The Use of Infrastructure of Partner (Islamic) Finance Institutions to Build Mechanism of Raising Investment of Islamic Investors to Russian Projects

The article studies issues of using alternative finance solutions, in particular, partner finance institutions to implement various Russian projects in the context of limited access of Russian business-structures to western finance markets. The article shows preconditions of developing Islamic finance institutions in Russian practice and grounds lines of development of investment cooperation of Russia and Islamic countries of the Middle East and South-East Asia within the frames of using infrastructure of partner finance institutions. Methodological tools of the research include analysis of public factual account concerning the development of Islamic finance and functioning of Islamic finance institutions in Russia. The research showed that today Russia possesses potential for the development of Islamic finance, however, this market has not reached full-scale extension on the territory of Russia due to certain facts hindering the development of Islamic finance infrastructure. It is obvious that to allow Islamic investors with their capital to enter Russian market it is necessary to create efficiently functioning conditions within the frames of legislative base, taxation system, organizational infrastructure and system of foreign investment protection. These conditions shall be provided by Russia in the near future. In view of promoting mechanisms of partner financing a special role shall be played by experiment of testing partner (Islamic) finance in Russia aimed at supporting energetic development of tools of partner financing for legal entities and individuals, creating infrastructure for Islamic finance institution functioning and raising Islamic investment capital.

1. Ak Bars Bank perviy v Rossii zapustil islamskie produkty dlya biznesa, odobrennye DUM RT [Ak Bars Bank launched Islamic Products for Business, Approved by the Spiritual Directorate of Muslims of the Republic of Tatarstan]. (In Russ.). Available at: https://ufa.plus.rbc.ru/pressrelease/65cf25e57a8aa99a3325caf2 (accessed 15.02.2024).

2. Al'-Azzavi Alaa Abduldzhabbar Khusseyn. Razvitie mekhanizma povysheniya effektivnosti islamskikh finansovykh institutov v Rossii. Diss. kand. ekon. nauk [Development of a Mechanism for Increasing the Efficiency of Islamic Financial Institutions in Russia. PhD econ. sci. diss.]. Moscow, 2021. (In Russ.).

3. Voskoboynik Yu., Imamkulieva E. Pravovoy eksperiment – Islamskie finansy v RF [Legal experiment – Islamic Finance in the Russian Federation]. (In Russ.). Available at: https://orientaliarossica.com/page/14/99680 (accessed 24.02.2024).

4. V Rossii uzakonyat islamskiy banking. Chto takoe khalyalnoe finansirovanie i zamenit li ono zapadnoe? [Islamic Banking will be Legalized in Russia. What is Halal Financing and will it Replace Western Financing?]. (In Russ.). Available at: https://rtvi.com/news/v-rossiiuzakonyat-islamskij-banking-chto-takoe-halyalnoe-finansirovanie-i-zamenit-li-ono-zapadnoe/ (accessed 24.02.2024).

5. Est li perspektivy u islamskikh investitsiy v Rossii [Are there Prospects for Islamic Investments in Russia]. (In Russ.). Available at: https://investfunds.ru/news/160556/ (accessed 16.02.2024).

6. Zaripov I. A. Islamskie finansy v Rossii: problemy stanovleniya i puti ikh resheniya [Islamic Finance in Russia: Problems of Formation and Ways to Solve them]. Mir novoy ekonomiki [World of New Economics], 2016, No. 2, pp. 64–74. (In Russ.).

7. Zaripov I. A. Islamskie finansy kak strategicheskiy orientir razvitiya Rossii [Islamic Finance as a Strategic Guideline for the Development of Russia]. Finansy: teoriya i praktika [Finance: Theory and Practice], 2016, No. 1 (91), pp. 96–110. (In Russ.).

8. Instrumenty islamskogo finansirovaniya imeyut preimushhestvo pered traditsionnymi po sredney dokhodnosti ot vlozhennykh sredstv [Islamic Financing Instruments Have an Advantage over Traditional Ones in Terms of Average Return on Investment]. (In Russ.). Available at: https://www.interfax-russia.ru/volga/exclusives/ministr-ekonomiki-tatarstanamidhat-shagiahmetov-instrumenty-islamskogo-finansirovaniya-imeyut-preimushchestvopered-tradicionnymi-po-sredney-dohodnosti-ot-vlozhennyh-sredstv (accessed 22.02.2024).

9. Malashenko A. Islamskaya alternativa i islamistskiy proekt [Islamic Alternative and Islamist Project]. Moscow, Ves mir, 2006. (In Russ.).

10. Rezvanova A. Tatarstan razvivaet mekhanizmy dlya polucheniya khalyalnykh deneg [Tatarstan is Developing Mechanisms for Receiving Halal Money]. (In Russ.). Available at: https://www.evening-kazan.ru/analitika/articles/tatarstan-razvivaet-mehanizmy-dlyapolucheniya-halyalnyh-deneg?utm_source=google.com&utm_medium=organic&utm_campaign=google.com&utm_referrer=google.com (accessed 15.02.2024).

11. Rossiya – Islamskiy mir: 5 napravleniy dlya sotrudnichestva [Russia – Islamic World: 5 Directions for Cooperation]. (In Russ.). Available at: https://dknews.kz/ru/ekonomika/290109-rossiya-islamskiy-mir-5-napravleniy-dlya (accessed 18.02.2024).

12. Ekonomist Ilyas Zaripov – o tom, kak privlech islamskie finansy v Rossiyu [Economist Ilyas Zaripov – on How to Attract Islamic Finance to Russia]. (In Russ.). Available at: https://rg.ru/2023/05/13/ekonomist-ilias-zaripov-o-tom-kak-privlech-islamskie-finansy-vrossiiu.html (accessed 20.02.2024).

13. Audi T. Muslim Population Projected to Nearly Match Christian by 2050. Wall Street Journal, 2015, April 2. Available at: https://www.wsj.com/articles/study-projects-growthshifts-in-worlds-muslim-christian-populations-1427983415 (accessed 02.03.2024).

14. Gundogdu A. S. An Inquiry into Islamic Finance from the Perspective of Sustainable Development Goals. European Journal of Sustainable Development, 2018, Vol. 7, No. 4, p. 382.