AIFB, Otbasy Bank and the Union of Builders of Kazakhstan Sign Memorandum to Develop Islamic Finance

The Association of Islamic Finance and Business (AIFB), Otbasy Bank and the Union of Builders of Kazakhstan have signed a memorandum of cooperation aimed at developing the Islamic finance industry in the Republic of Kazakhstan.

Under the agreement, the parties intend to collaborate on improving the legislative framework for Islamic finance, as well as implementing educational and awareness initiatives. In particular, the cooperation includes the organisation of training seminars, webinars and other activities to enhance awareness among the public and professional community.

One of the key areas of cooperation is the development of Islamic finance instruments in the housing sector. In Kazakhstan, there is a growing demand for alternative financial solutions among citizens who adhere to religious principles and avoid interest-based transactions.

Currently, the existing legal framework, including the law on housing construction savings, does not provide for Islamic mortgage mechanisms. In this regard, particular attention will be given to developing legislative initiatives aimed at introducing dedicated regulations, including the concept of an “Islamic window”, as well as establishing a clear and transparent mechanism for obtaining Islamic home financing.

Chairperson of the Management Board of Otbasy Bank, Lyazzat Ibragimova, noted that for many citizens, access to housing is closely linked to the ability to use financial instruments aligned with their beliefs. In this context, the bank is exploring the possibility of adapting the housing construction savings system in accordance with the principles of Islamic finance.

The Association of Islamic Finance and Business welcomes the signing of this memorandum and considers it an important step in the development of the industry. The implementation of joint initiatives will contribute to expanding access to financial solutions based on Islamic finance principles, strengthening the institutional framework of the sector, and fostering a more inclusive financial environment in Kazakhstan.

In addition, Otbasy Bank has signed a memorandum of cooperation with the Kazakhstan branch of the Malaysian company CSQlaw. This partnership includes training programs for the bank’s employees on Islamic finance and Shariah-compliant financial law.

AIFB will continue to provide expert and organisational support to initiatives aimed at developing the Islamic finance ecosystem in Kazakhstan.