Kuveyt Türk Participation Bank, is a participation bank established in Türkiye in 1989 within the framework of interest-free banking principles. The bank offers participation-based financial services to individual and corporate clients. It conducts its operations in accordance with the legislation of the Republic of Türkiye and Islamic finance principles.

History

Kuveyt Türk was established on March 31, 1989, with the status of a "special finance institution". Its initial operating license was granted by the Undersecretariat of Treasury and Foreign Trade. The purpose of its establishment was to implement an interest-free banking system in Türkiye and offer financial products and services in line with this model.

In 2006, it began operating as a "participation bank" under the Banking Law No. 5411, and its title was changed to Kuveyt Türk Participation Bank.

In 2010, it became the first bank to issue sukuk (lease certificates) in Türkiye and Europe. This transaction marked a turning point for the institutionalization of the participation finance market in Türkiye.

In 2015, Kuveyt Türk's subsidiary established in Germany, KT Bank AG, commenced operations as the first fully licensed participation bank on the European continent. The bank, headquartered in Frankfurt, Germany; provides services in cities such as Berlin, Cologne, and Munich.

In the 2020s, Kuveyt Türk; has developed various new applications in the areas of digitalization, sustainable finance, green sukuk, fintech investments and social financing.

Headquarters and Structure

Kuveyt Türk Participation Bank's general directorate is located in the Şişli district of Istanbul. The Kuveyt Türk Banking Base, which hosts the bank's digital transformation, operations, senior management, and corporate governance units, is located in the Çayırova district of Kocaeli.

The Banking Base architecture has been designed with environmentally friendly and energy efficiency principles.

^{Kuveyt Türk Banking Base (AA)}

Ownership Structure

The shareholder structure of Kuveyt Türk Participation Bank is as follows:

• %62,24 – Kuwait Finance House (Kuwait)
• %18,72 – General Directorate of Foundations of the Republic of Türkiye
• %9,00 – Islamic Development Bank
• %9,00 – Wafra International Investment Company
• %1,04 – Other shareholders

Some Subsidiaries

• KT Portfolio Management Inc.
• Neova Participation Insurance Inc.
• Participation Pension and Life Inc.
• Körfez Real Estate Investment Trust Inc.
• Architecht Information Systems Inc.
• Techafull Technology Initiative

Areas of Operation

The main service areas offered by Kuveyt Türk are:

• Participation-based retail and commercial banking
• SME financing
• Gold banking and precious metals transactions
• Investment products and portfolio management
• Issuance of Sukuk (lease certificates)
• Financial leasing (leasing)
• Participation insurance (Takaful)

Financing methods include murabaha (cost-plus sale), ijara (leasing), musharaka (partnership), and mudaraba (profit-sharing/labor-capital partnership).

International Operations

KT Bank AG (Germany): Frankfurt-based, fully licensed participation bank in Germany.

Bahrain Branch: Overseas branch providing representation in the Gulf region.

Furthermore, international transactions are conducted through correspondent banking relationships in various countries.