The development of Islamic banks in Kazakhstan

Abstract

The purpose of the research this article examines the functioning and future prospects of Islamic finance in Kazakhstan, addressing a relatively underexplored topic in the academic literature. The authors' aim is to examine the historical development of Islamic finance, identifying the obstacles that have hindered its progress, especially given the limited progress made in the last decade.Research methodology – includes applied research methods, scientific abstraction and systematic approach. The authors derive their conclusions and recommendations from an assessment of the strengths, weaknesses and threats of Islamic finance aimed at reducing the negative impact on the country's economy and financial system.Originality/value of the research - the authors carefully examine Islamic law and the use of Islamic financial instruments. Based on their analysis, recommendations are made to promote the introduction of Islamic financial instruments in the financial sector of Kazakhstan.Findings. Our findings of the study highlight the problems associated with the country's conservative approach to Islamic finance and the presence of various restrictive barriers, both prudential and social. The study can help legislative and executive authorities in developing a program for the development of Islamic finance in Kazakhstan. They can also use these recommendations to improve or create more specific legislation in this area.