BANKING AND CORE SERVICES

With reforms and financial regulation taking place, Kazakhstan’s banking sector has changed dramatically. Clare Nuttall reports

BANKING AND CORE SERVICES

ISLAMIC BANKINGIn another development, the government also adopted new legislation in 2009 aimed at creating a market for Islamic financial services in Kazakhstan. It is the first CIS country to do so, and the project has strong support from President Nursultan Nazarbayev and other top officials.

When it obtains its banking licence, the United Arab Emirate’s Al Hilal bank is set to become the newest player on the Kazakh market. Al Hilal planned to invest $1 billion within its first four years in Kazakhstan, bank CEO Mohamed Jamil Berro announced in March. “There are strong ties at all levels between Abu Dhabi and Kazakhstan, vast investment opportunities in Kazakhstan, and an opportunity for us to contribute to the growth and prosperity of this country,” he said. The Kazakh government is also planning to launch its first sovereign sukuk – or Islamic bond – in 2010 for the amount of up to $500 million.