Dagestan’s Muftiate has taken a significant step toward promoting Islamic banking by establishing an expert council focused on Sharia-compliant business practices. Aina Gamzatova, advisor to the republic's mufti, made the announcement during the “Economy of Dagestan: Potential and Development Vector” forum.
“We've held numerous discussions on this subject, with our mufti, Sheikh Ahmad-Afandi Abdulaev, actively participating,” Gamzatova explained. “He has long believed that Dagestan’s society needed time to be ready for the implementation of Islamic banking. Business plays a central role in the lives of many Muslims here, and for the Muftiate, it's essential that this economic activity aligns with Sharia law. This is why we have now formed an expert council within the Muftiate to ensure business is conducted according to Islamic principles.”
Gamzatova also stressed the importance of financial support for those participating in the Islamic banking initiative, suggesting that measures such as subsidized interest rates and leasing should be considered at the federal level.
“In the Western economic model, the primary focus is on maximizing profit. However, Islamic banking is not solely about the end result, but also about how that result is achieved. This type of support would be a strong incentive for participants in the initiative. Furthermore, we envision Islamic banking not only as a service for entrepreneurs but also as a system that emphasizes the collection and distribution of zakat, a mandatory charitable contribution in Islam. This will foster social responsibility, reduce poverty, and improve overall societal well-being,” she added.
The introduction of partnership-based (Islamic) financing began on September 1, 2023, across several regions, including Tatarstan, Bashkortostan, Dagestan, and Chechnya. Islamic banking, which adheres to Islamic financial principles, prohibits interest-based transactions and instead focuses on profit-sharing and socially responsible investments.
About the Forum
The “Economy of Dagestan: Potential and Development Vector” forum, held in Makhachkala on September 11, provided a platform to discuss regional collaboration, strategic advantages, partnership financing, and tourism development.
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Photo: Shamil Magomedov/Creative Commons 2.0
Based on materials from TASS