Russia’s Sberbank to Launch Islamic Banking
Sberbank’s CEO, Herman Gref, revealed plans to introduce Islamic banking in Muslim regions of Russia, focusing on the republic of Tatarstan with its majority Muslim population. This strategic move aims to attract business and capital from Arab countries amid Russia’s shift from west to east. The rising demand for Islamic banking tools in Russia has garnered interest from Gulf State investors, potentially leading to hedge fund setups. While Sberbank, a major player in the region, faced challenges in 2014, the implementation of Islamic banking could open new avenues, with potential assets in Central Asia reaching $24 billion in three years. Islamic banking, grounded in sharia law, emphasizes shared profit and loss, prohibits interest collection, and avoids funding activities against Islamic principles.
Link to Original Article