EXPERT OPINION Guide on Islamic Banking Products The history of Islamic banking in Kazakhstan began with the opening of the Al Hilal Bank Kazakhstan in 2010, the first in the CIS region. Gordon Haskins, CEO and Chairman of the Management Board, Al Hilal Bank Kazakhstan During the first seven years, Al Hilal Bank was focused on working with corporate customers. Then, in 2017, with the years of experience and understanding of the market specifics, Al Hilal launched a retail business in the cities of Almaty, Nur-Sultan and Shymkent. Since many readers may not be familiar with Islamic banking, we decided to tell what products are now available for individuals and how they work. The basis of deposits with an Islamic bank is the principle of partnership and risk sharing, which is agreed by the bank and depositor. Unlike a conventional bank, an Islamic bank offers to invest on a partnership. The client provides the bank with funds for management, and the bank, using its knowledge and experience, invests them with the subsequent sharing of profits with the client. Thus, bank depositors become not just deposit holders, but investors. Those businesses, in which the bank directs the funds of investors, must meet a number of stringent requirements of profitability, reliability and compliance with principles and rules of Sharia. The careful selection of projects to be funded by Al Hilal Bank makes it one of the most reliable banks in the country. Moreover, Al Hilal Bank is part of an international group with high investment-grade credit ratings from Fitch and Moody’s. A Mudaraba deposit is a key product of investing in Islamic banking, where 20 world monitor profits are derived from investing in the businesses of Kazakhstan's economy. The professional team of the bank is engaged in the search for and careful analysis and selection of projects. The resulting return on investment is distributed between the bank and the client in proportions depending on the amount and term. At the same time, the profit received by the client may be higher than from deposits with conventional banks. It is also important that the client receives a profit on such a deposit on a monthly basis. In order to be confident in the choice of this investment tool, before making a decision, the client may familiarize himself with the information on the historical profit rate of the product (which is available on the bank’s website). Conditions: Contribution of $500 or 150,000 tenge, from 1 to 36 months. Since the launch of Al Hilal Bank’s retail business, historical rates of Islamic deposits in dollars show the highest market returns. A Wakala deposit is another investment tool in Islamic banking. Here, a customer’s funds are also directed to the financing of business projects that have undergone a thorough analysis. The bank determines the level of expected profitability depending on the amount and term. The client receives the profit at the end of the term of the investment deposit. Conditions: Contribution from $500 or 150,000 tenge, from 1 to 24 months.