«Islamic Window» will be launched at the Eurasian Development Bank in full format in 2025. Deputy Chairman of the Board of the EDB Ruslan Dalenov announced at the Business Forum.
According to him, it is also planned to finance the first pilot projects. The EDB believes that this will allow to move on to financing of large investment projects.
Ruslan Dalenov noted that the Eurasian Development Bank strives to become an active promoter of Islamic finance in the region, attracting new investments and offering new tools for the development of the economies of the region. The foundations of Islamic finance are based on the same principles of sustainable development, sharing of profits and losses, a ban on speculation, and prevention of the deterioration of the client’s financial situation, which creates a sustainable environment.
«The EDB can become an active promoter of Islamic finance in the region, being an international organization with a broad client base and special regulations. The bank can be a regulatory sandbox to develop and implement the necessary regulatory amendments in the states of the region. Today, Islamic finance is the fastest growing segment. Probably only electric cars are faster. Now the Islamic finance market is present to one degree or another in more than 90 countries around the world. Hence the conclusion is that Islamic finance is a universal tool that can be used anywhere. In 2024, we will set up the processes of Islamic financing and the «Islamic Window». This is an additional $2 billion by 2028,» the Deputy Head of the EDB Board said.
The bank also emphasizes that the Islamic finance sector is at an early stage of development in the Central Asian countries. The share of Islamic instruments in banking sector assets ranges from 0.2 to 1.5 percent. The structure of the sector is only partially formed. Kazakhstan is a leader in the development of Islamic finance among the countries of the region. It accounts for 68 percent of all Islamic finance in the Central Asian states.
