Published
12/12/2025, 13:40At Abu Dhabi Finance Week, the Eurasian Development Bank identified a key challenge hindering the development of Islamic finance in Central Asia: regional fragmentation of the regulatory framework and interpretations of Sharia law.
Speaking at the discussion, EDB Senior Managing Director Azamat Tuleubay emphasized that differences in interpretations, regulatory approaches, and operational standards create uncertainty for businesses and investors.
“One of the most serious challenges we face in Central Asia is fragmentation. Differences in interpretations, regulatory frameworks, and operational standards affect investment flows. For the market to grow, the region must move closer to generally accepted international standards,” he said.
Tuleubay noted that multilateral development banks, including the EDB, can act as catalysts for integration because they operate in several jurisdictions at once and can see where discrepancies arise.
According to him, development banks can create platforms for dialogue between regulators, Islamic scholars, AAOIFI, IFSB, and the market, participate in the harmonization of the legal framework and unification of documentation, launch pilot transactions based on uniform Sharia standards, and strengthen investor confidence in Islamic instruments.
“DBIs are not just financial institutions, but drivers of standardization and integration,” emphasized the EDB representative.
The discussion also mentioned a joint report by the EDB, the IBRD Institute, and the London Stock Exchange Group entitled “The Future of Islamic Finance in Central Asia.” It notes:
The panel participants agreed that the future of Islamic finance will depend on how successfully the countries of the region can develop coordinated approaches to supervision, eliminate legal gaps, and create conditions for cross-border transactions based on common standards.
