The escalating conflict in the Middle East has prompted dozens of international companies with operations in the Gulf region to consider migrating their business activities to the Istanbul Financial Center. In a recent interview, the chief executive of the state-backed hub revealed that the ongoing war has accelerated discussions with firms seeking more stable operational environments. The Istanbul Financial Center, a massive complex of modern high-rises on the city’s Asian side, was inaugurated three years ago and already serves as the headquarters for Turkey’s central bank, various state-owned lenders, and primary financial regulators. To attract global players, the center offers highly competitive incentives, including full corporate tax exemptions for the first ten years of operation.
The surge in interest comes as the U.S.-Israeli conflict with Iran continues to disrupt traditional financial hubs in the Gulf. Over the past month, IFC leadership has held meetings with more than 40 companies, the majority of which are headquartered in East Asia and Gulf nations. While many of these meetings were scheduled before the outbreak of hostilities, CEO Ahmet Ihsan Erdem noted that regional developments have significantly intensified these contacts. As firms weigh the risks of maintaining high-profile operations in a combat zone, Turkey is positioning its sovereign wealth fund-backed center as a secure and strategic counterweight to traditional hubs.
The operational reality in the Gulf has shifted dramatically since the war began more than a month ago, with Iran responding to attacks by targeting various locations across the region. This volatility has forced several major financial institutions to alter their service models, with some firms instructing employees to work remotely for safety and others, such as banking giant HSBC, closing all branches in Qatar until further notice. In contrast, the IFC is engaging with diverse firms from Malaysia, Japan, Singapore, South Korea, and Hong Kong. These discussions involve not only private corporations but also government ministries and lawmakers from these nations to explore broader areas of cooperation.
While the specific names of the interested companies remain confidential, Erdem confirmed that the inquiries span the fintech, insurance, and Islamic finance sectors. The center is currently preparing for a massive influx of personnel, with expectations to double its occupancy to approximately 40,000 workers by the end of December. This would bring the center’s occupancy rate to 75%, marking a rapid expansion for a facility designed to bridge the gap between eastern and western financial markets. As the war continues to reshape global logistics and risk assessments, Istanbul is emerging as a primary beneficiary of the shifting corporate landscape in the Middle East.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.