First Islamic Bank to Establishes in Chechnya

An agreement has been reached in Groznyy (the capital of Russia’s Chechen Republic) to open an Islamic bank in the republic, Chechen leader Ramzan Kadyrov said on Thursday.

Islamic banking implies banking operations in accordance with religious norms of Islam, in particular, interest on loans and financial speculations are banned.

“Executives of Mazkorp company Hilal Suhail Hilal Rashid Al Mazrouei and Wael Saab came from the UAE. We discussed the task of opening the Islamic bank in Groznyy. The issue was worked out preliminarily. We agreed to start implementing the project at the meeting,” Kadyrov wrote on his page in Instagram. Opening of the bank is of enormous value for the republic, Kadyrov said. Large properties are under development in Chechnya with participation of capital from the UAE. “Absence of Islamic banks is the only obstacle,” the leader of Chechnya said. The decision was also made at the meeting with the management of Mazkorp on shareholding participation in development of Magnus-Groznyy pharmaceutical cluster to start next year and on investment into construction of Ahmat-Tower multifunctional high-rise property in the capital of Chechnya. Islamic banking implies banking operations in accordance with religious norms of Islam. In particular, interest on loans and financial speculations are banned.