Abstract:

Sovereign Wealth Funds can be established by countries that are commodity exporters or have foreign trade surplus in order to transfer these revenues to the next generations, to ensure the economic development and growth and to reduce the negative effects of foreign exchange incomes on the national economies. Turkey Wealth Fund established in 2016 via the sources transfered from the Privatization Administration of Turkey, in an economic climate that Turkey was facing budget deficit, current deficit and saving gap. In this respect, it differs significantly from other country practices. Considering its objectives, it is possible to characterize the Turkey Wealth Fund as a development fund. It is unclear how much of the developments in the country's economy can be attributed to the Fund's applications since its establishment. Lack of transparency in Wealth Fund operations makes it significantly difficult to evaluate the effect on economic structure. Thus, practices of Turkey Wealth Fund can be monitored from current economy news with a certain delay. However, when the potential opportunities and risks of Turkey Wealth Fund are assessed; it can be expressed that it has important economic, legal, political and financial risks, thus, wealth fund practices in Turkey should be terminated before they became widespread and deepened.

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