Government-led Damu Fund Supports SMEs in Kazakhstan with Islamic Financing Solutions

Kazakhstan’s Damu Entrepreneurship Development Fund (DEDF), a government-led small business development fund, stated that it has recently signed off on agreements with Islamic banks in the country.

The aim of these agreements is to provide support to small and medium-sized enterprises (SMEs) with the DEDF having commenced this initiative in April 2020 via the Islamic Finance program.

The DEDF has obtained USD 24 million from Al Hilal Bank and USD 7 million from Kazakhstan Ijarah Company for further lending on preferential terms to the SMEs. The fund uses both Murabahah and Ijarah funding instruments.

Yusuf Karshi, Chief Executive Officer of the Kazakhstan Ijarah Company, noted that the assistance provided by the DEDF by way of partial subsidisation of th...