest percentage of new capacity (2,460 MW), with solar farms coming in third with 1,336 MW.

When finished, clean energy sources will account for more than half of Turkey’s power firms’ total capacity, dominating its near-term development pipeline. This is because only 700 MW of new coal capacity and 890 MW of new gas capacity are being constructed.

As a result, even if Turkey’s power demand growth continues to outperform that of its regional and international counterparts, there is little room for natural gas to make significant gains in the country’s energy mix.

The post IF Insights: Turkey’s clean energy surge undermines gas market hopes appeared first on International Finance.

During the recently concluded Syrian-Saudi Investment Forum in Damascus, Investment Minister Khalid Al-Falih unveiled the agreements, which cover industries like finance, real estate, and telecommunications.

Saudi Arabia’s strong commitment to bolstering Syria’s financial landscape is highlighted by the forum. In April 2025, the Kingdom and Qatar reached a USD 15 million settlement with the World Bank.

“During this forum, we will witness the signing of 47 agreements and memoranda of understanding with a total value approaching SR24 billion (USD 6.4 billion),” Al-Falih said.

The agreements also include USD 1.07 billion in the telecom industry, with the goal of strengthening bilateral relations between Syria’s Ministry of Communications and several Saudi telecom firms.

Saudi Telecom is one of the companies involved in the plans. GO Telecom, cybersecurity company Cipher, digital security company Elm, and education technology company Classera.

Deals totalling USD 2.93 billion were announced in the infrastructure and real estate sectors, including building three new cement plants funded by Saudi Arabia to aid in Syria’s reconstruction. Additionally, the two countries decided to strengthen their agricultural cooperation.

“In the agricultural sector, we look forward to collaborating in Syria to develop high-quality joint projects, including model farms and processing industries,” Al-Falih said.

The Saudi Tadawul Group and the Damascus Securities Exchange signed a memorandum of understanding (MoU) to strengthen collaboration in the fintech industry.

Al-Falih also declared the establishment of a Saudi-Syrian Business Council, which is anticipated to improve the two nations’ economic and trade relations.

During a different panel discussion at the forum, Al-Falih stated that despite continuous difficulties, Syria is becoming a more attractive place for investment.

“Syria is leaping forward as an investment-attractive country despite all challenges. Since the beginning of its new era, we have witnessed a genuine desire to provide investment opportunities for Saudi businessmen,” Al-Falih concluded.

The Kingdom has been a major backer of the new Syrian government, which seized power after rebels toppled longtime ruler Bashar al-Assad in December 2024. In early 2025, Saudi Arabia and Qatar pledged to settle Syria’s debt to the World Bank, totalling about USD 15 million.

Recently, United States President Donald Trump formalised the dismantling of American sanctions on Syria, hoping to reintegrate the country into the global economy. Trump has already lifted most of the measures in May, responding to appeals from Saudi Arabia and Turkey.

The post Saudi Arabia’s investment deals with Syria: All you need to know appeared first on International Finance.

Bulgaria is negotiating a path of recovery and fresh growth following the economic storms of the COVID-19 pandemic, inflationary pressures, and regional unrest. Once seen as a peripheral market, resilience and reinvention are turning into case studies here.

We investigate the fundamental strengths, major reforms, and external factors influencing Bulgaria’s economic comeback, while also exploring its future potential as an emerging market in Europe and examining the obstacles it must overcome to maintain and accelerate its expansion.

Post-pandemic recovery

Like many other European countries, Bulgaria suffered a major economic downturn during the COVID-19 pandemic. Lockdowns halted domestic consumption and exports, with industries such as manufacturing, transportation, and tourism being particularly affected.

However, the country’s recovery has been stronger than initially projected. Experts argue that despite external events, including the war in Ukraine, inflation, and oil price fluctuations, Bulgaria’s GDP rose by 3.9% in 2022. This figure exceeded expectations, ranking Bulgaria among Eastern Europe’s most resilient nations.

Government support initiatives, EU-funded investments, and private spending were key players in driving the recovery. Improved employment and wage growth helped raise consumer confidence, which was vital. Along with the private sector’s flexibility, public sector initiatives in economic stabilisation facilitated a quicker recovery than many of its counterparts.

Moreover, Bulgaria’s relatively low public debt (less than 25% of GDP) enabled authorities to implement fiscal stimulus without the risk of financial instability. This prudent financial management continues to act as a shield against global economic risks.

Bulgaria has greatly benefited from improved access to capital, trade opportunities, and structural changes since joining the European Union in 2007. EU cohesion and structural funding have turned once underdeveloped industries around in areas such as infrastructure, education, digitalisation, renewable energy, and more. Despite ongoing governance flaws, the country’s adherence to EU norms has also driven institutional modernisation.

Bulgaria is expected to receive over €29 billion in EU funds over the next decade, including recovery and resilience facility funding. These funds are earmarked for judicial reforms, digital transformation, rail modernisation, and energy diversification.

With nearly two-thirds of its total trade coming from the EU, it remains the country’s largest commercial partner. Additionally, EU membership helps anchor macroeconomic stability and attracts investors who view institutional oversight and regulatory coherence as key risk-reducing factors.

Although challenges persist, particularly regarding corruption and judicial independence, EU membership has spurred regulatory convergence and improvements in governance. In general, Bulgaria’s economy has benefited from EU membership, making the EU an essential ally in the country’s continued development.

Energy shift and diversification

Bulgaria’s reliance on Russian gas was underscored by the war in Ukraine and the subsequent energy crisis. However, the crisis also accelerated the nation’s shift toward self-sufficiency and energy diversification. By using LNG imports and the Trans-Adriatic Pipeline, Bulgaria has aggressively worked to ensure alternate natural gas sources through interconnectors with Greece and Turkey. These efforts help Bulgaria become a regional energy transit hub.

The Bulgarian government is also funding hydroelectric, solar, and wind energy sources. The national recovery plan, backed by the country, focuses heavily on energy transformation. Bulgaria aims to increase its renewable energy share, reduce greenhouse gas emissions, and ensure energy security by strengthening more resilient infrastructure in the coming years. The business sector also plays a role, as tech companies and green energy investors show growing interest.

Scheduled initiatives include environmental preservation, grid upgrades, and energy efficiency programmes. In addition to the environmental benefits, these programmes offer economic advantages, such as green jobs, improved public health, and lower long-term energy costs. The successful execution of Bulgaria’s energy revolution could inspire other Eastern European nations.

Complications of rule of law

Despite its economic development, Bulgaria continues to struggle with corruption and weak rule of law. These issues have long discouraged foreign investment and eroded public trust in institutions.

Bulgaria frequently ranks among the lowest performers in the EU in Transparency International’s Corruption Perceptions Index. Allegations of nepotism, lack of judicial independence, and questionable public procurement practices have plagued successive governments.

However, recent political developments provide cautious optimism. Under a reform-oriented coalition, a new government, which took office in 2023, has promised to tackle corruption and improve transparency. Key items on the national agenda include judicial reform, digitisation of public services, and better accountability systems. Stronger enforcement of anti-corruption laws, greater autonomy for prosecutors, and increased transparency in political financing have been promised by the administration.

While political will and EU pressure suggest that change is possible, the success of these reforms remains uncertain. Holding authorities accountable is partly the work of civil society organisations, investigative journalists, and international watchdogs, signalling the development of a democratic society that could support long-term institutional transformation.

Bulgaria presents an appealing environment for foreign businesses. It has one of the lowest business tax rates in the EU (10%), a strategic location linking Europe and Asia, and a well-educated, bilingual workforce. Additionally, relatively low labour costs make it competitive for manufacturing and IT services. Investors inside and outside the EU continue to show interest in these structural advantages.

Particularly in fields like software development, customer service, and fintech, the country has become a hub for outsourcing. Supported by EU funds, private capital, and a growing entrepreneurial ecosystem, tech firms and innovation centres have flourished in cities like Sofia, Plovdiv, and Varna. A new generation of business leaders is transforming Bulgaria’s economic landscape, especially in digital services, renewable technology, and health innovation.

Geopolitical concerns notwithstanding, foreign direct investment (FDI) flows have remained strong. Key players come from Germany, Austria, the Netherlands, and the US. Interest in industrial parks and logistics infrastructure is growing, with major multinational companies establishing regional hubs in Bulgaria. The government is working to simplify administrative processes, enhance judicial reliability, and upgrade transportation and digital infrastructure to attract more FDI.

Financial stability

Bulgaria maintains a currency board system that pegs its currency to the euro. This system has brought stability and helped control inflation. During periods of external turbulence, such as the 2008 financial crisis and the current pandemic, the lev-euro peg has also boosted investor confidence.

With a projected admission date as early as 2025, Bulgaria is on track to join the Eurozone. Adopting the euro could reduce transaction costs, bolster investor confidence, and ensure macroeconomic stability.

Reduced currency risk, easier accounting, and deeper integration into the European single market would benefit businesses.

However, meeting the convergence criteria still presents challenges, particularly regarding institutional reform, public sector transparency, and inflation control.

Bulgaria’s financial industry is strong and well-capitalised. Stress tests conducted by the European Central Bank show that Bulgarian banks are profitable and maintain strong capital buffers.

The adoption of fintech is rising, and digital banking is becoming increasingly important. The banking sector’s performance has been a cornerstone of Bulgaria’s overall economic resilience and provides a foundation for future economic diversification.

Declining population is one of Bulgaria’s long-term challenges. Driven by low birth rates, ageing, and emigration, the European country has one of the fastest-shrinking populations on the continent. This trend could strain public pension systems, reduce the labour supply, and slow economic growth. Brain drain remains a significant issue, as many talented professionals seek better opportunities abroad.

To mitigate these effects, Bulgaria needs focused policies to attract skilled workers, retain domestic talent, and boost productivity. Preparing the workforce for the demands of a modern economy relies heavily on investments in education, vocational training, and digital skills. Government incentives, such as subsidies, tax breaks, and fast-track recognition of foreign credentials, aim to encourage the repatriation of Bulgarian expatriates.

Bulgaria has made progress in increasing labour force participation, particularly among women and older workers. Policies supporting remote work, flexible schedules, and childcare are beginning to gain traction.

In recent years, wage growth has outpaced inflation, thereby boosting disposable income and domestic demand.

Effectively managing demographic decline will ensure that Bulgaria’s labour market remains a key driver of sustainable development.

Service industry, tourism and R&D

Bulgaria has long relied on tourism, which plays a significant role in GDP and job creation. Millions of tourists visit the Black Sea beaches, ski resorts, and cultural landmarks each year. The pandemic severely impacted the sector, but focused marketing, infrastructure improvements, and favourable exchange rates have led to a strong recovery.

Visitor arrivals and revenue rebounded in 2023, nearly returning to pre-pandemic levels. To position Bulgaria as a year-round travel destination, the government is funding sustainability, digital marketing, and tourism infrastructure projects. Efforts are underway to promote cultural events, eco-tourism, and rural travel, which distinguish Bulgaria from other European countries.

Beyond tourism, the services sector, including IT, banking, healthcare, education, and logistics, is growing rapidly. This diversification reduces reliance on traditional sectors like heavy manufacturing and agriculture, making Bulgaria’s economy more forward-looking and resilient.

Although Bulgaria has historically had low R&D spending, investments in research are gradually increasing. At around 0.8% of GDP, R&D spending is below the EU average of almost 2.3%. In an effort to enhance the nation’s innovation potential, the government aims to raise R&D expenditure to 1.5% of GDP by 2030.

Public-private partnerships are gaining momentum in sectors such as biotechnology, robotics, and artificial intelligence (AI). Universities and technical colleges are being encouraged to engage in applied research.

The Bulgarian Academy of Sciences and Sofia Tech Park are major contributors to the innovation ecosystem. Although Bulgaria currently lags behind regional peers like Slovenia and the Czech Republic, patent filings and scientific output have shown slight improvement. Supporting innovative ecosystems remains a top priority.

Textiles, machinery, agricultural goods, and metals have traditionally dominated Bulgaria’s export portfolio. However, the nation is aggressively transitioning to higher-value industries. The share of exports now includes processed food, car parts, and pharmaceuticals. Notably, ICT services and software exports have surged, reflecting Bulgaria’s growing role as a tech outsourcing destination.

Germany, Italy, Romania, and Turkey are Bulgaria’s principal export partners. The country is also working to diversify its markets outside the EU, particularly in Asia and the Middle East. Bulgaria’s strategic location and investments in logistics bolster its ambitions to become a regional trade and transportation hub.

Digital economy

Geopolitically, Bulgaria occupies a strategic but delicate position on the Black Sea. While actively supporting NATO and Eastern Partnership programmes, it carefully navigates its relations with neighbouring countries such as Turkey, Greece, and Romania. Bulgaria demonstrates its commitment to regional stability by supporting Ukraine and engaging in energy cooperation with Greece and Turkey. The country also plays a key role in promoting regional security and economic development through diplomatic initiatives and cross-border collaborations.

Bulgaria is increasing its defence spending, aiming to meet the NATO target of 2% of GDP. The defence sector, including maintenance and armaments manufacturing, is attracting new investments. Bulgaria’s dual alignment with NATO and the EU continues to shape its regional influence, reinforcing its role as a security pillar in Southeastern Europe.

Bulgaria is progressing towards digital statehood. Simplified e-governance services, including digital ID verification, online tax filing, and electronic health records, are reducing bureaucracy. Digital literacy initiatives are being launched to improve engagement across various demographics.

With internet penetration surpassing 75% and growing mobile broadband usage, Sofia is emerging as a startup hotspot, attracting venture capital and EU-backed grants.

Artificial intelligence usage in banking and logistics is expanding, and blockchain applications for public procurement and property registries are gaining traction. The national development strategy now places a strong emphasis on the digital economy.

The transition to greener energy sources does not come without its challenges. Particularly around the Maritsa Basin, Bulgaria’s coal-dependent regions are undergoing significant social changes. The planned phasing out of coal plants raises concerns about job losses and community disruption.

The government has proposed “Just Transition” plans, supported by EU Green Deal funding, to help mitigate these effects. These plans include retraining programmes, incentives for renewable energy startups, and support for local SMEs.

While public consultations are ongoing, some local resistance remains, particularly when alternative solutions are unclear. The success of the green transition relies on infrastructure and equitable benefit distribution.

What the future holds

Looking ahead, Bulgaria’s economic outlook is cautiously optimistic. Key opportunities lie in renewable energy, digital transformation, Eurozone integration, and deeper EU cohesion. If the nation can effectively address corruption, strengthen the rule of law, and improve governance, it could unlock even more potential and set an example for other small and mid-sized nations.

However, risks remain, particularly from regional geopolitical tensions, global economic slowdowns, and climate-related shocks. Bulgaria’s future path may be influenced by shifts in EU policy, the evolving dynamics of the Russia-Ukraine conflict, and changes in global demand. Political instability and reform fatigue could also slow progress.

Nonetheless, Bulgaria’s foundations are strengthening. With smart fiscal management, strategic investments, and a growing innovation ecosystem, the country is poised to become a rising market leader in Southeastern Europe. Bulgaria offers a challenge and an opportunity for investors, businesses, and policymakers, presenting a frontier that rewards vision, perseverance, and long-term commitment.

Ultimately, Bulgaria’s recovery symbolises a broader movement toward resilience, creativity, and sustainable development, rather than just a statistical rebound. Bulgaria is now an emerging power deserving of attention from both lawmakers and investors, not merely a secondary player in Europe’s narrative.

Through strategic reforms, EU support, energy diversification, and a growing digital and service economy, Bulgaria is steadily positioning itself as a rising leader in Southeastern Europe.

However, challenges remain, particularly in combating corruption, strengthening the rule of law, and addressing demographic decline. By staying committed to its reform agenda, investing in innovation, and continuing to attract foreign investment, Bulgaria has the opportunity to unlock significant growth and become a regional powerhouse.

The post Bulgaria: A rising player in Europe’s economy appeared first on International Finance.

Today, Türkiye presents a compelling case for investors who seek sustainable, policy-driven real returns in an emerging market undergoing disciplined macroeconomic rebalancing.

In 2024 and early 2025, Türkiye’s economic authorities made substantial progress in restoring price stability, supported by a combination of decisive monetary tightening and a renewed focus on external balance. The Central Bank of the Republic of Türkiye (CBRT) has reaffirmed its commitment to disinflation, taking bold steps to anchor expectations.

In April 2025, the CBRT raised its policy rate to 46%, emphasising that tight monetary conditions will be maintained until a sustained decline in inflation is achieved. Most importantly, this policy stance is backed by a strong preference for exchange rate stability, which plays a crucial role in containing inflation pass-through and rebuilding investor confidence. Market expectations reflect a steady decline in inflation over the coming quarters.

From an investor’s perspective, this macro shift is already translating into opportunities as local currency bonds are now offering positive real returns, especially as inflation expectations begin to decline and nominal yields remain elevated.

Exchange rate volatility has moderated, with options markets pricing in a narrower distribution of future exchange rates, which seems to be another sign of improving confidence. Also, Türkiye’s current account dynamics continue to strengthen, with the gold and energy-excluded balance in surplus and external financing conditions stabilising.

In this environment, short-term liquid funds have emerged as the most attractive vehicle for conservative investors. Given the current policy rate and stable money market yields, these funds provide high nominal returns with minimal duration risk, making them a preferred choice for capital preservation and real yield capture.

On the other end of the spectrum, long-term government bonds offer substantial upside potential, albeit with greater sensitivity to inflation and interest rate expectations. Today, long-dated bond yields in Türkiye remain well above not only current inflation, but also five- and ten-year forward inflation expectations, embedding a large inflation uncertainty premium. However, as disinflation materialises, this uncertainty premium will likely decline much faster than inflation itself, creating room for a significant re-pricing in long-term bond valuations.

TEB Asset Management believes the investment narrative in Türkiye is entering a new phase, one that is less about tactical gains from volatility and more about strategic positioning for real value.

While short-term instruments provide immediate real return, long-term bonds offer convexity and capital gain potential in a scenario where inflation and volatility decline faster than currently expected. A balanced approach, combining high-yielding liquid assets with select long-duration exposure, may prove especially effective in navigating this transition.

Türkiye’s macroeconomic rebalancing is still in progress, but recent trends, including improving inflation dynamics, a more stable currency outlook, and robust monetary policy credibility, provide a supportive backdrop for fixed-income strategies focused on real, sustainable returns.

In a world where real yield is increasingly scarce, Turkish assets offer a rare combination of high carry and policy alignment. For investors ready to look beyond the inflation headlines, this may be the right time to rediscover the strategic value of Türkiye’s fixed-income markets.

The post Beyond inflation: Searching for real yield in Turkish assets appeared first on International Finance.

Due to recent rate reductions, indications of declining inflation, strong corporate sell-side participation, and the wider Middle East’s faith in Turkey’s leadership, investors have been placing large wagers in the nation’s bond market.

Between June 2023 and January 2024, Turkey issued 64 bonds and sukuk from corporations, financial institutions, and the government. Volumes increased by 89% to $33 and 6 billion in 2024.

HSBC priced 21 deals at that time, but Emirates NBD Capital, the investment banking division of Emirates NBD, the biggest lender in Dubai, priced four deals in January 2025 and 26 deals in Turkey in 2024.

“Last year was super busy for us in Turkey. We priced 26 deals in Turkey last year. In 2021 we did two deals. The years 2021, 2022 and 2023 to some extent were very quiet because of orthodox policies and geopolitics. But now we are seeing a significant jump in volumes,” Ritesh Agarwal, Head, Debt Capital Market at Emirates NBD Capital, said.

Turkey’s annual volumes, which were mostly made up of sovereign funding, averaged $13 billion between 2015 and 2022. Over the past 18 months, bond yields in Turkey have increased significantly. At the moment, its bond yields are rising by 250 basis points. Around 500 bps was its peak in October 2023.

The renewed interest from investors is not just a yield story. To put it in perspective, Khaled Darwish, MD, Head of Debt Capital Market, CEEMEA Region at HSBC, said, “Since the country’s presidential election, the Turkish bond market has been strong; macro risk has significantly decreased in Turkey. The government’s policies to address inflation, the fiscal deficit, the current account deficit, and other issues have garnered significant investor confidence. The international market now has more faith in the government and its bonds as a result of everything mentioned above.”

Why are GCC banks active in Turkey?

Numerous GCC banks maintain subsidiaries in Turkey and aim to expand their loan and asset portfolios in the Turkish market.

The banks were able to take part in syndicated loans in the country, according to Darwish, and their operations were not concentrated on the bond and sukuk markets. Emirates NBD’s subsidiary DenizBank has a significant presence in Turkey.

“Now it’s become a full bank and we can showcase our strength across product suites. We used to primarily work on FI transactions, but now we are adding it up with corporates. We do a lot of loans as well. We are very active on the loans as well in Turkey,” Ritesh Agarwal said.

Qatar National Bank has a presence in Turkey through QNB Finansbank, and Kuwait Finance House has a subsidiary that operates in Turkey. Middle Eastern investors currently make up 15–25% of the Turkish bond market. It was 1-2% before. Next, which makes up 40–50%, are the United Kingdom and the larger European region.

“Middle Eastern investors have become very active players in the Turkish bond market in the last two years. We have spent a lot of time with regional investors over the last few years to educate them on the Turkey story, including reverse roadshows in Turkey, and the effort is paying dividends now,” Ritesh Agarwal added.

To diversify funding sources, the government has actively promoted Islamic finance by encouraging the issuance of sukuk and other Shariah-compliant securities.

Abdeslam Alaoui, MD, Head of CEEMEA Capital Markets at Deutsche Bank, said, “This is reflected by Turkey’s DCM being one of the third largest among the core Islamic jurisdictions, with a 15% share after Indonesia (24%) and Malaysia (20%) at end-3Q24, and it is one of the three G20 countries active in the sukuk market.”

In what seems to be another boost for Turkey’s banking sector, UAE’s biggest Islamic bank, the Dubai Islamic Bank raised its stake in TOM Group, from 20% to 25%, in January 2025. The move followed the initial stake acquisition in September 2023, further cementing DIB’s presence in that country’s “dynamic financial landscape.”

“Turkey continues to be a pivotal market for DIB, given its sizeable population, rapidly expanding digital infrastructure, and impressive economic growth trajectory. The move aligns with DIB’s vision to drive financial inclusion and bring innovative Sharia-compliant financial services to underbanked and non-banked segments,” said a statement from the UAE-based venture.

“The increased shareholding not only solidifies DIB’s position as a key stakeholder in Turkey’s thriving digital banking sector but also underscores our deep-rooted belief in the country’s strategic intent around tech-based economic development. The partnership with T.O.M. Group goes beyond our financial growth aspirations. It reflects the larger objective of building a comprehensive, future-proof and tech-rich global Islamic financial model with built-in intelligence to evolve with the fast-changing customer mindsets of today,” said Dr. Adnan Chilwan, Group CEO at DIB, during the occasion.

Debut corporate issuances

Despite anticipated fiscal consolidation, sovereign financing is still anticipated to be the primary source of DCM issuance in Turkey. Experts assert that banks and corporations, however, have enormous potential to expand their market presence.

“While government funding makes up most of the supply, we have seen a major increase in corporate and FI issuers accessing markets. In 2024, FI supply increased 298% YoY and corporate supply increased by 332% YoY. The share of supply has greatly changed in 2024 versus 2023, where we started seeing more of a balance between the makeup of government supply from Turkey vs Corp/FI,” Alaoui said.

HSBC’s Darwish noted that the corporate sector is bringing a larger share of debut issuers compared to the banking sector, where HSBC already has the majority of banks as existing issuers.

“On the corporate side, we had at least four-five new debuts last year and will continue to get more debuts this year, including from new sectors that previously relied on bank lending,” Darwish concluded.

This shift towards a more diverse mix of issuers indicates that Turkey is moving towards financial stability, where corporate and financial institutions are increasingly tapping into the capital markets. As a result, there is greater opportunity for investors seeking new avenues for growth.

The continued success of Turkey’s bond and sukuk markets will depend on the country’s economic steadiness, the government’s commitment to fiscal reforms, and the ongoing global demand for Sharia-compliant securities. With a strong track record and a supportive environment, Turkey remains an attractive destination for international investment.

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Turkey has set its sights on regional trade blocs like the Association of Southeast Asian Nations (ASEAN) and the Asia Cooperation Dialogue (ACD), aiming to expand trade agreements backed by stronger diplomatic alliances. In 2015, it signed a free trade pact with Malaysia and hopes to achieve a similar deal with Indonesia in the coming days. President Edogan’s ambitious goals include transforming Turkey from a “regional economic centre into a global economic powerhouse” and elevating it from the world’s 16th largest economy into the top ten.

Turkey expands Asian footprint

Beyond Southeast Asia, Turkey wants to attract investment from Asia-Pacific businesses seeking a foothold in Europe and the Middle East. With its strategic location, strong manufacturing sector, and skilled workforce, the country offers a compelling destination for investors.

At the same time, Turkish companies are expanding their presence in Asia. Defence, aviation, and technology firms are forming partnerships in Malaysia and Indonesia, while the textile and construction industries see growing opportunities across the region.

However, challenges remain. Logistical bottlenecks, geopolitical uncertainties, and stiff competition from India and Gulf nations mean Turkey must carve out a distinct advantage in Asia-Pacific trade.

Senior journalist Tulay Kalyon Haznedaroglu said, “To stay ahead, it must enhance its infrastructure, refine trade diplomacy, and tap into emerging sectors like technology and green energy. Expanding shipping routes, increasing air travel agreements, and strengthening digital trade platforms will be key to accelerating its trade ambitions. With new free trade agreements on the horizon and strategic partnerships taking shape, Turkey is positioning itself as a vital bridge between Asia and Europe. Erdogan’s proactive diplomacy lays the groundwork for long-term economic growth, reinforcing Turkey’s status as a rising global trade powerhouse.”

“In the short term, the bi-continental country’s much-vaunted Twelfth Development Plan (2024-2028) aims to improve its international stature, promote prosperity, and combat inflation while maintaining strong and sustainable public finances. That goal will depend partly on the success of an associated Foreign Direct Investment Strategy aimed at significantly boosting FDI. The target is for Turkey to account for 1.5% of global FDI and 12% of regional FDI by 2028,” Haznedaroglu added.

On the domestic front, Turkey’s central bank has cut its policy rate by 250 basis points to 42.5%, marking the third monetary easing in a row after months of holding rates steady, as inflation continues to fall.

Experts now predict that inflation will continue to decrease throughout 2025, although it will still exceed year-end targets. In January, the central bank raised its year-end inflation forecast for 2025 to 24%, up 3 percentage points from the previous projection.

According to the latest official data, Turkey’s annual inflation fell to 39.05% in February, down from 42.1% in January, reaching its lowest level in almost two years and raising expectations for further rate cuts.

However, prices in essential sectors such as food, housing, and transportation have continued to rise. A recent poll by Ankara-based Asal Research revealed that 61.2% of respondents cited the “Economy/High Cost of Living” as their primary concern. Istanbul-based economist Atilla Yesilada also suggested that one more rate cut is likely in April 2025 before policymakers pause to assess the situation.

Growth prospects remain mixed

Not particularly, at least when considering FDI as a key measure. While full-year figures for 2024 have yet to be released, they will likely come close to the previous year’s $10.6 billion—down from $13.7 billion in 2022, far below the 2007 peak of $22 billion and short of the $14 billion hoped for earlier. That amounts to less than 1% of GDP, compared with 3% in 2007 and well under both potential and policymakers’ ambitions.

“In the months since June 2023, when a new policy team led by Finance Minister Mehmet Simsek, Vice President Cevdet Yilmaz, and the Central Bank of Turkey (CBT) reversed unorthodox policies, there have been many positive steps toward rational policymaking. However, challenges have emerged along the way,” said Rafik Selim, lead economist for Turkey at the European Bank for Reconstruction and Development (EBRD).

The EBRD now expects Turkey to post GDP growth of 2.7% in 2024, rising to 3% in 2025. Private consumption will likely be the biggest casualty as policymakers try to lift export-led growth above the current low share of 20% of GDP.

“Reducing spending remains difficult. The 2023 fiscal deficit was 5.2%, and the 2024 level is expected to be similar despite service cuts and tax increases. The main driver is earthquake spending. Ankara committed about $30 billion a year to help communities recover from the February 2023 quake that left several million people homeless in southern and central Turkey. Nevertheless, the unprecedented rebuilding of homes and infrastructure should support growth,” Haznedaroglu noted.

“Without the quake, the deficit would be 1.1%, which is quite reasonable,” Selim noted, adding that the estimated 2024 deficit of 5% will likely fall to 3.1% this year.

“Disinflation will likely continue this year, given the CBT’s signal that it will maintain its tight stance despite the start of rate cuts, the ongoing real appreciation of the Turkish lira, and an improvement in services inflation. We expect inflation to fall below 30% by the end of 2025,” said ING Bank analyst Muhammet Mercan.

The current account deficit has narrowed to around $10 billion from 2023’s high of $60 billion, helping rebuild foreign exchange reserves and reducing Turkey’s dependence on external financing.

“Capital flows have been strong; every recent bond and sukuk issue has been three or four times oversubscribed while yields have declined, indicating falling risk perceptions,” Selim observed.

In 2024, Fitch Ratings upgraded Turkey’s sovereign debt and several Turkish banks twice, from B- to B+ in March, then to BB- in September, making Turkey the only country in 2024 to receive upgrades from all three major ratings agencies up to that point.

“In a sense, we’ve returned to where we were in 2021, before the unconventional policy experiments that caused a dramatic deterioration in the country’s macroeconomic and financial stability outlook,” said Erich Arispe, senior director and head of Emerging Europe Sovereigns at Fitch Ratings.

“Turkey’s slower short-term growth outlook reflects ongoing economic rebalancing, which will take time given stubborn inflation,” Arispe argued. With no elections this year, falling dollarisation, rising foreign exchange reserves, and an expected drop in the fiscal deficit as earthquake spending recedes are all encouraging signs.

“Turkey has the capacity to grow. We expect 2.6% growth in 2025 and 3.5% in 2026, without creating further economic distortions. But this is a multi-year story, with the economy being recalibrated to support sustainable higher growth and realise its export and FDI potential,” Arispe said.

Another bright spot is Turkey’s exports to Europe, which rose 7.1% in January 2025 compared with a year earlier, despite economic challenges in its biggest trade market.

According to the Turkish Exporters Assembly (TIM), outbound shipments reached $10.32 billion, up from $9.63 billion a year ago.

However, growth in exports to the Eurozone has been weak over the past two years, as the continent battles high energy costs, tight government budgets, and cautious households who are choosing to save more, hurting overall consumption.

Turkey’s EV market surges

More than 105,000 electric vehicles (EVs) were sold in Turkey in 2024, marking a 45.9% increase from the previous year in a market where total vehicle sales rose only 0.5%. The share of EVs in total sales increased from 7.5% in 2023 to 10.7% in 2024.

Of the 105,315 EVs sold in 2024, 99,489 were pure electric, and 4,826 were extended-range vehicles.

The country’s first indigenous EV brand, Togg, delivered 30,093 cars last year—far surpassing the 11,534 units sold by US giant Tesla. In December 2024 alone, Togg and Tesla delivered 5,732 and 2,307 vehicles, respectively.

Togg, a joint venture of five Turkish holding companies and a business union, began deliveries only in 2023. In December 2024, Turkey’s EV market grew 82.3% to 22,017 units, capturing a 16.3% share of total vehicle sales.

EVs will make up 30% of the country’s auto market in 2025, predicted Ali Bilaloglu, CEO of Turkish auto exporter and distributor Dogus Otomotiv.
The Energy Market Regulatory Authority’s (EPDK) high-case scenario estimates that the number of EVs in Turkey will exceed 361,000 in 2025 and climb to 1.7 million in 2030 and 4.2 million in 2035.

Turkey’s charging network has expanded rapidly, and the country now ranks first in Europe in socket power and in the number of fast (DC) sockets per electric vehicle. Over the past two years, the number of charging sockets has grown from about 3,000 to 26,000.

Chinese EV manufacturer BYD’s plan to build a $1 billion plant in Turkey is seen as the sort of encouraging development the government hopes for, given the sector’s rapid growth.

Growth outlook remains wary

According to a United Nations report, the Turkish economy is expected to grow by 3% in 2024 and 3.1% in 2025, surpassing the global average of 2.8% for both years, with a moderately easing monetary policy aligned with declining inflation.

While conditions seem favourable for Ankara, a further upgrade to investment-grade status by ratings agencies would be a major step toward realising Erdogan’s broader 2028 ambitions.

According to Fitch, Turkey’s private sector has a remarkable ability to adapt.

“However, it takes time to reestablish macroeconomic credibility and for this to resonate with investors,” the agency warned.

“Many of the factors underlying Turkey’s potential also pose risks, including its geographic location, the possibility of indirect impacts from higher US tariffs, and exposure to shifts in investor sentiment. Many factors are beyond Turkey’s control, not least the current, highly fluid international environment,” Fitch said.

Turkey is working to strengthen its place in the global economy by building new ties in Asia while pushing reforms at home. Falling inflation, better credit ratings, and stronger exports give the country some momentum, even as challenges remain. Its growing EV market and rising investment interest show clear progress. Still, long-term success will depend on steady policies and stronger investor trust. If Turkey stays on this path, it could secure a stable future ahead.

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By the end of 2023, the Turkish Airlines fleet of 400 aircraft had an average age of 9.3 years, making it one of the youngest in the business. Turkish Airlines continues to reach new heights in the aviation business because of its adaptable organisational structure, committed staff, Istanbul hub, state-of-the-art fleet, and wide-ranging network.

In 2024, Turkish Airlines celebrated its 91st anniversary. The airline has continued to grow quickly as the national flag carrier, which is a result of effective sustainability management. To guarantee that sustainability management procedures are handled with a shared corporate understanding. Turkish Airlines is dedicated to its sustainability efforts, highlighted by the motto “Tomorrow On-Board,” which was introduced along with its “Sustainability Vision” in 2009. This motto reflects the journey taken, the achievements reached, and the sustainable practices that lie ahead in alignment with its Sustainability Vision.

The United Nations Sustainable Development Goals (SDGs) serve as the foundation for Turkish Airlines’ sustainability initiatives, which prioritise social responsibility, environmental stewardship, and economic resilience. The sustainability strategy and targets are continuously assessed and developed to stay ahead of the curve because of its agility and sensitivity in a constantly changing environment that is affected by regulatory changes as well as new global and sectoral trends.

Sustainability is a path of constant progress, teamwork, and collective influence for Turkish Airlines rather than a one-time objective. The business has reassessed its plans in light of Turkey’s acceptance of the Paris Agreement and its pledge to achieve net zero carbon emissions by 2053, in accordance with international standards and stakeholder expectations.

Turkish Airlines is committed to a more sustainable aviation future and has set a goal to become a Carbon Neutral Airline by 2050 as a way to show its support for the global fight against climate change. With a multifaceted approach that includes fleet modernisation, the continued use of sustainable aviation fuel, expanding partnerships on this issue, sourcing energy from renewable sources, and reducing and offsetting emissions, this long-term emission reduction target has emerged as the cornerstone of Turkish Airlines’ growth strategy.

To minimise its effects on the environment and cut down on carbon emissions, Turkish Airlines has implemented a thorough sustainability strategy. The foundation of this approach is fuel efficiency research that aims to lower emissions. By making investments in fuel-efficient aircraft, upgrading its engines, and utilising the newest technologies, the airline wants to enhance its fleet. In order to lessen the carbon footprint, over 100 operational optimisation and aircraft configuration projects have been successfully carried out since 2008. These initiatives prevented the release of 236,751 tons of carbon emissions into the environment and saved 75,148 tons of fuel in 2023 alone. Since 2008, 748,496 tons of gasoline have been saved, and 2,357,764 tons of carbon emissions have been avoided.

Turkish Airlines has also included sustainable aviation fuel (SAF) into its operations and conducted its first flight using aviation fuel sourced sustainably in February 2022, acknowledging the critical role SAF plays in lowering emissions. The use of SAF has since been extended to new frequencies and itineraries.

Turkish Airlines is actively seeking partnerships to expand the production and use of Sustainable Aviation Fuel (SAF), as it is currently produced in limited quantities worldwide. The airline has reaffirmed its commitment to fighting climate change by signing the Global SAF Declaration, which showcases a unified pledge from stakeholders in the aviation, space, and fuel sectors to decarbonise the aviation industry. In 2023, Turkish Airlines became a founding member of this initiative and established Turkey’s first sustainable aviation platform in collaboration with Boeing and Istanbul Technical University.

Additionally, through its CO2mission Programme, Turkish Airlines gives travellers the chance to take part in the battle against climate change. Through this initiative, travellers can quickly and easily offset the emissions associated with their flights. The projects are presented in three distinct portfolios based on passenger preferences. They include social development initiatives that support nine different Sustainable Development Goals, are globally accredited, and generate carbon credits to combat climate change. In keeping with the CO2 commitment, the Turkey-based carrier also balances the emissions from all employee duty flights.

To reduce paper use, Turkish Airlines has implemented sustainable practices in passenger services beyond aircraft operations, such as using digital boarding cards and offering digital reading materials. These programmes highlight its dedication to sustainability, as does the usage of biodegradable packaging and environmentally friendly amenities on board. Furthermore, the airline’s comprehensive approach to sustainability is demonstrated by its partnerships with stakeholders and investments in renewable energy sources. We hope to significantly lessen its carbon impact and advance sustainable energy practices using solar power.

In 2023, Turkish Airlines took part in the most reputable reporting platform for climate change and environmental degradation in the world, the Carbon Disclosure Project (CDP) Climate Change Programme. In CDP reviews, it received an “A-” score, which is in the leadership band and higher than the industry average for air travel. Since enrolling in the CDP, the carrier has been steadily raising its score. We reaffirmed its support for the Sustainable Development Goals at the start of 2023 when we joined the Task Force on Climate-related Financial Disclosures (TCFD) as a supportive member.

Meeting stakeholder expectations by offering a transparent communication network with pertinent parties, Turkish Airlines once again took part in the performance evaluations of national and international indices and sustainability rating organisations to analyse the present state of the sector. By guaranteeing ongoing involvement with these indices and rating agencies—which include the DJSI, FTSE4Good, MSCI, EcoVadis, Sustainalytics, TPI, and Borsa Istanbul Sustainability Index—it hopes to improve performance. The scores from the 2023 ESG performance evaluations, both on a company-by-company and industry-average basis, improved over the 2022 results, as did the assessments conducted by the top rating agencies in the globe. Turkish Airlines received a 2023 award in the “Silver” category as a consequence of Ecovadis’ assessments.

Turkish Airlines is committed to sustainable growth, innovation, and generating value for shareholders while navigating the complex dynamics of the market, technological advancements, and regulatory environments. The airline believes that its actions today will shape the future of the aviation industry. With this in mind, we are dedicated to pursuing a more sustainable future, ensuring that Turkish Airlines remains a shining example of excellence, resilience, and vision for years to come.

In an effort to strengthen its position as a top international airline, Turkish Airlines has skillfully adapted to recent changes in the market. The carrier remained committed to core principles despite obstacles like rising gasoline prices and geopolitical unrest. Through efficient financial management, the airline was able to weather difficult times and come out on top of its competitors in the European network carrier market.

Turkish Airlines stands out from its competition primarily due to its extensive network of destinations and operational flexibility. Significant investments and expansions have led its air cargo division, Turkish Cargo, to become one of the leading international air cargo carriers. The ability to swiftly adapt to changing situations has enabled the airline to maintain its leadership in daily flight operations. To keep its competitive edge, it continually invests in fuel-efficient aircraft and auxiliary businesses.

Despite pandemic-related difficulties, Turkish Airlines wants to strengthen its position in the coming years by achieving operational and financial success, setting the stage for future expansion. With well-defined goals for passenger income, fleet growth, and global market penetration, the airline is well-positioned for rapid expansion, bolstered by strategic investments in fuel-efficient aircraft and affiliated businesses.

Turkish Airlines places a high priority on comprehending client needs, controlling costs, and quickly responding to market developments in an increasingly competitive environment. The carrier established strategic goals centred on passenger experience, digitalisation, and sustainability after outlining a clear vision for the ensuing ten years. Beyond 2033, the airline wants to triple the number of planes and passengers, reach a revenue target of over $50 billion, and show its dedication to social responsibility through several initiatives.

The goal of Turkish Airlines is to become a global airline group that delivers value to its stakeholders while promoting sustainable development goals. The airline aims to achieve this by leveraging its modern fleet and extensive flight network.

Turkish Airlines’ commitment to sustainable excellence reflects its dedication to innovation, environmental stewardship, and leadership in the aviation industry. To create a sustainable future for air travel, the airline is setting new standards for ecologically responsible aviation operations through strategic initiatives and partnerships.

In the last two years, Turkish Airlines has also made significant strides in the US, more than doubling its pre-pandemic capacity this summer.

Turkish Airlines had over 75 weekly flights to nine US locations before the pandemic, with the most frequent being a triple-daily to New York-JFK. After five years, the airline has increased its weekly flight schedule to more than 150 and expanded its network to include five more US destinations.

The carrier has already increased its weekly frequencies to Denver from three to four flights since launching its new service to Denver (DEN) last month, and it plans to make this a daily route. Turkish Airlines Chairman, Professor Ahmet Bolat claims that “the numbers are excellent” on this route and that once it has the appropriate aircraft, Denver will be given priority for additional frequencies.

Following this, the airline will consider other lucrative routes, such as Detroit (DTW), which was added to its US network in November 2023 and is its second-most recent addition.

The airline reportedly plans to fly to up to 20 US locations, with Charlotte, Minneapolis, Orlando, and Philadelphia among the upcoming additions. Given the significance of the market, Professor Ahmet Bolat implied that the airline will strive for “at least daily” flights across its whole US network.

The Turkish Minister of Tourism’s plan to bring up to five million tourists to Turkey each year is one of the main reasons for its explosive growth in the US. The airline will eventually need to triple its capacity and then some to reach this goal, which it currently brings in about 1.5 million tourists annually.

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