Ankara- Turkish government commenced preparations to create the first sovereign fund in Turkey to support strategic and long term developmental projects. The fund will be directly oriented by the prime minister’s office.

The cabinet submitted a draft law to the parliament, last week. The draft law suggests creating a joint stock company that manages a sovereign fund, abides by relevant professional regulations and is affliated to the cabinet presidency. It also proposes establishing other sovereign funds as per the country’s need.

According to a report published by Sovereign Wealth Fund Institute, there are four sovereign funds in the Persian Gulf that are classified out of the ten greatest sovereign funds around the world. They are locatec in Saudi Arabia, Kuwait, Qatar and UAE. Development in this sector started taking place in 2005 when dozens of countries headed towards establishing sovereign funds.

Turkey was the only country among the G20 that does not have a sovereign fund and is now willing through this step to change tis fact.

Turkey expected in the beginning of 2016 that the country’s economic performance will enhance, affected by financial plans that reinforce relying on the local market and decline imports’ value. Forecasts also showed optimism in overcoming internal and external crises.

However, successive terrorist incidents and July failed coup made these forecasts unlikely; one week following the coup, Standard & Poor’s cut Turkey’s credit rating.

Several economic and international sources warned of the wide purge fallouts on the economic relations and investment mobility. Tourism in Turkey is the first witness on that.