IslamicFinance.de

The President of Kazakhstan, Nursultan Nazarbayev met with the President of the Islamic Development Bank (IsDB), Dr. Bandar Hajjar, on an official visit to the Kingdom of Saudi Arabia. President Nazarbayev praised the cooperation between IsDB and his country and congratulated Dr. Hajjar on his recent assumption of duties as the new IsDB Group President. President Nazarbayev plans to launch the program 100 Steps, which is designed to introduce structural and economic reforms to Kazakhstan. The program also envisages the launching of Astana International Financial Center as a center of excellence for financial services at regional and global level. President Nazarbayev called on IsDB to provide technical support in the fields of development and Islamic finance. Dr. Hajjar assured that the IsDB Group would provide the required technical assistance to support President Nazarbayev’s initiatives.

#Kazakhstan based SK Leasing (SKL) announced that it has engaged Shariyah Review Bureau (SRB) to help the company achieve Shari'a Compliance in its business activities. Managing director Duman Nurbayev said SKL is going to be the first leasing company in Kazakhstan to be fully converted into Sharia compliant activities. Also, they are planning to be the first company in the CIS region which will provide a wide range of Islamic Financial products and services. SKL finances projects in the real economy sector for renovation, modernization and expansion of fixed assets. SKL has 3 domestic offices and approximately 240 clients. Its regional network includes representations in Almaty, Astana and Atyrau.

Kazakhstan's central bank is considering halving the capital requirement for Islamic banks to 5 billion tenge ($16.3 million) from 10 billion tenge, part of a series of initiatives to attract foreign capital to Central Asia's largest economy. The majority Muslim state is keen to develop Islamic finance, according to a Thomson Reuters study released on Tuesday. A proposed reduction in capital requirements for Islamic banks would apply for both local and foreign investors, deputy governor Nurlan Kussainov was quoted as saying in the study. This could encourage new entrants in a market that now has one full-fledged Islamic bank, Al Hilal Islamic Bank.

Thomson Reuters, the Islamic Research and Training Institute (IRTI) and the General Council for Islamic Banks and Financial Institutions (CIBAFI) have launched a new report analysing the state of Islamic Finance in Kazakhstan titled “a future perspective of Islamic finance”. The report, produced in partnership with the National Bank of Kazakhstan, was launched during a dedicated Roundtable on Islamic finance emerging markets, ahead of the World Islamic Banking Conference (WIBC) in Manama, Bahrain. The report predicts a positive economic outlook for Kazakhstan, with an estimated GDP growth of 2.4% in 2016.

Kazakhstan's parliament has approved legislative amendments to facilitate Islamic finance, paving the way for Central Asia's largest economy to issue its first sovereign sukuk next year, a government official said.
The amendments, which still require the president's signature, would also allow for the conversion of conventional banks into Islamic ones, said Yerlan Baidaulet, an adviser to the Investments and Development Ministry.

«We expect the sovereign sukuk in early spring of next year. Probably in March, it depends on the decision of the Ministry of Finance as it has its own budgetary process», Baidaulet said on the sidelines of an industry conference in Kuwait. The legal amendments to the banking services and securities laws are the latest steps by the majority Muslim state to help develop Islamic finance. A dedicated Islamic banking law is also currently in preparation, Baidaulet said. Lawmakers have also passed a law to establish an offshore centre in the capital Astana, which is partly aimed at attracting Islamic finance business, he added.

More than 1200 distinguished guests from more than 45 countries and 300 organizations participating this December, Bahrain

Key players from the global Islamic finance industry will be participating with the 22nd annual World Islamic Banking Conference (WIBC) 2015, taking place on the 1st, 2nd and 3rd of December at the Gulf Hotel, Bahrain. Focusing on 'New Realities, New Opportunities', WIBC will play host to more than 1200 leaders including Central bank governors, regulators, C-suite bankers & asset managers, policy makers, Fintech entrepreneurs and contemporary thought leaders.
WIBC 2015 will host 5 central bank Governors and deputy governors and feature speeches and discussions by the Governor of the Central Bank of Bahrain, H.E. Rasheed Al Maraj, the Executive President of the Central Bank of Oman, H.E. Hamood Sangour Al Zadjali, Deputy Governor of the State Bank of Pakistan, Riaz Riazuddin and the Deputy Governor of the National Bank of Kazakhstan, Nurlan Kussainov.

Kazakhstan's parliament has approved legislative amendments to facilitate Islamic finance, paving the way for Central Asia's largest economy to issue its first sovereign sukuk next year, a government official said.
The amendments, which still require the president's signature, would also allow for the conversion of conventional banks into Islamic ones, said Yerlan Baidaulet, an adviser to the Investments and Development Ministry.
"We expect the sovereign sukuk in early spring of next year. Probably in March, it depends on the decision of the Ministry of Finance as it has its own budgetary process," Baidaulet said on the sidelines of an industry conference in Kuwait.
The legal amendments to the banking services and securities laws are the latest steps by the majority Muslim state to help develop Islamic finance. A dedicated Islamic banking law is also currently in preparation, Baidaulet said.

The central bank had spent $28bn propping up the currency in less than two years; equivalent to more than a quarter of the combined central bank reserves and national oil fund. The immediate result was a 23 per cent plunge in its value. The move was a boost to Kazakhstan's struggling resources sector. Officials argue that relatively few groups in Kazakhstan will suffer as a result of the currency fall: three-quarters of depositors held savings in dollars, while 70 per cent of company borrowings were in tenge before the move.

The Republic of Kazakhstan’s modifications and additions into some acts of the insurance and Islamic financing law came into force on May 9, 2015. The purpose of the law is to introduce a system of obligatory insurance for employees and to create favorable conditions for the appropriate functioning of Islamic banks. The main directions of the law are: legal support of Islamic insurance issues; improvement of legislation on issues regarding the functioning of Islamic banks; ensuring stable functioning of the organisation, which guarantees insurance payments; and solving problems regarding employees obligatory insurance when accidents occur.

The Association for Development of Islamic Finance (ADIF) announced the signing of memorandum on cooperation with Shariyah Review Bureau (SRB). ADIF solely supported by National Bank of Republic of Kazakhstan (NBRK), is responsible for promoting, enhancing and maintaining the Islamic financial sector and cooperation with investors from GCC and South East Asia. The agreement was signed at the 12th IFSB Summit which took place in Almaty, Kazakhstan. Speaking at the Summit, Chairman of the Presidium, Zaratkazy Nurpiisov said, given the magnitude of Muslim population, enormous oil reserves, rich minerals and metal explorations the country has considerable advantages for Islamic finance.

As Islamic finance regulators and thought leaders converge on the commercial capital of Kazakhstan, Almaty, for the 12th Annual Summit of the Islamic Financial Services Board (IFSB), the world of Islamic finance is buoyed by a series of encouraging developments in the weeks leading up to the Summit. The Summit is scheduled to be held on 20-21 May 2015. The transformational impact of the Islamic finance industry can only be truly enhanced inter alia if the requisite infrastructure is in place. As such, issues relating to ‘Core Principles for Islamic Finance: Integrating with the Global Regulatory Framework,’ the Summit theme, is pertinent and follows the adoption last month by the IFSB of a new Standard on Core Principles for Islamic Finance Regulation (CPIFR)(Banking Segment) (IFSB-17).

The Islamic Financial Services Board (IFSB), the prudential and supervisory standard-setting body for the estimated US2.3 trillion global Islamic finance industry, convenes its 12th Annual Summit on 19 - 21 May 2015 at the Rixos Almaty in Kazakhstan. The Summit, which is hosted by the National Bank of Kazakhstan, could not have a more pertinent theme: 'Core Principles for Islamic Finance: Integrating with the Global Regulatory Framework.' Indeed, the Council of the IFSB at its 26th Meeting, held in Jakarta, Indonesia in early April, approved the adoption of a new Standard on Core Principles for Islamic Finance Regulation (CPIFR)(Banking Segment), known as IFSB-17.

Kazakhstan's parliament approved new Islamic finance laws yesterday, moving a step closer to launching the oil-producing nation's first sovereign Islamic bond - possibly early next year. The lower house of the legislature passed a bill introducing new definitions, such as Islamic insurance, Islamic leasing and "murabaha", an acceptable form of credit sale under Sharia. The Finance Ministry is expected to propose a new draft law on sukuk very soon. Kazakhstan's first Islamic bond was a 240 million Malaysian ringgit ($73m), five-year sukuk issued by state-owned Development Bank of Kazakhstan in 2012.

The 12th IFSB Summit will be hosted by The National Bank of Kazakhstan. The theme of this year’s Summit is «Core Principles for Islamic Finance: Integrating with the Global Regulatory Framework». The 12th IFSB Summit will focus on the major development in the supervision and monitoring approach to the Islamic financial services industry. In particular, various sessions in the Summit will address the role of the Core Principles in enhancing the regulatory consistency and resilience of the Islamic financial services industry as well as enabling the necessary frameworks and pre-conditions for the assessment of regulatory and supervisory regimes.

The National Bank of Kazakhstan, the central bank and financial services regulator, has taken up membership in Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). The signing ceremony to commemorate the membership was held on December 2 at WIBC 2014. The agreement was signed by National Bank of Kazakhstan deputy governor Nurlan Kussainov and AAOIFI secretary-general Dr Hamed Hassan Merah. Dr Merah said the membership would allow AAOIFI to work more closely with the National Bank of Kazakhstan and the finance industry in the country to support continuing development of Islamic finance.

Al Hilal Bank recently received Kairat Kelimbetov, the Governor of the National Bank of Kazakhstan at its headquarters in Abu Dhabi. Both parties discussed the key role of Al Hilal Bank as the first and only Islamic bank operating in Kazakhstan. Mohamed Jamil Berro, Al Hilal Bank’s Group CEO, personally welcomed Governor Kelimbetov and briefed the guest on the Islamic products offered by Al Hilal. Kelimbetov noted the role of Al Hilal Bank’s activities in the development of Islamic finance in Kazakhstan, and added that the National Bank of Kazakhstan will continue to support development of Islamic finance in Kazakhstan.

Almaty-based Al Hilal Islamic Bank may expand into neighbouring markets as legislation in the Central Asian countries changes. Islamic finance is gaining popularity in the region, but Al Hilal is currently the only sharia-compliant lender in Kazakhstan. The Abu Dhabi government wholly owns Al Hilal's parent company and according to its chief executive, Prasad Abraham, the bank is considering increasing its geographical presence as part of its 2015 business plan.

Kazakhstan is reviving plans to develop Islamic finance and is “fine-tuning” legislation for Shariah-compliant banking, central bank Chairman Kairat Kelimbetov said. Some lenders are seeking to convert into Islamic banks, he said. The drive by Kazakhstan comes two years after its debut sukuk, which was denominated in Malaysian ringgit. Abu Dhabi’s Al Hilal Bank opened a branch in Kazakhstan in 2010, and remains the only Islamic lender in the oil-rich nation. However, Al Hilal Islamic experienced difficulties in generating business because of a lack of understanding of Shariah-compliant products by customers. Moreover, Kazakhstan will face legislative hurdles as it seeks to promote the industry and the nation is experiencing the early stages of development.

Kazakhstan's Al Hilal Islamic Bank may expand into neighbouring countries as legislative efforts to develop Islamic finance gather pace across the region. Legislation is being redrawn in Kazakhstan, after the first set of Islamic finance rules in 2009 failed to spur much activity. Almaty-based Al Hilal, whose parent is wholly owned by the Abu Dhabi government, is considering increasing its geographical presence as part of its 2015 business plan, chief executive Prasad Abraham said. A draft amendment, currently awaiting discussion in Kazakhstan's parliament, would provide the bank with a clearer framework that could translate into better commercial opportunities, Abraham said.

The Islamic Financial Services Board (IFSB) is organising a Seminar on Islamic Finance in Kazakhstan with the theme, "Prospects and Challenges in the Development of Islamic Finance for Kazakhstan" on 16 June 2014 in Almaty, Kazakhstan. The National Bank of Kazakhstan will host the Seminar on Islamic finance as well as the IFSB Facilitating the Implementation of Standards (FIS) Workshop Series for Banking and Takaful on 17 - 19 June 2014. The one-day Seminar will cover the following topics: Islamic Finance for Central Asia: Growth with Stability - Regulatory Issues and Key Preconditions; The Role of Sukuk: Infrastructure Financing, Capital Market Instruments and High Quality Liquid Assets (HQLA); Panel Discussion on the Way forward for the Development of Islamic Finance for Kazakhstan.