ITFC and Türk Eximbank Sign US$200 Million Deal to Boost SME Export Growth

The landmark deal aims to expand access to trade financing for export-oriented small and medium-sized enterprises (SMEs) and support sustainable economic growth across the country.

The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, has signed a US$200 million Syndicated Murabaha Financing Agreement with Türk Eximbank, Türkiye’s official export credit agency. The landmark deal aims to expand access to trade financing for export-oriented small and medium-sized enterprises (SMEs) and support sustainable economic growth across the country.

Announced this week, the new financing facility represents a continuation of a long-standing partnership between ITFC and Türk Eximbank, reinforcing both institutions’ shared goal of empowering private sector enterprises and enhancing Türkiye’s role in global trade.

“This new facility demonstrates ITFC’s unwavering commitment to supporting Türkiye’s economic transformation by empowering its export-driven private sector and strengthening SMEs’ competitiveness,” the organization said in a statement.

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Expanding Access to Islamic Trade Finance for SMEs

The US$200 million Murabaha financing facility is specifically designed to address liquidity and working capital needs among export-oriented SMEs, a key driver of Türkiye’s economic resilience and job creation.

Through this collaboration, hundreds of Turkish exporters are expected to benefit from greater access to Shariah-compliant trade finance, enabling them to scale operations, enhance export capacity, and enter new international markets.

“This initiative will not only provide immediate financial support but will also promote financial inclusion by introducing innovative Islamic trade finance solutions to the SME sector,” ITFC noted.

By leveraging Islamic finance instruments such as Murabaha—where goods are purchased and resold at a profit margin agreed upon by both parties—SMEs gain access to ethical, transparent, and flexible financing that aligns with Islamic financial principles.

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A Partnership Rooted in Long-Term Collaboration

The signing marks another milestone in the partnership between ITFC and Türk Eximbank, which dates back to 2009. Over the past 16 years, ITFC has provided approximately US$3.7 billion in total financing to Türk Eximbank through a series of syndicated facilities, bilateral lines of finance, and trade support programs.

These funds have been instrumental in enhancing export competitiveness, strengthening domestic manufacturing industries, and supporting job creation in export-oriented sectors such as textiles, automotive components, chemicals, and electronics.

“The continuation of this partnership reflects the shared strategic vision between ITFC and Türk Eximbank to build a more inclusive, sustainable, and globally competitive Turkish economy,” said ITFC CEO Eng. Hani Salem Sonbol in a statement on the partnership’s evolution.

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Driving Sustainable Economic Growth

This financing facility aligns with ITFC’s broader mission to advance trade-led growth and support the United Nations Sustainable Development Goals (SDGs), particularly those related to decent work and economic growth (SDG 8) and industry, innovation, and infrastructure (SDG 9).

By facilitating access to capital, the initiative contributes directly to employment creation, export diversification, and industrial development in Türkiye. The focus on sustainable trade finance ensures that the private sector expansion is both socially responsible and environmentally conscious, with an emphasis on long-term competitiveness rather than short-term gains.

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Türkiye’s Role in Global Trade and Islamic Finance

Türkiye continues to play a strategic role in international trade as a gateway between Europe, Asia, and the Middle East. The collaboration between ITFC and Türk Eximbank further consolidates the nation’s position as a regional hub for Islamic trade finance, given its growing participation in the global halal economy and Islamic financial markets.

As part of the IsDB Group, ITFC’s support complements other development initiatives targeting Türkiye’s industrial diversification, digital transformation, and supply chain modernization. Türk Eximbank’s extensive network of exporters, combined with ITFC’s expertise in Shariah-compliant financial structuring, provides a powerful mechanism for channeling finance to sectors that can drive long-term, export-led growth.

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Statements from the Partners

Speaking at the signing ceremony, Eng. Hani Salem Sonbol, CEO of ITFC, emphasized the significance of the renewed cooperation:

“We are proud to strengthen our partnership with Türk Eximbank through this new US$200 million Murabaha facility. Together, we are empowering SMEs, enhancing export competitiveness, and promoting sustainable development in Türkiye. This partnership stands as a model for effective South–South collaboration and the power of Islamic finance to deliver inclusive growth.”

Similarly, Ali Güney, General Manager of Türk Eximbank, welcomed the new agreement and highlighted its impact on the real economy:

“Türk Eximbank remains committed to supporting the financial needs of our exporters, particularly SMEs that form the backbone of the Turkish economy. This collaboration with ITFC reinforces our mission to expand trade finance access and strengthen Türkiye’s integration into global value chains.”

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Longstanding Impact of ITFC’s Operations in Türkiye

Since its establishment in 2008, ITFC has been a major partner in financing trade across member countries of the Organization of Islamic Cooperation (OIC). Türkiye has been one of its largest beneficiaries, reflecting the country’s strategic importance within the OIC and its growing demand for Shariah-compliant financial solutions.

Over the years, ITFC has financed projects that span critical industries, including energy imports, agriculture, SME development, and manufacturing exports, thereby contributing to Türkiye’s macroeconomic stability and industrial upgrading.

This latest Murabaha agreement builds upon those achievements, signaling a renewed focus on private-sector-led development amid global economic uncertainty.

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Empowering the Private Sector and SMEs

The Turkish SME sector accounts for over 99% of all enterprises and nearly three-quarters of employment in the country, yet many smaller exporters still face challenges in accessing affordable credit. The new ITFC-Türk Eximbank facility aims to close this gap by providing flexible Islamic finance solutions that support both working capital and trade-related transactions.

Such measures are expected to bolster resilience among small businesses, particularly those in manufacturing, agribusiness, and technology, allowing them to scale operations, improve productivity, and expand export capacity.

“Empowering SMEs through accessible and ethical trade financing is key to building resilient economies. ITFC’s continued support ensures that exporters remain competitive and sustainable in the global marketplace,” noted Sonbol.

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Strengthening Trade for Shared Prosperity

The signing of the US$200 million Murabaha financing agreement between ITFC and Türk Eximbank marks a pivotal step in advancing inclusive and sustainable economic growth in Türkiye. It underscores ITFC’s ongoing commitment to trade-led development, private sector empowerment, and strategic partnerships that deliver tangible socio-economic impact.

As global trade faces rising uncertainties, the collaboration demonstrates how innovative Islamic finance mechanisms can support real economic activity, drive SME competitiveness, and promote prosperity across the Global South.