Sberbank discusses prospects for development of partner banking at Russian Islamic Economic Forum

  • Banking
  • 15.10.2021 01:25 pm

The third annual Russian Islamic Economic Forum “Russia – Guarantor of Partnership” is being held in the city of Grozny (Chechen Republic) on 14-15 October. The event has been organized with support from Sberbank and is aimed at promoting business cooperation between Russia and the countries of the Islamic world. The International Association of Islamic Business and KPMG are also co-organizers of the forum.

The forum included panel discussions entitled “New Development Vectors (Trends) in the Islamic Ecosystem (ESG, Green Sukuk, Digital Awakening)” and “Alternative Solutions for Regulating Islamic Finance in the RF”.

Oleg Ganeev, Senior Vice President, Sberbank:

“Sber is a pioneer in partner banking amongst the major Russian banks and is interested in the development of this field. According to estimates by KPMG, the potential Islamic finance market in Russia alone is worth $7-9 bn in the medium term. In light of global trends, we regard Islamic finance as a promising area and are continuing to adapt Sber’s products and services to customer demand, while also developing new solutions in line with the current legislation. Our overall portfolio of structured transactions in this area of finance currently amounts to $262 mln and 30 mln rubles.”

The first Russian Islamic investment indices and PayZakat were also presented at the forum. 

The new indices – the Islamic Investment Index (ticker MXSHAR) and the Total Return Islamic Investment Index (ticker MXSHARTR) were presented by Sber jointly with Moscow Exchange and include securities from issuers who have been checked for conformity with the principles of Islamic economics.

The issuers are selected by the Sharia Supervisory Board set up by Sberinvest Middle East Limited, which is based in the United Arab Emirates. The company is also responsible for checking securities for conformity with Sharia laws. In the future, Sberinvest Middle East Limited will offer its Middle Eastern clients investment products tied to these indices.

PayZakat is a charity platform for the Muslim community, enabling the collection and distribution of donations. To date, it has over 3,000 subscribers and the average amount received in 2021 is 8 000 rubles (112 USD).

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