Finance

Kazakhstan's Financial Giants Expand Footprint in Turkish Banking Sector

June 25, 2026

Kazakhstan’s financial powerhouses are significantly deepening their footprint in Turkey, with recent acquisitions by Kaspi.kz and Freedom Holding Corp. underscoring a strategic pivot towards the Turkish financial sector. These moves signal a robust and expanding investment corridor between the two Turkic states, attracting the attention of international investors keen on emerging market opportunities. The latest development saw Kaspi.kz, a leading Kazakh fintech company, receive regulatory approval from Turkey’s Banking Regulation and Supervision Agency (BRSA) on June 24, 2026, to acquire Rabobank A.Ş., a licensed bank in Turkey. This transaction, expected to close in July 2026, marks a pivotal entry for Kaspi.kz into the Turkish banking landscape, aiming to leverage its expertise in payments, marketplace, and fintech services. Simultaneously, Freedom Holding Corp. has announced plans to acquire Turkish Bank A.Ş. and has already established a brokerage division, further solidifying Kazakh financial interest in the region.

These acquisitions are not isolated incidents but rather represent a burgeoning trend within the broader framework of enhanced economic and strategic cooperation between Turkey and Kazakhstan. For international investors and corporate decision-makers, these developments highlight Turkey’s continued appeal as a destination for foreign direct investment (FDI), particularly in its dynamic financial sector, while also showcasing the increasing regional influence of Central Asian capital.

A New Wave of Kazakh Financial Investment in Turkey

The acquisition of Rabobank A.Ş. by Kaspi.kz is a significant event, positioning a prominent Central Asian fintech player within Turkey’s banking system. Kaspi.kz, which already holds an 86.74% stake in Turkish e-commerce giant Hepsiburada, aims to integrate its successful super-app model, encompassing payments, marketplace, and fintech, into the Turkish market. Mikheil Lomtadze, CEO and Co-Founder of Kaspi.kz, stated that this approval represents a milestone for the company’s development in Turkey and its ambition to serve Turkish consumers and merchants.

In parallel, Freedom Holding Corp., another Kazakh financial services conglomerate, has also made substantial commitments to the Turkish market. In March 2026, the company announced its intention to acquire a 99.3% stake in Turkish Bank A.Ş., a smaller but established player in the Turkish banking sector. This follows Freedom Holding Corp.’s launch of Freedom Yatırım, a brokerage division in Turkey, in January 2025. Timur Turlov, CEO of Freedom Holding Corp., noted that this might be the first new license issued to a foreign broker in Turkey in two decades, indicating a strategic long-term vision. The company plans to invest $300 million in expanding its Turkish operations.

These recent moves by Kaspi.kz and Freedom Holding Corp. underscore a growing confidence among Kazakh financial institutions in Turkey’s economic potential and regulatory environment. They also reflect a broader trend of cross-border investment within the Turkic world, driven by cultural ties, strategic geopolitical alignments, and the pursuit of new growth markets.

Turkey’s Banking Sector: Resilience and Opportunity

Turkey’s banking sector is one of the most developed and regulated in its region, overseen by the Banking Regulation and Supervision Agency (BRSA) and the Central Bank of the Republic of Turkey (CBRT). Despite periods of economic volatility, including high inflation and currency depreciation, the sector has demonstrated resilience, attracting substantial foreign direct investment. According to the Turkish Investment Office, the finance sector accounted for 31.6% of foreign investments, highlighting its attractiveness. Other data, such as from Global Angle, indicates that finance and insurance attracted 8% of equity-based FDI in January-September 2025.

Foreign investors in Turkey’s banking sector are generally treated equally to domestic investors, as stipulated by Article 3 of the Foreign Direct Investment Law (4875). However, establishing or acquiring a bank involves a rigorous approval process by the BRSA, requiring extensive documentation and adherence to specific capital and operational requirements. This regulatory framework, while stringent, aims to ensure stability and compliance with international standards.

The Turkish government has actively sought to attract FDI, implementing a Medium-Term Program (MTP) for 2025-2027 to address macroeconomic challenges and improve the investment climate. While the Turkish lira experienced depreciation and inflation remained high in 2024, the CBRT has undertaken significant monetary policy adjustments, including interest rate hikes and subsequent cuts in early 2025, to stabilize the economy and boost investor confidence. Foreign flows into Turkish equities improved in 2025, with net inflows reaching $2.3 billion, according to ÜNLÜ & Co.

The sector’s appeal is further bolstered by Turkey’s large domestic market, favorable demographics, and its strategic geographical position, which provides access to multiple regional markets. Turkish banks are also noted for their digital innovation, offering advanced mobile apps and online platforms, which aligns well with fintech-focused investors like Kaspi.kz.

The Growing Economic Corridor Between Turkey and Kazakhstan

The recent financial sector acquisitions are part of a broader, intensifying economic partnership between Turkey and Kazakhstan. This relationship is underpinned by shared Turkic heritage, strategic geopolitical interests, and a mutual desire to enhance trade and investment. During Turkish President Recep Tayyip Erdoğan’s visit to Astana in May 2026, both nations signed a Declaration on Eternal Friendship and Expanded Strategic Partnership, setting an ambitious bilateral trade target of $15 billion. This figure represents a significant increase from the approximate $5.5 billion in bilateral trade recorded in the previous year.

Investment flows are also substantial. Turkish companies have invested nearly $6 billion in Kazakhstan over the past two decades, with around 3,800 Turkish-linked companies operating there. Conversely, Kazakhstan’s investments in Turkey have reached approximately $2.5 billion. This reciprocal investment highlights the deepening economic integration.

Cooperation extends across diverse sectors:

  • Transport and Logistics: The development of the Trans-Caspian International Transport Route, known as the Middle Corridor, is a key priority. This route connects China to Europe via Central Asia, the Caspian Sea, the Caucasus, and Turkey, offering an alternative to traditional routes. Both countries are investing in infrastructure to enhance its capacity and efficiency.
  • Energy: Kazakhstan, a major crude oil exporter, and Turkey, aiming to be an energy hub, are exploring increased cooperation in oil and gas projects.
  • Agriculture: Kazakhstan seeks to increase agricultural exports to Turkey, with trade turnover in the agro-industrial sector growing by over 25% in 2025. Joint projects in grain processing and other areas are underway.
  • Digitalization and AI: Kazakhstan is actively promoting digitalization and AI, with a new ministry and AI centers, expressing readiness for joint projects with Turkish companies in fintech, cybersecurity, and digital services.
  • Manufacturing and Industry: Turkish companies have implemented numerous projects in Kazakhstan across various industrial sectors, with another 50 joint projects valued at approximately $4 billion currently under development.

Further institutional support for this integration comes from the Turkic Investment Fund (TIF), established in February 2024, with its headquarters in Istanbul. The TIF, with an initial authorized capital of $500 million, aims to finance strategic projects, foster economic cooperation, and increase intra-regional trade among Turkic states, with its project activities expected to commence in 2026.

The recent Kazakh acquisitions in Turkey’s financial sector, coupled with the broader strengthening of bilateral economic ties, present both significant opportunities and complex challenges for international investors. While Turkey offers a large market, a strategic location, and a sophisticated financial infrastructure, navigating its regulatory environment and macroeconomic dynamics requires careful consideration.

For foreign investors looking to capitalize on these trends, understanding the intricacies of the Turkish market is paramount. The process of acquiring a licensed bank, as demonstrated by Kaspi.kz and Freedom Holding Corp., involves extensive Government Relations and regulatory liaison with institutions like the BRSA and the CBRT. This includes securing establishment permits and operational licenses, which can be a lengthy process requiring approval from multiple board members. Expert guidance is crucial to manage expectations and ensure compliance with all legal and procedural requirements.

Furthermore, any significant investment necessitates a robust Legal and Tax Compliance framework. This covers not only the acquisition process itself, but also ongoing operations, including beneficial ownership registration with MASAK, capital flow reporting to the Central Bank, and adherence to specific tax regulations for interest income and dividend payments. Foreign investors must prepare comprehensive banking compliance packs, including corporate registration, articles of association, ownership chains, and source of funds narratives, to meet stringent Know Your Customer (KYC) requirements.

Developing a sound Market Entry strategy is also critical. This involves in-depth analysis of the target sector, competitive landscape, and potential synergies, as Kaspi.kz is doing by integrating its fintech experience. For new entities, Company Incorporation and corporate structuring must be meticulously planned to optimize legal and tax efficiency from the outset.

The broader economic cooperation, particularly in areas like transport (Middle Corridor) and manufacturing, opens doors for investors in related sectors. Companies involved in logistics, infrastructure development, energy, and advanced manufacturing may find new opportunities, potentially benefiting from Investment Incentives offered by the Turkish government to foster growth in strategic industries and developing regions.

Finally, successful execution of complex cross-border acquisitions and new ventures requires strong Project Management capabilities for on-the-ground implementation, from integrating acquired entities to setting up new operational infrastructure and ensuring local market penetration.

What This Means for Foreign Investors

The recent surge in Kazakh financial sector investments in Turkey, exemplified by Kaspi.kz’s acquisition of Rabobank A.Ş. and Freedom Holding Corp.’s strategic moves, signals a deepening of economic ties within the Turkic world and highlights Turkey’s enduring appeal as an FDI destination. For international investors, these developments underscore the opportunities available in Turkey’s dynamic financial sector and its broader economy, particularly for those willing to navigate a complex but rewarding market.

To effectively capitalize on such opportunities, foreign investors must approach the Turkish market with a well-informed strategy and robust operational support. This includes meticulous planning for market entry, ensuring full legal and tax compliance in a frequently evolving regulatory environment, and adeptly managing government relations to secure necessary approvals and navigate bureaucratic processes. Leveraging expert advisory services for company incorporation, identifying and securing investment incentives, and providing on-the-ground project management support can significantly de-risk and streamline investment initiatives in Turkey. The strategic alignment between Turkey and Kazakhstan, coupled with Turkey’s efforts to stabilize its macroeconomic fundamentals, suggests a fertile ground for well-executed foreign investments, particularly in sectors poised for growth and digital transformation.

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