Saudi Arabia-headquartered Islamic Development Bank (IsDB) is reinforcing its contribution to international infrastructure development, with a landmark financing agreement supporting Türkiye’s railway network.
IsDB’s largest sovereign financing in Türkiye
The bank has committed €660 million ($728 million) to the Istanbul North Rail Crossing Project, marking its largest sovereign financing transaction in Türkiye to date.
Signed on November 12 during COP31 in Antalya, the agreement formed part of a wider financing initiative through which multilateral development banks announced nearly $5.1 billion for 10 projects and programmes in the country.
The deal also marks the first Forward Lease agreement between IsDB and Türkiye, after receiving approval from the bank’s Board of Executive Directors in June 2026.
How can rail reshape regional trade and mobility?
Türkiye’s wider ambition to reach net-zero emissions by 2053 is placing particular emphasis on infrastructure that can support both economic activity and environmental sustainability.
Transport is an important part of this transition, as well as renewable energy development and industrial decarbonization.
Against this backdrop, the Istanbul North Rail Crossing Project is poised to promote the country’s rail network through approximately 127 kilometres of electrified and fully signalized infrastructure.
The project will also facilitate more efficient freight and passenger movement between Europe and Asia, according to IsDB, while strengthening connectivity along major regional trade routes.
How is Saudi investment advancing Türkiye’s energy transition?
Saudi Arabia’s role in supporting the energy transition across international markets is vividly reflected in the growing involvement of its companies in large-scale renewable energy developments.
In Türkiye, Saudi-listed ACWA is developing the Sivas and Taşeli solar projects, each planned to have a capacity of 1,000 MW.
IsDB announced its participation in supporting the developments during COP31, underscoring its work with relevant stakeholders to streamline implementation and promote private-sector participation in financing and operations.
The two projects have a combined planned capacity of 2 GW and have attracted the backing of eight international development and commercial lenders, including IsDB, which signed a Letter of Support for their financing, according to ACWA.
Greening Türkiye’s industrial backbone
IsDB is also extending its support to Türkiye’s industrial transition, adding another dimension to its engagement across the country’s sustainable development priorities.
The bank has joined the Türkiye Industrial Decarbonization Investment Platform as a strategic partner, an initiative focused on accelerating low-emission production and strengthening industrial competitiveness.
The platform aims to achieve these objectives by developing investment-ready projects and mobilizing financing from both domestic and international sources.
During its first phase, it will focus on four sectors: iron and steel, aluminum, cement and clinker, and fertilizers.
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