Recognised as global innovation and financial potential in
international financial markets with assets of $7.45 trillion,
national wealth funds have recently become one of the most
important financial instruments and had the ability to stamp
out the structure of national economies.
The fact that national wealth funds have achieved a
significant volume allows them to have an influence on the
economic conditions of the investor countries and the
investment country in macro-economic and micro-economic
The economic and political conditions in the developed and
developing countries that are still struggling with the
devastating effects of the global financial crisis have allowed
the national wealth funds to come into prominence.
The existing wealth protection and enhancement mission for
future generations have been undertaken by the national wealth
funds that are generally established by emerging market
economies of the developing countries.
The Turkish wealth fund was established as Turkey Wealth
Fund Management Joint Stock Company on August 26 2016 by the
Prime Ministry of the Republic of Turkey for the purposes of
contributing to the diversity and depth of the financial
instruments in capital markets, providing the domestic
government-owned assets to the economy, participating in
large-scale investments, supplying foreign capital, and
creating sustainable prosperity for future generations.
According to the Turkish Cabinet Decree dated February 5
2017, 2.3 million metered-squared of property in the tourism
regions (such as Antalya, Muğla and İzmir) belonging
to the Treasury has been transferred to the wealth fund.
Accordingly, the Turkey wealth fund has become a considerable
market player in Turkish and international markets with its own
equity of $40 billion and an asset value of $140 billion.
The Turkey wealth fund will undertake an important mission
in financing giant projects and will provide funding for
projects in the strategic sectors such as highways, bridge
projects, high-speed railways, military defence industry,
healthcare sector, urban regeneration projects and specific
nuclear power stations that will break energy external
If governed properly, the Turkey wealth fund will be the
driving power for the development of Turkey. Without increasing
public debts, funding for infrastructural projects such as
highways, Canal Istanbul, and nuclear power stations will be
ensured through the wealth fund. Additionally, national
companies operating in certain fields such as defence, aviation
and software will be supported on capital and projects to
become a global player.
Also, it is expected that the Turkey wealth fund will be a
key player in the international markets by participating as a
trusted partner of multinationals.
As a result, the Turkey wealth fund will diversify the
country's wealth by providing prosperity for future
generations. Besides, it will have a conciliative role between
the countries in the global market and contribute to the
increase of Turkey's domestic savings, as well as liberate the
countries' economies that are under the threats of global and
financial crises and support the growth and development of
Duran Bülbül (firstname.lastname@example.org),
Associate Professor of Finance, Gazi University, Faculty of
Economics and Administrative Sciences
Tel: +90 312 216 1349