Kazakhstan

The Islamic Development Bank (IDB) was founded in 1974 and began its activity in October 1975. Its aim is to foster economical development and social progress in its 54 member states according to the principles of Shari'ah (Islamic Law). Each state has a representative on the bank's Board of Governors. The board holds annual meetings to discuss the past year and plans for future. The next meeting will be in Almaty in September 2003.

The IDB headquarters are in Jeddah, Saudi Arabia. The bank has the regional offices in Morocco and Malaysia. In 1997, it opened in Almaty and it coordinates its activities in other Central Asian countries as well as Azerbaijan and Albania from here. Financing available for this region totals US$388 million, of which $76.3 million are set aside for Kazakhstan.

About 70 % of IDB operations in Central Asia are connected with financing technical and special help projects. The remaining 30% finance the import trade. Three commercial banks in Kazakhstan were given a financing line, while the National Banks of Kazakhstan and Kirghyzstan provided expert help with the introduction of Islamic banking here.

Nik Zainal Abidin, the Director of the IDB in Kazakhstan, said: "We are very grateful to the Government of Kazakhstan for hosting our meeting this year. We expect participants, governors and officials from 54 countries to come to Almaty in September. Kazakhstan is also planning an international trade exhibition within the framework of the meeting. It will be a good opportunity for Kazakhstan's manufacturers to display their goods to the other member countries, stimulating both imports and exports. Kazakhstan's economy has a great potential. We hope that Kazakhstan will become a net-exporter to other IDB member states."

Recently, IDB successfully completed the reconstruction of the Syzganov Center of Surgery in Kazakhstan. The projects for the rehabilitation of the Almaty-Gulshad and Karaganda-Astana highways have been finished. Now the bank intends to provide technical support for the reconstruction of the Borovoye-Petropavlovsk highway and for the modernization of the postal service in Kazakhstan. Jointly with the Asian Bank of Development, the Islamic bank will also help to improve the water supply system in Karaganda district.

Mr. Abidin also said that IDB plans to draw up a program for the development of the private sector of the economy in Central Asia and help to finance it. Its main interest is in projects stimulating production and creation activities, which can be supported by purchases of equipment and machinery. No funds will be made available for buying land. IDB credits are granted to banks for 10 years at less than 6% per annum. The bank, receiving the credit has to provide guarantees of repayment and offer the IDB some additional services.