Yesterday, Jusan Analytics held a presentation of a new work on Islamic banking for the media. The team plans to conduct such events on an ongoing basis as large one-off researches are released.

Opening the meeting with journalists, the Managing Director of Jusan Analytics Anuar Kuandykov spoke about the features of Islamic banking. Islamic banks distinguish from traditional ones in the principles based on which they operate:

• Bank becomes an investor when financing projects, accordingly shares risks and profits with the client;
• Islamic banks cannot earn on loan interest and offer guaranteed interest income on deposits;
• Prohibition of uncertainty regarding the subject of the contract, its terms and the information provided;
• A ban on the financing of certain activities prohibited in Islam, for example, the production of alcohol and tobacco products;
• Prohibition of profit-making as a result of a random combination of circumstances, for example, casinos and other gambling.

We have studied the world's experience in the development of Islamic banking and analyzed the most successful cases of Islamic banks in Turkey and the UK. It should be noted that these countries are the leaders of their regions in the Islamic banking development.

And in Kazakhstan, Islamic banking is still at an early stage of its development, but it has significant potential. Thus, the volume of retail Islamic deposits can reach 196.9 billion tenge, and the loan portfolio can grow to 147.7 billion tenge. The actual size of the deposit and loan portfolio as of December 2022 is 30.2 and 51.2 billion, respectively.

We identify 4 basic criteria for the development of Islamic banking in the country, one of which is no longer an obstacle. Read more in our work.