JPMorgan Executive Director Gökhan Özkan provided insights regarding Turkish lira assets.
Özkan stated that the valuation levels of Turkish banks continue to be attractive for foreign investors, evident from the recent sale of Rabobank Turkey to Renaissance Holding and the sale of Odeabank, a subsidiary of Lebanon’s Bank Audi in Turkey, over the past four months.
He noted that last week’s acquisition of a 96% stake in Odeabank by Abu Dhabi-based investment company ADQ is proof of the strengthening economic ties between Gulf countries and Turkey. Özkan described this acquisition as reflecting a strategic alignment where both regions see mutual benefits in cooperation.
Özkan remarked, “This demonstrates confidence in the attractive potential of the Turkish banking market and a commitment to strengthening bilateral relations between the United Arab Emirates (UAE) and Turkey.”
### “TURKEY HAS ONCE AGAIN BECOME AN ATTRACTIVE MARKET”
Özkan emphasized that this investment showcases ADQ’s confidence in Turkey’s banking potential.
He pointed out that the country has recorded stable economic growth, including a 4.5% increase in real Gross Domestic Product (GDP) in 2023 and nominal GDP surpassing $1.1 trillion, stating, “The performance of the banking sector is generally seen as an indicator of the strength of an economy.”
Özkan continued:
“Any transaction in the banking sector depends on investors’ views about the general economic environment. Despite the challenges of recent years, Turkey’s banking sector continues to offer opportunities for foreign investors. A more stable economic environment has emerged despite fluctuations from a few years ago, and the country continues to offer significant growth potential in the long term. Thanks to the orthodox macroeconomic policies implemented, Turkey has once again become an attractive market for both debt and equity investors.”
### “ADQ MAY EXPAND ITS PRESENCE IN THE TURKISH BANKING SECTOR”
Özkan noted that the acquisition of Odeabank is part of a broader trend where Gulf investors are diversifying their portfolios by focusing on emerging markets with strong growth potential, citing the recent investment by Dubai Islamic Bank in the digital banking entity T.O.M. Bank as another example of this trend.
He believes that the sale of Odeabank was aligned with Bank Audi’s strategic decision to streamline its operations and reshape its core markets in Lebanon and Europe. Özkan stated, “Due to fluctuations in Lebanon, Odeabank has become a non-core asset for Bank Audi in recent years, and despite strong performance and revenue generation within the bank, the need for capital increases has been challenging.”
Özkan emphasized that this acquisition is an opportune moment for ADQ to enter the Turkish banking sector, stating:
“The close relationship between Abu Dhabi and Ankara has facilitated the process, creating a supportive environment for strategic investments. This alignment of interests may enable ADQ to expand its presence in Turkey’s banking sector, as they are aware of the strong foundation for mutual cooperation.”
Source
Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
