ALGIERS, Algeria, May 20. Central Asian countries must strengthen ties with global Islamic finance leaders, said Nikolai Podguzov, Chairman of the Management Board of the Eurasian Development Bank (EDB), Trend reports.
Podguzov noted this at the opening of the Global Forum on Islamic Finance organized by the Islamic Development Bank (IsDB), under the theme “Digital Transformation and Financial Inclusion in Islamic Finance.”
"Islamic finance is not just an alternative financial model. It is a powerful tool that aligns with the values of social responsibility, risk sharing, and economic justice. As Central Asian economies seek greater financial inclusion, we must ensure that technology becomes an enabler rather than a barrier," he said.
Podguzov highlighted one of the most promising opportunities: integrating Islamic finance with digital postal services.
"In many parts of the region, especially in rural areas, traditional banking services remain out of reach for many citizens. At the same time, postal networks are extensive, making them a perfect channel for delivering digital Islamic finance products. Imagine, complementary or alternatively, to a conventional banking system, following Kazakhstan, Uzbekistan, or Kyrgyzstan, being able to assess Islamic microfinance solutions through a single mobile app linked to the postal service," he added.
Furthermore, Podguzov noted that regional post offices could become a “unified Islamic financial window,” offering Islamic financial services on behalf of Islamic banks, which are currently concentrated in major cities.
" Furthermore, digital wallets and mobile banking platforms can bridge the financial gap for unbanked populations, providing them with Sharia-compliant savings, investments, and payment options. By utilizing FinTech, we can expand financial assets while maintaining transparency and ethical governance, the key principles of Islamic finance. This approach can revolutionize e-commerce and SME financing, fostering economic growth," he said.
Podguzov also recalled that last year, the EDB, together with the IsDB Institute, began developing a project to create a digital postal platform in Kazakhstan.
"Another exciting frontier for Central Asia is the role of artificial intelligence in Islamic finance. They recognize the potential of AI-driven solutions in regulatory compliance, fraud detection, and customer service automation.
For example, AI-powered chatbots can educate customers about Islamic finance products in their native languages, helping them make informed financial decisions. AI brings possibilities and challenges as well. If it is not regulated and certified by trusted institutions. This is particularly important in emerging markets like Central Asia, where strong Islamic finance regulatory frameworks are still evolving," the official said.
According to Podguzov, digital transformation is not just about technology but about cooperation.
"Central Asian countries must strengthen ties with global Islamic finance leaders, including institutions like ISDB Group, to develop harmonized regulations, FinTech partnerships, and investment frameworks. One area where this collaboration is crucial is trade financing. Central Asia is one of the major producers of Halal-certified goods, including agricultural products and textiles," he concluded.
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