Latest news with #EurasianDevelopmentBank
Web Release
23-05-2025
- Business
- Web Release
The $6bn opportunity: How Islamic Finance could reshape Central Asia's Financial Landscape
The Eurasian Development Bank (EDB), the Islamic Development Bank Institute (IsDBI), and the London Stock Exchange Group (LSEG) have published a joint report on the future of Islamic finance in Central Asia. The report was unveiled during the 19th IsDB Global Forum on Islamic Finance: Digital Transformation and Financial Inclusion, held as part of the Islamic Development Bank (IsDB) Annual Meeting and Global Forum for Islamic Finance in Algiers, Algeria. Central Asia, the EDB's core region of operations, comprises five rapidly evolving economies—Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. With a population of 80 million people (a 40% increase since 2000) and an annual growth rate of 2%, the region is experiencing robust economic expansion. In 2024, the aggregate GDP of Central Asia reached $519 billion, having grown at an average nominal rate of 6.4% over the past two decades. Foreign trade turnover has surged ninefold since 2000, while foreign direct investments have increased 17 times, outpacing growth in many other developing regions. Despite this progress, Islamic finance remains underdeveloped in Central Asia. The region currently hosts only 18 Islamic banks and 14 non-banking financial institutions, alongside limited Islamic banking windows. In 2023, total Islamic finance assets in Central Asia stood at $699 million, representing just 0.01% of the global Islamic finance market—despite the fact that 85% of the region's population is Muslim. The report highlights significant growth potential for Islamic finance in Central Asia over the next decade, particularly in Islamic banking and the sukuk market. Key projections include: · Islamic banking assets are expected to rise to 2.5 billion by 2028 and 6.3 billion by 2033. · The sukuk market is forecast to expand to 2.05 billion by 2028 and 5.6 billion by 2033, with key opportunities in energy, transport & logistics, industry, food security, and social infrastructure. Kazakhstan is anticipated to lead this growth, followed closely by Uzbekistan, given their strong banking sectors, favorable demographics, and economic trajectories. The report provides actionable insights to accelerate the adoption of Islamic finance in Central Asia, including: · Regulatory harmonization to facilitate cross-border Sharia-compliant transactions. · Capacity building to enhance expertise in Islamic finance among regulators and financial institutions. · Product innovation to expand offerings beyond traditional banking. · Awareness campaigns to promote Islamic finance among businesses and consumers. · Strengthening Partnerships for Islamic Finance Advancement. This collaboration underscores the shared commitment of the EDB, the IsDBI and the LSEG to foster Islamic finance in Central Asia. By combining their expertise, the institutions aim to support the region's financial sector development through best practices, innovative solutions, and strategic investments. The full report is available for download on the websites of Eurasian Development Bank's Think Tank. The Eurasian Development Bank (EDB) is a multilateral development bank investing in Eurasia. For more than 18 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. By 2025, the EDB's cumulative portfolio comprised 305 projects with a total investment of US $16.5 billion. *Source: AETOSWire
Zawya
20-05-2025
- Business
- Zawya
'19th Islamic Development Bank (IsDB) Global Forum on Islamic Finance' in Algiers Explores Digital Transformation and Financial Inclusion
The Islamic Development Bank Institute (IsDBI) ( successfully concluded the 19th IsDB Global Forum on Islamic Finance, held as part of the IsDB Group Annual Meetings in Algiers. The Forum, themed 'Digital Transformation and Financial Inclusion in Islamic Finance,' convened global thought leaders, policymakers, development experts, and industry stakeholders to explore innovative strategies for advancing sustainable development through Islamic finance. The opening session featured keynote speeches by prominent figures, including H.E. Dr. Muhammad Al Jasser, Chairman of the IsDB Group; H.E. Salah Eddine Taleb, Governor of the Bank of Algeria; and H.E. Mr. Nikolai Podguzov, Chairman of Eurasian Development Bank (EDB). Discussions centered on the transformative potential of fintech and Shariah-compliant financial tools in driving financial inclusion and sustainable growth. H.E. Dr. Muhammad Al Jasser emphasized that the integration of Islamic finance into the digital economy holds tremendous promises and can open new horizons to financial inclusion. 'To realize this potential, we must build the foundations: secure and reliable digital infrastructure, responsive governance frameworks, and institutions prepared to regulate with wisdom and foresight,' he stated. H.E. Mr. Nikolai Podguzov, Chairman of the Eurasian Development Bank (EDB), said: 'Central Asia is on the path of economic growth and inclusivity, where digital Islamic finance will play a key role. By leveraging technology, we can empower rural entrepreneurs, expand trade ties, and attract ethical investments. We are excited to share our views and goals for Central Asia at this forum and we will gladly continue developing our region together with our partners at the Islamic Development Bank.' The Forum also featured two major announcements: The 'Medikids Project' as the first-place winner of the 2025 IsDB Prize for Impactful Achievement in Islamic Economics, and the winners of the 'AI Hackathon in Islamic Finance,' showcasing the potential of AI-powered tools to propel the US$4+ trillion Islamic financial industry. H.E. Dr. Noureddine Ouadah, Minister of Knowledge Economy, Startups and Micro Enterprises, Algeria, delivered remarks about the AI Hackathon. A key report, The Future of Islamic Finance in Central Asia, was launched during the event, marking a joint initiative between IsDBI and EDB. Additionally, several landmark publications were announced for release after the Forum. The Forum included two panel discussions: The first panel explored the integration of digital Islamic finance with postal services to enhance financial inclusion. Moderated by Dr. Hilal Houssain of IsDBI, the panel featured Dr. Sami Al-Suwailem, Acting Director General, IsDBI; Dr. Mohammad Farrukh Raza, Group CEO of Islamic Finance Advisory&Assurance Services; and Dr. Ali Mohamed Bourouiba, Head of Innovation&Products Development at Al Salam Bank. The second session, titled 'Unleashing the Potential of Sukuk for Financing Sustainable Development,' examined the integration of Islamic finance principles into existing sustainable finance frameworks. Moderated by Mohammed Dawood, Head of Islamic finance, MENAT, HSBC, the panel featured Sheikh Prof. Dr. Mohamed Ali Elgari, Chairman of the IsDB Group Shariah Board; H.E. Dr. Zamir Iqbal, Vice President (Finance) and CFO, IsDB; Mrs. Sharifatul Hanizah Said Ali, Executive Director of the Securities Commission Malaysia; and Dr. Ghiath Shabsigh, Secretary General of the Islamic Financial Services Board. This year's IsDB Global Forum on Islamic Finance was jointly organized by IsDB Institute, Kuala Lumpur Center of Excellence, Resilience and Climate Action Department, and Treasury Department. Distributed by APO Group on behalf of Islamic Development Bank Institute (IsDBI).
Zawya
20-05-2025
- Business
- Zawya
Eurasian Development Bank, Islamic Development Bank Institute and London Stock Exchange Group Publish New Report on the Future of Islamic Finance in Central Asia
The Eurasian Development Bank, the Islamic Development Bank Institute ( and the London Stock Exchange Group have published a joint research on the future of Islamic finance in Central Asia. The joint research was presented at the 2025 Islamic Development Group's Annual Meetings in Algiers, Algeria. This report provides a comprehensive analysis of the current status and prospects of Islamic finance globally and in Central Asia, comprising Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. The report makes practical recommendations and strategic considerations tailored to the specific dynamics of the region, addressing regulatory harmonisation, capacity building, product innovation, and awareness campaigns. The research demonstrates that the region offers a unique opportunity for the growth of Sharia-compliant financial products and services, due to its rich cultural heritage, significant Muslim population, and rising demand for investments. The region of Central Asia (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan) is dynamically changing, and its role in Eurasia and the world needs to be reassessed. The population of Central Asia is 80 million people. This is a 40% increase since 2000. It keeps growing at 2% per year. In 2024, the aggregate GDP of the Central Asia countries was $519 billion). Over the last two decades, it grew nominally at 6.4% on average. Foreign trade turnover has increased almost ninefold since 2000. Foreign direct investments have increased 17 times. For over 20 years, Central Asia has been growing faster than developing countries on average. Sharī'ah-compliant financing, as a relatively new (more than 30 years old) and fast-growing segment of the global financial system, plays an increasingly important role in the sustainable development of the Central Asian states. All governments of the region are paying special attention to the development of Islamic finance. Islamic finance offers a unique opportunity for Central Asia to promote inclusive growth, financial stability, and sustainability. Overcoming challenges such as regulatory inconsistencies and talent shortages will require coordinated efforts and innovative solutions. By capitalizing on its strategic advantages, the region can position itself as a key player in the global Islamic finance industry. The region of Central Asia currently has 11 Islamic banks and 11 non-banking financial institutions, as well as Islamic banking windows. Other institutions include takaful operators, microfinancing, investment companies, Ijara or leasing companies, and Islamic FinTechs such as digital banks and wealth management platforms. Islamic capital market instruments such as ṣukūk are developing more slowly than Islamic financial institutions, however. Islamic finance assets in Central Asia amount to USD 699 million at the beginning of 2024. According to the Islamic Finance Development Report 2024, Kazakhstan ranks 19th in the world in terms of Islamic finance development in 2024 (i.e. above the global average) and leads the Central Asian market. In the next ten years, there is a perspective for significant growth and development in the Islamic finance industry in the region, driven mainly by the Islamic banking sector and the ṣukūk asset class (Energy, Transport&Logistics, Industry, Food Security and Social Infrastructure are priority areas of investment). A baseline scenario based on the growth of financial intermediation and an estimate of the change in the share of Islamic finance in the financial sector structure was used to project the increase in Islamic finance assets in the region. This approach assumes an increase in Islamic banking assets in Central Asia to the level of USD 2.5 billion in 2028 and USD 6.3 billion in 2033. Given the favourable demographics, strong economic growth, and the substantial size of the banking industry in each of the five Central Asian nations, Kazakhstan is expected to be the leader, followed closely by Uzbekistan. The region's Ṣukūk market is also expected to witness significant expansion: the baseline forecasts suggest that Ṣukūk market is anticipated to grow to USD 2.05 billion by 2028 and USD 5.6 billion by 2033. The Islamic finance industry faces challenges such as lack of standardisation, and the need for robust risk management frameworks. For that reason, regulatory harmonisation across Central Asian countries is crucial to attract foreign investment and facilitate cross-border transactions. The report stresses the need for cooperation of the multilateral financial institutions and International Islamic banks on creating Sharia-compliant products and services tailored to the specific needs of Central Asian markets, including development of 'Islamic windows' in conventional financial institutions as a sustainability milestone and innovative solutions for microfinance, agriculture financing, and renewable energy financing. International Islamic banks from more mature Islamic finance jurisdictions such as the Gulf countries and Southeast Asia can help build capacity in Central Asian Islamic banking ecosystems and can enable knowledge transfers in Central Asian countries to enhance the levels of Islamic finance technical expertise they can draw upon. 'One of the EDB's strategic priorities is to become a platform for Islamic finance in Central Asia. The further development of Islamic finance in Central Asia will expand financial inclusion and connect local businesses to the global Islamic market, contributing to regional economic growth. With the Islamic Development Bank Group's support, EDB has started to develop an 'Islamic Window' for financing projects in accordance with Sharia principles. The priority areas of investments will be energy, transport, social infrastructure, food security and industry', says Mr Nikolai Podguzov, EDB Chairman. In a message published in the report, Chairman of the IsDB Group, H.E. Dr. Muhammad Al Jasser, said, 'The Islamic Development Bank Group is committed to supporting the advancement of Islamic finance in Central Asia and beyond. Our collaboration with Eurasian Development Bank demonstrates how development banks can work together to create inclusive and resilient financial systems.' The report concludes that Islamic finance holds immense potential to contribute to economic development, financial inclusion, and foster good governance practices in Central Asia. By capitalizing on the region's unique opportunities and addressing existing challenges through collaborative efforts, Islamic finance can emerge as one more source of sustainable growth and prosperity in the region. The report ' The Future of Islamic Finance in Central Asia' is accessible on IsDBI website here: Distributed by APO Group on behalf of Islamic Development Bank Institute (IsDBI). About The Eurasian Development Bank (EDB): The Eurasian Development Bank (EDB) is a multilateral development bank investing in Eurasia. For more than 18 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. By 2025, the EDB's cumulative portfolio comprised 305 projects with a total investment of US $16.5 billion. The Bank's portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. The Bank's operations are guided by the UN Sustainable Development Goals and ESG principles. About The Islamic Development Bank Institute (IsDBI): The Islamic Development Bank Institute (IsDBI) is the knowledge beacon of the Islamic Development Bank Group. Guided by the principles of Islamic economics and finance, the Institute leads the development of innovative knowledge-based solutions to support the sustainable economic advancement of IsDB Member Countries and various Muslim communities worldwide. IsDBI enables economic development through pioneering research and original economic analysis, human capital development, and knowledge creation, dissemination, and management. The Institute leads initiatives to enable Islamic finance ecosystems, ultimately helping Member Countries achieve their development objectives.
Zawya
20-05-2025
- Business
- Zawya
EDB, IsDBI and London Stock Exchange Group publish new report on the future of Islamic finance in Central Asia
Algiers - The Eurasian Development Bank, the Islamic Development Bank Institute and the London Stock Exchange Group have published a joint research on the future of Islamic finance in Central Asia. The joint research was presented at the 2025 Islamic Development Group's Annual Meetings in Algiers, Algeria. This report provides a comprehensive analysis of the current status and prospects of Islamic finance globally and in Central Asia, comprising Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. The report makes practical recommendations and strategic considerations tailored to the specific dynamics of the region, addressing regulatory harmonisation, capacity building, product innovation, and awareness campaigns. The research demonstrates that the region offers a unique opportunity for the growth of Sharia-compliant financial products and services, due to its rich cultural heritage, significant Muslim population, and rising demand for investments. The region of Central Asia (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan) is dynamically changing, and its role in Eurasia and the world needs to be reassessed. The population of Central Asia is 80 million people. This is a 40% increase since 2000. It keeps growing at 2% per year. In 2024, the aggregate GDP of the Central Asia countries was $519 billion). Over the last two decades, it grew nominally at 6.4% on average. Foreign trade turnover has increased almost ninefold since 2000. Foreign direct investments have increased 17 times. For over 20 years, Central Asia has been growing faster than developing countries on average. Sharī'ah-compliant financing, as a relatively new (more than 30 years old) and fast-growing segment of the global financial system, plays an increasingly important role in the sustainable development of the Central Asian states. All governments of the region are paying special attention to the development of Islamic finance. Islamic finance offers a unique opportunity for Central Asia to promote inclusive growth, financial stability, and sustainability. Overcoming challenges such as regulatory inconsistencies and talent shortages will require coordinated efforts and innovative solutions. By capitalizing on its strategic advantages, the region can position itself as a key player in the global Islamic finance industry. The region of Central Asia currently has 11 Islamic banks and 11 non-banking financial institutions, as well as Islamic banking windows. Other institutions include takaful operators, microfinancing, investment companies, Ijara or leasing companies, and Islamic FinTechs such as digital banks and wealth management platforms. Islamic capital market instruments such as ṣukūk are developing more slowly than Islamic financial institutions, however. Islamic finance assets in Central Asia amount to USD 699 million at the beginning of 2024. According to the Islamic Finance Development Report 2024, Kazakhstan ranks 19th in the world in terms of Islamic finance development in 2024 (i.e. above the global average) and leads the Central Asian market. In the next ten years, there is a perspective for significant growth and development in the Islamic finance industry in the region, driven mainly by the Islamic banking sector and the ṣukūk asset class (Energy, Transport & Logistics, Industry, Food Security and Social Infrastructure are priority areas of investment). A baseline scenario based on the growth of financial intermediation and an estimate of the change in the share of Islamic finance in the financial sector structure was used to project the increase in Islamic finance assets in the region. This approach assumes an increase in Islamic banking assets in Central Asia to the level of USD 2.5 billion in 2028 and USD 6.3 billion in 2033. Given the favourable demographics, strong economic growth, and the substantial size of the banking industry in each of the five Central Asian nations, Kazakhstan is expected to be the leader, followed closely by Uzbekistan. The region's Ṣukūk market is also expected to witness significant expansion: the baseline forecasts suggest that Ṣukūk market is anticipated to grow to USD 2.05 billion by 2028 and USD 5.6 billion by 2033. Figure – Islamic Finance market Outlook for Central Asia The Islamic finance industry faces challenges such as lack of standardisation, and the need for robust risk management frameworks. For that reason, regulatory harmonisation across Central Asian countries is crucial to attract foreign investment and facilitate cross-border transactions. The report stresses the need for cooperation of the multilateral financial institutions and International Islamic banks on creating Sharia-compliant products and services tailored to the specific needs of Central Asian markets, including development of 'Islamic windows' in conventional financial institutions as a sustainability milestone and innovative solutions for microfinance, agriculture financing, and renewable energy financing. International Islamic banks from more mature Islamic finance jurisdictions such as the Gulf countries and Southeast Asia can help build capacity in Central Asian Islamic banking ecosystems and can enable knowledge transfers in Central Asian countries to enhance the levels of Islamic finance technical expertise they can draw upon. 'One of the EDB's strategic priorities is to become a platform for Islamic finance in Central Asia. The further development of Islamic finance in Central Asia will expand financial inclusion and connect local businesses to the global Islamic market, contributing to regional economic growth. With the Islamic Development Bank Group's support, EDB has started to develop an 'Islamic Window' for financing projects in accordance with Sharia principles. The priority areas of investments will be energy, transport, social infrastructure, food security and industry', says Mr Nikolai Podguzov, EDB Chairman. In a message published in the report, Chairman of the IsDB Group, H.E. Dr. Muhammad Al Jasser, said, 'The Islamic Development Bank Group is committed to supporting the advancement of Islamic finance in Central Asia and beyond. Our collaboration with Eurasian Development Bank demonstrates how development banks can work together to create inclusive and resilient financial systems.' The report concludes that Islamic finance holds immense potential to contribute to economic development, financial inclusion, and foster good governance practices in Central Asia. By capitalizing on the region's unique opportunities and addressing existing challenges through collaborative efforts, Islamic finance can emerge as one more source of sustainable growth and prosperity in the region. The report ' The Future of Islamic Finance in Central Asia' is accessible on IsDBI website here: -Ends- The Eurasian Development Bank (EDB) is a multilateral development bank investing in Eurasia. For more than 18 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. By 2025, the EDB's cumulative portfolio comprised 305 projects with a total investment of US $16.5 billion. The Bank's portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. The Bank's operations are guided by the UN Sustainable Development Goals and ESG principles. The Islamic Development Bank Institute (IsDBI) is the knowledge beacon of the Islamic Development Bank Group. Guided by the principles of Islamic economics and finance, the Institute leads the development of innovative knowledge-based solutions to support the sustainable economic advancement of IsDB Member Countries and various Muslim communities worldwide. IsDBI enables economic development through pioneering research and original economic analysis, human capital development, and knowledge creation, dissemination, and management. The Institute leads initiatives to enable Islamic finance ecosystems, ultimately helping Member Countries achieve their development objectives.
Zawya
12-05-2025
- Business
- Zawya
19th Islamic Development Bank Global Forum to explore digital transformation and financial inclusion in Islamic Finance
Jeddah, Kingdom of Saudi Arabia - The Islamic Development Bank Institute (IsDBI) is pleased to announce the 19th edition of the IsDB Global Forum on Islamic Finance to be held in Algiers, Algeria, on 20 May 2025, in conjunction with the IsDB Group Annual Meetings. Organized annually as a flagship side event of the Annual Meetings, this year's Forum will bring together thought leaders, policymakers, financial experts, and other stakeholders in the Islamic finance industry to deliberate on innovative tools to foster sustainable development. Under the theme 'Digital Transformation and Financial Inclusion in Islamic Finance', this year's forum is jointly organized by IsDB Institute, Kuala Lumpur Center of Excellence, Resilience and Climate Action Department, and Treasury Department. The forum will have keynote speeches by H.E. Dr. Muhammad Al Jasser, Chairman of the IsDB Group; H.E. Salah Eddine Taleb, Governor of the Bank of Algeria; H.E. Mr. Nikolai Podguzov, Chairman of Eurasian Development Bank (EDB); and H.E. Dr. Noureddine Ouadah, Minister of Knowledge Economy, Startups and Micro Enterprises, Algeria. Subsequently, the Forum will have two sessions. The first is a panel discussion on leveraging the potential of postal services and digital Islamic finance tools. The panelists for this session will include Mr. Ihab Zaghloul, Program Manager of Financial Inclusion at the Universal Postal Union (UPU); Dr. Mohammad Farrukh Raza, Group CEO of Islamic Finance Advisory & Assurance Services (IFAAS); and Dr. Ali Mohamed Bourouiba, Head of Innovation & Products Development at Al Salam Bank. The panel will be moderated by Dr. Hilal Houssain, Associate Manager of Knowledge Solutions at IsDBI. The second session will showcase IsDB's leadership in sustainable finance and explore the integration of Islamic finance principles in existing sustainable finance frameworks. The discussants will include Sheikh Prof. Dr. Mohamed Ali Elgari, Chairman of the IsDB Group Shariah Board; Mrs. Sharifatul Hanizah Said Ali, Executive Director of the Securities Commission Malaysia; and Dr. Ghiath Shabsigh, Secretary General of the Islamic Financial Services Board. The session will be moderated by Dr. Zamir Iqbal, IsDB Vice President (Finance) and CFO. Additionally, the Forum will unveil two groundbreaking reports. The first, titled 'Islamic Finance in Central Asia', was developed in partnership with the Eurasian Development Bank. The second report, 'Islamic Microfinance Toolkit', is a collaborative effort with the IsDB Global Practice and Partnerships Directorate. The IsDB Global Forum on Islamic Finance is an annual high-level forum initiated in 2006 as a platform for strategic policy dialogue on knowledge and innovation in Islamic finance and development. About the Islamic Development Bank Institute The Islamic Development Bank Institute (IsDBI) is the knowledge beacon of the Islamic Development Bank Group. Guided by the principles of Islamic economics and finance, the IsDB Institute leads the development of innovative knowledge-based solutions to support the sustainable economic advancement of IsDB Member Countries and various Muslim communities worldwide. The IsDB Institute enables economic development through pioneering research, human capital development, knowledge creation, dissemination, and management. The Institute leads initiatives to enable Islamic finance ecosystems, ultimately helping Member Countries achieve their development objectives.
