Signing of the Advisory Services Agreement between the Islamic Corporation for the Development of the Private Sector (ICD) and Turonbank, Uzbekistan


Turonbank is one of the more recent partners of ICD and has been utilizing USD 10 million Line of Financing Facility granted by ICD to finance SMEs in Uzbekistan

Jeddah, Kingdom of Saudi Arabia: Mr. Ayman Amin Sejiny, the CEO of the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group (IsDBG), and Mr. Chori Sadibakosovich Mirzaev, Chairman of the Management Board of Turonbank, signed an Advisory Services Agreement in relation to launching of an Islamic Window at the Bank.

The intended Islamic Window will create an opportunity for Turonbank to be one of the foremost wholly profit-sharing Islamic Windows, offering Islamic products and services in Uzbekistan. As a result, the Bank will diversify its products, funding sources and increase its profits.

Turonbank is one of the more recent partners of ICD and has been utilizing USD 10 million Line of Financing Facility granted by ICD to finance SMEs in Uzbekistan.

On this occasion Mr. Sejiny, commented: “This successful cooperation between our institutions is the next step toward enhancing our recent strategic partnership. Advisory services provided by ICD is a strategic partnership, aiming to support the banking and Islamic finance industries in Uzbekistan. Through this strategic initiative, ICD will assist Turonbank in launching its first dedicated Islamic Window by providing them with a total solution covering development of the Shari’ah compliant products, assistance in accounting, information technology, human resources and legal aspects of the operations; combined with on-site extensive theoretical training, to be supported by on-the-job training within one of the partner Islamic banks of ICD.”

On his part, Mr. Mirzaev added: “As you all know, a large part of the population of our country are our citizens who follow Islam. In order to fully meet their needs and provide high quality financial services on the basis of the best practices, JSCB “Turonbank” has been working constantly and introducing new banking services, hence the initiative of Islamic Window will be one of the most attractive financial services in the country. In this process, of course, the development of Islamic finance is one of the most important tasks ahead of us. The reason is that today banking products based on world experience, corresponding to customer requirements, are in demand. Therefore, we are also working in the transformation of a modern banking network in line with Islamic finance. In this regard, I would not be mistaken to say that the “Islamic Corporation for the Development of the Private Sector” is one of the most important partners of Turonbank at the international level.

The above mentioned priority tasks were also defined in the decisions of the head of our state “On measures to further increase the effectiveness of cooperation with international and foreign financial institutions” on December 20, 2017, and “On measures to further expand and deepen cooperation with Foundations of the Islamic Development Bank Group and the Arab Coordination Group” on March 5, 2019.

There is no doubt that the launch of the “Islamic Window” in JSCB “Turonbank” will give impetus to further expansion of mutual cooperation and the implementation of joint projects. As a result, our bank will be able to expand the range of services provided to the population, accelerate the development of entrepreneurship and small businesses, and create an instrument that offers retail and corporate products based on Islamic principles. Most importantly, thousands of new jobs will be created.

I would like to take this opportunity to thank Mr. Ayman Amin Sejiny, Chief Executive Officer of the Islamic Corporation for the Development of the Private Sector, and the members of the delegation led by him for their cooperation.”

About the Islamic Corporation for the Development of the Private Sector (ICD):

The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral financial institution established by the Board of Governors of the Islamic Development Bank (IsDB) during its twenty-fourth (24) annual meeting held in Rajab 1420H (November 1999) in Jeddah, Kingdom of Saudi Arabia. ICD was established to be IDBG’s private sector window. The authorized capital of the Corporation is USD 4 billion. The shareholders consist of the IsDB (rated Triple A), 55-member countries and 5 financial institutions from the member countries. ICD is Rated A2’ by Moody’s, ‘A’ by S&P and, A+ by Fitch.

ICD aims to play a complementary role to the activities of IsDBG and the national financing institutions in member countries by focusing on private sector institutions in their various activities and operations in full compliance with the principles of  Shari’ah. In addition to extending financing and financial services, ICD provides advisory and consultancy services to governments and private sector institutions in order to adopt policies for establishing, expanding and modernizing private sector companies, developing equity capital markets (ECM), debt capital markets (DCM) in the form of Sukuk, adopting better management practices, and strengthening the role of the market economy. ICD focuses its financing on development projects (such as infrastructure and private equity funds) that aim to create job opportunities and to encourage exports.

In order to achieve all these goals, ICD establishes and strengthens cooperation and partnership relationships with an aim to establish joint or collective financing. ICD also applies financial technology (Fintech) to make financing more efficient and comprehensive. Financial services institutions within ICD’s member countries are benefiting from fintech innovations by using artificial intelligence, robotics, blockchain, data analytics, and cloud computing services. ICD created a platform based on its relationships with 119 financial institutions, through which, IsDBG in general and the institution can have access to a concerned country and identify available financing opportunities. The platform allows financial entities to collaborate in identifying investment opportunities, sharing market information and laying the groundwork for actual financial transactions within the OIC member countries and across borders.

About JSC “Turonbank”:

The history of the Turonbank started in 1990 and the Bank was one of the first commercial banks in Uzbekistan even before the Independence of the country. At present, Turonbank is one of universal banks in the country serving the broad layers of population, as well as credit institutions, enterprises and organizations operating in the republic. The bank consists of 20 branches, 71 banking services centers, 91 international money transfer points and 65 currency exchange points in which around 1,421 specialists are employed.

The Bank is a solely state-owned universal commercial bank, which carries out all kinds of banking operations represented in financial services market including servicing of private and corporate clients. Its principal activities are commercial and retail banking operations, transaction with foreign currencies, origination of loans, guarantees and letters of credit offered to private sector in the country.