Islamic mortgage products could be introduced in Kazakhstan as early as this year, according to Lyazzat Ibragimova, CEO of Otbasy Bank, the sole bank implementing housing construction savings system.
Read also: Islamic finance booms in Kazakhstan, but a key piece is missing: mortgages.
Ibragimova announced the plan during a briefing following a recent government meeting, saying the bank expects strong demand for Islamic-compliant home financing in the country.
Cooperation with Pakistan’s Meezan Bank
As part of its preparations, representatives of Otbasy Bank recently traveled to Pakistan, where they signed a memorandum of cooperation with Meezan Bank Limited, the country’s largest and first Islamic bank.
The partnership is expected to help Kazakhstan’s housing lender develop financial products that comply with Islamic finance principles.
Legislative changes under review
According to Ibragimova, Otbasy Bank has drafted legislative amendments to regulate Islamic mortgages. The proposals have already been approved by five government agencies and have now been submitted to the parliament for consideration.
Read also: Halal installment plans set to launch in Kazakhstan.
If lawmakers approve the changes, Islamic mortgage products could begin to be issued as early as 2026.
Bank studying international models
Ibragimova did not provide specific details about the future mortgage terms but said the bank is studying Islamic home-financing models used in Malaysia.
Officials are also considering varying down payment requirements that could range from 20% to 50% of the total financing amount.
The proposed Islamic mortgages would be offered separately from Otbasy Bank’s existing housing programs.
