BAKU, Azerbaijan, Sept. 13
Trend:
The Agency of the Republic of Kazakhstan for the Regulation and Development of the Financial Market (hereinafter - the Agency) and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is working to improve the Islamic banking and finance industry both in Kazakhstan and in the region of the Commonwealth of Independent States (CIS), Trend reports with reference to the Agency.
The joint efforts on the improvement of the industry are being made as part of the development of Islamic finance in Kazakhstan.
The parties signed the corresponding Memorandum of Understanding (MoU).
“The MoU provides for the mutual exchange of information, support in the development of joint programs and standards for Islamic finance. Actions by both sides aim to build capacity and raise awareness of Islamic finance and AAOIFI standards in Kazakhstan and the CIS,” the Agency said.
“Islamic finance is a fast-growing segment of the financial market, which currently stands at $2.5 trillion in global volume with growth prospects of up to 50 percent, that is, up to $3.8 trillion in the next two years. In Kazakhstan, Islamic finance is an alternative source of raising funds for business development, both in the state and municipal and in the private sector,” the message said.
Islamic banking is based on partnering with a client and sharing risks with him, where the idea of financial justice and consideration of the interests of all parties to a financial transaction is at the forefront, the message said.
According to the Agency, there are two Islamic banks in Kazakhstan - Al Hilal and Zaman-Bank. The growth of this segment is estimated by experts as very promising.
AAOIFI - The Accounting and Auditing Organization of Islamic Financial Institutions, founded in 1991, is a leading international non-profit organization primarily responsible for developing and issuing standards for the global Islamic finance industry.