Islamic finance set for major growth in Central Asia, new report finds
Kazakhstan and Uzbekistan expected to lead as Sharia-compliant assets projected to reach $6.3 billion by 2033
ASTANA, Kazakhstan (MNTV) — Central Asia’s Islamic finance sector is set to witness major growth over the next decade, with total Sharia-compliant banking assets expected to reach $6.3 billion by 2033, according to a new forecast.
The report, titled The Future of Islamic Finance in Central Asia, was launched during the 2025 Annual Meetings of the Islamic Development Bank Group in Algiers, Algeria. It was jointly published by the Eurasian Development Bank (EDB), the Islamic Development Bank Institute, and the London Stock Exchange Group.
Covering Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, and Turkmenistan, the study outlines a region-wide push to integrate Islamic finance into broader economic development strategies.
As of early 2024, the region hosted 18 Islamic banks and 14 non-bank financial institutions, including takaful providers, microfinance operators, Ijara (leasing) firms, and a growing number of Islamic FinTech ventures.
Islamic finance assets across Central Asia stood at $699 million at the start of 2024. Kazakhstan, which ranked 19th globally in the Islamic Finance Development Index, remains the regional leader.
Uzbekistan is also rapidly expanding its Islamic finance sector, driven by favorable demographics and an increasingly open regulatory environment.
By 2028, Islamic banking assets are projected to hit $2.5 billion before rising to $6.3 billion by 2033. The sukuk (Islamic bond) market is also expected to expand significantly, with total issuance forecasted to grow from $2.05 billion in 2028 to $5.6 billion by 2033.
Nikolai Podguzov, Chairman of the Eurasian Development Bank, said the expansion of Islamic finance would enhance financial inclusion and link local economies to global Sharia-compliant markets.
He confirmed that the EDB is launching an Islamic finance window to support Sharia-compliant infrastructure and development projects.
Key sectors identified for Islamic financing include energy, transport, food security, social infrastructure, and industry — all seen as vital to regional economic growth.
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