Dubai Islamic Bank is doubling down on its bet in Turkey’s fintech sector, increasing its stake in T.O.M. Group, a digital financial services player.
DIB disclosed to the Dubai Financial Market that it has upped its shareholding from 20% to 25%, building on its initial investment in the group back in September 2023.
The financial details of both deals remain undisclosed. Requests for comment to DIB and T.O.M. Group were unanswered at the time of publication.
T.O.M. Group, established in 2020 by Turkish retail giant Aydin Group, is a digital holding company that operates three core businesses:
- T.O.M. Katilim Bankasi: Turkey’s first fully digital Sharia-compliant retail bank.
- T.O.M. Pay Elektronik Para ve Odeme Hizmetleri: a licensed e-money institution offering digital-payment solutions.
- T.O.M. Finansman: a financing firm creating consumer-focused digital financial products.
While T.O.M. Group’s financial performance isn’t public, its market position aligns with DIB’s publicly declared strategy of expansion in high-growth digital markets.
With assets worth $9 billion, DIB is the UAE’s largest Islamic bank and is now seemingly aiming to capture a slice of Turkey’s fintech boom as well.
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Turkish delight
Turkey’s population of 85 million, with a median age between 32 and 33, provides fertile ground for fintech adoption.
There are approximately 74 million internet users in Turkey, representing an internet use rate of 87% of its total population. A total of 81 million cellular mobile connections were active in Turkey in early 2024, equivalent to 94% of its total population.
For a population of 85 million, Turkey also has more than 126 million credit cards in circulation, according to the Interbank Card Center (BKM).
The combination of these demographics is poised to drive the demand for digital financial solutions — and T.O.M. Group looks, at least on paper, well-positioned to capitalize on that trend.
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DIB’s stock edged up 0.14% on 20 January, trading at 7.31 dirhams ($1.99) a share.
DIB is not alone among UAE lenders investing in the Turkish banking scene.
In 2019, Emirates NBD, Dubai’s largest bank by assets, acquired a 99.85% stake in DenizBank for $2.76 billion.
Edited by Ankush Chibber. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com
