Experts issue sukuk and risk warning following developments in the fund market
Following recent activity in the fund market, experts have issued warnings regarding sukuk investments. Bilal Bağış and Yusuf Dinç stated that the product structure must be examined.
Following recent developments in the fund market, experts emphasized that investors must carefully analyze the structure and risks of sukuk, which has once again come to the forefront. Assoc. Prof. Dr. Bilal Bağış drew attention to the global market size, while Prof. Dr. Yusuf Dinç pointed out the need for legislation and supervision.
Sukuk and Types of Issuance
Sukuk, known as lease certificates in Turkey and serving as one of the fundamental instruments of Islamic finance, exhibits different characteristics depending on its issuance structure.
While some types provide cash flows similar to traditional bonds, others are based on assets and partnership rights.
Global Sukuk Market
It was noted that the global sukuk stock exceeded 1 trillion dollars by the end of 2025, reaching a significant financial market worldwide.
In Turkey, sukuk issuances exceed 40 billion dollars, positioning the country as the fifth largest market globally where this instrument is most widely utilized.
Participation Finance Principles
It was stated that the problems in the fund market have once again highlighted the importance of participation finance principles.
Lease certificates are among the essential capital market instruments used for liquidity management and financing needs of participation financial institutions.
Need for Supervision and Legislation
It was emphasized that the absence of a comprehensive law on participation finance and a board to audit standards in Turkey constitutes a significant deficiency.
It was noted that there is a need for a stronger regulatory mechanism and auditing structure in this field.