BAKU, Azerbaijan, June 30. The official visit
of the Chairman of the Islamic Development Bank (IsDB) Group,
Muhammad Al Jasser, to Kazakhstan from June 30 through July 2,
2026, is significant not only in the context of bilateral
cooperation but also in terms of the growing regional relevance of
Islamic finance as a development instrument.


One indication of this trend was the IsDB Group Annual Meetings
held in Baku from June 16 through 19, 2026, one of the largest
international events dedicated to Islamic finance. Such platforms
are increasingly serving as venues for discussions on
infrastructure development, sustainable growth, and new approaches
to capital mobilization.


Kazakhstan occupies a prominent position in this context owing
to the scale of its economy, its investment attractiveness, and its
role as one of the region’s largest infrastructure markets. As a
result, the current stage of cooperation with Islamic financial
institutions may prove significant not only for Kazakhstan but also
as a reference point for broader regional development. Kazakhstan
became a member of the Islamic Development Bank (IsDB) on November
30, 1995. The country is also a member of the Islamic Corporation
for the Development of the Private Sector (ICD) and the Islamic
Corporation for the Insurance of Investment and Export Credit
(ICIEC).


The IsDB delegation conducted an official visit to Kazakhstan
from 30 June through 4 July 2025 with the aim of strengthening
cooperation in sustainable water resources management and
infrastructure development. In 2024, Kazakhstan and IsDB signed an
agreement to launch Phase 1 of the Climate-Resilient Water
Resources Development Project. The initiative, valued at $1.32
billion, of which $1.15 billion is financed by IsDB, is aimed at
modernizing Kazakhstan’s water infrastructure and enhancing its
resilience to the impacts of climate change.


During the Annual Meetings and the Eurasian Development Bank
business forum in Almaty, IsDB representative and Islamic finance
specialist Yahya Rehman stated that the bank sees significant
opportunities for attracting Islamic financing into infrastructure
projects in Kazakhstan.


According to Rehman, the key factor is technical assistance —
the creation of an enabling environment, the development of
competencies, and the coordination of efforts between international
development institutions.







Financing is no longer viewed as a standalone instrument;
instead, it becomes part of a comprehensive model in which capital
is accompanied by institutional reforms, workforce training,
digital solutions, and the development of project expertise.


It is noteworthy that this approach is also beginning to take
institutional form at the regional level. In May 2026, the Eurasian
Development Bank (EDB) and the Accounting and Auditing Organization
for Islamic Financial Institutions (AAOIFI) signed a memorandum of
understanding to develop Islamic finance in Central Asia. The
parties agreed to jointly develop financial products, promote
capacity building among relevant institutions and specialists, and
improve standards of Islamic finance. At the same time, the
document закрепed the EDB’s role as AAOIFI’s regional partner in
Central Asia.


This is important not so much as another agreement, but as a
signal of a shift from isolated investment initiatives toward the
formation of a fully-fledged market infrastructure — with unified
approaches, expertise, and mechanisms for scaling projects.


For Kazakhstan, Islamic finance can become an additional channel
for attracting capital for infrastructure and project needs. The
use of these instruments allows the country to expand access to
long-term capital directed toward sectors with long investment
cycles, such as water resource management, the development of
transport corridors, and the modernization of engineering
infrastructure.


Coordination of efforts between Islamic financial institutions
and regional development banks makes it possible to optimize
resource allocation, avoid duplication of projects, and implement
integrated approaches, including digitalization and the transfer of
modern management technologies. Islamic finance instruments can
become a practical complement to Kazakhstan’s national economic
policy.