Indonesia - Kazakhstan Promote Cooperation in the field of Islamic Finance

On March 13, 2017, the Embassy of the Republic of Indonesia in Astana held a meeting with Managing Director of the Center for International and Regional Cooperation under the Association of Financiers of Kazakhstan (AFK) Mr. Samat Zhanabay, to discuss cooperation in the Islamic finance industry, the current development of Islamic finance in Kazakhstan, as well as on the exchange of information, knowledge, experience and training on the Islamic finance and banking. The AFK representative has proposed training for professionals in Islamic Banking in Indonesia to learn Indonesian experience in implementing Islamic banking and finance.

On March 14, the Embassy has attended the Islamic Finance News (IFN) CIS Forum, which key objective is to stimulate the development of Islamic finance in the CIS countries and explore investment opportunities in the region. The Forum was organized by REDmoney events in partnership with the Astana International Financial Center (AIFC), and held at Rixos President Hotel in Astana.

The Forum has brought the leading market players and regulators from key Islamic finance markets globally and from the Commonwealth of Independent States (CIS), the representatives of financial services regulators, state corporations and major financial institutions from the CIS and abroad, and served as a major platform for international dialogue.

At the Forum Opening Ceremony, Governor of the AIFC Mr. Kairat Kelimbetov pointed out that Islamic finance is one of the five priority areas of the AIFC’s development, and at the moment AIFC is focusing on creating a favourable legal and regulatory environment for Islamic financial institutions in Kazakhstan.

The Forum consisted of five panel sessions on the themes: “Clearing the Roadblocks to Mainstream Islamic Finance in the CIS”, followed by a meeting of the regional financial regulators, “Inward investment: From Agriculture to Infrastructure”, “Driving Regional Economic Development through Shariah compliant Capital–Raising”, “Islamic Capital Market Development: Application in the CIS context”, “Human capital as a Building Block to Industry Growth”.

The Forum concluded with a workshop: “Sukuk – An Alternative Asset Class”, organized by Emirates NBD, Norton Rose Fulbright and Nasdaq Dubai in partnership with the Astana International Financial Center, at which the key features and aspects of Sukuk instruments, overview of Sukuk market, the structure of Sukuk in the form of case studies as well as the process of issuing and listing Sukuk, were presented.

Astana International Financial Center (AIFC) is the farsighted initiative of the President of Kazakhstan H.E. Mr. Nursultan Nazarbayev. The Constitutional Law to establish AIFC was signed on the 7th December 2015 by the Kazakhstan President.

AIFC focuses on the development of the following core pillars: Islamic finance, capital markets, asset management, private banking, financial technology and green finance. AIFC has been appointed to act as the main body for developing Islamic finance in Kazakhstan and the CIS region and will serve as the Islamic finance gateway and the Islamic finance hub of the region.

Indonesian Embassy in Astana