Turkey transfers billions in assets to sovereign wealth fund

Turkey transferred assets from major companies to its fund for the first time since its set-up in August 2016, as part of a huge drive aimed at financing infrastructure projects.

MENA

2 min read

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06 February, 2017

Ankara hopes that the fund will eventually reach a value of around $200 billion [Anadolu]

Turkey on Sunday ordered the transfer of billions of dollars worth of state assets to a sovereign wealth fund as part of a huge drive aimed at financing infrastructure projects.

Among the assets being transerred are those from the state-owned Ziraat Bank, the government's minority shareholding in Turkish Airlines and a stake of around seven percent in Turk Telekom.

"The existing management and business plans of the companies will continue, as will cooperation with all relevant stakeholders, including international financial institutions," said a government statement released late on Sunday.

The move is the first time shares in significant businesses have been transferred to the control of the fund, which was set up in August last year.

According to Ozgur Altug, economist at BGC Capital in Istanbul, the estimated value of the transferred assets is $33 billion. Altug said that the transfer means that the fund will receive dividends from the assets, rather than the government budget.

While Turkey's fund still lags well behind those of Norway, the Gulf or China, Ankara has has set huge hopes for the future.

During the fund's establishment in August, the state-owned Anadolu news agency reported that it would be used to finance mega projects, including the proposed Istanbul shipping canal and a three-level tunnel under the Bosphorus.

According to the same agency, the fund is expected to reach a value of around $200 billion.