Islamic Development Bank (IBR) invest 1.1 billion dollars in Kazakhstan’s infrastructure projects.
According to the press service of the Kazakhstani Prime Minister, a bilateral meeting of the representative of the Government of the Republic of Kazakhstan, adviser to Prime Minister Nurlan Baibazarov with the President of the Islamic Bank of Development Muhammad Suleiman al-Jasser, was held in the city of Gidda.
According to the report, the parties discussed the possibilities of deepening cooperation in the field of financing priority infrastructure projects in Kazakhstan. Particular attention was paid to the development of engineering and transport infrastructure in special economic and industrial zones (SEZ and from). The key result of the meeting was an agreement to attract funding from the Islamic Bank for Development in the amount of up to 1.1 billion dollars for the implementation of these purposes.
In addition to the agreements reached, the protocol on the intent between the Government of the Republic of Kazakhstan and the Islamic Bank of Development took place. The document reflects the mutual readiness of the parties to the practical study of mechanisms for financing projects as part of the development of the SEZ and from the use of Islamic financing tools.
It is expected that the implementation of this cooperation will give a powerful impetus to the country’s infrastructure development, provide an influx of over 1.6 trillion investment and the creation of more than 16 thousand jobs, which in turn will contribute to accelerated industrialization and economic diversification of Kazakhstan.
This initiative continues the course determined by the framework of the strategic interaction between the Government of the Republic of Kazakhstan and IBR, signed on June 25, 2024. Within the framework of this agreement, the parties confirmed the intention to implement investment projects totaling over $ 8 billion.
The first stage of implementation was the development project of climatically stable water resources, for which the IBR provided a loan worth $ 1.15 billion, the largest loan in the history of the bank. Funds are aimed at the construction and reconstruction of 8 reservoirs and modernization of 115 irrigation channels with a total length of more than 3, 6 thousand kilometers.
During the meeting, the key areas of cooperation in the field of Islamic financing were also indicated, including the issues of attracting Islamic investments with the participation of JSC Bank for the Development of Kazakhstan, – a subsidiary of Baiterek JSC.