MOSCOW — SBERBANK of Russia (SBR) Moscow on Tuesday signed a Memorandum of Understanding (MOU) with the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group, to help SBR’s clients access Islamic finance products on Tuesday in Moscow.

SBR provides its services to more than 70% of the population of Russia and is one of the leading credit institutions in the world. It helps people's lives better by helping them fulfill their aspirations and dreams.

The MOU will reinforce SBR efforts to develop Russia as a strong hub, hosting activities such as project development, structuring, and financing, catalyzing project opportunities for Russian companies and individuals to meet the needs in the region. ICD, strong with its experience in Islamic finance, will help share its knowledge to develop the corporate, retail and private banking as well as the training needed.

The MOU was signed by Mr Okan Altasli, the Director of Regional offices at ICD on behalf of the Acting CEO of ICD Mohammed Al Ammari, and Oleg V Ganeev, Deputy chairman of the executive board of SBR. The MOU was signed at the side-lines of the 1st Russian Islamic Economy Forum co-organized by ICD, IAIB, Sberbank, KPMG and THIQAH in Moscow.

Okan Altasli said “ICD partnership with SBR aims to drive growth in the markets in Russia as well as to enhance economic integration within the regions. This close engagement with SBR will open more doors for Russian individuals and companies to access Islamic finance.”

The diversity of Russian’s individuals and companies will help them diversify their sources of growth, and bring much needed capital and expertise into these markets. ICD’s places the private sector at the heart of development, not only to raise more capital but also to drive innovation. Russian’s private sector is well positioned to help ICD unlock additional financing for global development challenges.

Oleg V Ganeev added “SBERBANK considers strong and long term relations with IDB group of companies. There is constantly growing demand in the market for Islamic financing services. We are planning to cooperate with ICD on SME projects in regions of Russian Federation”.

Meanwhile, the ICD, the private sector arm of IDB Group, the International Association of Islamic Business (IAIB) and Sberbank of Russia, in close cooperation with the IsDB Group Business Forum (THIQAH) and KPMG have organized the 1st Russian Islamic Economy Forum which was held on Tuesday in Moscow.

The Forum aimed to provide a long-term platform to facilitate business partnerships and develop joint investments, collaboration and trade facilitation. The Forum also allowed the participants to deliberate on the opportunities, challenges, threats and the road forward towards improved economic integration between Europe and Asia, particularly OIC countries, and the role that alternative finance mechanisms such as Islamic finance can play. The forum focused on the best practices concerning various industries in Russia. Furthermore, the most suitable and favorable financing tools for application in Russia were presented at the forum including SMEs financing. The event also discussed the Islamic economy and the role of Russia in Islamic ecosystem, and highlighted the innovations as the key to the development. — SG