(MENAFN- Trend News Agency) BISHKEK, Kyrgyzstan, November 22. Aiyl Bank and the Guarantee Fund OJSC have signed a cooperation agreement to broaden access to Islamic financing for entrepreneurs, particularly small and medium-sized businesses in regional areas, Trend reports via the bank.

​Under the agreement, the Guarantee Fund can cover up to half of a client's liabilities, allowing businesses with limited collateral to access financing. The funds are provided according to Islamic principles, using interest-free trade and partnership-based contracts.

​Islamic finance, operating on Sharia principles, differs from conventional banking by strictly prohibiting riba (interest), which is achieved through the use of contracts based on trade (e.g., Murabaha) and profit/loss sharing (e.g., Mudarabah or Musharakah). Globally, this sector shows stable growth, with the assets of Islamic financial institutions worldwide exceeding $2.5 trillion, with the Gulf countries and Southeast Asia being the key hubs.

MENAFN22112025000187011040ID1110381953