Islamic Finance: Kazakhstan Market Analysis

Introduction

This report provides a market-based assessment of Islamic finance demand in Kazakhstan across both retail and corporate segments. Prepared at the initiative of the Astana International Financial Centre (AIFC) with the support of the Islamic Development Bank Institute, the study combines large-scale consumer research with a survey of businesses and interviews with market participants to identify demand, preferences and barriers to the wider use of Shariah-compliant financial products.

The retail analysis draws on 12,190 respondents, while the corporate survey covers 351 companies across Kazakhstan. The report evaluates demand for Islamic deposits, consumer financing, car financing, mortgages, takaful, sukuk and other Shariah-compliant products, while also examining awareness, accessibility and the importance of compliance with Islamic principles.

Key Findings

Significant unmet demand exists across retail Islamic finance

The study identifies substantial potential demand across major retail product categories, including up to KZT 2.83 trillion in Islamic deposits, KZT 1.03 trillion in unsecured financing, KZT 1.07 trillion in car financing, and KZT 1.6 trillion in Islamic mortgages at market rates. Estimated demand also includes Islamic installment plans, takaful and retail sukuk investment.

 

Awareness and availability remain the main barriers to market growth

Only 15% of retail respondents had previously used an Islamic financial product. Among those who had not, the most frequently cited barriers were lack of awareness (64%) and limited availability (37%). At the same time, 90% of respondents considered compliance with Islamic principles very important when selecting a financial product, indicating that credibility and Shariah compliance are central to market acceptance.

 

Corporate demand is substantial and remains underserved

The report estimates current corporate demand for Islamic finance at more than KZT 760 billion annually, with market participants indicating that this demand is not fully met because of insufficient financing supply. Murabaha and Ijara account for more than 90% of identified demand, while Trade, Construction, Transport and Logistics, Agriculture and Mining are highlighted among the main client sectors.