The Eurasian Development Bank, the Islamic Development Bank Institute and the London Stock Exchange Group host a discussion on the future of Islamic Finance in Central Asia

The Eurasian Development Bank (EDB), the Islamic Development Bank Institute (IsDB) and the London Stock Exchange Group (LSEG), in the spirit of promoting Islamic Finance in Central Asia, have held a panel discussion, “Bridging the Capital Road: CIS & GCC,” as part of the Islamic Banking program at Abu Dhabi Finance Week (ADFW) on December, 11, 2024.

This panel highlighted the transformative role of Islamic finance in driving sustainable development across Central Asia – the region with the second fastest growing economies globally – and fostering stronger investment potential and economic ties between the Central Asia and the Gulf Cooperation Council (GCC) region.

The year 2024 ends with record economic growth in the EDB's states of operations of more than 4%, surpassing the global rate (3.2%). At the same time, by projections from the EDB, the IsDB and the LSEG, the Islamic finance market will reach the level of USD 2.5 billion in 2028 and USD 6.3 billion in 2033.

There is a perspective for significant growth and development in the Islamic Finance industry in the region, driven mainly by the Islamic banking sector and the sukūk asset class. The three partners assume an increase in Islamic banking assets 5-10 fold in the near period; the details will be revealed in an upcoming joint research.

Nikolai Podguzov, Chairman of the Management Board of the EDB, joined the stage alongside distinguished experts to discuss actionable insights and strategies for unlocking the region’s immense potential.

During the session, the EDB Chairman outlined the Bank’s vision for expanding Islamic finance, including the establishment of its Islamic Window to support relevant projects and facilitate investments.

The panel, moderated by Mustafa Adil, Head of Islamic Finance at London Stock Exchange Group (LSEG), featured:

Nikolai Podguzov, Chairman of the Management Board of the EDB
Maya Marissa Malek, Managing Director and CEO, Amanie Advisors Global Office
Renat Bekturov, Governor, Astana International Finance Center (AIFC)
Dr. Hylmun Izhar, Senior Economist, Islamic Development Bank Institute (IsDBI)

The panel covered several prominent topics, including global trends in Islamic finance and best practices to be implemented in Central Asia, opportunities for collaboration between Central Asia and the GCC, including the benefits of installing an Islamic Window in Central Asia on a regional and global scale.

With its unique position as a regional development bank, the EDB is spearheading efforts to unlock the potential of Islamic finance in Central Asia, fostering partnerships that connect economies and create shared prosperity.

“The EDB forecasts the region's economic growth rate in 2025 to be around 3%, maintaining high rates of economic growth in 2025. And as we work to facilitate Islamic finance investments, the EDB is committed to fostering further cooperation between Central Asia and the GCC,” added Nikolai Podguzov. “This panel is a vital platform for discussing strategies that align with our mission of regional integration and sustainable development.”

The session was concluded with remarks by Mr. Yahya Rehman, Associate Manager at the Islamic Development Bank Institute, emphasizing the shared vision for advancing Islamic finance in emerging markets.

Dr. Hylmun Izhar, Senior Economist at IsDBI, said, “I feel immensely privileged to be part of this stellar event. I truly appreciate the achievement and exemplary leadership of the EDB in fostering inclusive, resilient and sustainable development. Our partnership allows building a bridge going from the Gulf Countries straight into the heart of Eurasia.”

Additional Information:

The Eurasian Development Bank (EDB) is an international financial institution investing in Eurasia. For more than 18 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. The EDB's charter capital totals US $7 billion. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing and mechanical engineering. The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations. Kazakhstan accounts for almost 60% of the Bank’s investment portfolio.

The Islamic Development Bank Institute (IsDBI) is the knowledge beacon for the IsDB Group, leading the exploration of innovative solutions for the economic challenges facing Member Countries and Muslim communities within the framework of Islamic economics and finance. Established in 1981 as the Islamic Research and Training Institute (IRTI), the Institute was rebranded in 2021 as IsDB Institute to better align with the strategic priorities of the IsDB and enable the Institute to contribute tangible and sustainable value for enhancing the well-being of our Member Countries.

The London Stock Exchange Group (LSEG) LSEG is one of the world’s leading providers of financial markets infrastructure and delivers financial data, analytics, news and index products to more than 40,000 customers in over 170 countries. The LSEG helps organisations fund innovation, manage risk and create jobs by partnering with customers at every point in the trade lifecycle: from informing their pre-trade decisions and executing trades to raising capital, clearing and optimisation. Backed by more than three centuries of experience, innovative technologies and a team of 25,000 people in over 60 countries, we are driving financial stability, empowering economies and enabling clients to grow sustainably.

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