BISHKEK, Kyrgyzstan, June 28. The Committee on International Affairs, Defense, Security, and Migration of the Kyrgyz Parliament has approved a draft law in its first reading to ratify agreements with the Islamic Development Bank (IsDB) for the "Financing Affordable Housing According to Sharia Standards" project, Trend reports.
These agreements were signed on April 26, 2024, in Riyadh, Saudi Arabia. Sanzhar Bolotov, Deputy Minister of Economy and Commerce, presented the project, emphasizing its aim to construct housing and offer mortgage products based on Islamic financing principles. These will benefit citizens of Kyrgyzstan participating in the state housing program "My Home 2021-2026."
Bolotov noted that Kyrgyzstan has secured concessional financing of $79 million from the IsDB. These funds are earmarked for constructing 112,000 square meters of housing across all regions of the country.
The State Mortgage Company will manage the allocated financial resources, ensuring land plots and financing the construction of affordable housing nationwide. This housing will be available for lease with an option for subsequent purchase, along with issuing mortgages based on Islamic financing principles to Kyrgyz citizens.
The cost of mortgage housing under this initiative is set at $650 per square meter.