EDB may become active promoter of Islamic finance in region – deputy chairman of board

ALMATY, Kazakhstan, June 27. Eurasian
Development Bank (EDB) may become an active promoter of Islamic
finance in the region, the Deputy Chairman of the EDB Board Ruslan
Dalenov said during the session “Islamic finance in Central Asia”
at the Eurasian Development Bank business forum in Almaty, Trend reports.
“EDB can become an active promoter of Islamic finance in the
region, being an international organization with a broad base of
clients. EDB may become a kind of regulatory sandbox to develop and
implement the necessary regulatory amendments,” he emphasized.
According to Dalenov, the EDB on the way to becoming a conduit
of Islamic finance will attract new investments, offering new tools
for the development of the economies of the region.
He said that an “Islamic window” will be launched at the
EDB.
“Islamic window in the Eurasian Development Bank in full format
will be launched in 2025. Several pilot projects will be financed.
This will make it possible to move to the financing of large
investment projects,” he added.
To note, the Eurasian Development Bank (EDB) Business Forum,
which is taking place in Almaty, Kazakhstan, is hosting the first
session on “Islamic Finance in Central Asia”.
The participants of the session discuss the fundamental
principles of project financing in Central Asian states and
consider related problems and mechanisms for their solution.
The segment of Islamic finance in the world’s banking assets is,
according to data for the beginning of 2024, 2 percent, but it is
already $ 4 trillion, and it is growing rapidly. Indeed, the
average annual growth rate of Islamic assets globally over
2015-2021 amounted to 10.5 percent, compared to 5.8 percent among
conventional financial assets.
Islamic banks have now gained a strong foothold in more than 40
countries and are beginning to compete effectively with classical
credit institutions.
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