Ministry of Finance Aims to Attract Foreign Investment Through Islamic Banking

03 November 2023

The Russian Ministry of Finance anticipates attracting foreign investments through the implementation of Islamic finance instruments within the framework of the partnership (Islamic) banking experiment launched in selected regions. Russian Deputy Finance Minister Alexey Moiseev mentioned this at a meeting to discuss the action plan for developing partnership (Islamic) finance in Tatarstan.


"We are hopeful that the enactment of this law will facilitate the attraction of foreign investments. We are waiting for businesses to identify suitable projects, seek partners, and bring them to Russia for project implementation. This will serve as the primary evidence that this law was not adopted in vain, and all the efforts made by both you and us were not in vain," Moiseev stated. He emphasized that this would be a significant argument to confirm the success of the experiment.


Moiseev also stressed the responsibility of participants in the experiment to develop appropriate approaches. According to him, this responsibility will demonstrate that substantial results can be achieved through the application of this financing method.


Regarding the law, Russian President Vladimir Putin has signed legislation that allows for the establishment of an experimental legal framework for partnership (Islamic) financing in specific regions, including Bashkortostan, Tatarstan, Chechnya, and Dagestan. The experiment is scheduled to last for two years, from September 1, 2023, to September 1, 2025, with the possibility of extension by the government in coordination with the Central Bank of the Russian Federation. Islamic banking entails conducting financial activities in accordance with Islamic norms and principles.



GSV "Russia - Islamic World"

Photo: Nattanan Kanchanaprat/Pixabay

Based on materials from TASS