ALGIERS, Algeria, May 20. Kyrgyzstan’s Islamic
banking sector to experience substantial growth by 2033, reads the
joint report of the Eurasian Development Bank, the Islamic Bank
Institute and the London Stock Exchange Group.
It was presented during the IsDB annual meetings in Algiers,
Trend’s special
correspondent reports.
“Projections for Kyrgyzstan’s Islamic banking sector assume that
sector will experience substantial growth, reaching $58 million by
2028 and $67 million by 2033. Alongside the growth in Islamic
banking, the Sukuk market in Kyrgyzstan is also expected to witness
significant development. The outstanding value of Sukuk is
projected to grow to $67 million by 2028 and $170 million by 2033,”
reads the report.
The authors point out that the country’s central bank set a
targeted indicator of 5% share of the Islamic banking sector in its
strategic document for the 2013-2027 period.
“According to the National Bank of the Kyrgyz Republic (NBKR),
previously conducted studies and surveys have shown a high unmet
demand for Islamic finance in the small and medium business sector.
In 2022,
the Islamic banking sector’s assets accounted for just 1.5% of
total banking sector assets, despite the country’s proportionately
large Muslim population. This suggests that there is great
potential for the industry to develop. In 2023, government approved
the concept for the development of the Islamic economic platform in
the Kyrgyz Republic for 2023-2027, with the aim of making the
country a regional centre for Islamic finance. It was also reported
in March 2023 that there were plans to launch the country’s first
Islamic
investment bank,” the document reads.
