Astana, Kazakhstan going ahead to become the new Islamic Finance Hub in Central Asia! Russia missing out?!

The Astana International Financial Centre (AIFC) was launched in July 2018, and since then it has been thriving to boost Kazakhstan’s Islamic Finance industry. According to their website AIFC is a unique hub on the map of the financial world that brings together the best practices and opportunities offered by similar institutions around the globe – from New York City and London to Dubai, Hong Kong and Singapore.

Their main goal is to drive prosperity and economical growth to their country using best economical models and technological advancements. Since their launch they have implemented many policies to reach their goal, one of which is the appointment of ZICO Shariah to develop a five-year master plan that will enable the flourishing of the nation’s Islamic Finance industry. ZICO Shariah was appointed due to its vast experience in the implementation and development of Shariah-compliant industries.

According to a Thomson Reuter’s report, Kazakhstan is ranked fifth among 57 OIC member states as an Islamic investment destination. Kazakhstan has a population of est. 18 million, of which 70% are Muslim, in comparison Russia with it’s 25 million Muslims still hesitates to accept Islamic Finance. While Russia is stalling, Kazakhstan however is ceasing the opportunity to become the focal point for Islamic Finance and serve around 80 million Muslims in the region of former USSR.

While many have speculated that Russia will become the leader in the industry for the region, current developments show otherwise. Russia is about to miss out on a great portion of the market unless they find ways boost their industry developments. With AIFC’s support Kazakhstan is getting a heads up in the area and others will find it hard to catch up at a later stage.