Participation banking in Iraq

Iraq and Turkey, which share many geographical, historical, political and economic characteristics, have experienced similar instability conditions and crises affecting the region, as well as military coups and internal problems. Of course, the reasons listed above have played a role in the delay in the entry of the Islamic economy into these two countries compared to other Islamic countries. This study examines the development and current functioning of participation banking in Iraq. The study concludes that despite the number of Islamic banks in Iraq exceeding five times the number of Turkish participation banks and the structure of the Iraqi society that encourages Islamic transactions, Türkiye is several steps ahead of Iraq in the field of Islamic finance. The reason for this is the ongoing political instability in Iraq, which Türkiye has overcome since the nineties and entered the development and development phase, as well as the government's support and development efforts for this sector.