First Steps To Becoming A Regional Hub For Islamic Finance
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Despite the attempts of the government of Kazakhstan to
make its Islamic finance market more attractive, Islamic products
are still rarely used in Kazakhstan. Currently, according to the
National Bank of Kazakhstan, the share of Islamic banking assets in
Kazakhstan represents an insignificant part of the total assets of
the banking sector: 0.21% (a year earlier the share was 0.16%).
According to the Astana International Financial Center (AIFC), the
target to achieve by 2025 is 5–7%.
The government of Kazakhstan nevertheless is continuing its
efforts to create a favorable legislative and regulatory framework
for the development of Islamic finance so that Kazakhstan can
become a regional hub for Islamic finance.
Review of 2019
The AIFC, recently established based on the model of the Dubai
International Financial Centre, aims to become the most attractive
platform for the development of Islamic finance in the region.
In order to ensure investors that the legal regime of Islamic
finance within the AIFC is fully Shariah compliant, the AIFC
established the International Expert Council for Islamic Finance
(International Council) and the Central Council of the AIFC on the
principles of Islamic finance (Central Council).
The tasks of the International Council are examining regulatory
documents in the sphere of Islamic finance, assisting in attracting
investors and leading Islamic financial institutions to the
platform of the AIFC, as well as providing advice on the
development strategy and promotion of the AIFC as a center of
The activities of the Central Council are aimed at reviewing and
approving the AIFC policy, as well as providing advice on
compliance with the principles of Islamic finance. To ensure the
effective work of these bodies, the best international experts in
the Islamic finance field were invited.
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