The Eurasian Development Bank (EDB), a multilateral institution in Central Asia, has unveiled its plan to issue $500 million worth of sukuk in international markets. This was announced in a statement by the EDB on the sidelines of the International Monetary Fund and World Bank Annual Meetings in Morocco.

The purpose of this issuance is to fund projects in the Central Asian region, with the potential to set a benchmark for other Central Asian countries.

The EDB has compiled a list of potential projects to direct this financing. Their calculations indicate that the size of Islamic financial assets in Central Asia could soar to $10 billion by 2030-35.

In light of this, the bank has established its Islamic division and is expanding collaboration with financial institutions within the Gulf Cooperation Council. Their primary goal is to foster the development of Islamic finance in Central Asia, mainly through affiliations with organizations within the Islamic Development Bank Group.

According to the bank’s statement, the global share of Islamic finance in total assets stood at 1% in 2022 and is experiencing rapid growth. Between 2015 and 2021, the annual average growth rate of Islamic assets worldwide was an impressive 10.5%, surpassing the 5.8% growth rate observed in traditional finance assets.

The EDB member countries in Central Asia, which include Kazakhstan, the Kyrgyz Republic and Tajikistan, are predominantly Muslim nations.