Practical Note: The Development of the Banking Sector within the Astana International Financial Centre (AIFC)
Since its establishment, the AIFC has generated significant interest by developing its financial services sector, particularly in banking. The financial ecosystem in the AIFC was designed to attract foreign investment, and various incentives have been introduced to encourage the growth of both traditional and Islamic banking businesses. However, despite these incentives, the development of the banking sector within the AIFC has not reached its full potential. 1. Incentives for bank establishment within the AIFC A series of tax exemptions and regulatory waivers have been provided to make it easier for banks to operate within the AIFC. These measures include: Tax exemptions : Both traditional and Islamic banks in the AIFC are eligible for tax exemptions until 2066, making it an attractive location for setting up banking operations. Reduced capital requirements : New banks can be established with reduced initial capital requirements. For Islamic banks, the mi...