Kazakhstan Undergoes Islamic Finance Assessment Led by IsDB Institute

The Islamic Development Bank Institute (IsDBI) has initiated a comprehensive Islamic Finance Country Assessment for Kazakhstan using its specially designed Islamic Finance Country Assessment Framework (IF-CAF). This assessment is a key step towards integrating Islamic finance more substantially into Kazakhstan’s broader national development strategy.

IF-CAF, conceived by IsDBI in collaboration with Islamic Finance Advisory and Assurance Services (IFAAS), is a robust diagnostic toolkit. It employs a transparent and systematic approach to evaluate an IsDB member country’s Islamic finance ecosystem, based on a range of qualitative and quantitative criteria. The outcome of this assessment identifies existing gaps and challenges in the finance industry and consequently produces customized recommendations for the IsDB Group to help the country in establishing the necessary infrastructure according to the market’s priorities.

The IF-CAF was initially piloted in IsDB member countries in September 2022. The current exercise in Kazakhstan follows a successful implementation in Uzbekistan in March 2023.

The Kazakhstan assessment commenced on June 1, 2023, and included in-depth consultations and discussions with the Islamic finance industry’s major stakeholders in the country. These discussions explored critical elements of the Islamic finance ecosystem, such as the legal framework, regulatory and supervisory measures, market infrastructure, liquidity management, financial safety nets, Shari’ah governance, and other essential services that underpin the industry’s stability and growth.

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During the assessment, meetings involving IF-CAF were conducted with leaders and senior officials from various organizations including the Ministry of Finance, Muslim Religious Administration of Kazakhstan, Astana International Financial Centre (AIFC) and its subsidiaries, National Bank of Kazakhstan, Agency for the Regulation and Development of the Financial Market, Kazakhstan Stock Exchange, DAMU Entrepreneurship Development Fund, and several Islamic financial institutions.

IsDBI will synthesize the insights collected through the IF-CAF assessment into a comprehensive report tailored for Kazakhstan. This report will not only assess the current landscape of the country’s Islamic finance sector but also put forth data-driven policy recommendations to propel the industry forward.”