Turkey's President Recep Tayyip Erdogan on Sunday said Islamic economic system is the key to "getting out of crisis" as global economy continues to suffer from coronavirus pandemic.

Islamic tools offer a "key" to get out of the economic woes the world is now facing, Erdogan told the audience at 12th International Conference on Islamic Economics and Finance in Istanbul via video.

"Over-financing has created a bloated economic model, which acts only over concern about unearned income, without considering social and human costs," he said against the backdrop of economic fallout from the coronavirus pandemic.

"Contrary to what has been promised, the distribution of income and wealth is gradually deteriorating all over the world, and the gap between the countries widened," Erdogan  said.

Economic system for rich

President Erdogan said the loss of nearly 440,000 lives worldwide can't be attributed to Covid-19 alone, saying many countries have an economic system that protects only strong and the rich.

"In some countries, people without health insurance were left to die," he said. 

"In recent days, behind the street events in some western countries, along with racism, there are injustices brought to light by the pandemic," Erdogan said while questioning the economic model of some of the powerful nations.

"Even the most prosperous countries have difficulty in providing masks to their citizens and cannot provide minimum health services," he said. 

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Islamic banking

Earlier this year, credit rating agency Moody’s announced that Turkey's Islamic banking assets are set to double within a decade, as government initiatives drive growth in the sector.

Turkey has positioned itself to be a hub for participation banking and Islamic finance.

"We aim to make Istanbul centre of Islamic finance and economy," Erdogan said. 

Turkey's handling of Covid-19

Erdogan said Turkey is among the countries that has fought the pandemic with the least damage.

"In addition to meeting the needs of our own people, we have provided medical assistance to 125 countries around the world," he said.

Pointing out the country’s first-quarter growth of 4.5 percent, Erdogan said that Turkey has shown that it distinguished itself positively from other countries not only in the health sector but also in the economy, during the Covid-19 pandemic.

"With the realisation of the normalisation calendar, production, trade, and tourism [sectors] have started to revive," Erdogan added.

As of Sunday, Turkey confirmed total of 4,807 deaths,178,239 coronavirus cases while recoveries surpassed 151,000.