The growth of Islamic finance in Kazakhstan is shaping up to be a tussle between history and modernity - but perhaps not in the way one might expect. Historically, religious practice was frowned upon during the Soviet era, and many Kazakhs are only now rediscovering their Muslim roots. Today, however, the financial crisis that hit Kazakhstan's banks especially hard has encouraged both banking professionals and their customers alike to look more closely at alternative models.
"The crisis has definitely increased interest in Islamic finance, but it has also increased wrong perceptions about Islamic finance; many people are understanding Islamic banks as some kind of charitable organisations that will end the crisis by just giving out money," says Yedige Alpysbay, who founded Kausar Consulting, the country's first dedicated Islamic finance consultancy, in 2008. Mr Alpysbay typifies the new generation of Kazakh professionals investigating the possibilities that Islamic finance can offer. He became interested in the subject as a doctoral student in 2002, but found he had to work outside Kazakhstan, with Turkish participation banks and Malaysian Islamic banks, to acquire the necessary experience.
