Kazakhstan secured up to 20 billion tenge in Islamic financing for its agricultural sector. The deal was finalized at the Islamic Development Bank Group annual meetings in Baku, Qazinform News Agency correspondent reports. Kazakhstan is expanding financing mechanisms for its agro-industrial complex through the attraction of Islamic capital.
In Baku, JSC KazAgroFinance signed a memorandum of cooperation with the Islamic Corporation for the Development of the Private Sector. The signing took place during the annual meeting of the Islamic Development Bank Group, held from June 16 to 19 in the capital of Azerbaijan, bringing together leading development institutions and governments from dozens of countries.
The agreement provides the Kazakh side with access to Islamic financing of up to 20 billion tenge. The funds raised will be directed exclusively toward supporting domestic agricultural producers, primarily for the purchase of agricultural machinery, equipment, and the modernization of the agricultural sector’s production base.
According to Rustam Abdusalamov, Independent Director and Member of the Board of Directors of JSC KazAgroFinance, access to financial resources remains one of the key factors for the sustainable development of the country’s agriculture. Our task is to support domestic farmers and thereby stimulate the economy.
This agreement creates additional opportunities, and we will continue to expand support instruments for Kazakhstan’s agro-industrial complex, he stressed. Financing for the company’s clients will be provided through the Islamic leasing mechanism known as ijarah, which features pre-agreed terms fixed for the entire duration of the contract and full compliance with the ethical standards of Islamic finance.
According to experts, the agreement represents another step by Kazakhstan toward diversifying its sources of capital and expanding international cooperation in the field of sustainable development of the agricultural sector. Earlier, Qazinform reported the World Bank had invited Kazakhstan to join its Digital Compact global strategy.