By Fatma Çınar
Export financing has become one of the most critical policy instruments shaping national competitiveness at a time when global trade is characterized by rising uncertainty and risk. In economies where production is driven by SMEs, access to affordable financing, improved receivables management and strengthened collateral frameworks directly influence export capacity. Across the Organization of Islamic Cooperation (OIC) countries, this need underscores the importance of developing institutionally defined export financing mechanisms aligned with participation finance principles.
Türkiye stands out as a significant example in this context, having successfully integrated its participation banking infrastructure into the broader export financing ecosystem. Türk Eximbank, in particular, has assumed a pioneering role by designing a comprehensive suite of participation finance — compliant products over recent years. This study analyzes Türk Eximbank’s approach to export financing through participation banks and positions Türkiye within the wider OIC landscape through a comparative and holistic lens.
Türk Eximbank’s robust product architecture for participation banks
As the central institution supporting Türkiye’s export strategy, Türk Eximbank has deliberately and systematically embedded participation banking into the country’s foreign trade financing architecture via dual- structure of participation banking window model. The explicit identification of participation finance-compliant products within Türk Eximbank’s official program structure demonstrates a strong level of institutional ownership and strategic intent.
Within this framework, products such as export support financing through participation banks, Islamic pre-shipment export financing, Murabahah-based export financing, Islamic financial leasing financing and participation-based export credit insurance enable participation banks to effectively serve exporting firms. Through Murabahah and Wakalah-based funding channels, participation banks mobilize Türk Eximbank resources to meet working capital requirements and support exporters’ access to global markets.
A particularly innovative element is the participation-based export credit insurance, which reflects Türk Eximbank’s forward-looking and pioneering approach. This mechanism insures receivables generated from export transactions conducted in line with participation finance principles against commercial and political risks, thereby strengthening participation banks’ capacity to extend financing. In this way, Türk Eximbank acts not only as a financier but also as an institutional risk-sharing facilitator within the export ecosystem.
Moreover, the Export Support Financing Program funded by the Central Bank of the Republic of Türkiye (CBRT) has been structured by Türk Eximbank in compliance with participation finance standards and made accessible to exporters through participation banks. The program’s overarching objective is to enhance exporters’ access to affordable CBRT-funded resources while broadening the participation finance channel in export funding.
Taken together, this product architecture positions participation banks as scalable and sustainable actors in Türkiye’s export financing system and strengthens Türkiye’s standing among OIC member countries.
Foreign trade in OIC countries and Türkiye’s position
OIC countries collectively account for approximately 10-11% of global trade, with export performance concentrated in a limited number of economies. The UAE, Saudi Arabia, Malaysia, Indonesia and Türkiye constitute the backbone of OIC exports.
Türkiye consistently ranks among the top five exporting countries within the OIC, with annual goods exports reaching between US$255 billion and US$273 billion in recent years. This performance is underpinned by the country’s diversified industrial base and the effectiveness of its export financing institutions. The ability of participation banks to deliver Türk Eximbank’s credit, insurance (Takaful) and guarantee mechanisms to exporters plays a decisive role in sustaining this momentum.
A comparative institutional perspective across OIC countries
Malaysia offers a structured benchmark through the Islamic window model embedded within its export credit agency, while Gulf countries rely heavily on strong public guarantees and Kafalah-based structures. Türkiye, however, represents a holistic and integrated model that combines elements of both approaches.
By designing its products in a manner that is fully accessible to participation banks, Türk Eximbank has enabled the creation of a dual-channel export financing system one that operates seamlessly across both conventional and participation finance segments. This balanced approach enhances institutional inclusiveness and improves exporters’ access to diversified financing options.
In this regard, Türkiye provides a scalable and replicable model for OIC countries seeking to strengthen the role of participation finance within their export ecosystems.
Conclusion
In Türkiye, the financing of exports through participation banks has gained a strong institutional foundation due to Türk Eximbank’s visionary and inclusive strategy. The clear definition of participation-specific products, the development of innovative tools such as participation-based export credit insurance, and the positioning of participation banks as an integral component of the export financing chain place Türkiye among the leading good-practice examples in the OIC.
Türk Eximbank thus emerges not only as a financing institution but also as a strategic conduit linking participation banking with the country’s overarching export strategy. The continued deepening of this approach will further strengthen Türkiye’s export performance and reinforce its leadership in the domain of Islamic export financing.
Fatma Cinar is the deputy secretary-general of the Participation Banks Association of Turkiye (TKBB). She can be contacted at fatmacinar@tkbb.org.tr.
This article was first published in IFN Volume 23 Issue 4 dated the 28th January 2026.
