Turkey is the economic heavyweight of the eastern Mediterranean with a GDP of roughly 1.1 trillion dollars and a population of 86 million. Borsa Istanbul, known as BIST, is the country's only stock exchange, formed in 2013 from the merger of the Istanbul Stock Exchange, the Istanbul Gold Exchange, and the Turkish Derivatives Exchange. Total market cap sits around 8.2 trillion Turkish lira, which is about 215 billion dollars as of early April 2026.

Turkey has had a remarkable decade economically, characterized by very high inflation, rapid currency depreciation, and unorthodox monetary policy. The lira has lost more than 90 percent of its value against the US dollar since 2013. That has created a situation where Turkish stocks are extremely cheap in dollar terms but have delivered inflation-busting returns in lira terms. The BIST 100 is up roughly 3,500 percent in lira since 2020, while its dollar return is close to flat over the same period.

For Shariah investors, Turkey is interesting because the country has grown its Islamic finance sector through the concept of katilim bankalari, or participation banks. Borsa Istanbul publishes two Shariah indices, the Katilim 30 and the Katilim 50, which track the largest compliant stocks. The screening methodology is based on the BIST Participation Indices Rules, which align closely with AAOIFI standards.

Let me walk through the most important halal names on BIST.

Participation banking

Kuveyt Turk Participation Bank is owned by Kuwait Finance House and is not separately listed. Ziraat Katilim is a state-owned participation bank and also not publicly listed. Vakif Katilim is similar.

The listed participation banks on BIST are smaller. Turkiye Finans Participation Bank is privately held.

Albaraka Turk Participation Bank (ALBRK.IS) is the listed option. Market cap around 9 billion lira. Return on equity has been volatile due to the high inflation environment. The bank is fully Shariah-compliant and gives focused exposure to the participation banking sector.

The larger conventional banks on BIST include Garanti BBVA (GARAN.IS), Akbank (AKBNK.IS), Is Bankasi (ISCTR.IS), Yapi Kredi (YKBNK.IS), Halkbank (HALKB.IS), and Vakifbank (VAKBN.IS). All are conventional and fail Shariah screens.

This creates a challenge for halal investors. The Turkish banking sector is large, highly profitable in lira terms, and central to the country's economic story. But nearly all of the attractive exposure comes through conventional banks that are excluded from a strict halal portfolio.

Industrials and conglomerates

Koc Holding (KCHOL.IS) is the largest industrial conglomerate in Turkey with exposure to automotive (Ford Otosan, Tofas), consumer electronics (Arcelik), energy (Tupras refining), and finance. Market cap around 320 billion lira. Koc is a massive holding company and its Shariah profile is complicated because it consolidates subsidiaries with different debt profiles. Under the BIST Katilim indices, Koc is typically excluded because it owns stakes in conventional financial businesses.

Sabanci Holding (SAHOL.IS) is the other big conglomerate. Market cap around 180 billion lira. Similar issue, with exposure to Akbank and conventional finance that excludes it from the Katilim indices.

Tupras (TUPRS.IS) is the national refining champion and one of the largest listed companies in Turkey. Market cap around 260 billion lira. Dividend yield near 7 percent. Compliant under the Katilim indices.

Ford Otomotiv Sanayi, Ford Otosan (FROTO.IS), is the Ford vehicle assembly joint venture. Market cap around 280 billion lira. Compliant.

Arcelik (ARCLK.IS) makes Beko and Grundig brand appliances. Market cap around 50 billion lira. Compliant.

Turkish Airlines, THY (THYAO.IS), is one of the largest airlines in the world by destinations served. Market cap around 380 billion lira. Compliant under the Katilim indices. Dividend policy is variable.

Pegasus Airlines (PGSUS.IS) is the low-cost carrier. Market cap around 45 billion lira. Compliant.

Telecommunications

Turkcell (TCELL.IS) is the largest mobile operator in Turkey. Market cap around 110 billion lira. Dividend yield near 4 percent. Compliant under the Katilim indices most quarters, though the debt ratio should be checked.

Turk Telekom (TTKOM.IS) is the incumbent fixed and mobile operator. Market cap around 80 billion lira. Compliant.

Food and consumer

Ulker Biskuvi (ULKER.IS) is a major biscuit and confectionery producer. Market cap around 32 billion lira. Compliant.

Migros Ticaret (MGROS.IS) is the largest supermarket chain. Market cap around 70 billion lira. Compliant.

BIM Birlesik Magazalar (BIMAS.IS) is a discount retailer similar to Aldi or Lidl. Market cap around 290 billion lira. Dividend yield around 3 percent. Compliant.

Sok Marketler Ticaret (SOKM.IS) is another discount retailer. Market cap around 60 billion lira. Compliant.

Cement and construction

Akcansa Cimento (AKCNS.IS) is a major cement producer owned by Sabanci and Heidelberg. Market cap around 35 billion lira. Compliant.

Oyak Cimento (OYAKC.IS) is another cement name. Compliant.

Technology

Aselsan (ASELS.IS) is the state-owned defense electronics company. Market cap around 260 billion lira. Dividend yield around 2 percent. Compliant under the Katilim indices. Note that defense contractors pose a separate ethical question for some investors, though Turkish defense exposure does not directly fail Shariah screens the way weapons of mass destruction manufacturers would.

Logo Yazilim (LOGO.IS) is an enterprise software company. Market cap around 20 billion lira. Compliant.

A practical halal BIST portfolio

The core halal Turkish names to consider are:

Albaraka Turk (ALBRK.IS)
Tupras (TUPRS.IS)
Ford Otosan (FROTO.IS)
Arcelik (ARCLK.IS)
Turkish Airlines (THYAO.IS)
Turkcell (TCELL.IS)
Turk Telekom (TTKOM.IS)
BIM (BIMAS.IS)
Migros (MGROS.IS)
Aselsan (ASELS.IS)
Ulker Biskuvi (ULKER.IS)
Akcansa Cimento (AKCNS.IS)

That list gives you participation banking, refining, auto manufacturing, appliances, aviation, telecom, discount retail, defense electronics, and food. It covers most of the non-financial Turkish economy.

How to access BIST

Foreign investors can trade BIST stocks through local brokerages or through international brokers with Turkish market access. Interactive Brokers offers BIST access. Turkey has relatively open foreign ownership rules with few restrictions on listed stocks. The exchange settles T+2 and trades in Turkish lira.

For ETF exposure, iShares MSCI Turkey ETF (TUR) on Nasdaq gives broad market exposure. It is not Shariah-screened and includes the conventional banks that a halal portfolio would exclude. Roughly 30 to 40 percent of the ETF's holdings would typically fail Shariah screens.

Bottom line

Turkey is a large, liquid emerging market with a functional Shariah indexing framework through the BIST Katilim 30 and Katilim 50. The halal investable universe is respectable, with strong names in refining, autos, telecom, retail, and industrials. The main challenges are currency risk and the absence of the big conventional banks, which represent a huge portion of the exchange's market cap. A halal Turkish portfolio will be underweight financials and overweight industrials and consumer staples. For investors willing to take on the lira risk, Turkish stocks are among the cheapest in any emerging market in US dollar terms. For those who prefer more stable currency exposure, the Turkish allocation should remain small within a broader emerging markets basket.

Borsa Istanbul: Turkey's Shariah Index and the BIST 30