ISTANBUL, May 29 (Reuters) - Turkish President Tayyip Erdogan said he expected other state banks to establish Islamic banking units soon after state-run Ziraat launched an Islamic unit on Friday.

Erdogan, speaking at the launch ceremony of Ziraat's new business, said he also expected Ziraat to set up an Islamic insurance unit.

(Reporting by Ebru Tuncay, Writing by Humeyra Pamuk; Editing by Nick Tattersall) ((humeyra.pamuk@thomsonreuters.com; +90 212 3507000; Reuters Messaging: humeyra.pamuk.reuters.com@reuters.net))

Keywords: ZIRAAT ISLAMICLENDER/ERDOGAN