ADCB Islamic Bank, the first Islamic bank in Kazakhstan, formerly known as Al Hilal Islamic Bank, is considering entering the markets in Uzbekistan and Azerbaijan, according to the bank’s CEO Gordon Haskins, as reported by the Interfax Kazakhstan news agency.
“We aim to expand our business throughout the entire region, including the Caucasus and Central Asia. This is why we are already exploring opportunities in several other countries in the area,” Haskins said.
The ADCB CEO clarified that the bank will most likely enter the markets of Uzbekistan and Azerbaijan first before considering other markets in the region for further expansion. According to Haskins, the bank is already working on several transactions.
“Essentially, there are probably only a few weeks left before we close a major deal with one of the national companies in Kazakhstan. We are also considering several other transactions,” Haskins noted, declining to elaborate.
The ADCB has also refused to disclose any details, citing confidentiality.
Haskins mentioned that Al Hilal Bank underwent reorganization in July, after its parent company, Abu Dhabi Commercial Bank, took direct ownership of the entity rather than through Al Hilal in the UAE. The bank subsequently changed its name to the ADCB Islamic Bank. Haskins believes that these changes have made the institution more attractive to depositors. As a result, the ADCB’s deposit volume more than doubled over the first nine months of this year, reaching approximately $65.7 million.
“We attract local funding to support the growth of assets we prioritize. Given recent strategic adjustments and the ADCB Group’s credit rating, we believe we can appeal to local depositors, particularly corporations and state-owned companies,” Haskins said, explaining the rapid increase of the bank’s deposit portfolio.
The Association of Financiers of Kazakhstan (AFK) reported that the ADCB ranked first among the financial institutions for an increase in deposits by legal entities over the first nine months of 2024.
Al Hilal Bank was established in 2010 through an agreement between the governments of Kazakhstan and the UAE, becoming the first Islamic bank in Kazakhstan and the Commonwealth of Independent States (CIS). The bank provides banking products and services in accordance with Sharia law.
As of Oct. 1, ADCB Kazakhstan held assets totaling $311.22 million and liabilities valued at $255.58 million, with equity of $55.4 million and a net income of $4.4 million. Among Kazakhstan’s 21 banks, the ADCB outperforms only one — Islamic Zaman Bank. ADCB Islamic Bank in Kazakhstan operates branches in Astana, Almaty and Shymkent.
More than 60% of Abu Dhabi Commercial Bank’s (ADCB) shares are held by the state-owned Mubadala Investment Company from the UAE, whose structure is similar to that of a national welfare fund in Kazakhstan. Consequently, the bank’s ultimate beneficiary is the government of Abu Dhabi in the UAE.
