The volume of investments through Islamic financing instruments within the Eurasian Development Bank (EDB) until 2026 could be at least $1 billion, Head of EDB Nikolai Podguzov told reporters on the sidelines of the conference of investors - participants of the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP).
"In terms of volumes, for example the Islamic Development Bank (IDB) has invested about $6 billion in Central Asian countries since its foundation, the EDB has invested $20-25 billion in countries of operations since 2006. Our strategy for the next years (2022-2026) involves investments of $10 billion. I believe that 20% of this volume we could do through Islamic banking, including together with the IDB and other participants. So I think we could talk about investments of not less than $1 billion," he said.
Podguzov said that the tools of Islamic finance are in high demand in Central Asia, so the EDB decided to open a unit at the bank this year to start providing financing for projects in the format of Islamic banking together with the IDB.
About the bank
The EDB is an international financial institution that invests in Eurasia in order to expand economic ties and comprehensive development of its member countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan. The EDB's portfolio is dominated by projects with an integration effect in the areas of transport infrastructure, digital systems, green energy, agriculture, industry and mechanical engineering.
GSV "Russia - Islamic world"
Photo: Josh Appel\Unsplash
Based on materials from TASS