Shutterstock/kenary820by Kudakwashe Muzoriwa
Uzbekistan’s Asia Alliance Bank (AAB) has signed a $10 million financing agreement with the Islamic Corporation for the Development of the Private Sector (ICD) to support SMEs in Uzbekistan as well as an advisory agreement to launch an Islamic window on behalf of AAB.
The financing facility based on Wakalah structure will be used to provide financial support to the private sector through Islamic modes of financing and it will enable AAB to expand Shari’ah -compliant product offerings.
Ayman A. Sejiny, CEO of ICD, said, “ We entrusted our partners including AAB the task of attracting foreign direct investment for further financing of potential projects and help develop the private sector.”
ICD stated that the intended Islamic window will create an opportunity for AAB to be one of the foremost wholly profit-sharing vehicles, offering Islamic products and services in Uzbekistan, enabling the bank to diversify its products and sources of funding.