The Eurasian Development Bank (EDB) intends to become a platform for the development of Islamic finance in Central Asian countries. On the sidelines of the Annual Meeting of the Islamic Development Bank Group, senior executives from the EDB and the Islamic Development Bank (IsDB) discussed the potential of Islamic financing in the region, fostering collaboration in project activities, joint economic research, and other relevant areas.
EDB representatives acknowledged the substantial potential of Islamic finance in Central Asian countries and emphasized their intention to comprehensively advance it. To this end, the bank is establishing a specialized division that will focus on Islamic finance.
“The EDB aims to develop the Islamic finance industry and is in the process of establishing a dedicated Islamic finance unit. This is necessitated by the growing demand for Islamic finance instruments in Central Asia. The IsDB has nearly half a century of experience in this domain, and its methodological and advisory support in implementing the principles of Islamic finance in the Bank’s operations would be valuable to us,” said Nikolai Podguzov, Chairman of the EDB Management Board.
The parties also explored the possibility of undertaking joint economic studies that hold relevance for Central Asia.
“The Bank has a research unit that regularly publishes surveys, forecasts, and studies pertaining to our economies. We view research as a platform for exchanging relevant studies, implementing joint projects, and seeking solutions to economic challenges,” he stressed.
Furthermore, the participants discussed ongoing projects supported by the EDB and the IsDB in the countries where the two banks operate, as well as potential initiatives in Central Asia.
“We are already engaged in joint projects, such as the Big Almaty Ring Road (BAKAD) in Almaty, an undertaking that will alleviate traffic congestion in the city and become part of the International West–East Transport Corridor. Our continued collaboration, both on individual projects and strategically, will have a synergistic effect contributing to the region’s economic prosperity,” concluded Nikolai Podguzov. ///EDB, 12 May 2023