2025-06-17
Roundtable Discussion: “Entrepreneurs’ Perception of Islamic Finance in Kyrgyzstan and the Potential for Using Islamic Financial Instruments”
On June 10, 2025, a roundtable was held as part of the scientific project led by our department’s faculty titled “Entrepreneurs’ Perception of Islamic Finance in Kyrgyzstan and the Potential for Using Islamic Financial Instruments”.
The event brought together representatives from the National Bank, commercial banks, the Microcredit Association, the International Academy of Islamic Finance Research “Sarakhsi” Association the Insurance Fund, the Guarantee Fund, private entrepreneurs, as well as experts from other universities. Master's and doctoral students, along with program alumni in economics, also actively participated.
A lively and substantive discussion took place, during which several valuable suggestions were made. One of the most pressing issues identified was the shortage of qualified personnel, which was highlighted as a major barrier to the development of Islamic finance. In response, it was proposed to launch a program or department focused on Islamic economics or Islamic finance under the university’s Faculty of Economics and Management to help address this gap.
Overall, the roundtable was productive and sparked great interest among participants. It was also recommended to continue interdisciplinary collaboration involving linguists, religious scholars, and other experts to further clarify and expand the understanding of this field.
Additionally, it was emphasized that the next phase of the project should focus on studying the perceptions of financial institutions toward Islamic finance.
RESOLUTION
Subject: Resolution of the workshop organized within the scope of the scientific research project titled “Entrepreneurs’ Perception of Islamic Finance in Kyrgyzstan and the Potential for Using Islamic Financial Instruments”.
Date: June 10, 2025
Location: Kyrgyz-Turkish Manas University, Faculty of Economics and Administrative Sciences, Department of Economics
1. General Information
On June 10, 2025, the Department of Economics, Faculty of Economics and Administrative Sciences organized a workshop as part of a scientific research project. The workshop thoroughly addressed the current state and future of Islamic finance in Kyrgyzstan. Experts from the Central Bank, commercial banks, microfinance institutions, insurance and guarantee funds, higher education institutions, civil society organization members, entrepreneurs, academics, and graduate students attended the event.
During the first phase of the workshop, the project coordinator, Prof. Dr. İbrahim Halil Sugözü, gave a presentation titled "The Meaning, Emergence, and Legitimacy of Interest." Next, project researcher Associate Prof. Dr. Junus Ganiev introduced the project and its outcomes. Following the presentations at the workshop led by Associate Professor Ainura Turdalieva, another researcher involved in the project, participants took the floor to express their opinions on the project and share their important thoughts on the future of Islamic finance. Participants noted that the presentations were interesting and informative. The main issues and suggestions raised are summarized below.
2. Key Issues and Recommendations
2.1. Lack of Qualified Human Resources
- There is a strong belief that the lack of specialized human resources is one of the main obstacles to the development of Islamic finance.
- It has been suggested that universities launch specialized programs and departments in Islamic economics and finance. (Academics and bank executives)
2.2. Terminology and Information
- It was emphasized that financial terms should be adapted to be more understandable to the public. For example, it was suggested that a more appropriate concept be developed to replace the term “payız (interest).”
- It was also recommended that video materials about Islamic finance be disseminated through social media. (Civil society organization member and graduate program student)
2.3. Participation of Financial Institutions and Legal Infrastructure
- The fact that institutions engaged in Islamic banking, such as EkoIslamik Bank, now operate in full accordance with Islamic principles has been welcomed. It has also been stated that this process should be strengthened with state support. (Bank executive)
- The introduction of Islamic insurance products, known as "Takaful," in Kyrgyzstan was also welcomed. (Insurance company executive)
2.4. Social Acceptance and Demand
- It has been stated that 20-30% of the population does not use traditional financial resources due to religious beliefs. This creates a high potential for Islamic finance. (Fund representative)
- The need to increase financial literacy and awareness of Islamic finance has been emphasized. (Academics)
3. Calls and Future Plans
- Universities: Add Islamic finance courses to the economics department curriculum and establish undergraduate and graduate education programs in Islamic finance.
- Financial Institutions: Participate in developing Islamic finance services and researching perceptions of Islamic finance.
- Project Owners: Conducting an in-depth examination of financial institutions' attitudes and perceptions toward Islamic finance in the next phase of the project.
- Experts: Strengthening collaboration with religious scholars, religious scientists, economists, financiers, and other relevant experts.
- Government: The need for legal and regulatory support of Islamic finance has been stated. All studies related to Islamic finance are expected to be supported at the state level. Bureaucratic support should be provided and other incentive activities carried out.
4. Conclusion
The workshop attracted considerable interest and was very productive thanks to the presentations and the participants’ comments and suggestions. Implementing the suggestions will elevate the Islamic finance sector in Kyrgyzstan, making it a significant alternative source of financing for entrepreneurs and the public. The emerging consensus is that raising public awareness, i.e., education, is the main issue. First, a curriculum must be developed in educational institutions so that the public can obtain accurate religious knowledge through the state. While the accurate transmission of religious knowledge is important, it is not sufficient. Additionally, including courses on Islamic economics and finance at the university level and establishing undergraduate and graduate programs in these fields, as in Türkiye, will contribute to public awareness and the creation of qualified employment opportunities. Providing accurate information on Islamic finance through the Mufti’s Office, civil society organizations, and universities is considered very important. Furthermore, the Central Bank and Islamic banks are expected to promote these activities strongly. Thus, Islamic finance institutions with strong employment infrastructures and informed societies will play an important role in the country’s development by accurately meeting the public’s and entrepreneurs’ needs.
