The EDB and AAOIFI signed a Memorandum of Cooperation to develop Islamic finance in Central Asian countries. The document was signed by Nikolai Podguzov, Chairman of the EDB Management Board, and Sheikh Ebrahim bin Khalifa Al Khalifa, Chairman of the AAOIFI Board of Trustees.

The parties intend to jointly develop new financial instruments, attract investment to the region, train specialists, and implement international Islamic finance standards. The Eurasian Development Bank will become AAOIFI’s regional partner in Central Asia.

This area is particularly relevant for Kyrgyzstan, because Islamic finance has been developing in the country for several years: Islamic windows are operating in commercial banks, Sharia-compliant products are offered, and the National Bank has created a legal framework for their development.

Islamic finance differs from traditional banking in that it excludes the payment and receipt of interest (riba) and the financing of prohibited activities. It is built on the principles of risk sharing, transaction transparency, and linking financing to real assets. This approach is considered more sustainable and focused on long-term partnerships.

AAOIFI is the only international organization that develops standards for Islamic financial institutions. Today, its standards are applied in more than 45 countries and help banks, investors, and regulators operate under uniform rules.

Experts note that cooperation between the EDB and AAOIFI could accelerate the development of Islamic finance in Central Asia, increase investor confidence, and open up additional opportunities for countries in the region, including Kyrgyzstan, to attract capital.