ITFC Wins GTR Best Deal 2024 for $150M Islamic Recovery Finance in Türkiye

The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, has been honored with one of the Global Trade Review (GTR) Best Deals of 2024 for its pioneering US$150 million Murabaha financing facility, established to support Türkiye’s economic recovery following the catastrophic earthquakes of February 2023.

This award-winning, Shariah-compliant financing initiative marks a global first: it is the world’s first Islamic trade finance facility created specifically for post-disaster recovery. The transaction was executed in partnership with Türkiye’s Ministry of Treasury and Finance, the Industrial Development Bank of Türkiye (TSKB), and the Development and Investment Bank of Türkiye (TKYB).

Responding to Unprecedented Disaster

In February 2023, a series of powerful earthquakes devastated southern and southeastern Türkiye, causing widespread destruction, with economic losses estimated at US$100 billion. More than 220,000 businesses were disrupted across vital sectors including agriculture, trade, and food security.

Recognizing the urgent need for a targeted and sustainable financing solution, ITFC, in collaboration with Türkiye’s key public financial institutions, developed the US$150 million Murabaha-based facility to provide working capital, particularly for small and medium-sized enterprises (SMEs) struggling to recover.

“This award is a testament to our continued commitment to support trade-driven resilience,” said Nazeem Noordali, Chief Operating Officer of ITFC. “By partnering with Türkiye’s public sector and key development banks, we have introduced an Islamic finance solution that strengthens recovery and supports long-term trade sustainability.”

National and Institutional Support for Economic Revival

The innovative financing structure was welcomed by Türkiye’s Ministry of Treasury and Finance as a model of effective post-disaster recovery financing. Sedef Aydaş, Head of Department at the Ministry, emphasized the significance of the partnership:

“ITFC is one of the first organizations that stepped up to support Türkiye’s post-earthquake economic recovery. The facility represents not only immediate relief but also a foundation for longer-term growth, particularly in food security, agriculture, and SME trade financing.”

The Ministry views this financing as a template for future cooperation with international Islamic finance institutions, with potential applications in infrastructure, energy, and social development.

Development Banks Accelerate Islamic Finance Integration

Both TSKB and TKYB used this opportunity to expand their Shariah-compliant financing capabilities. For TSKB, a bank with 75 years of experience in supporting Türkiye’s sustainable development, the deal was its first cooperation with ITFC.

“This agreement, signed in August 2024, was structured to support trade-driven recovery in earthquake-hit regions by addressing the urgent needs of local businesses,” said Meral Murathan, Executive Vice President & Sustainability Leader at TSKB.

She emphasized how the agreement aligned with TSKB’s broader goals of inclusive economic development, resilient infrastructure, and gender-sensitive recovery strategies.

Similarly, İbrahim H. Oztop, CEO of TKYB, highlighted how the collaboration reinforced the bank’s strategic vision:

“This financing strengthens our corporate financing structure and aligns with our mission to contribute to Türkiye’s economic renewal through responsible and impact-driven development.”

International Recognition and Future Implications

The award was officially presented at the GTR Best Deals 2024 ceremony, attended by representatives from ITFC, Türkiye’s Ministry of Treasury and Finance, TSKB, and TKYB. The honor recognizes not only the structure and innovation of the financing model but also its social impact, resilience-building outcomes, and alignment with Sustainable Development Goals—especially SDG 8 (Decent Work & Economic Growth) and SDG 9 (Industry, Innovation & Infrastructure).

Beyond addressing the immediate needs of Türkiye’s earthquake-affected regions, the project has also opened the door for expanded Islamic trade finance frameworks across other key sectors in Türkiye, including:

• Renewable energy

• Climate resilience

• Employment generation

• Inclusive finance and development

Shaping the Future of Islamic Trade Finance

With this successful initiative, ITFC further cements its leadership in the field of Islamic trade finance. The organization continues to explore innovative mechanisms to empower nations in times of crisis while enabling sustainable, long-term economic growth.

The Türkiye transaction is likely to serve as a blueprint for future post-disaster Islamic financing models across other vulnerable countries, showcasing how Shariah-compliant finance can be both practical and transformational.