Islamic finance in Central Asia is shedding its status as a niche alternative. Mastercard estimates the region’s Islamic banking volume could more than triple to reach $2.5 billion by 2028. Demographics and regulatory changes are the main drivers, allowing traditional players to launch Sharia-compliant products using existing infrastructure.
The catalyst
On September 21, 2026, in Almaty, Mastercard consulting experts presented the report “Islamic Banking in Central Asia: A Window of New Opportunities.” The document assesses the current state and potential of Sharia-compliant financial products in the region.
Globally, the sector shows steady growth. An op-ed for Kapital.kz, citing the Islamic Financial Services Board (IFSB), notes that the global Islamic finance industry reached $3.88 trillion in 2024, up 14.9% year-over-year. In Central Asia, this segment is still in its early stages but shows strong momentum.
What the data shows
The report’s authors estimate the total volume of Islamic banking in the region at approximately $716 million. The projected $2.5 billion mark by 2028 is supported by other institutions: similar asset growth expectations are outlined in a Eurasian Development Bank (EDB) report.
Kazakhstan remains the largest market. According to 2024 EDB data, the assets of the country’s three operating Islamic banks (ADCB Islamic Bank, Zaman Bank, and Al Safi Bank) totaled about $621 million. This is currently only 0.5% of the republic’s total banking sector assets. Meanwhile, the Astana International Financial Centre and the Islamic Development Bank Institute (IsDBI) estimate potential demand for Islamic financing in Kazakhstan at over 3.9 trillion tenge, with a total potential market of nearly 6.8 trillion tenge.
Mastercard analysts see the greatest growth potential in Uzbekistan. Driven by demographic factors, Islamic financing volume here could exceed $1.1 billion in the medium term.
What this means for the market
In Kazakhstan, regulatory changes are becoming the key stimulus. In late 2025, amendments to the Law on Banks and Banking Activity were passed, allowing banks with a universal license to open “Islamic windows.”
A large bank no longer needs to obtain a separate license and capitalize a subsidiary—it is enough to isolate Islamic operations within the existing infrastructure while complying with compliance procedures. Finteqstan previously reported that amid these changes, Halyk Bank plans to obtain an Islamic financing license.
Universal banks get the opportunity to test demand for Sharia-compliant products without creating separate subsidiaries.