ALGIERS, Algeria, May 20. Tajikistan’s Sukuk market is projected to flourish in 2028-2033, reads the joint report of the Eurasian Development Bank, the Islamic Bank Institute and the London Stock Exchange Group.
It was presented during the IsDB annual meetings in Algiers, Trend’s special correspondent reports.
“Tajikistan’s Islamic banking assets are forecast to grow from $132 million in 2028 to $562 million in 2033. The Sukuk market is also projected to flourish with outstanding Sukuk reaching $57 million in 2028 and $155 million in 2033,” the report says.
The authors note that Islamic banking looks to have huge potential to grow from the 1.1% share of the country’s total banking sector at the end of 2023.
“According to the National Bank of Tajikistan, as of July 31,
2024, the assets of Islamic credit institutions increased by 28.4%
and profits increased 1.5 times compared to the same period in
2023. One driver for the development of Islamic finance in the
country was the establishment of the Consultative Council for
Islamic Banking Services by the National Bank of Tajikistan in
2017. In addition, the country’s National
Financial Inclusion Strategy 2022-2026, which was developed with
the support of the International Finance Corporation, includes
diversifying financial services partly through Islamic financing,”
the report says.