ASTANA – The Islamic Finance and Business Forum took place in the Kazakh capital on May 21, bringing together international regulators, investors, business leaders, Shariah advisers and financial market experts to discuss the future of Islamic finance.
Chairman of the Management Board of the AIFC Authority Bakhtiyar Tleubekov during the Islamic Finance and Business Forum on May 21. Photo credit: aifc.kz
Held for the second consecutive year in partnership with the Association of Islamic Finance and Business, Tidam Strategic Communications Agency and the Astana International Financial Centre (AIFC), the forum focused on advancing Islamic finance in Kazakhstan and Central Asia through investment, infrastructure and new financial instruments.
The forum also showcased both existing and upcoming Islamic financial and investment solutions planned for the Kazakh market. Participants discussed Islamic leasing, investment platforms, Islamic windows, digital solutions and deal-structuring mechanisms, as well as opportunities to use AIFC instruments to attract capital.
During the forum, the Association of Islamic Finance and Business of Kazakhstan, the Islamic Finance Association of the Kyrgyz Republic and the Islamic Finance and Takaful Association of Uzbekistan agreed to establish a regional alliance to promote Islamic finance development across Central Asia.
The initiative aims to strengthen regional expertise, promote investment opportunities and deepen cooperation among market participants.
Chairman of the Management Board of the AIFC Authority Bakhtiyar Tleubekov noted that the development of Islamic finance has been one of the center’s strategic priorities.
According to Tleubekov, recent amendments to Kazakhstan’s legislation created opportunities for the development of “Islamic windows,” allowing conventional banks to provide Islamic financial services without establishing separate Islamic banks.
“Over the past two years, Islamic finance has been developing rapidly on the AIFC platform. New participants are entering the market, businesses are introducing structured investment products and new initiatives are emerging,” he said.
Tleubekov noted that discussions around Islamic finance in Kazakhstan have shifted from theoretical potential to practical implementation, including capital growth, investment attraction, Islamic banking, Islamic leasing and debt instruments.
He also highlighted the rapid expansion of the AIFC ecosystem. More than 5,600 companies from over 90 countries are currently registered at the center, with expectations to reach 10,000 participants by the end of 2027. Around 300 to 400 licensed companies operate in the financial sector, with approximately 10% representing Islamic finance institutions.
Experts highlight expansion of Islamic banking
Ainura Umayeva, founder and CEO of Tidam Communications Agency, said the forum aims to create a platform for open dialogue on the development of Islamic finance and banking in Kazakhstan and Central Asia.
“Last year’s discussions focused largely on the market’s potential, while this year’s agenda emphasized practical issues, including investment attraction, infrastructure development and real market case studies,” she said.
Ainura Umayeva, founder and CEO of Tidam Communications Agency and Madina Tukulova, head of Islamic finance at the AIFC highlighted the rapid expansion of Islamic finance and banking in Kazakhstan and Central Asia. Photo credit: The Astana Times
Umayeva noted that interest in Islamic finance is growing due to the increasing Muslim population and rising public demand for ethical and transparent business principles.
“People today are interested not only in profitability, but also in the principles behind financial systems, where money comes from, how risks are distributed and how profits are generated,” she said.
She added that alternative financing sources are becoming increasingly important for regional businesses and emphasized the need to position Kazakhstan and Central Asia as attractive markets for both international and domestic investors.
Central Asian countries have attracted more than $220.5 billion in foreign direct investment over recent decades, including $151.3 billion directed to Kazakhstan, according to research on Central Asia’s investment potential conducted by AIFC Insights in cooperation with Uzbekistan’s Institute for Advanced International Studies,
In 2024 alone, the European Bank for Reconstruction and Development invested 2.26 billion euros ($2.56 billion) in the region through 121 projects.
Madina Tukulova, CEO of the Association of Islamic Finance and Business and head of Islamic finance at the AIFC, said the Islamic finance market has shown significant progress in recent years with the emergence of new companies and financial instruments.
“We can see that the market is developing steadily. New companies are opening and new instruments are appearing. The AIFC ecosystem allows firms to launch Islamic finance companies and introduce Islamic investment products,” she said.
Tukulova also highlighted legislative changes in Kazakhstan and Uzbekistan, allowing banks to operate Islamic banking windows without establishing separate Islamic banks. She described the move as an important milestone for the development of Islamic finance across the region.
Tukulova added that the AIFC Exchange recently joined the Association of Islamic Finance and Business and is expanding its services to support Islamic finance development, including sukuk and other Islamic securities.