Turkey’s banking sector jumped 11.4 percent from a year ago to 11.55 billion lira ($6.49 billion), for the first six months of 2012. The iShares MSCI Turkey Investable Market is outperforming the rest of the world, ballooning 27 percent so far this year. That's a major rebound from last year’s dismal performance, a negative 36.3 percent return.

“Certainly using the ETF is very efficient, because you get the whole Turkish market,” said Russ Koesterich, global chief investment strategist for BlackRock's iShares ETF business.

Beyond its banking system, the modernization of Turkey’s trading, clearing, custody and depository services “will further facilitate the adoption of Turkey within the more established investment funds and should help increase stock velocity and the use of derivatives instruments to hedge risk,” said Philippe Carré, of global head of connectivity, SunGard’s global trading business.

The success of some of the Turkish blue chips on the Istanbul Stock Exchange, including banking, construction and telecoms sectors, is outshining Western Europe’s floundering exchanges. “Attracting listings from further out in the region, especially some of the more exotic areas, would cement Istanbul's attractiveness for investors,” said Carré.

Davos: Was the Mood Too Good to Be True?

Worst Not Over for Europe Yet: Canada Bank Official

Bill Gates: Malaria Can Be Eradicated

RIM Will Do 'Muhammad Ali Thing in Round 8': CEO

CEOs 'Struggle for Survival' in Davos

More Davos 2013