AlHuda CIBE CEO Explores Islamic Finance Potential in CIS Region

Muhammad Zubair, the CEO of AlHuda Centre of Islamic Banking and Economics (CIBE) in the UAE, recently visited Uzbekistan, Kyrgyzstan, and Azerbaijan to explore the growing potential of Islamic banking and finance in the emerging Commonwealth of Independent States (CIS) region. The CIS region, with its large Muslim populations and supportive governments, is experiencing a surge in interest in Sharia-compliant financial products.

During his visits, Zubair met with key industry leaders, including representatives from the Leasing Association of Uzbekistan, the Fintech Association of Uzbekistan, the Association of Professionals of the Insurance Market of Uzbekistan, and the Banking Association of Uzbekistan. In Kyrgyzstan, Zubair discussed the prospects for expanding Islamic microfinance with the CEO of Oxus, a microfinance network, and other industry leaders. In Azerbaijan, Zubair explored the potential of Islamic Fintech with the Chairman and Founding Board Member of the Azerbaijan Fintech Association.

Why this matters: The growth of Islamic finance in the CIS region has the potential to promote financial inclusion, alleviate poverty, and drive socio-economic development in countries with significant Muslim populations. The expansion of Sharia-compliant financial products and services could also help diversify the economies of CIS nations and attract foreign investment.

Zubair expressed optimism for the future of Islamic finance in the CIS region, highlighting the critical role of Islamic microfinance in promoting financial inclusion, poverty alleviation, and socio-economic development. AlHuda CIBE is actively contributing to the growth of Islamic banking and finance in the CIS region through various initiatives, including capacity-building workshops and the annual CIS Islamic Banking and Finance Forum.

The visit highlighted the surge in popularity of Islamic finance in the CIS, driven by large Muslim populations seeking Sharia-compliant products, supportive governments establishing legal frameworks, and the desire to diversify economies. In Uzbekistan, Zubair met with industry leaders to discuss potential future initiatives to develop the Islamic leasing (Ijarah) sector. In Kyrgyzstan, he explored the prospects for expanding Islamic microfinance, which has already seen the establishment of around 15 Islamic banking, financial, and Takaful institutions. In Azerbaijan, Zubair discussed the potential of Islamic Fintech to deliver Sharia-compliant financial services more efficiently and conveniently.

Zubair's visit to the CIS region underscores the growing importance of Islamic finance in promoting financial inclusion and driving economic growth in countries with significant Muslim populations. As governments in the region continue to establish supportive legal frameworks and more institutions offer Sharia-compliant products, the Islamic finance industry is positioned for further expansion in the coming years. AlHuda CIBE's multifaceted approach, including capacity-building workshops and the annual CIS Islamic Banking and Finance Forum, will play a vital role in fostering the development of Islamic banking and finance in the region.

Key Takeaways

• Islamic banking and finance is growing in the CIS region with large Muslim populations.
• Zubair of AlHuda CIBE met with industry leaders in Uzbekistan, Kyrgyzstan, and Azerbaijan.
• Islamic finance can promote financial inclusion, alleviate poverty, and drive development.
• Uzbekistan, Kyrgyzstan, and Azerbaijan are establishing legal frameworks for Islamic finance.
• AlHuda CIBE is contributing to CIS Islamic banking growth through workshops and forums.