Kazakhstan state fund Kazyna and Qatar Islamic Bank create bank of Islamic financing with initial capitalization of $100 m.

/INTERFAX-KAZAKHSTAN, Astana, May 19, 08/ - Kazakhstan state fund of sustainable development Kazyna and Qatar Islamic Bank create bank of Islamic financing. The president of the Fund of sustainable development Kazyna JSC Arman Dunaev and representative of Islamic Bank Ahmad Meshari, within World Economic Forum (WEF) on the Middle East, which took place May 18-20 in Egypt Sharm-al-Sheyh signed the memorandum about mutual understanding and creating of joint bank, is marked in disseminated Monday press release of Kazakhstan state fund. Suggested initial capitalization of the bank made $100 m., Qatar Islamic Bank and Kazyna Capital Management JSC (the fund of funds within Kazyna) will be promoters. Besides, the further increasing of bank capitalization and participation of other international investors are supposed" - is indicated in the press release. The activity of joint bank will be based on Shariat`s principals, fundamental of which is reject of loan interest. "Creating of such bank let Kazakhstan to be the first country among other post soviet countries, to introduce instruments of Islamic financing in economic activity" - is underlined in the press release. At the same time, Kazakhstan government now examines the opportunity to include corresponding amends and additions in republic legislation (bank and tax), which admit functioning of creating bank in accordance with Shariat`s principals and providing developing of the market of Islamic financing in Kazakhstan. The state fund Kazyna, founded in March, 2006, is managing company, which was created with the aim of diversification of Kazakhstan economic by means of coordination of activity of the national development institutes within strategy of industrial and innovational development of Kazakhstan, calculated till 2015. Kazyna Capital Management JSC was founded in May, 2007 as Kazakhstan Fund of funds. The main principal of JSC is increasing of total investment and innovational activity, development of non primary sector of Kazakhstan economic and also forming of effective market of nego investment in Kazakhstan and participation in foreign investment funds. Kazyna Capital Management has engaged in active work on creating and participation in investment funds together with foreign and Kazakhstan partners in September, 2007 after adoption of memorandum about investment policy and other documents, regulating the company's activity and forming of authorities. [2008-05-19]