What are the specific features of Islamic finance?

1) Prohibition against charging or paying interest on a loan (Riba)
2) Prohibition against uncertainty in the contract (Al-Garar) and gambling (Al-Miasir)
3) Real assets as the security for the banking transactions
4) Compliance with the principle Profit Loss Sharing» (PLS) – the sharing of both the profit and the loss (risks)
5) Investments in certain industries, such as tobacco, alcohol, weapon and ammunition, entertainment, gambling, provision of financial services which contradict to the Islamic banking principles is a haram (prohibited).

What is a Sukuk?
Sukuk (“sakk” in singular) is an Arabic name for a legal document, deed, check. The modern word “check” originated from the word “sakk”.
Sukuk is an investment certificate, certifying the right of its holder to the profit share in the ownership of the basic asset.
Sukuk are the certificates of equal value representing undivided shares in the ownership of tangible assets, usufructs and services or (in the ownership of) the assets of particular projects or special investment activity.
The definition is given by AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions).

Can I know the contacts of the Al-Hilal Bank?
Al-Hilal Islamic Bank
6th floor, Building B, Almaty Financial Center,
36 Al-Farabi Ave., Almaty 050059
Tel.: +7(727) 330 73 71
11 Saraishyk Str., 010000 Astana
Tel.: +7(7172) 602 212
www.alhilalbank.ae

Contact persons:
Timur Alim, Regional Director, Almaty.
Cell phone: +7 701 2081100
E-mail: talim@alhilalbank.kz
Shamil Bibekov, Regional Director, Astana
Cell phone: +7 701 122 7070
E-mail: sbibekov@alhilalbank.kz

How can entrepreneurs raise funds through Islamic finance?
The money through Islamic finance can be raised through direct financing or issue of securities, through the Al-Hilal Bank, as well it is possible to implement large projects (through the issue of securities) jointly with the national holding companies, which will be the issuers of the given securities.

Where in Kazakhstan one can get education in the area of Islamic finance?
One can get education in the area of Islamic finance at the RFCA Academy and some other organizations. For more detailed information, please visit our website, the For the Issuers section and the Islamic Finance subsection, or the RFCA Academy’s website www.academy.rfca.kz

Where can we get the analytical information and the information on the principles and current situation with the Islamic finance development in the Republic of Kazakhstan?
The given information is available on our website in the Islamic Finance subsection, For the Issuers section. Or you can contact us by phoning 311 09 31.

Why can one trust the brokerage companies? The activity of a broker is subject to licensing. The accounting of all the investor’s funds for buying securities and the information about the available securities in the form of a nominal holding in paperless form is carried out by the Central Depositary (CD). The CD carries out the registration of transactions, accounting and confirmation of the right of the holder to the financial instruments (securities, including the derivative securities) and other assets in the financial market, allowable for offering in the Republic of Kazakhstan). The CD shareholders are the National Bank of the Republic of Kazakhstan (49.79%), КASE (38.68%), brokers (4.12%), and banks (7.41%). In the event of withdrawal of a license to a broker, all records about the holding of securities by the investors as well as the investors’ funds on the account with the CD shall remain at the CD.