Turkey sells 10% of Istanbul Stock Exchange shares to Qatar
The economic situation in Turkey, aggravated by the pandemic, has led to the collapse of the Turkish lira, which has reached historic lows in recent months. In view of this situation, Erdogan has been forced to sell 10 percent of the shares in his stock exchange to Qatar, for an estimated value of some $300 million, some 250 million euros. In this way, the Turkish sovereign fund maintains 80.6% of the Istanbul Stock Exchange, known by the acronym BIST-100. The other 9.4% is held by the Istanbul Commercial Exchange, the Turkish Capital Markets Association and other investors.
The sale was reportedly closed at a meeting between Turkish and Qatari leaders a few days ago during Al Thani's visit to the country. This would certify the good relationship between Ankara and Doha, which have seen their relations as an escape route from the blockades and sanctions imposed by other countries. During the meeting, other aspects would also be dealt with in order to try and support the Turkish economy. A series of memoranda would have been signed including the sale of shares in a shopping centre in Istanbul, also the participation in the port of Antalya and other cooperation agreements between the two countries in the field of finance.
From the political opposition, the sale of 10% of the shares has been seen as a "betrayal of trust" placed in it. The most forceful in his statements has been the leader of the Turkish Future Party, Ahmet Davutoglu. The former prime minister -when he was still a member of the ranks of Erdogan's party, Justice and Development-, has called the sale "unforgivable". Davutoglu also demanded the accountability to which Erdogan and his political allies must submit after having carried out this destruction of the Turkish economy.
Apart from what this sale entails, the growing lack of foreign currency after the collapse of the lira may also cause the sale of public goods with which to cash in. This was also part of the agreements with Doha. In the words of economist Veysel Ulusoy: "This is the threshold we have reached, which shows the scarcity of the Central Bank's reserves and its inability to pay debts".
Turkish lawyer Dogan Arkan has announced that he will file a complaint against Erdogan, saying that a national asset such as the stock exchange "cannot be privatized" and that if possible "the sale should be tendered, not sold directly to the Qatari". Other opposition figures have expressed, like Davutoglu, their rejection of the sale. Aykut Erdogan of the main opposition party denounced that "Turkey will become Qatar's private property in the future".
Erdogan has sought a simple and quick way out of an economic situation that is endangering his presidency. Turkey will furthermore have to face more than possible sanctions as a result of the forthcoming European summit, which will further narrow Erdogan's room for manoeuvre, as he continues to flee in order to preserve his position at the head of Turkey, something that will be decided on in the forthcoming presidential elections, which are expected to be held in 2023.
