Tashkent, Uzbekistan (UzDaily.com) -- Kapitalbank concluded an agreement with the Islamic Corporation for the Development of the Private Sector (ICD) on attracting a line of financing for the development of small businesses.

On 4 September, within the framework of the Annual Meeting of the Council of Member Countries of the Islamic Development Bank (IDB), Kapitalabank and ICD signed an agreement for a total of US$10 million. The funds allocated by the ICD on the basis of the murabaha principle will be directed to the development of small business in Uzbekistan. The essence of Islamic economics is, first of all, the rejection of interest and futures transactions. In this connection, the concept of "Islamic banking" has developed in banking, implying financial activities based on the principles of Sharia.

“The global market for Islamic banking products shows stable growth every year. Interest in such products is also growing in our country. We, in turn, focus on global trends and demand from our clients. The development of this area is strategically important for us, and, accordingly, this is reflected in the Development Strategy of Kapitalbank for 2021 - 2023. Attraction of this line according to the murabaha principle will allow the current and potential clients of the bank who do not use traditional banking services to raise funds for business development,” said Alisher Mirzaev, Chairman of the Board of Kapitalbank.

Cooperation between Kapitalbank and ICD began in 2019 with the signing of an agreement on the provision of technical consulting services for the creation of an Islamic window in the bank, which involved the provision of comprehensive solutions in accounting, information technology, marketing and communications, legal and personnel issues, based on the principles of Islamic banking.

It is worth noting that the 46th Annual Meeting of the IDB Council was held in Tashkent from 31 August to 4 September 2021. At the Tashkent International Congress Center, the IDB member countries discussed a wide range of issues related to further development. The Annual Meeting was attended by members of governments and ministers responsible for finance and economics, as well as representatives of banks, international organizations, the business sector and the media.