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Adoption of law on Islamic banking in Tajikistan to attract investments

May 13, 2014

Law on Islamic banking in Tajikistan, which was drafted by the Government, will be considered on May 14 session of the Lower Chamber of the Parliament, Asia-Plus reported.

MP Ismoil Talbakov believes that introduction of the Islamic banking system in Tajikistan "will open a new page in the sphere of credit relations and will help attract investments from Islamic nations, create new jobs in the country and reduce outflow of labor migrants from Tajikistan."

The law supposes that the National Bank of Tajikistan would grant licenses to Islamic lending agencies for operating in Tajikistan and regulate their activities in the country, Talbakov explained.

Islamic banking is a banking activity that is consistent with the principles of Sharia and its practical application through the development of Islamic economics. Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees for money loans. Investing in businesses that provide goods or services considered contrary to Islamic principles is also haraam (sinful and prohibited).

Islamic banks reportedly have more than 300 institutions in more than 50 countries.

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Source: AKIpress News Agency (Kyrgyz Republic)

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