Kazakhstan may introduce Islamic mortgage products as early as October 2026, giving homebuyers access to Sharia-compliant financing without traditional interest payments. The initiative was announced by Lyazzat Ibragimova, Chairwoman of Otbasy Bank, during an interview with Kazinform.
According to Ibragimova, Otbasy Bank is currently studying the implementation of Islamic mortgage products and sees strong long-term potential for the sector in Kazakhstan. She noted that public interest in Islamic finance has been increasing, with more people seeking alternatives to conventional interest-based banking services.
The proposal follows recent legislative developments related to Islamic finance regulation in Kazakhstan. In April 2026, the Agency for Regulation and Development of the Financial Market submitted a draft law to parliament that would allow Otbasy Bank to engage in Islamic financing activities. The legislation is expected to be signed into law by the end of June, while the licensing process could continue through August.
Ibragimova stated that the bank plans to introduce new regulations based on Islamic financial principles in September or by October 1, after which the Islamic mortgage products could officially become available to customers.
Under Islamic Sharia principles, charging interest is prohibited. To comply with these rules, Otbasy Bank plans to develop alternative financing mechanisms that provide interest-free mortgage solutions. The bank is also considering launching Sharia-compliant deposit services alongside the new mortgage products.
Kazakhstan’s move reflects a broader trend across Central Asia toward Islamic finance. Earlier, Uzbekistan also introduced a legal framework for Islamic banking and Sharia-compliant financial operations as interest in alternative financial products continues to grow across the region.