The development of Islamic finance in Kazakhstan began on a systematic basis in 2009, when the country became the first among CIS states to adopt the Law “On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on the Organization and Operation of Islamic Banks and Islamic Finance.” This marked the beginning of a legal framework for Islamic banking in Kazakhstan and led to the establishment of JSC “Islamic Bank Al Hilal” in 2010. In November 2024, the bank underwent rebranding and currently operates under the name ADCB Islamic.
The next important milestone was the adoption of legislative amendments in 2011 aimed at developing the Islamic capital market. In 2012, the Development Bank of Kazakhstan successfully issued the country’s first sukuk (Al-Murabaha) worth 240 million Malaysian ringgit on the Malaysian stock exchange. Of this amount, 62% was placed with Malaysian investors and 38% in Kazakhstan.
In 2015, further legislative changes came into force to improve the conditions for Islamic banking operations and to establish a legal framework for Islamic insurance and leasing. Provisions were also introduced to enable the issuance of sovereign sukuk and the conversion of conventional banks into Islamic banks. As a result of this regulatory framework, Islamic financial institutions such as Kazakhstan Ijara Company, ADCB Islamic, and Zaman Bank have successfully operated in Kazakhstan.
Recent market initiatives have provided additional momentum for the industry. In June 2023, the Islamic Corporation for the Development of the Private Sector issued the first sukuk in national currency on the Kazakhstan Stock Exchange (KASE) totaling KZT 2 billion. The proceeds were directed toward financing SMEs through JSC “Leasing Group.” In March 2025, trading began for Kazakhstan’s first interval unit investment fund compliant with Islamic finance principles - Wardat al Hayat by BCC Invest. Another key milestone was the adoption of new banking legislation allowing conventional banks to open Islamic windows.
The Role of AIFC in the Development of Islamic Finance
The Astana International Financial Centre (AIFC) serves as a modern financial hub for Central Asia, the Eurasian Economic Union, the Caucasus, Mongolia, Western China, and Eastern Europe. Its mission is to support sustainable economic growth and promote the development of financial services. Key strategic areas include capital markets, asset management, private banking, financial technologies, green finance, and Islamic finance.
Islamic finance plays a significant role in AIFC’s development strategy. Creating a favorable ecosystem for Islamic financial institutions expands financial and business solutions both domestically and across the region, enhancing the Centre’s competitiveness and investment attractiveness.
Recognizing the importance of this sector, AIFC has established the necessary conditions for Islamic financial institutions to operate in both retail and corporate segments. With the support of international organizations such as the Asian Development Bank, the Islamic Development Bank, IFSB, AAOIFI, and CIBAFI, AIFC has developed a legal and regulatory framework aligned with international best practices and standards. Since 2017, AIFC has been a member of AAOIFI, IFSB, and CIBAFI.
Conditions for Market Participants
Eligible participants of AIFC include Islamic banks, Islamic financial companies, asset management firms, Islamic brokerage companies, and takaful and retakaful operators.
To attract market participants, minimum capital requirements for Islamic banks have been reduced until May 2027. Currently, the requirement stands at USD 8 million. For Islamic non-bank financial institutions, the minimum capital requirement is USD 100,000 at licensing, increasing to USD 2 million within three years.
Additionally, a joint order by the Ministry of Finance, Ministry of National Economy, and AIFC provides exemptions from corporate income tax (CIT) and VAT for financial services licensed by the AIFC regulator, including Islamic banking, non-banking, insurance, and reinsurance services.
Islamic financial institutions operating within AIFC are allowed to provide services to both corporate and individual residents of Kazakhstan in any currency, including tenge.
AIFC Participants and Industry Development
AIFC hosts Islamic finance companies from Malaysia, Bahrain, Qatar, Tatarstan, and Kazakhstan. In February 2020, Al Rayan Investment (Qatar) registered a subsidiary within AIFC. In 2021, licenses were granted to Al Saqr Islamic Bank Ltd. and Kazakhstan Islamic Finance Company. In 2022, Al Safi Bank received its license and provides financing for retail and corporate clients, including microbusinesses.
New market participants include Tayyab Finance, which launched Islamic auto financing in 2024. In 2025, Damu Property Finance and Mizan Finance obtained licenses, followed by Ailat Finance in 2026.
AIFC also hosts international and local Shariah advisory and consulting firms such as Amanie Advisors, Sharia Review Bureau, Usmani & Co, Sahih Systems, CSQlaw, ShariaConsulting AFC, and Iman Global. In addition, the International Islamic Rating Agency has been licensed - the only rating agency dedicated to Islamic finance.
Islamic Instruments on AIX and ITS Platforms
The Astana International Exchange (AIX) provides a platform for issuing Islamic securities. Sukuk issued by the Islamic Development Bank are listed on AIX. On June 27, 2022, the first Shariah-compliant exchange-traded notes (ETNs) were listed. Their underlying asset is the iShares MSCI World Islamic UCITS ETF. These instruments are accessible to retail investors via the AIX Tabys application.
Additionally, Shariah compliance certification was provided for iX Gold ETN.
On August 10, 2023, the ITS trading platform launched the ITS Shariah Index in collaboration with Sahih Invest. The index includes 30 Shariah-compliant companies and follows AAOIFI standards.
In 2025, the ITS Shariah ETF was launched, tracking the performance of the index and investing in globally recognized Shariah-compliant companies.
Sukuk Market Development
AIFC has become a key platform for sukuk issuance by both financial institutions and real sector companies.
In December 2024, Gamma-T SPC Limited issued corporate sukuk structured as ijara, with maturity until December 5, 2027.
In 2025, sukuk were issued by Tayyab Finance and Asia Mineral Resource SPC Limited. Tayyab Finance registered a sukuk program of up to KZT 20 billion until 2040 to support Islamic auto financing.
Kazakhstan’s first retail sukuk was issued by Asia Mineral Resource SPC Limited, with a total size of USD 10 million and 11% annual return. The structure is based on electricity purchase and resale.
Market Research and Potential
AIFC, with the support of the Islamic Development Bank, conducted a study on demand for Islamic financial products. The results indicate strong market potential.
Retail Islamic finance demand exceeds KZT 3.9 trillion, including mortgages, consumer financing, and auto financing. Islamic deposits could reach KZT 2.8 trillion, while corporate demand exceeds KZT 760 billion annually.
A country report on Islamic finance in Kazakhstan was presented on September 6, 2024, with CSQ Law as consultant.
Institutional Development
The Association of Islamic Finance and Business (AIFB) was launched at AIFC in 2024 to unite industry participants.
On May 19, 2025, the Islamic Finance and Business Forum gathered over 250 participants from government, finance, and international organizations.
AIFC also established an Islamic Finance Advisory Council led by Dr. Sami Al-Suwailem to support strategic development and regulatory improvements.
International Recognition
Kazakhstan ranked 29th in the Global Islamic Fintech Rating (2023) and 31st in the Islamic Finance Country Index (2024).
The next important milestone was the adoption of legislative amendments in 2011 aimed at developing the Islamic capital market. In 2012, the Development Bank of Kazakhstan successfully issued the country’s first sukuk (Al-Murabaha) worth 240 million Malaysian ringgit on the Malaysian stock exchange. Of this amount, 62% was placed with Malaysian investors and 38% in Kazakhstan.
In 2015, further legislative changes came into force to improve the conditions for Islamic banking operations and to establish a legal framework for Islamic insurance and leasing. Provisions were also introduced to enable the issuance of sovereign sukuk and the conversion of conventional banks into Islamic banks. As a result of this regulatory framework, Islamic financial institutions such as Kazakhstan Ijara Company, ADCB Islamic, and Zaman Bank have successfully operated in Kazakhstan.
Recent market initiatives have provided additional momentum for the industry. In June 2023, the Islamic Corporation for the Development of the Private Sector issued the first sukuk in national currency on the Kazakhstan Stock Exchange (KASE) totaling KZT 2 billion. The proceeds were directed toward financing SMEs through JSC “Leasing Group.” In March 2025, trading began for Kazakhstan’s first interval unit investment fund compliant with Islamic finance principles - Wardat al Hayat by BCC Invest. Another key milestone was the adoption of new banking legislation allowing conventional banks to open Islamic windows.
The Role of AIFC in the Development of Islamic Finance
The Astana International Financial Centre (AIFC) serves as a modern financial hub for Central Asia, the Eurasian Economic Union, the Caucasus, Mongolia, Western China, and Eastern Europe. Its mission is to support sustainable economic growth and promote the development of financial services. Key strategic areas include capital markets, asset management, private banking, financial technologies, green finance, and Islamic finance.
Islamic finance plays a significant role in AIFC’s development strategy. Creating a favorable ecosystem for Islamic financial institutions expands financial and business solutions both domestically and across the region, enhancing the Centre’s competitiveness and investment attractiveness.
Recognizing the importance of this sector, AIFC has established the necessary conditions for Islamic financial institutions to operate in both retail and corporate segments. With the support of international organizations such as the Asian Development Bank, the Islamic Development Bank, IFSB, AAOIFI, and CIBAFI, AIFC has developed a legal and regulatory framework aligned with international best practices and standards. Since 2017, AIFC has been a member of AAOIFI, IFSB, and CIBAFI.
Conditions for Market Participants
Eligible participants of AIFC include Islamic banks, Islamic financial companies, asset management firms, Islamic brokerage companies, and takaful and retakaful operators.
To attract market participants, minimum capital requirements for Islamic banks have been reduced until May 2027. Currently, the requirement stands at USD 8 million. For Islamic non-bank financial institutions, the minimum capital requirement is USD 100,000 at licensing, increasing to USD 2 million within three years.
Additionally, a joint order by the Ministry of Finance, Ministry of National Economy, and AIFC provides exemptions from corporate income tax (CIT) and VAT for financial services licensed by the AIFC regulator, including Islamic banking, non-banking, insurance, and reinsurance services.
Islamic financial institutions operating within AIFC are allowed to provide services to both corporate and individual residents of Kazakhstan in any currency, including tenge.
AIFC Participants and Industry Development
AIFC hosts Islamic finance companies from Malaysia, Bahrain, Qatar, Tatarstan, and Kazakhstan. In February 2020, Al Rayan Investment (Qatar) registered a subsidiary within AIFC. In 2021, licenses were granted to Al Saqr Islamic Bank Ltd. and Kazakhstan Islamic Finance Company. In 2022, Al Safi Bank received its license and provides financing for retail and corporate clients, including microbusinesses.
New market participants include Tayyab Finance, which launched Islamic auto financing in 2024. In 2025, Damu Property Finance and Mizan Finance obtained licenses, followed by Ailat Finance in 2026.
AIFC also hosts international and local Shariah advisory and consulting firms such as Amanie Advisors, Sharia Review Bureau, Usmani & Co, Sahih Systems, CSQlaw, ShariaConsulting AFC, and Iman Global. In addition, the International Islamic Rating Agency has been licensed - the only rating agency dedicated to Islamic finance.
Islamic Instruments on AIX and ITS Platforms
The Astana International Exchange (AIX) provides a platform for issuing Islamic securities. Sukuk issued by the Islamic Development Bank are listed on AIX. On June 27, 2022, the first Shariah-compliant exchange-traded notes (ETNs) were listed. Their underlying asset is the iShares MSCI World Islamic UCITS ETF. These instruments are accessible to retail investors via the AIX Tabys application.
Additionally, Shariah compliance certification was provided for iX Gold ETN.
On August 10, 2023, the ITS trading platform launched the ITS Shariah Index in collaboration with Sahih Invest. The index includes 30 Shariah-compliant companies and follows AAOIFI standards.
In 2025, the ITS Shariah ETF was launched, tracking the performance of the index and investing in globally recognized Shariah-compliant companies.
Sukuk Market Development
AIFC has become a key platform for sukuk issuance by both financial institutions and real sector companies.
In December 2024, Gamma-T SPC Limited issued corporate sukuk structured as ijara, with maturity until December 5, 2027.
In 2025, sukuk were issued by Tayyab Finance and Asia Mineral Resource SPC Limited. Tayyab Finance registered a sukuk program of up to KZT 20 billion until 2040 to support Islamic auto financing.
Kazakhstan’s first retail sukuk was issued by Asia Mineral Resource SPC Limited, with a total size of USD 10 million and 11% annual return. The structure is based on electricity purchase and resale.
Market Research and Potential
AIFC, with the support of the Islamic Development Bank, conducted a study on demand for Islamic financial products. The results indicate strong market potential.
Retail Islamic finance demand exceeds KZT 3.9 trillion, including mortgages, consumer financing, and auto financing. Islamic deposits could reach KZT 2.8 trillion, while corporate demand exceeds KZT 760 billion annually.
A country report on Islamic finance in Kazakhstan was presented on September 6, 2024, with CSQ Law as consultant.
Institutional Development
The Association of Islamic Finance and Business (AIFB) was launched at AIFC in 2024 to unite industry participants.
On May 19, 2025, the Islamic Finance and Business Forum gathered over 250 participants from government, finance, and international organizations.
AIFC also established an Islamic Finance Advisory Council led by Dr. Sami Al-Suwailem to support strategic development and regulatory improvements.
International Recognition
Kazakhstan ranked 29th in the Global Islamic Fintech Rating (2023) and 31st in the Islamic Finance Country Index (2024).