Baku, Azerbaijan, Dec. 5
By Fikret Dolukhanov – Trend:
The first Islamic bank in Tajikistan to be opened in April 2019, a source in the financial market of Tajikistan told Trend.
According to the information, in 2018, the Islamic Corporation for the Development of the Private Sector (ICD) Regional office in the Islamic Development Bank (IsDB) Group Hub in Almaty, Kazakhstan was approached by Sohibkorbank, a mid-sized bank in Tajikistan.
“Sohibkorbank sought to get technical guidance to achieve their strategic ambition of transforming from a conventional bank into the 1st Islamic bank in Tajikistan by 2019,” the source noted.
He added that the ICD team is currently guiding the bank through its journey of transformation, spanning Sharia (Islamic religious law) governance and product development, legal support, human resources, IT solutions, accounting, treasury, risk management, and marketing and communications support.
The project, reportedly, achieved significant progress in all spheres and is approaching launch of the new Islamic bank in Tajikistan.
Islamic banking or Islamic finance is banking or financing activity that complies with Sharia and its practical application through the development of Islamic economics. Some of the modes of Islamic banking/finance include Mudarabah (profit-sharing and loss-bearing), Wadiah (safekeeping), Musharaka (joint venture), Murabahah (cost-plus), and Ijara (leasing).
Sharia prohibits riba, or usury, defined as interest paid on all loans of money, although some Muslims dispute whether there is a consensus that interest is equivalent to riba. Investment in businesses that provide goods or services considered contrary to Islamic principles (e.g. pork or alcohol) is also haraam (“sinful and prohibited”).
OJSC Sohibkorbank offers banking services in Tajikistan. The company was incorporated in 1999 and is based in Khujand, Tajikistan. It has branch offices in Dushanbe, Kanibadam, Isfara, and Kurgantyube.
---
Follow the author on Twitter: @FDolukhanov