Turkey publishes law to set up sovereign wealth fund

ANKARA (AA) – A law to establish a Turkish sovereign wealth fund intended to boost annual growth over the next decade was published in the country’s Official Gazette on Friday

After the defeated July 15 coup attempt, the Turkish government in August introduced a bill to parliament to setting up a wealth fund to keep growth on track and reassure investors unnerved by the upheaval.

Financing for the fund, which aims to lead annual growth of 1.5 percent over next decade, will be provided by government asset sales, cash surpluses from the state privatization fund and other state institutions, the draft law reads.

It will also be able to establish other funds under its management, if need be. The fund may also issue capital market instruments, according to the new legislation.

The fund will be exempted from several laws and regulations governing state institutions, including anti-trust laws and state economic enterprises.

Turkey's growth rate was 4.8 percent in the first quarter of the year, one of the highest in emerging economies.

Traditionally, wealth funds were the preserve of major commodity exporters, particularly oil-rich countries like Kuwait, Norway or Saudi Arabia. Today, more than 30 countries have sovereign wealth funds.