Islamic finance is a rather recent phenomenon in Central Asia. Only with the beginning of the financial crisis in 2007 did the cooperation between the states and the Islamic Development Bank result in domestic initiatives to establish forms of Islamic banking. The case studies in this article indicate a correlation between the subsequent development of such initiatives and the unfolding political crises. The states in Central Asia were eager to connect to available streams of Islamic investment capital in the early stages of the financial crisis. Their commitment to further adapt, however, declined when they entered periods of political crisis that brought about quick and sudden reshuffles of reform priorities.
See for example“Kazakhstan Turns to Sukuk After Eurobond Offering Dropped: Islamic Finance,”BloombergJuly 29 2010 http://www.bloomberg.com/news/2010–07–29/kazakhstan-turns-to-sukuk-after-eurobond-offering-dropped-islamic-finance.html (accessed January 29 2016).
See for example“Kazakhstan poka ne ochen’ uspeshen v razvitii islamskogo finansirovaniya,”LiterNovember 17 2015 http://liter.kz/mobile/ru/articles/show/14121-kazahstan_poka_ne_ochen_uspeshen_v_razvitii_islamskogo_finansirovaniya (accessed January 29 2016).
Aliyev“The Politics of Islamic Finance in Central Asia and South Caucasus”; “Informatsiya po islamskim principam finansirovaniya i bankovskogo dela,”National Bank of Kyrgyzstan(2012); “Kyrgyzstan: Islamic Banking Offers Alternative to the ‘European System’” Eurasianet June 14 2011 http://www.eurasianet.org/node/63675 (accessed January 29 2016).
See Alieyev (2012); “Islamic Corporation for Development of Private Sector provides $11 mln to Uzbek banks” Trend April 6 2012 http://en.trend.az/capital/business/2011143.html (accessed January 29 2016); Asadov and Gazikhanov “Ijarah’s Prospects in Central Asia.”
At least at the beginning of2016neither Ipak Yuli Bank nor Uzbek Leasing International or Uzpromstroybank another idb partner use Islamic financial instruments for their operations according to their websites.