Abu Dhabi Commercial Bank (ADCB) has announced a strategic shift in Kazakhstan, transitioning its subsidiary, Al Hilal Islamic Bank, into a dedicated hub for Sharia-compliant corporate banking services, accompanied by a rebranding to align with ADCB’s Islamic banking framework.
According to ADCB's release, the revamped Al Hilal Islamic Bank in Almaty will focus on providing a wide range of corporate financial products and services, leveraging ADCB's experience and extensive network.
This initiative is set to support the growth of businesses in Central Asia, driven by large-scale infrastructure projects, rising investment, abundant natural resources, and a skilled workforce.
As part of this transition, ADCB plans to gradually phase out its retail banking operations in Kazakhstan. The bank has committed to assisting its retail clients in finding alternative banking solutions during this transition. This strategic shift will be executed in close collaboration with regulatory authorities to ensure a smooth process.
The Agency of Kazakhstan for Regulation and Development of the Financial Market has yet to receive official statements from Al Hilal Islamic Bank regarding the change.
Established in 2010, Islamic Bank Al Hilal was the first Islamic bank in Kazakhstan and the CIS, created through an agreement between the governments of Kazakhstan and the UAE. It was designed to offer banking products and services adhering to Sharia principles.
The bank is part of the Abu Dhabi Commercial Bank Group (ADCB), one of the UAE's largest banking groups with assets amounting to $167bn. The majority shareholder of ADCB Group is Mubadala Investment Company, a key sovereign wealth fund of the Abu Dhabi government.
On July 19, 2024, ADCB Group was granted approval by the Agency of Kazakhstan for Regulation and Development of the Financial Market to become a banking holding company and acquire full ownership of Al Hilal Islamic Bank’s ordinary shares.
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