Kazakhstan passes the first ever Islamic Finance Development Roadmap

Kazakhstan’s Government passed the first ever Islamic Finance Development Roadmap March 29, 2012, Profinance.kz reports. The Program seeks to amend the current insurance and Islamic finance legislation, put in place favorable conditions for registration of property-related transactions under murabaha, Ijarah, Istisna schemes; and to sign double taxation treaties it with South-East Asia and the Middle East countries. Besides, the Program seeks to consider a special legislation to facilitate Islamic non-banking financial institutions (investment funds, leasing companies, securities market players). Eralier Tengrinews.kz reported, quoting the country’s Central Bank Governor Gregory Marchenko, that Kazakhstan is already home to Al Hilal Islamic Bank. The Bank is a 100% subsidiary of Al Hilal Bank, UAE, and the first Islamic bank in Kazakhstan and CIS countries. First Islamic banking license was obtained on 17th of March, 2010. The Bank has its subsidiaries based in Astana, Almaty and Shymkent. Besides, a Sharia-compliant Islamic Hajj Fund has been launched to facilitate savings schemes for those willing to administer Hajj (a pilgrimage to Mecca, Saudi Arabia, performed from the 8th to 12th day of Dhu al-Hijjah, the 12th and last month of the Islamic calendar) and Umrah (a pilgrimage to Mecca, Saudi Arabia, performed by Muslims that can be undertaken at any time of the year). Apart from that, Takaful Insurance Company offers Sharia-compliant insurance services for individuals. Back in 2011 the Spiritual Muslim Authority launched a new vehicle – Zakat Foundation – to manage donations. Zakāt is giving of a fixed portion of one's wealth to charity, generally to the poor and needy. To encourage Islamic securities, the Kazakh Stock Exchange accommodates a special Islamic securities section.