‘Sacred Duty’: Inflation Eats Into Turkey’s Muslim Feast

Turks who make a living raising animals and selling them on open markets fear their business model may soon collapse Yasin AKGUL AFP
Turks who make a living raising animals and selling them on open markets fear their business model may soon collapse Yasin AKGUL AFP
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‘Sacred Duty’: Inflation Eats Into Turkey’s Muslim Feast

Turks who make a living raising animals and selling them on open markets fear their business model may soon collapse Yasin AKGUL AFP
Turks who make a living raising animals and selling them on open markets fear their business model may soon collapse Yasin AKGUL AFP

With inflation in Turkey galloping, the sheep Gul Er buys every year for the Muslim festival of sacrifice in Istanbul looks agonizingly out of reach.

Prices have doubled or even tripled since President Recep Tayyip Erdogan began an unorthodox economic experiment last year that has seen Turks' living standards suffer.

The young mother hopes to bargain down the price on one of the skimpiest-looking animals at a livestock fair held under white tents in a conservative corner of the city before the Kurban Bayrami (Eid al-Adha in Arabic) holiday.

"It is a sacred duty," she said of buying a sheep, which along with oxen and goats are sacrificed in the name of Allah, with the meat traditionally shared with the poor, friends and neighbors.

"But this year, prices are unaffordable," Er said, the stench of thousands of animals mixing with the sounds of haggling in the heavy summer air, ahead of Saturday's first full day of festivities.

According to AFP, annual inflation in Turkey has officially reached 78.6 percent, although economists and many ordinary Turks doubt government data.

Even if the official figures are to be believed, that is higher than in any other emerging market and nearly 10 times the record levels rocking the European Union, where the cost of living is unleashing political crises.

An independent survey prepared by the ENAG group -- and believed by most Turks -- puts the annual inflation rate at 175 percent.

Besides clouding Erdogan's chances in next year's election, these figures spell trouble for the merchants at the Istanbul animal fair.

Turkey's agricultural chambers union chief Semsi Bayraktar expects sales to fall by a quarter this year.

Galip Toklu, a breeder who came to the 40,000-square-metre (10-acre) fair from the Black Sea city of Samsun, listed the ways inflation snowballs into seemingly endless problems.

The cost of animal feed has quadrupled while the amount he pays to drive his livestock to Istanbul has tripled since the last Kurban Bayrami, forcing Toklu to double the price of his meat.

"Last year, I sold 500 kilos (1,100 pounds) of beef for 20,000 liras. This year, I set my prices at 45,000 liras," he said.

Yet few can now afford Toklu's beef, while selling it any cheaper could put him out of business.

"Customers are unavoidably upset," he said, his face sullen under a wide-brimmed hat.

While this year's animal fair looks huge, its 160 tents are a fraction of the 500 erected in past years.

As the fair winds down, breeder Sinas Ates looks despondent, having failed to make a single sale in two days. Livestock farming in Turkey is "finished", he grumbled.

Just like the sacrifice of sheep, Erdogan's economic experiment -- dubbed "Erdonomics" by skeptical global markets -- is also linked to his faith.

Erdogan cites Islamic proscriptions on usury to justify his refusal to raise interest rates to fight inflation.

High interest rates cause prices to rise, according to Erdogan's logic, which contradicts accepted economic orthodoxy.

So Erdogan has pushed the central bank to set interest rates even lower. Analysts at Capital Economics in London see the possibility of a crash of the lira as "a major risk".

At the market, Salih Yeter has responded to the crisis by coming out to look for the perfect sheep with seven friends, who will all contribute to the purchase.

"People usually can't afford to eat meat," the 57-year-old said, adding that giving away meat to the poor is particularly important in times of trouble.

The price of food has soared by 93 percent in the past year, according to official data, with meat prices pushing even higher.

This is especially painful for Er, whose daughter has a metabolic condition that restricts her to a meat diet.

"I can't even respect my daughter's diet," the mother whispered.

But respect for the holy holiday's traditions is binding, said Selahattin Kose, a "hajji" (one who has made the pilgrimage to Makkah), from the eastern city of Erzurum.

"Prices have doubled, but we have to deal with it," Kose said. "It's Allah's orders."



Saudi Arabia Links Recruitment to Digital Systems to Strengthen Compliance and Wage Protection

Participants at the Global Labor Market Conference in Riyadh (SPA)
Participants at the Global Labor Market Conference in Riyadh (SPA)
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Saudi Arabia Links Recruitment to Digital Systems to Strengthen Compliance and Wage Protection

Participants at the Global Labor Market Conference in Riyadh (SPA)
Participants at the Global Labor Market Conference in Riyadh (SPA)

Saudi Arabia’s labor market is undergoing rapid transformation driven by reforms under Vision 2030, aimed at strengthening compliance, protecting wages, and improving the efficiency of the business environment. These efforts run in parallel with expanding the integration of recruitment into digital systems, advancing international partnerships to regulate labor mobility, and supporting workforce diversification, thereby reinforcing institutional trust and international cooperation in labor market governance.

In this context, Dr. Tariq Al-Hamad, Deputy Minister for International Affairs at the Ministry of Human Resources and Social Development, told Asharq Al-Awsat that labor market reforms in the Kingdom have delivered tangible progress in modernizing regulations, enhancing worker protection, and creating a more dynamic and inclusive work environment. He noted that these transformations are no longer confined to the domestic level, but have expanded to include a more structured international dimension through bilateral agreements, including those signed with Nepal and Nigeria, which serve as governance tools to regulate labor mobility and strengthen worker protection.

Labor market shifts

Al-Hamad said the reforms have achieved measurable progress in updating regulatory frameworks, enhancing worker protection, and improving operational efficiency, with clear gains in participation, compliance, and productivity. He added that updates to labor mobility regulations since 2021 have enabled greater flexibility for workers to move between employers within regulatory frameworks aligned with international best practices. This shift was reinforced by the Contractual Relationship Improvement Initiative launched in March 2021, which marked a pivotal transformation in regulating job mobility.

At the institutional level, more than 11 million employment contracts have been documented via the Qiwa Platform, enhancing transparency and raising compliance levels in the private sector. He added that the implementation of a wage protection system has introduced preventive safeguards and strengthened trust between parties to employment contracts.

Strengthening worker protection

Alongside these changes, the worker protection framework has seen notable progress. Al-Hamad stated that more than 90 percent of private-sector establishments are compliant with the Wage Protection Program, ensuring accurate and timely salary payments.

He added that labor dispute resolution procedures have become faster, more efficient, and more transparent. The reforms have also driven greater inclusivity, with female labor force participation more than doubling between 2018 and 2024, one of the fastest growth rates globally. Meanwhile, around 2.48 million Saudis have joined private-sector jobs since 2020.

Deputy Minister for International Affairs at the Ministry of Human Resources and Social Development, Dr. Tariq Al-Hamad (Asharq Al-Awsat)

International cooperation

As reforms accelerate, they are no longer confined to the domestic level, increasing the need for a structured international framework to sustain them. Al-Hamad emphasized that organized international labor cooperation is a strategic priority, as it strengthens the Kingdom’s position as a partner committed to ethical recruitment, regulatory modernization, and shared responsibility. It also reinforces institutional trust and diplomatic cooperation in labor markets.

He explained that these agreements align cross-border labor mobility with modern regulatory standards, transparency requirements, and digital compliance systems. The expansion of such agreements, including those with Bangladesh, Nepal, and Nigeria, reflects a shift from traditional recruitment models toward long-term institutional partnerships between governments, providing more stable labor mobility channels and strengthening trust.

Governance enhancement

Reflecting this direction, Al-Hamad said agreements with Nepal and Nigeria regulate the full worker lifecycle, from recruitment licensing and contract documentation to wage transparency and dispute coordination and resolution mechanisms. He added that they enhance oversight of recruitment agencies, clarify contractual obligations, and establish institutional cooperation between governments to monitor compliance and resolve complaints efficiently.

He also noted that linking these agreements to digital infrastructure, such as the Qiwa platform and the Wage Protection Program, ensures that commitments are translated into enforceable mechanisms supported by real-time monitoring. This is complemented by joint oversight frameworks and regular information exchange, strengthening continuous supervision and accelerating the handling of labor cases.

Aligning skills with economic needs

As part of improving market efficiency, Al-Hamad stressed that aligning labor mobility with sectoral economic needs is a core pillar of the labor market strategy. Recent agreements are increasingly based on specific sector needs, ensuring recruitment is driven by actual demand rather than volume, particularly in sectors such as construction, tourism, logistics, healthcare, and advanced services.

He explained that the ministry relies on digital data through the Qiwa platform to continuously analyze market needs and identify skills gaps, allowing recruitment to be directed in line with economic requirements. Coordination with partner countries prior to worker arrival also helps verify skills, improve workforce readiness, and reduce skills gaps from the outset of employment.

He added that workforce planning is increasingly integrated with major national projects to ensure expatriate labor complements, rather than replaces, localization efforts. This is supported by programs such as Nitaqat, which incentivize the hiring of national talent across sectors.

International recognition of reforms

At the global level, these reforms have received growing recognition. Al-Hamad noted that the International Monetary Fund has pointed to tangible outcomes, including declining unemployment among Saudis, increased female participation in the labor market, and growth in private-sector employment.

He added that the “A Decade of Progress” report, developed in cooperation with the World Bank, highlighted structural transformations in the labor market.

The International Labour Organization has also commended the Kingdom’s role in developing labor policies and engaging in global dialogue, reflecting its growing status as a model in labor market reform, inclusivity, and economic flexibility.

Future priorities

Al-Hamad concluded that the next phase will focus on deepening international cooperation at both bilateral and multilateral levels by expanding labor agreements with new countries and strengthening partnerships with international organizations such as the International Labour Organization and the World Bank. These efforts aim to support knowledge transfer and policy development.

He added that the ministry is working to enhance collaboration with the private sector, academic institutions, and international stakeholders to keep pace with labor market transformations, with the goal of consolidating the Kingdom’s position as a trusted global partner in labor market development and delivering sustainable outcomes.


Gold Steady as Investors Await Clarity on US-Iran Talks

Gold bracelets and necklaces displayed for sale in a gold shop at the Grand Bazaar in Istanbul (AFP)
Gold bracelets and necklaces displayed for sale in a gold shop at the Grand Bazaar in Istanbul (AFP)
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Gold Steady as Investors Await Clarity on US-Iran Talks

Gold bracelets and necklaces displayed for sale in a gold shop at the Grand Bazaar in Istanbul (AFP)
Gold bracelets and necklaces displayed for sale in a gold shop at the Grand Bazaar in Istanbul (AFP)

Gold prices held largely steady, as investors stayed on the sidelines awaiting clarity on the stalled peace talks between the United States and Iran.

Spot gold was steady at $4,709.50 per ounce, as of 0553 GMT. Last week, the metal fell 2.5% to snap a four-week winning streak.

US gold futures for June delivery fell 0.3% to $4,725.10.

"We're just sort of watching now whether there's progress in the (US-Iran) talks at all in the coming days and that's going to be the biggest driver for gold," said Kyle Rodda, a senior financial market analyst at Capital.com.

Lending support to bullion, the dollar eased after a report said that Iran through Pakistani mediators gave the US a new proposal on reopening the Strait of Hormuz and ending the war, Reuters reported.

US President Donald Trump said on Sunday that Iran could telephone if it wants to negotiate an end to their two-month war and stressed it can never have a nuclear weapon.

Trump cancelled a trip by two US envoys to Iran war mediator Pakistan on Saturday, dealing a setback to peace prospects.

Oil prices rose as the stalled talks prolonged the disruption of Middle East energy exports.

Higher crude oil prices can stoke inflation by raising transportation and production costs, increasing the likelihood of higher interest rates.

While gold is considered an inflation hedge, high interest rates make yield-bearing assets more attractive, weighing on its appeal.

Investors now await the US Federal Reserve's interest rate decision on Wednesday.

"It could either be a support to gold or an increased headwind, depending on if the Fed sort of indicates whether it sees itself potentially keeping policy unchanged for the rest of the year because of the inflationary impacts of the energy crisis," said Rodda.

Spot silver fell 0.1% to $76.61 per ounce, platinum gained 0.2% to $2,015.63, and palladium was down 0.6% at $1,487.73.


Türkiye Unveils Steep Tax Cuts to Boost Competitiveness, Investment

 Commuters arrive to take a ride across the Bosphorus at Karakoy ferry terminal in Istanbul, Türkiye, Thursday, April 23, 2026. (AP)
Commuters arrive to take a ride across the Bosphorus at Karakoy ferry terminal in Istanbul, Türkiye, Thursday, April 23, 2026. (AP)
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Türkiye Unveils Steep Tax Cuts to Boost Competitiveness, Investment

 Commuters arrive to take a ride across the Bosphorus at Karakoy ferry terminal in Istanbul, Türkiye, Thursday, April 23, 2026. (AP)
Commuters arrive to take a ride across the Bosphorus at Karakoy ferry terminal in Istanbul, Türkiye, Thursday, April 23, 2026. (AP)

Türkiye unveiled details on Monday of a broad package of incentives aimed to boost competitiveness and attract investment, and also position its biggest city Istanbul as a leading financial gateway across the region.

At a press conference, Finance Minister Mehmet Simsek said Türkiye was extending a tax exemption on services exports to 100% to target high-value sectors like software, gaming, medical tourism.

At the same time, it is reducing manufacturing exporters' corporate tax rate ‌to 9% to ‌boost competitiveness and attract foreign direction investment (FDI), he ‌said.

The ⁠tax reductions are ⁠long-term and "here to stay," he told reporters, days after President Recep Tayyip Erdogan first floated the comprehensive legislative package including the tax plans.

The package aims to bolster an economy that officials hope is emerging from a years-long inflationary crisis that cut deeply into individuals' and companies' savings and earnings, prompting many Turks to seek stability ⁠abroad. Inflation was above 30% last month.

Some of the incentives, including zero corporate income tax on transit trade, are focused on the companies located ‌in the Istanbul Financial Center (IFC), a new state-backed clutch of glassy towers on the city's Asian side.

The ⁠rate is ⁠95% for those located outside the IFC, Simsek said, noting it was set at 50% in years past.

The package aims to "export more goods and services, attract more talent, entrepreneurs, capital, a new home that's more encouraging local citizens to use Türkiye as a center of their activities and ... placing IFC as one of the key regional hubs," he said.