The Russian parliament has approved a bill to introduce Islamic banking in four Muslim-majority regions of the country.
The experiment, which will begin on September 1, 2023 and last for two years, is seen as an important step for Russia and could pave the way for wider adoption of Islamic banking in the country.
Islamic banking is a financial system that conforms to Islamic law, or Sharia. Sharia prohibits the payment or collection of usury, which is considered usury.
Instead, Islamic banks use profit-sharing and lease agreements to provide financial services to their customers.
The four regions participating in the experiment are Bashkortostan, Chechnya, Dagestan and Tatarstan.
These regions have a large Muslim population and have shown interest in promoting Islamic banking services.
The introduction of Islamic banking in Russia is seen as a way to attract foreign investment and promote economic development in Muslim-majority regions.
It is also seen as a way to meet the needs of the growing Muslim population in Russia.
