The Eurasian Development Bank (EDB), the Islamic Development Bank Institute (IsDBI), and the London Stock Exchange Group (LSEG) joined forces to spotlight the rapid development of Islamic finance's in Central Asia

The development banks held a panel discussion, “Bridging the Capital Road: CIS & GCC,” as part of the Islamic Banking program at Abu Dhabi Finance Week (ADFW) that highlighted the transformative role of Islamic finance in the region, driving sustainable development across Central Asia which enjoys the second fastest economic growth globally. The expansion of Islamic Finance will also unlock new investment ties between Central Asia and the Gulf Cooperation Council (GCC) region, which also already become an active investor in the region.  

Central Asia recorded over 4% GDP growth in 2024—well above the global average of 3.2%. Projections from the EDB, IsDBI, and LSEG indicate that the Islamic finance market in the region could expand from $2.5bn in 2028 to $6.3bn by 2033, driven by Islamic banking and the Islam compliant sukuk bonds.

“The EDB forecasts the region's economic growth rate in 2025 to be around 3%, maintaining its strong trajectory,” said Nikolai Podguzov, Chairman of the EDB Management Board. “As we work to facilitate Islamic finance investments, the EDB is committed to building bridges between Central Asia and the GCC.”

The discussion explored how Islamic finance can drive sustainable development in Central Asia and foster collaboration between the GCC and the Commonwealth of Independent States (CIS). Industry leaders presented strategies to unlock the region’s potential, including installing an Islamic Window to support investment.

Panellists included Podguzov; Maya Marissa Malek, CEO of Amanie Advisors; Renat Bekturov, Governor of Astana International Finance Centre (AIFC); and Dr. Hylmun Izhar, Senior Economist at IsDBI. Mustafa Adil, Head of Islamic Finance at LSEG, moderated the session.

Dr. Izhar underscored the importance of collaboration: “I feel immensely privileged to be part of this stellar event. I truly appreciate the exemplary leadership of the EDB in fostering inclusive, resilient, and sustainable development. Our partnership builds a bridge from the Gulf to the heart of Eurasia.”

With a charter capital of $7bn and a portfolio spanning infrastructure, green energy, and digital systems, the EDB is uniquely positioned to drive regional integration. The bank’s base in Kazakhstan alone accounts for nearly 60% of the EDB’s investments.

The EDB’s upcoming joint research with IsDBI and LSEG will detail projections of a five- to ten-fold increase in Islamic banking assets in Central Asia. The Bank’s establishment of an Islamic Window marks a key step in integrating Islamic finance into its operational framework.

“This panel is a vital platform for discussing strategies that align with our mission of regional integration and sustainable development,” said Podguzov.