Pilot testing of Islamic banking starts in Tatarstan on September 1

On August 29, speaking at a briefing in the Government House of the republic, Deputy Prime Minister of the republic, Tatarstan Minister of Economy Midkhat Shagiakhmetov said that on September 1, 2023, Russia will start an experiment on partner financing - Islamic banking, where Tatarstan became one of four pilot regions, where the experiment is being carried out.

The duration of the experiment is two years. The experimental constituent entities were identified: the Republic of Tatarstan, the Republic of Bashkortostan, the Republic of Chechnya and the Republic of Dagestan,” the Minister of Economy of Tatarstan said.

The project is aimed at equalizing the conditions for partner and traditional funding. This is expected to increase affordability and partnership funding, as well as attract investment from Islamic countries. The potential of the halal industry will be part of the experiment. Another is to increase the level of knowledge both among the population and among specialists. In addition, attention will be paid to working with the media, holding events on financial literacy. Work on Islamic finance has been going on in Tatarstan for 15 years, Shagiakhmetov said. This has resulted successful experience in implementation of individual projects based on partnership funding. Thus, in 2008, a memorandum of cooperation was signed with the Islamic Bank “Development”.