Analysis of the main directions of activity of Islamic Development Bank in Central Asia

Abstract

This article examines the activities of the IsDB in Central Asia, including the formation and
development of cooperation, the provision of financial transactions to countries, and the dynamics of their
relations. The aim of the work is to analyze and compare the activities of the IsDB in Kazakhstan, Kyrgyzstan,
Tajikistan, Turkmenistan, and Uzbekistan. The authors gave examples of the beginning of relations between the
Central Asian countries with the IsDB even before the start of their accession, as well as examples of cooperation
of the republics with other members of the IsDB group. Then there was carried out a comparative analysis of
the aggregate of financial transactions in five countries for five years from 2014 to 2018, including financing
projects, trade finance, technical assistance, and special purpose assistance. The analysis was carried out using
data from 2014 to 2018, since it was not possible to obtain more recent data due to the pandemic, however, the
assessment of the overall picture of cooperation has not changed much and reflects the current state. According
to the analysis in the studied region, project financing is the main type of financial transaction, which reflects the
general dynamics of the IsDB’s work in Central Asia. Trade finance has developed over five years in all countries
except Turkmenistan, and research has shown that technical and special-purpose assistance is not in demand
in the region. Despite the overall positive indicators in Central Asia, financing in each country differs greatly
depending on the level of economic development.