The joint investment fund aimed at enhancing development and strengthening economic cooperation among Turkic-speaking countries has been launched with an initial capital of half a billion dollars, Türkiye's vice president said on Saturday.
The founding agreement for the Turkic Investment Fund (TIF) was signed on the sidelines of the extraordinary summit of the Organization of Turkic States (OTS) in Ankara last March.
It is inspired by institutions such as the European Bank for Reconstruction and Development and the Asian Development Bank and is headquartered in Istanbul.
"The Turkic Investment Fund stands as one of our concrete steps in recent years," Vice President Cevdet Yılmaz told an inaugural meeting of the TIF Board of Governors in Istanbul.
"It marks a significant milestone in our collective efforts to strengthen the Turkic world in all areas and make it more resilient against various challenges."
The TIF aims to bolster economic cooperation among Turkic states and help maintain financial stability, Yılmaz said.
The fund's foundation aligns with the Turkic World 2040 Vision, a strategic road map adopted in 2021 to enhance collaboration across member states.
Yılmaz emphasized the fund's foundation on principles of equal capital contribution and equal voting rights among member states. "The TIF is established with an initial capital of $500 million," he noted.
The OTC is an international organization comprising prominent independent Turkic countries that work together to elevate relations and union among themselves.
In addition to Türkiye, its members include Azerbaijan, Kazakhstan, Kyrgyzstan, and Uzbekistan. EU state Hungary, Turkmenistan and the Turkish Republic of Northern Cyprus (TRNC) have observer status.
The organization has evolved from merely a platform for leaders to meet into a robust structure fostering cooperation in economic, social, cultural and foreign policy areas, said Yılmaz.
He stressed the organization's increasing international visibility and impact.
"Our collective efforts have turned our family council into a strong and respected organization that other countries seek to cooperate with. Our goal is to empower the Turkic world in all areas and make it more resilient to various challenges," he noted.
'Much work to do'
The member states of the OTC, formerly called the Turkic Council, boast a combined population exceeding 170 million, a trade volume of about $1.2 trillion and a gross domestic product (GDP) surpassing $1.5 trillion, according to Yılmaz.
"Our member states' exports reached $558 billion in 2022. This is indeed a significant figure. We have a share exceeding 2% of global trade. However, only 6% of this export is between member states. Of the $558 billion in exports, only $33 billion was conducted between member countries. This shows how much work we have to do," he noted.
To sustain common development, Yılmaz said they are working intensively to remove non-tariff barriers to trade, increase mutual investments, improve connectivity, facilitate transportation activities and strengthen the region's key position in energy and transportation corridors.
He highlighted the importance of the TIF in attracting foreign investment and financial resources to Turkic states, thereby supporting economic development and financial sustainability.
He noted that the fund's capital base is expected to grow through effective projects and transparent business models, attracting additional investors.
"The TIF will contribute significantly to the prosperity of the Turkic region by supporting development projects that offer mutual benefits, including industrial production, infrastructure, transportation, agriculture, information and communication technologies, and tourism," Yılmaz explained.
"This will bring our countries closer and provide valuable opportunities for businesses to expand their activities across the Turkic states."
The TIF is planned to collaborate with international and national financial institutions, as well as trade chambers and private entities. It aims to facilitate regional trade, enhance economic cooperation, and create new opportunities for member countries.
"The fund's activities will be instrumental in fostering entrepreneurship and innovation, supporting infrastructure development, and building a brighter future for all Turkic states," Yılmaz added.
"It will also play a crucial role in attracting foreign investment and financial resources, creating new opportunities for global cooperation and partnerships."
Yılmaz expressed gratitude to the member states for their support in establishing the TIF in Istanbul, a city with a strategic and central position at the intersection of Europe and Asia, and a financial hub.
"As Istanbul has been named the financial center of the Turkic world for 2025, its unique features and advantages will undoubtedly strengthen the TIF and attract investors to both the Turkic world and the fund itself," he said.
Yılmaz expressed confidence in the TIF's ability to meet the development needs of member states through transparent and results-oriented operations.