EXPERIENCE OF ISLAMIC LEASING (IJARA) FINANCING IN THE POST-SOVIET COUNTRIES
In light of the ongoing experiment in Islamic (Partnership) financing in the Russian Federation, this paper is devoted to the analysis of the experience of post-Soviet countries in Islamic leasing (Ijarah) financing. We identify the fundamental differences between Islamic leasing and its conventional analogue, which include i) the absence of interest (riba); ii) risk-sharing associated with the ownership and use of the leased property; iii) belonging to the type of real contracts; iv) purposefulness; v) transfer
of ownership of the leased property on the basis of a separate agreement; vi) absence of penalties and fines. We examine the experience of post-Soviet countries of Central Asia and the Caucasus in the organization and development of Islamic leasing companies. Some of them are founded with the participation of the Islamic Development Bank. Using the example of Islamic banks and microfinance companies, it is shown that Ijarah is a popular and competitive instrument for financing small and medium businesses in the post-Soviet region. Particular attention was given to the practices of Russian companies involved in developing Islamic leasing in the Republic of Tatarstan. In the absence of government support, potential niches for Islamic leasing in the Russian market were identified. These include: i) Islamic leasing of agricultural machinery through the expansion of relevant brands from the EAEU and OIC countries; ii) the introduction of new leasing assets to the market by further unlocking the export potential of small and medium-sized businesses from post-Soviet countries; iii) Islamic leasing of cars, trucks, construction machinery, and equipment from the EAEU and OIC countries; iv) Islamic real estate leasing; v) Islamic leasing of private vehicles. Our research results will be useful for market participants, policymakers, and the regulator itself, as paper reveals important details designed to assist in the development of the Islamic financial sector. Furthermore, our findings and assessments can be used in educational processes as a reference for the emerging experience of Islamic (Partnership) financing in the Russian Federation.
Nagimova A.Z. “Experience of Islamic leasing (Ijara) financing in the post-Soviet countries”, Research Result. Economic Research, 12(1), 4-12, DOI: 10.18413/2409-1634-2026-12-1-0-1
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This research was conducted within the framework of the Ufa Federal Research Center of the Russian Academy of Sciences’ state assignment No. 075-00571-25-00 for 2025 and for the planning period of 2026 and 2027.