Friday 1 April 2011

Tatarstan to become Russia's test case for Islamic finance - Hurriyet Daily

Officials meeting in the shadow of the snowy towers of Kazan's 16th century white Kremlin are in an unlikely site for hatching groundbreaking financial plans. But Kazan in Russia's Tatarstan region aims to be the first place in Russia to launch an Islamic bond, with a test case in July that will test the appetite for Islamic financial products in Russia, bne has reported.

Countries ranging from France to the United Kingdom, and Thailand to Brazil are all exploring how to use Islamic financial investment to draw gulf petrodollars into their economies. The Islamic finance industry has boomed in recent years, growing at a rate of over 14 percent per annum from around $150 billion during the 1990s to a total of $14.1 trillion in 2009, according to Jamelah Jamaluddin, chief executive officer of Kuwait Finance House in Malaysia.

Tatarstan officials hope to forge ahead with a $100 million-200 million sukuk issue.

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