Under the agreement, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market (Agency) aim to work in the areas of common interest that support the development of Islamic banking and finance industry in Kazakhstan and the Commonwealth of Independent States (CIS) region.

This includes meaningful exchange of information, assistance in standards development activities, conducting joint capacity-building and awareness programmes for better understanding of AAOIFI standards in Kazakhstan and other CIS countries.

Islamic finance is a rapidly growing segment of the financial market, which currently amounts to 2.5 trillion US dollars in global volume with growth prospects of up to 50%, that is, up to 3.8 trillion US dollars in the next two years. In Kazakhstan, Islamic finance is an alternative source of attracting funds for business development, in the state and municipal, as well as in the private sector.

Islamic banking is based on partnership relations and risk sharing with the client, where the idea of financial fairness and consideration of the interests of all parties to a financial transaction is at the forefront.

On this occasion the Secretary General of AAOIFI, Mr. Omar Mustafa Ansari noted, “CIS region is one of the important frontiers where Islamic finance has been growing rapidly due to its large Muslim populations, and supportive governments’ policies and infrastructure for Islamic finance. AAOIFI is pleased to sign this formal agreement with The Agency which is an important institution in this region, to help support both institutions to achieve their respective mandates”.

Commenting on the collaboration Mr. Oleg Smolyakov, the First Vice-Chairman of the Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market stated, “AAOIFI is an important infrastructure institution for the Islamic finance industry, and has developed a robust set of standards and guidelines for the indusry. The Agency is priviledged to associate itself with AAOIFI in achieving its vision to proactively provide a stable framework for economic development of Republic of Kazakhstan in developing its financial sector, which includes developing its Islamic finance market. We hope to benefit from this collaboration in the times to come”.