Islamic finance in Kazakhstan: Progress and future prospects
Islamic finance in Kazakhstan continues to develop rapidly, showcasing significant potential for future economic growth and sustainability. Since the adoption of the initial legislative initiatives in 2009, the country has made substantial progress in establishing a legal framework that enables Islamic financial institutions to operate and expand both domestically and internationally.
The establishment of Al Hilal Bank, the first Islamic bank in Kazakhstan, in 2010 was a major milestone that marked the nation’s integration into the global Islamic financial system (recently renamed ADCB Islamic). Following this, the development of supporting legislation facilitated the entry of other Islamic financial entities, such as Kazakhstan Ijara Company, Al Saqr Finance, and the Islamic bank Zaman.
In 2012 the Development Bank of Kazakhstan (DBK) raised MYR240 million (about $80 million) with the placement of a debut issue of a five-year sukuk. Kazakhstan investors bought 38% of the sukuk, and Malaysian the remaining 62%.
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Madina Tukulova