Russia introduces Islamic banking
The Russian parliament has approved a bill to introduce Islamic banking in four mostly Muslim-populated regions of the country.
The experiment, which will start on September 1, 2023 and last for two years, is seen as a significant step for Russia and could pave the way for the wider adoption of Islamic banking in the country.
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Islamic banking is a financial system that complies with Islamic law, or Sharia. Sharia prohibits the payment or receipt of interest, which is considered to be usury.
Instead, Islamic banks use profit-sharing and leasing agreements to provide financial services to their customers.
The four regions participating in the experiment are Bashkortostan, Chechnya, Daghestan, and Tatarstan.
These regions have a large Muslim population and have expressed interest in developing Islamic banking services.
The introduction of Islamic banking in Russia is seen as a way to attract foreign investment and boost economic growth in the Muslim-majority regions.
It is also seen as a way to meet the needs of the growing Muslim population in Russia.