Turkcell Taps Dubai Islamic Bank for $150 Million to Fuel Innovation and Growth
Turkcell (NYSE: TKC) (BIST: TCELL), Turkey’s foremost technology and communications company, has officially secured a significant Murabaha financing deal worth USD 150 million from Dubai Islamic Bank PJSC, a prominent financial institution in the Gulf region. The agreement marks a major milestone in Turkcell’s strategic efforts to bolster infrastructure development, accelerate technological innovation, and diversify its funding sources with an emphasis on Islamic financing principles.
At the official signing ceremony in Istanbul, Turkcell CEO Dr. Ali Taha Koç underscored the importance of the agreement, stating, “Our goal and priority is to bring the most innovative technologies to our country and provide the highest quality service to our customers. This transaction, which is based on the interest-free Murabaha model, will not only accelerate our infrastructure investments but also serve as a critical resource supporting our long-term growth strategies. It also demonstrates the high level of investor confidence and interest in Turkcell from the Gulf region.”
This landmark financing deal is part of Turkcell’s broader strategy to enhance its financial flexibility and diversify its capital structure. By tapping into Islamic financing models such as Murabaha—which aligns with Shariah-compliant, interest-free financial principles—Turkcell aims to build a robust and inclusive funding framework that accommodates a variety of investor profiles. The Murabaha agreement adds to the company’s already diverse financial toolkit, which includes conventional and Islamic financing options, local and international bond issuances, export credit agency facilities, development bank loans, and sustainability-linked financing instruments.
The USD 150 million Murabaha financing has a strategic five-year bullet structure, a format that provides financial stability and predictability. This structure allows for lump-sum repayment at the end of the term, giving Turkcell increased operational flexibility as it executes its capital investment plans. The deal is especially timely as Turkcell continues to expand in areas such as next-generation data centers, advanced cloud technologies, and renewable energy solutions, while simultaneously fortifying its core telecommunications services, including both mobile and fixed broadband networks.
In addition to financial structuring, the agreement is expected to pave the way for broader collaboration between Turkcell and financial institutions across the Gulf Cooperation Council (GCC) region. Dr. Koç emphasized the strategic nature of the partnership, saying, “This agreement strengthens our relationships with leading financial institutions in the Gulf and opens doors for future cooperation. The alignment with Murabaha financing also demonstrates our global credibility and our commitment to sustainable, ethical financing models. We believe this is just the beginning of more strategic partnerships to come.”
Dubai Islamic Bank’s Group CEO, Dr. Adnan Chilwan, echoed this sentiment at the ceremony. “We are delighted to have closed another significant transaction from a GCC bank, this time through a USD 150 million Murabaha financing facility. Turkey remains a vital part of Dubai Islamic Bank’s cross-border strategy. As part of our mission to support regional economic growth and innovation, we are proud to back Turkcell—a leader in technology and communications in Turkey—in its growth journey. We are confident that this partnership marks the beginning of many more strategic and landmark transactions between our institutions.”
Also in attendance at the signing ceremony were Turkcell CFO Kamil Kalyon, Dubai Islamic Bank’s Chief of Investment Banking Ali Ahmad, and other senior executives from both organizations. The presence of key leadership figures from both sides further underscores the importance of this partnership and the mutual commitment to advancing strategic financial cooperation.
This new financing arrangement highlights Turkcell’s evolving role as a digital infrastructure leader not just within Turkey, but across regional markets. By continuously innovating and investing in future-ready technologies, Turkcell aims to reinforce its position as a driver of digital transformation in emerging markets.
Furthermore, the company’s proactive approach to balance sheet management—through diversified and sustainable financing structures—positions it well to weather economic volatility and capitalize on emerging growth opportunities. With an eye on both national and international expansion, Turkcell is committed to leveraging strategic financial partnerships, such as the one with Dubai Islamic Bank, to achieve its long-term mission of enabling digital connectivity and delivering value for all stakeholders.
In conclusion, the USD 150 million Murabaha financing agreement between Turkcell and Dubai Islamic Bank PJSC is more than a financial deal. It represents a shared vision of innovation, sustainable development, and cross-border partnership. As Turkcell continues to chart a course toward future growth, this strategic financing will serve as a cornerstone in the company’s mission to deliver advanced technologies, support national development, and enhance shareholder value through prudent and forward-looking financial management.
