Gatehouse Bank supports growth of Islamic Finance industry across the Commonwealth of Independent States

The main objective of this one-day conference is to attract foreign and domestic capital into the local economy, and the event was attended by more than 600 representatives of ministries and departments, heads of banks and financial institutions, leading international experts and lawmakers, as well as over 60 news outlets from around the world.

Ms Azeemeh Zaheer, Vice President at Gatehouse Bank, was a key speaker at the event, co-organised by CSME Global, joining a high profile panel comprising key officials from the Government of the Republic of Kazakhstan, including the Deputy Prime Minister and Minister of Industry and New Technologies, Mr Asset Issekeshev, and the Governor of the Karaganda region, Mr Abelgazi Kussainov.

As the only female speaker on the panel, Ms Zaheer discussed the principles and evolution of Islamic Finance as an alternative form of funding investments. This is an area Gatehouse Bank specialises in, having built up a global portfolio worth over £1.25bn since its inception in 2008, spread across Real Estate assets, capital investment, and term deposits.

As Ms Zaheer explains: "In today's economic climate Shariah compliant solutions and Islamic economics are becoming more and more relevant. Shariah compliant financial assets have grown considerably, increasing by 15-30% per annum over the last five years alone. In this respect, Islamic Finance is no longer limited to a single product or geography, and the opportunities to capitalise on this growth are immense."

In Karaganda, investment in fixed capital grew by 15.9% to 190.3 billion tenge ($1.27bn) during the first nine months of this year. Foreign investment accounted for well over a third of this increase, at 37.2%, and investment in fixed assets is predicted to reach approximately 300 billion tenge ($1.99bn) by the end of 2013.

The focus on risk sharing in Islamic Finance makes it an ideal model for international investors increasingly focused on wealth preservation over more risky investment activities. Sourcing income producing assets in secure and stable markets is key, and in Karaganda industrial, transportation, and energy systems have all been highlighted as key components of the investment climate in the region.

Kazakhstan has also this year issued the first sukuk out of the CIS, worth $75.5m and generating an annual payment of 5.5%. The sukuk has set the benchmark for Islamic bond issuers in the country and will open the way for other issuers in the region looking to diversify funding on Islamic markets.

Following a televised interview with Igor Vittel, the well-known Russian journalist, author and host of a series of TV business programs, Ms Zaheer added:

"Kazakhstan has the largest economy in Central Asia and its adoption of legislation on Islamic banking and finance in early 2009 opened the way for a number of new entrants into the market. The country's geographical location at the heart of Eurasia, with neighbours including Russia, China and Central Asia, as well East Asia and the Middle East, mean that it is ideally place to act as a regional hub linking the CIS to the Islamic world. The potential for Kazakhstan to act as a bridge between economies will undoubtedly pave the way for a wider range of Islamic financial services to be offered right across the country."