Kazakhstan: the compliance of Banking Law, part of islamic banking with the Shariah principles and rules

Abstract

The Kazakhstan government was from first country in the central Asia and post-soviet countries took initiation for amending the legislation to introduce Islamic Banking in the country. For this reason, the government of Kazakhstan decided to promote Islamic Banking in the country therefore, it introduced amendments into the existing legislation. The aims of this study were to analyze and find out the com-pliancy of Kazakhstan Banking law, part of Islamic banking to the Shariah Standard of AAOIFI. Islamic banking sector is in the beginning of its development and growth, hence the government of Kazakhstan and banking system regulatory authority have to focus to build a competitive financing sector that to be attractive more for Islamic finance companies, not only two by financial institutions, and to promote attraction of investment and financing into real economy sector development of Kazakhstan through Islamic banking and financing. The reason for introducing Islamic banking is to reduce any future financial crises and to create stable economic system.