IDB is increasing investment

January 16. Kazpravda

By Alevtina DONSKIH

IDB is increasing investmentIslamic Development Bank has funded projects in the country at 1.5 billion dollars.

This figure was announced by Deputy Prime Minister of Kazakhstan, Minister of Industry and New Technologies, Manager of IDB from Kazakhstan Aset Isekeshev at the opening of the regional forum of Islamic Development Bank Group. These are very good results and support of economic development of Kazakhstan; – he said in his welcome speech on behalf of the Government.

The three-day regional forum is held within the celebrations of the 40th anniversary of the IDB Group. It is attended by delegates from 11 countries of the region – the participants of the bank. The agenda includes such issues as assessment of the group’s activity over the past four decades, as well as a discussion of the regional and global priorities, the strategy for the next decade.

In general, since its creation, the bank’s authorized capital is estimated at $ 150 billion; it financed projects in the world at 97.8 billion dollars, including in the countries of our region at 27.2 billion dollars.

Speaking about results of the Bank’s work, its President Ahmed Mohamed Ali asked the delegates to give their objective assessment and proposals for further development of Islamic finance and enhancing its competitiveness in the world.

Kazakhstan is a recognized leader in the region in the development of Islamic finance. Thus, the country already has developed a legal framework and Islamic financial institutions, including Bank Al Hilal, association of halal Mutual Insurance Takaful, and brokerage company Fattah Finance and Islamic investment fund operate in the republic.

Stressing the importance of such cooperation, Asset Issekeshev told about the results of the first country partnership strategy of Kazakhstan and the IDB up to 2014. Only within this strategy the Bank financed projects worth $ 500 million, including trade finance projects in the grain market:  development of Islamic financial services, technical assistance grants for the development of legislation, establishment of joint funds of food security and renewable energy. Also, now another Islamic commercial bank is created and a regional fund to support small businesses in the Karaganda region, in cooperation with the SEC is planned for establishment.

– We hope that the Islamic finance sector will allow us to attract additional investments in industrial development of the country and SMEs – the minister said. – For this purpose we have developed a special “road map” up to 2020.

We will consistently fulfill the orders of the President on the development of Almaty as a regional financial center – a hub of Islamic finance for CIS countries and Central Asia. We are ready to carry this work further.

Deputy Prime Minister also recalled that the Government increased the share of Kazakhstan’s participation in all structures of the IDB Group, in particular, in such as the Corporation for Private Sector Development, Investment Insurance Corporation. The Ministry will continue to support the initiatives of the bank in implementation of the country strategy, – he said. In turn Almaty mayor Akhmetzhan Yesimov confirmed the readiness of the city to continue collaboration with the IDB.

– We have all necessary prerequisites for cooperation – said the mayor. – We are ready to study and introduce the specifics of the basic methods of Islamic finance. With careful training and strict adherence to rules, we are ready to implement projects on the base of municipal enterprises in the social sphere and environmental improvement. And this forum is a good opportunity to establish business contacts, to get the necessary information about promising projects, to expand business and attract additional investments.

It is worth noting that the first of the regional forums was held in the capital of Malaysia – Kuala Lumpur and Dakar and Jeddah are the next hosts.