Experts: Islamic Finance Could Attract Foreign Investment to Russia
Experts: Islamic Finance Could Attract Foreign Investment to Russia
13 May
The level of development of Islamic finance in Russia remains low: it currently accounts for just one hundredth of a per cent of the country's total financial market. However, in the near future, growth in its volume and an influx of foreign investment can be expected. This is likely to happen once the experiment to introduce Islamic banking in Russia is completed and such finance becomes part of the wider system. This was stated to journalists at the XVII International Economic Forum “Russia – Islamic World: KazanForum” by experts Magomet Yandiyev, Associate Professor at the Faculty of Economics of Lomonosov Moscow State University, and Igbal Adil ogly Guliyev, Dean of the Faculty of Financial Economics at MGIMO University.
“The current level of development is still low, which is hardly surprising given that the industry is only taking shape in Russia. The first attempt was made in 2008, the second in 2014 – both failed. However, now, against the backdrop of the 2022 sanctions, there is a certain chance that the industry will establish itself and bring benefits to the Russian economy. That benefit lies in compensating for and replacing the Western financing from which the country was cut off in 2022. This important task is one that the Islamic finance industry has the potential to fulfil,” said Magomet Yandiyev.
Igbal Adil ogly Guliyev believes that the current circumstances open up prospects for growth, with the Islamic finance market becoming a bridge between Russia and the Islamic world. Magomet Yandiyev noted that, for the time being, Russian Muslims do not have an informed demand for such finance. However, there is interest on the part of the state to attract foreign investment, and it may attempt to achieve this goal. “The question arises of how to do this, because these are accounts, this is money. In what currency? They will not come in dollars. If local currency comes to Russia, there must be a branch of some foreign bank. That money must go to the Moscow Exchange and be converted into roubles. This is a whole mechanism that needs to be built. If that happens, the money could flow into any sector. The main thing is to establish a channel through which money can enter Russia without passing through dollars and euros,” said Magomet Yandiyev.
Igbal Adil ogly Guliyev expressed the view that the state wants to analyse this new niche in order to determine how successfully both businesses and citizens can find their place within it. Public awareness of Islamic finance is currently low. “If people do not know about it, they will not gravitate towards it. One possible avenue for the domestic market is to put the money held primarily by the Muslim population in Russia – money that is essentially lying under mattresses – to work in the economy in a format that is acceptable to such religious individuals. On the other hand, there is the matter of attracting foreign investment. Here, we are probably not talking about private capital from individuals, but rather about various investment projects from large foreign legal entities. However, that requires appropriate conditions, which must be clearly set out within an established system, not just as part of a pilot project. Of course, pilot projects are implemented to see how stable the system will be. Any business entering a foreign market wants to understand the rules of the game. Once the rules of Islamic banking in Russia become clear, we can hope for the attraction of foreign investment,” said the Dean of the Faculty of Financial Economics at MGIMO.
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The International Economic Forum “Russia – Islamic World: KazanForum” is being held in Kazan from 12 to 17 May 2026. In accordance with a decree of the President of the Russian Federation, Vladimir Putin, the Forum acquired federal status in 2023, becoming the main platform for interaction between Russia and the Islamic world.
Representatives from 103 countries have registered for KazanForum 2026.
The Forum’s 2026 business programme includes 149 events across 21 tracks. Several international exhibitions will be held as part of the Forum: The International Exhibition of Cooperation between Russia and the Islamic World, the “Innovations. Investment. Infrastructure” Exhibition, the International Real Estate Exhibition and Conference, and the Kazan Halal Market Trade Fair. The agenda also includes: the Forum of Chambers of Commerce and Industry of OIC Countries, the Forum of Young Diplomats, the Forum of Young Entrepreneurs, meetings of intergovernmental commissions and bilateral conferences, festivals, gastronomic and sports projects, including the “Business on Horseback” horse race and the International Jockeys’ Championship.
In 2026, Kazan holds the status of Cultural Capital of the Islamic World. Cultural co‑operation will be one of the key themes of the humanitarian agenda – during the Forum, the Congress of Ministers of Culture of OIC Countries and the 15th Session of the ICESCO General Conference will be held. The programme will conclude with the “Izge Bolgar Zhyeni” gathering in Bolgar, dedicated to the Day of the Official Adoption of Islam by Volga Bulgaria
The full programme of the Event is available on the Forum’s official website.
The Roscongress Foundation acts as the Operator for the preparation and holding of the Event, whereas ANO “Directorate for Sports and Social Projects” serves as the Operator’s Executive Directorate.
“The current level of development is still low, which is hardly surprising given that the industry is only taking shape in Russia. The first attempt was made in 2008, the second in 2014 – both failed. However, now, against the backdrop of the 2022 sanctions, there is a certain chance that the industry will establish itself and bring benefits to the Russian economy. That benefit lies in compensating for and replacing the Western financing from which the country was cut off in 2022. This important task is one that the Islamic finance industry has the potential to fulfil,” said Magomet Yandiyev.
Igbal Adil ogly Guliyev believes that the current circumstances open up prospects for growth, with the Islamic finance market becoming a bridge between Russia and the Islamic world. Magomet Yandiyev noted that, for the time being, Russian Muslims do not have an informed demand for such finance. However, there is interest on the part of the state to attract foreign investment, and it may attempt to achieve this goal. “The question arises of how to do this, because these are accounts, this is money. In what currency? They will not come in dollars. If local currency comes to Russia, there must be a branch of some foreign bank. That money must go to the Moscow Exchange and be converted into roubles. This is a whole mechanism that needs to be built. If that happens, the money could flow into any sector. The main thing is to establish a channel through which money can enter Russia without passing through dollars and euros,” said Magomet Yandiyev.
Igbal Adil ogly Guliyev expressed the view that the state wants to analyse this new niche in order to determine how successfully both businesses and citizens can find their place within it. Public awareness of Islamic finance is currently low. “If people do not know about it, they will not gravitate towards it. One possible avenue for the domestic market is to put the money held primarily by the Muslim population in Russia – money that is essentially lying under mattresses – to work in the economy in a format that is acceptable to such religious individuals. On the other hand, there is the matter of attracting foreign investment. Here, we are probably not talking about private capital from individuals, but rather about various investment projects from large foreign legal entities. However, that requires appropriate conditions, which must be clearly set out within an established system, not just as part of a pilot project. Of course, pilot projects are implemented to see how stable the system will be. Any business entering a foreign market wants to understand the rules of the game. Once the rules of Islamic banking in Russia become clear, we can hope for the attraction of foreign investment,” said the Dean of the Faculty of Financial Economics at MGIMO.
*****
The International Economic Forum “Russia – Islamic World: KazanForum” is being held in Kazan from 12 to 17 May 2026. In accordance with a decree of the President of the Russian Federation, Vladimir Putin, the Forum acquired federal status in 2023, becoming the main platform for interaction between Russia and the Islamic world.
Representatives from 103 countries have registered for KazanForum 2026.
The Forum’s 2026 business programme includes 149 events across 21 tracks. Several international exhibitions will be held as part of the Forum: The International Exhibition of Cooperation between Russia and the Islamic World, the “Innovations. Investment. Infrastructure” Exhibition, the International Real Estate Exhibition and Conference, and the Kazan Halal Market Trade Fair. The agenda also includes: the Forum of Chambers of Commerce and Industry of OIC Countries, the Forum of Young Diplomats, the Forum of Young Entrepreneurs, meetings of intergovernmental commissions and bilateral conferences, festivals, gastronomic and sports projects, including the “Business on Horseback” horse race and the International Jockeys’ Championship.
In 2026, Kazan holds the status of Cultural Capital of the Islamic World. Cultural co‑operation will be one of the key themes of the humanitarian agenda – during the Forum, the Congress of Ministers of Culture of OIC Countries and the 15th Session of the ICESCO General Conference will be held. The programme will conclude with the “Izge Bolgar Zhyeni” gathering in Bolgar, dedicated to the Day of the Official Adoption of Islam by Volga Bulgaria
The full programme of the Event is available on the Forum’s official website.
The Roscongress Foundation acts as the Operator for the preparation and holding of the Event, whereas ANO “Directorate for Sports and Social Projects” serves as the Operator’s Executive Directorate.
