Thomson Reuters introduces a road map on the development of Islamic finance

In "Mirage" hotel was a discussion about the five-year strategic plan of the development of Islamic finance in the Russian Federation and the Republic of Tatarstan.

The meeting was organized by Tatarstan Investment Development Agency in conjunction with the international news agency Thomson Reuters. The project was presented by the manager of the Thomson Reuters on Islamic Finance Department of Research and Product Development, Mr. Mustafa Adil. The discussion was attended by the heads of financial and educational institutions of the Republic of Tatarstan.

On May 1, current year at the Annual Investment Meeting (AIM) in Dubai in the presence of the President of the Republic of Tatarstan Rustam Minnikhanov was signed an agreement on cooperation in the field of informational exchange between Tatarstan Investment Development Agency and Thomson Reuters. One of the areas of joint work was the developing of a roadmap on Islamic finance.

Tatarstan Investment Development Agency Chief Executive Linar Yakupov told that a strategic plan for the developing of Islamic finance in Russia and Tatarstan will be officially presented at a conference on Islamic finance, which will be held in the framework of the V International Economic Summit of Russia and OIC countries (KazanSummit 2013).

 According to the strategic plan, the Republic of Tatarstan should become a center of Islamic finance in the CIS counrties. Mustafa Adil said that Tatarstan has a number of advantages among the other regions in terms of the ambitions of the Islamic financial industry. He also said that the investors of the Islamic world are interested in finding investment opportunities that meet the requirements of Shariah in emerging markets. According to Thomson Reuters, these countries can attract more than 28 billion U.S. dollars in the global Islamic banking by 2018.        

It was noted that Tatarstan has practical examples of successful developing of Islamic finance. This year, the republic will hold the anniversary V International Economic Summit of Russia and OIC countries. In the first KazanSummit, which took place in 2009, was created Russia's first Islamic investment company - Tatarstan International Investment Company (TIIC). The company was established with the participation of the Islamic Development Bank, the Government of the Republic of Tatarstan and the foreign investors from the OIC countries.

In 2012 TIIC established the Eurasian leasing company (EFC), whose capital in this year increased to $ 10 million. In September 2011, Tatarstan "Ak Bars" Bank made the first in the CIS "murabaha" deal on financing during the year 60 million U.S. dollars. In January 2012, according to the financial magazine «Islamic Finance News» this transaction was recognized as the best deal in 2011 in Europe.

Tatarstan also created "Amal" financial house, carrying out activities in the field of Islamic finance. In addition, in the Republic of Tatarstan companies from Gulf countries and Malaysia open their offices, working in the field of Islamic finance.

In May, current year as part of the work on the project of a new investment platform of the Republic of Tatarstan - Kazan Smart City, a group of investment companies from the United Arab Emirates, Qatar, Bahrain, initiated the creation of Tatarstan Gulf Investment Company (TGIC). TGIC is attracting to the project other investment companies from the Middle East.

It was also noted, that Tatarstan, which is able to become a regional center for Islamic finance, can play an important role in the development of Islamic finance and Islamic banking inflows in the CIS countries.
By 2015 is expected to increase Islamic banking assets to 2.2 trillion dollars (in 2011 - 1.1 trillion dollars). In the meeting also were discussed problems, that exist in this sector. TIDA Chief Executive Linar Yakupov noted that now it is necessary to move from general discussion to a cooperative work.

Final version of a road map will be presented on KazanSummit 2013.

Tatarstan Investment Development Agency Press Service