Russia Introduces Islamic Banking in Pilot Program

Aljazeera reported this week that Russia is set to launch its first Islamic banking system as part of a two-year pilot program starting September 1.

With an estimated Muslim population of up to 25 million, the move endorses Islamic financial institutions for the first time, focusing on four Muslim-majority republics—Tatarstan, Bashkortostan, Chechnya, and Dagestan.

If successful, the program may expand across the country, tapping into the 40 percent annual growth rate of the global Islamic banking sector. The decision is seen as part of Russia’s strategy to diversify its economy amid Western sanctions and foster East-facing economic relations.