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


Xalq Bank is one of the partners of ICD since 2013, and has utilized USD 13 million Line of Financing Facility granted by ICD to finance ten 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 (IsDB), and Mr. Farkhod Islomovich Salamov, Chairman of the Management Board of Xalq Bank, 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 Xalq Bank to be one of the foremost wholly profit-sharing Islamic Windows, offering Islamic products & services in Uzbekistan. As a result, the Bank will diversify its products, sources of funding and increase its profits.

Xalq Bank is one of the partners of ICD since 2013, and has utilized USD 13 million Line of Financing Facility granted by ICD to finance ten SMEs in Uzbekistan.

On this occasion Mr. Sejiny, commented: “This cooperation with Xalq Bank is a strategic partnership aiming to support the banking and Islamic finance industries in Uzbekistan. Through this strategic initiative, ICD will assist Xalq Bank in launching its first dedicated Islamic Window by providing them with a total solution covering Shari’ah, accounting, information technology, human resources and legal aspects; combined with  on-site extensive theoretical training, to be supported by on-job training in Islamic banks. This successful cooperation between our institutions enhances our long-term strategic partnership”

On his part, Mr. Salamov added: “The Islamic banking products have a huge potential in the market today and we believe that the demand for this kind of services will rise further. Moreover, this new partnership will give us the instruments, which will target the niche of the customer base that we have not reached until today and be productive for both sides.”

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 the IDBG 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 IsDB 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 Islamic 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, the Islamic Development Bank Group (IsDBG) in general and the institution, in particular, 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. For more information about ICD.

About JSC “Xalq Bank”:

The history of the Xalk Bank started in 1875, when the first savings cash office was opened in Tashkent, Uzbekistan. Prior to independence of the Republic of Uzbekistan, the Bank acted as savings cash office. The Bank’s activities changed in 1995 when, in accordance with the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated October 4,1995 # 386, “Uzsberbank” (Uzbek Savings Bank) was transformed into the State-Commercial Xalq Bank.

At present, Xalk Bank is the largest and most ramified universal bank of the country serving the broad layers of population, as well as credit institutions, enterprises and organizations operating in the republic. The bank consists of 197 branches, 509 Cash desks located outside the bank, 1 614 mobile cash desks, 257 24/7-offices, 4 mini-banks, 90 bank service centers, 274 international money transfer points and 118 currency exchange points in which around 12,000 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.