By Furkan Naci Top and Bahattin Gonultas
ISTANBUL
The Borsa Istanbul, Turkey's sole stock exchange platform, has all of the elements necessary to become the most important exchange in the region, the vice-chairman of the New York-based Nasdaq OMX stock exchange has said.
Speaking to Anadolu Agency on the sidelines of the fifth Istanbul Finance Summit which finished on Tuesday, Meyer "Sandy" Frucher said the long term perspective among analysts was that the exchange, which began operating in April 2013, will become the most important stock market between central Europe and central Asia.
He said: “It has all of the elements that we (at the Nasdaq) needed. We wanted to be part of it.
"We looked at it, and we said this was 'a great opportunity'.”
Frucher went on to praise the Turkish economy - the 17th-largest economy in the world in terms of gross domestic product - saying: “The Turkish market's gains are very sustainable because the elements that comprise the Turkish economy are very, very strong.”
- 'Solid growth'
He went on: “First of all, it is a very solid economy. It has been solid for the last 12 years. The growth rate has been very, very solid.
“If you are an investor and you are looking at Borsa Istanbul, there are very, very few people who have actually taken their companies public here."
"The percentage of companies in the stock exchange is very low. Very few people have invested in the stock market as individuals, so its growth potential is very high," he said.
Frucher also touched upon Istanbul’s trade and cultural opportunities, saying: “Istanbul is a world destination. People like to come here.
"So if people like to come here to do business, because it is a wonderful place to come, it is a positive thing. It is a very good thing. It is a diversified culture. It is a magical place.”
- 'Region in turmoil'
He also said that a place for Islamic finance in the world had to relate to the region.
Frucher said: "There is a lot of turmoil in the (Middle East) region. But I don’t think there is a question about people’s commitment or fate in Islam. I think the question is whether or not you can have it without extremism.
"Turkey is an example of where you can have an essentially secular environment with ... more than 95 percent of the population being people who are Muslim."
"If you can demonstrate to the world that the two can live together, you can have people under sharia law, people who are more secular and they can live together in peace, that’s a winner in the long term," he added.
The Borsa Istanbul and Nasdaq OMX Group signed a strategic partnership agreement on December 31, 2013, to cement the Turkish index's position and brand as the market hub for the Eurasia region, serving global issuers, investors and corporations.
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