The Managing Director of JPMorgan, Gokhan Ozkan, mentioned that the valuation levels of Turkish banks continued to attract foreign investors and supported the intense interest in the Turkish banking sector. He made assessments regarding Turkish lira assets. Ozkan noted how the valuation levels of Turkish banks remained attractive for foreign investors, as shown by recent sales such as Rabobank Turkey’s sale to Ronesans Holding and the sale of Odeabank, the subsidiary of Lebanon’s Bank Audi in Turkey, in the past four months. Last week, the acquisition of a 96% stake in Odeabank by the investment company ADQ based in Abu Dhabi served as evidence of strengthened economic ties between the Gulf countries and Turkey, according to Ozkan. He emphasized that this acquisition reflected a strategic synergy in which both regions benefited through cooperation. Ozkan stated, “This demonstrates confidence in the attractive potential of the Turkish banking market and the commitment to enhancing bilateral relations between the United Arab Emirates (UAE) and Turkey.” He highlighted how this investment signaled ADQ’s confidence in Turkey’s banking potential. Drawing attention to the country’s stable economic growth, with real GDP expected to rise by 4.5% in 2023 and nominal GDP exceeding $1.1 trillion, Ozkan stated, “The performance of the banking sector is generally seen as an indicator of an economy’s strength.” He continued, “Any transaction in the banking sector depends on investors’ views of the overall economic environment. Despite recent challenges, Turkey’s banking sector continues to offer opportunities for foreign investors. Despite past fluctuations, a more stable economic environment has emerged, and the country continues to offer significant growth potential in the long run. Thanks to the orthodox macroeconomic policies implemented, Turkey has once again become an attractive market for both debt and equity investors.” Ozkan believed that the acquisition of Odeabank could help Gulf investors diversify their portfolios by focusing on emerging markets with strong growth potential. As part of a broader trend, he pointed out Dubai Islamic Bank’s recent investment in the digital banking entity T.O.M. Bank. Ozkan suggested that the sale of Odeabank resulted from a strategic decision by Bank Audi to simplify its operations and refocus on its core markets in Lebanon and Europe. He said, “Due to fluctuations in Lebanon, Odeabank has become a non-core asset for Bank Audi in recent years, and despite its strong performance and revenue generation within the bank, capital raising needs have been challenging.” Ozkan emphasized that this acquisition presented a favorable opportunity for ADQ to enter the Turkish banking sector, thanks to the close ties between Abu Dhabi and Ankara, facilitating the process and creating a supportive environment for strategic investments. He stated, “The alignment of interests may allow ADQ to expand its presence in Turkey’s banking sector, as they know there is a strong foundation for mutual cooperation.”