The Tatarstan Investment Development Agency (TIDA) in partnership with Thomson Reuters Agency has developed a five-year plan for the creation of a regional centre for Islamic Finance of Russia and the CIS in Kazan.

According to estimates developed by Thomson Reuters, the CIS countries during this period may raise about US$28 billion in investments from Malaysia and countries of the Cooperation Council for the Arab States of the Gulf (CCASG).

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To co-ordinate the financial flows, the developers plan to create a regional regulatory bank in Kazan, according to Russia Beyond The Headlines.

The main aim of the project is to encourage the development of Islamic finance in the Russian Federation by providing an alternative to traditional banks, not just for the Muslim population, but also for people of other faiths.

The creation of the centre will need US$11 million in investments into educational, counselling, methodological and other programs, according to the publication.

Alberto Brugnoni, chairman of the Italian non-profit organization ASSAIF, said: "The potential size of the retail market of Islamic finance in Russia ranges from a modest 10% of the total number of religious Muslims to the entire Muslim population (10-15% of the population of Russia as of today, which is forecasted to reach 30% by 2050).

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"Islamic finance is closely linked to the real sector of the economy. It has been estimated that Russia needs more than US$1 trillion of investments into infrastructure over the next 10 years, and Islamic finance fits perfectly well into these volumes," Brugnoni added.