For the first time, JSC "Transtelecom" and JSC "Al Saqr Finance" concluded a deal on leasing real estate on the principles of Islamic financing (Ijarah).
Islamic financial company JSC "Al Saqr Finance" for the first time made a deal with the Kazakhstan company JSC "Transtelecom" on the acquisition of non-residential premises on the terms and conditions of Islamic leasing (Ijarah).
In general 2017 was rather outstanding both for banks, and for many financial institutions. Appearance of the new player in the sphere of Islamic finance attracted great interest in the market as together with it the new directions and opportunities for development of the Kazakhstan business sector appeared.
JSC "Al Saqr Finance" in the past is a traditional leasing company with experience in the leasing market for more than 17 years. A year ago the company was transformed into a universal Islamic financial organization. As the Shariah Council of JSC "Al Saqr Finance" is the international company Shariyah Review Bureau (Bahrain), which is the world leader in the field of Shariah consulting and is represented in 12 countries. Following the results of 2016, JSC “Al Saqr Finance” entered the top-5 of the leading leasing companies in Kazakhstan according to the rating agency RAEX ("Expert RA Kazakhstan").
Islamic leasing (Ijarah) is a type of financial activity in which a lessor transfers an asset to a client for temporary possession for a fee and under certain conditions. The main advantages of Islamic leasing in comparison with bank financing are:
• lack of obligatory additional pledge;
• decision making speed;
• possibility of application of accelerated depreciation;
• implementation of leasing payments begins only with the moment of the actual transfer of a subject of leasing;
• all received penalties and penalty fee are transferred to charity.
At present, domestic market of Islamic leasing represented by only a few organizations. Since 2006, on the initiative of the President of the Republic of Kazakhstan, state bodies to support the development of Islamic finance in Kazakhstan have begun work on introducing the necessary changes and additions to the current legislation. Due to improvements in conditions in Kazakhstan, JSC "Al Saqr Finance" began to work actively in the corporate segment, concluding transactions of Islamic leasing (Ijarah), including a large company of JSC "Transtelecom".
The transaction between "Al Saqr Finance" and JSC “Transtelecom”, concluded to purchase the real estate in Astana on the terms of Islamic leasing (Ijarah), allowed to perform in December, 2017 transfer of three office rooms with a total area of 3 000 sq.m in Astana for 4 years. Expanding the business and considering offers on financing of other organizations, JSC “Transtelecom” made the choice for benefit of Islamic financing.
JSC "Transtelecom" was established in 1999 for technical support and modernization of the existing railway communication system. Today it is an innovative company that specializes in providing a wide range of information and telecommunication services and IT solutions. In recent years, JSC "Transtelecom" has implemented many unique IT projects, making a huge contribution to the implementation of the state program "Digital Kazakhstan".
The-nation address in 2010, President Nursultan Nazarbayev set a strategic task to create in Kazakhstan a regional center of Islamic banking by 2020. One of the main directions of strategic development of an International financial centre Astana (IFCA), was created on the initiative of the head of state, is Islamic Finance. In particular, the development of Islamic banking and non-banking financial services, Islamic capital market. This transaction contributes to the implementation of state policy in the development of Islamic Finance and the development of the domestic financial sector as a whole.
Source: forbes.kz
