New frameworks, Islamic windows and digital initiatives strengthen regional momentum
Dubai, UAE – 15 October, 2026: AlHuda Centre of Islamic Banking and Economics (CIBE) observes that Islamic banking across the Commonwealth of Independent States (CIS) and Central Asia is entering a more practical phase of development, with recent reforms and institutional activity in Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan and Russia moving the sector from policy discussion toward market implementation.
Across the region, Islamic banking remains smaller than conventional banking, but its development is becoming more structured. During 2026, regulators and market institutions advanced licensing pathways, Shariah governance, supervisory standards, digital delivery models and professional capacity—creating clearer routes for banks and other financial institutions to enter the market responsibly.
Kazakhstan has taken a major step by allowing conventional banks to establish Islamic windows under banking legislation that came into force in January 2026. The Astana International Financial Centre (AIFC) has also strengthened the supporting ecosystem through Shariah governance rules, advisory expertise and market-entry guidance, enabling institutions to assess Islamic retail, corporate and investment-banking opportunities without immediately establishing a separate Islamic bank.
Momentum in Kazakhstan now extends beyond banking products. In September 2026, the AIFC’s Islamic Finance Advisory Board discussed expansion of the Islamic capital market on the Astana International Exchange and an initial concept for an Islamic Finance Centre of Excellence. These initiatives indicate a broader focus on standards, talent, investment instruments and institutional infrastructure.
Uzbekistan is progressing through a coordinated market-development approach. The Central Bank of Uzbekistan and the Islamic Financial Services Board developed a draft national roadmap for 2026–2030, covering the regulatory and supervisory framework, Shariah governance, institutional development and alignment with international standards. This work can support the gradual introduction of Islamic banking products and windows while building confidence among customers and investors.
Kyrgyzstan already has a broader operating base. According to the National Bank of the Kyrgyz Republic, as of 31 August 2026, six of the country’s 26 commercial banks were providing services under Islamic banking and finance principles. This demonstrates that Islamic finance is moving beyond a single-institution model and gives the market practical experience in products, operations and Shariah-compliance controls.
Tajikistan is gradually strengthening its Islamic finance infrastructure. According to the National Bank of Tajikistan’s official review for the first quarter of 2026, the country had 363 branches of credit financial institutions, including three Islamic banking windows. On 18 June 2026, the National Bank also organized a specialized training seminar on Islamic insurance (Takaful), involving IFSB experts and representatives of regulatory authorities, insurance organizations, credit financial institutions and audit firms. These developments demonstrate Tajikistan’s growing focus on strengthening regulatory expertise, professional capacity and the supporting ecosystem for Shariah-compliant financial services.
In Russia, the partnership-financing experiment has been extended until September 2028 in Bashkortostan, Dagestan, Tatarstan and the Chechen Republic. The expanded framework includes account services and mutual insurance, giving regulators and institutions more time to test demand and refine scalable standards.
Mr. Muhammad Zubair Mughal, Chief Executive Officer of AlHuda CIBE, said:
“The strongest signal from the CIS is the development of a complete Islamic banking ecosystem—not merely the launch of individual products. Islamic windows, effective Shariah governance, appropriate regulatory standards, digital delivery and qualified professionals are collectively strengthening the sector’s foundation.
However, each CIS market requires a tailored approach based on its regulatory environment and economic priorities. Banks and regulators should focus on well-governed Islamic financial solutions that address practical financing needs, particularly for SMEs, trade, agriculture, housing and equipment leasing.”
About AlHuda CIBE
AlHuda Centre of Islamic Banking and Economics (CIBE) is a globally recognized Islamic finance advisory and capacity-building institution. Since 2005, AlHuda CIBE has provided advisory and consultancy, research and development, education and training, Shariah advisory and certification, and publications to financial institutions, regulators and development organizations in international markets. For further details about AlHuda CIBE, please visit: www.alhudacibe.com.
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