Muhammad Zubair promotes Islamic finance in CIS region

Islamic Banking and Finance on the Rise in CIS Region

The Commonwealth of Independent States (CIS) region is witnessing a surge in the popularity of Islamic banking and finance, opening up a new market for financial services. This trend was underscored by a recent visit to Uzbekistan, Kyrgyzstan, and Azerbaijan by Mr. Muhammad Zubair, CEO of AlHuda Centre of Islamic Banking and Economics (CIBE) based in the UAE. While the global Islamic finance industry boasts assets exceeding $4.5 trillion, CIS countries are just beginning to tap into this potential.

Several factors are driving this growth. Firstly, the sizable Muslim populations in countries like Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan are increasingly seeking Sharia-compliant financial products. Secondly, governments in these nations are actively establishing legal frameworks to support the development of Islamic finance. Lastly, the desire to diversify economies beyond traditional sectors is fueling interest in Islamic banking as an alternative.

Although Islamic finance currently holds a small share of the CIS financial market, reports indicate significant growth on the horizon. For example, Kazakhstan aims to boost its Islamic banking assets to 3% by 2025, a substantial increase from the current 0.2%. With supportive governments, a growing awareness, and a large Muslim population, the future of Islamic banking and finance in the CIS region appears promising, potentially becoming a key driver of economic growth and financial inclusion.

Mr. Muhammad Zubair emphasized the region's potential for Islamic banking and finance, noting a growing openness among policymakers and regulators. He highlighted the importance of collaboration across sectors, such as banking, insurance, and leasing, to foster industry growth.

In conclusion, the CIS region presents a unique opportunity for the expansion of Islamic finance, with a focus on areas like Islamic microfinance and Fintech. Through initiatives like capacity-building workshops and annual forums, organizations like AlHuda CIBE are actively contributing to the sector's growth and sustainability, ensuring that financial products align with Islamic principles and cater to diverse stakeholders.