This article examines the financial and economic aspects of in the Bashkir ASSR from 1952 to 1966, based on the Information Reports of the Authorized Representative of the Council for Religious Affairs of the USSR Council of Ministers in the Bashkir ASSR. Compiled for government oversight purposes, the reports reflected a wide range of the daily lives of believers, including the practice of Eid al-Adha celebrations. They recorded donations, the number of sacrificial animals, the names of informal leaders, and other details unavailable from other sources. The relevance of this study lies not only in filling a gap in the historiography of religious practices in Russia but also in the need to understand the historical mechanisms of collecting and redistributing donations in Muslim communities, which influence the development of Islamic finance in modern Russia. Using normalized data, chronological series of nominal and actual collections for Ufa were constructed, revealing three dynamic phases: controlled stability (1952–1956), growth during Khrushchev’s antireligious campaign (1957–1959), and a decline after 1960, with donations shifting toward private charity. It is shown that the peak of collections in Ufa in 1958–1959, with a decline in the number of sacrificial animals and an increase in the average collection per ram, was not a consequence of inflation, but rather reflected communities’ attempts to legitimize themselves through money in the face of mounting pressure. Rural unregistered communities, by contrast, demonstrated resilience through collective donations and informal leaders. A comparative analysis with the Orenburg Region and the Tatar ASSR allows us to identify three models of the Eid al-Adha celebrations economy in the Ural-Volga region: centralized (Bashkir ASSR), short-term surge (Tatar ASSR), and decentralized (Orenburg). This study contributes to the history of Islamic financial practices in Russia, demonstrating that the economy of religious holidays was a sensitive barometer of state-religious relations and a platform for believers’ adaptation strategies. The results can be used to further understand contemporary issues of trust in Islamic financial institutions, the role of informal charitable channels, and the impact of government regulation on the sustainability of Muslim communities.

Keywords: Eid al-Adha, Islamic finance, charity, Council for Religious Affairs, Bashkir ASSR, sacrifices, Ural-Volga region, Soviet religious policy.

JEL Classification: F15, Z12

For citation
Yunusova A.B. Eid al-Adha in Soviet Bashkiria (1952–1966): Financial and Economic Aspects of the Celebration (based on reports of the Authorized Representative of the Council for Religious Affairs in the Bashkir ASSR). Islamic Finance, 2026, vol. 2, no. 1, pp. 5–14. https://doi.org/10.65324/if013

The article is devoted to the socio-cultural and economic analysis of the Muslim community of the Republic of Bashkortostan as a key social base for the introduction and development of Islamic (Partnership) finance in the province. The relevance of the study is due to the inclusion of the republic in the federal experiment on Partnership financing from September 2023, which actualizes the task of assessing the real consumer potential and behavioral patterns of the target audience. Based on empirical data from public opinion polls in 2017 (N=128) and 2021 (N=434, snowball method) and a mass survey in 2026 (N=4481, River Sampling method), the author reconstructed a typical portrait of a potential consumer: an urban resident aged 30–60 years, with higher or secondary specialized education, employed in industrial, socio-cultural, or entrepreneurial fields. It has been revealed that the Muslims of the republic represent a mature, economically active and urbanized socio-professional group (more than 60% live in cities), whose religious identity is predominantly cultural and casual in nature (a significant part has no systematic religious education, adheres to secular values), and the request for financial services is characterized by pragmatism, rationality and focus on transparency and legal purity. The article examines the problem of personnel shortage in the Islamic finance industry against the background of the rapid growth of global assets in the sector. The key competencies necessary for the new generation of specialists are presented, systemic problems are identified and recommendations for the formation of a unified educational ecosystem are proposed. The conclusion is substantiated that the success of the institutionalization of Islamic finance in Bashkortostan will depend not on religious rhetoric, but on the ability of financial institutions to offer a market-competitive alternative to conventional lending, focused on the basic needs of this socio-economic group. It is recommended to shift the focus of educational campaigns from general Halal certification to explaining the mechanisms of Islamic financial products through digital channels popular among the target audience. A promising area of research is the conduct of comparative interregional and cross-national comparisons.

Keywords: Islamic finance, Partnership financing, Muslims, social base, Republic of Bashkortostan, Islam, religion.

The study was carried out under the state assignment of the R.G. Kuzeev Institute of Ethnological Studies of the Ufa Federal Research Center of the Russian Academy of Sciences No. 1022040500568-3-6.5.1

JEL Classification: F15, Z12

For citation
Mukhametzyanova-Duggal Regina M. The Sociocultural and Economic Portrait of Muslims in Bashkortostan as a Social Base for the Development of Islamic Finance. Islamic Finance, 2026, vol. 2, no. 1, pp. 15–27. https://doi.org/10.65324/if014

This article examines the structural parameters of the Islamic finance industry, including segmental asset distribution, geographic concentration, and market operating characteristics. The objective of the study is to assess the level of concentration and fragmentation as systemic imbalances that hinder the sustainable development of the industry. Using methods such as the analysis and systematization of statistical data, as well as a comparative analysis of segmental and regional shares, the article examines key industry proportions: the relationship between the banking sector, the sukuk market, and insurance; the distribution of assets by region and jurisdiction; liquidity indicators and sukuk spread characteristics as indicators of secondary market depth. Based on the results of the study, the article identifies three main types of imbalances: segmental hypertrophy of the banking sector with underdeveloped non-banking institutions (the share of banks is 71.6%, insurance — 1.4%); geographic concentration with the accumulation of 92.9% of assets in 17 systemically important jurisdictions; The disbalance between the volume of primary sukuk placements and the limited liquidity of the secondary market, manifested in widened spreads (from 0.22 to 0.63 depending on the instrument structure) and the predominance of short-term issues. The novelty of this study lies in its systematic description of the structural imbalances in the Islamic finance industry based on aggregated reporting data, which allows to draw a comprehensive picture of the industry’s institutional inadequacy. The results of this study can be used in developing strategies for the development of the Islamic financial sector at both the national and supranational levels.

Keywords: Islamic banking, Islamic finance, structural imbalances, concentration, fragmentation, sukuk.

JEL Classification: F15, Z12

For citation
Akhmadieva G.G. Structural Imbalances of the Islamic Financial Industry. Islamic Finance, 2026, vol. 2, no. 1, pp. 28–35. https://doi.org/10.65324/if015

This article examines approaches to the legal regulation of Islamic banking in two leading jurisdictions — the Kingdom of Bahrain and Malaysia. The aim of the study is to identify the institutional and regulatory features of each model in order to develop recommendations for improving the regulation of Partnership financing in the Russian Federation. Using such methods as analysis and synthesis, comparison and collation, and logical and holistic approaches, the article examines key elements of the regulatory systems: the legislative framework, the centralization of Sharia supervision, the internal governance structure, approaches to regulating digital assets, and the territorial organization of supervision. Based on the results of the study, the article proposes a concept for a Russian model for regulating Partnership financing that integrates the best elements of both systems: a centralized council for Partnership financing under the Bank of Russia with its standards accorded the status of business customs (adapted from the Malaysian experience), mandatory external Sharia audit (a Bahraini experience), a separate prudential regulation module within the framework of the unified supervision of the Bank of Russia, and the use of special administrative regions as jurisdictions for attracting international funding. The scientific novelty of the study lies in the systemic comparative analysis of two fundamentally different models of Islamic banking regulation (dualistic with elements of Anglo-Saxon law in Bahrain and unitary with the integration of Sharia norms into positive law in Malaysia) and in substantiating the possibility of their synthesis in relation to the Russian legal tradition, which, in contrast to existing fragmented approaches, allows us to propose a holistic model adapted to national conditions, taking into account both the need for legal certainty and the need for transparency and investment attractiveness.

Keywords: Islamic banking, Partnership financing, legal regulation, comparative analysis, Bahrain, Malaysia, Russia.

JEL Classification: F15, Z12

For citation
Derzaeva G.G. Islamic Banking Regulation: the Experience of Bahrain and Malaysia and Implications for Russia. Islamic Finance, 2026, vol. 2, no. 1, pp. 36–45. https://doi.org/10.65324/if016

Kazakhstan was the one of the first Central Asian country to adopt a legal framework for Islamic finance, and roughly 70 percent of its population identifies as Muslim, yet the practical uptake of Islamic financial products remains modest. Existing research on the subject, most of it produced by a relatively small circle of Kazakhstani scholars, has concentrated on institutional and regulatory constraints; ordinary consumers’ awareness, attitudes, and behavior have received comparatively little independent empirical attention, either in Kazakhstan or in the wider post-Soviet Muslim-majority region of Central Asia and the Caucasus. This paper addresses that gap through an original online survey of 224 residents of Kazakhstan collected. The questionnaire covered awareness of Islamic financial instruments, willingness to choose an Islamic bank for deposits and financing, consumption of halal products, perceptions of the social orientation of Islamic finance, charitable giving (sadaqah) practices, perceived barriers to diffusion, and preferences regarding an Islamic pension option. The findings show that despite limited substantive financial literacy — about 69 percent of respondents could not name concrete features of Islamic finance — more than half would consider an Islamic bank for deposits, and over 80 percent report some form of charitable giving. Respondents with substantive knowledge of Islamic finance were nearly one-and-a-half times more likely to prefer an Islamic bank than uninformed respondents. The dominant perceived barrier is a lack of accessible, trustworthy information (57.6 percent) rather than an absence of legislation. The results are interpreted through the region’s “institutional traps” literature and a wider cross-national body of Islamic-banking-adoption and halal-consumption research, and suggest that the gap between formal institutions and everyday practice across the post-Soviet Muslim world stems primarily from an information and trust deficit rather than from weak underlying demand.

Keywords: Islamic finance, Kazakhstan, Central Asia, financial literacy, halal, sadaqah, zakat, institutional traps, consumer survey, Islamic banking.

JEL Classification: F15, Z12

For citation
Kuanova L.A., Sagiyeva R.K., Doszhan R.D. Consumer Attitudes Toward Islamic Financial Instruments in Kazakhstan. Islamic Finance, 2026, vol. 2, no. 1, pp. 46–58. https://doi.org/10.65324/if017

The maximum effectiveness of social protection and support systems is achieved by combining the efforts of government agencies and non-profit public organizations. In the context of geopolitical and economic instability, the revival of the practice of social service of religious organizations is becoming particularly relevant. Islamic social service, based on the principles of charity, is aimed at helping the poor, needy and socially vulnerable groups of the population and ensures the stability of their social dynamics. Social service is considered as a form of support and complement to government activities, which is manifested in the following key areas: solving public and social problems, involving the population in social activities, increasing its effectiveness and accessibility, and ensuring social sustainability. The study confirms that Islamic precepts actively encourage charity, caring for those in need, and doing good deeds aimed at improving quality of life and ensuring the sustainability of their social dynamics. The paper identifies and systematizes the main forms of Islamic social service, which include, in addition to material and spiritual support, targeted assistance to vulnerable categories of the population (orphans, the disabled, veterans, the elderly), as well as religious and educational work. According to our sociological study, the Muslims surveyed feel the need for spiritual support and prefer to seek help from religious organizations. The identified problems in the development of Islamic social service in Russia include the lack of coordination of religious organizations, insufficient exchange of information, experience and methods of work with state social institutions. Practical recommendations aimed at improving this area are proposed: activation of educational and awareness-raising activities among the Muslim community regarding the value bases of social service; creation of a system of care, education, leisure and patronage care for people with disabilities; organization of mentoring and patronage of orphanages to support orphaned children; revival of the principle of social responsibility towards the elderly, including the organization of care and assistance.

Keywords: social service, Islamic charity, Islam, religious organizations, social protection, social sustainability, social activity, charity, vulnerable groups of the population.

JEL Classification: F15, Z12

The study was carried out within the framework of the state assignment of the Ufa Federal Research Center of the Russian Academy of Sciences No. 075-00576-26-00 for 2026 and for the planning period of 2027 and 2028.

For citation
Sadykov R.M., Bolshakova N.L. Islamic Charity as a Factor of Social Stability. Islamic Finance, 2026, vol. 2, no. 1, pp. 59–69. https://doi.org/10.65324/if018

This article explores the religious and normative foundations of zakat, its place among other forms of charity, historical and modern governance models, and methods of distributing zakat funds. Particular attention is paid to the results of sociological studies on factors that influence zakat payment: social and moral norms, religious and zakat literacy, trust in organizations, past experience, and the availability of digital infrastructure. The Russian context is analyzed through the lens of historical forms of community assistance, the activities of charitable foundations affiliated with spiritual administrations, studies of Muslim-majority Dagestan and Tatarstan republics, and prospects for the development of corporate zakat. We conclud that mandatory regulations alone do not ensure regular zakat payments: the religious mandate is more reliably implemented when the payer understands the calculation rules, trusts the collection and distribution channel, sees clear reporting, and has an accessible payment method. For Russia, the key feature is the coexistence of personalized assistance and the polycentric model of zakat funds. The prospects for the development of this institution are primarily linked to increased zakat literacy, transparency, and standardized accounting, rather than the mechanical adoption of centralized zakat collection models of Muslim countries.

Keywords: Islamic charity, zakat, sadaqah, waqf, social responsibility, charitable foundations, digitalization of charity.

JEL Classification: F15, Z12

For citation
Rakhmatullina K.R. Muslim Philanthropy Practices: The Case of Zakat. Islamic Finance, 2026, vol. 2, no. 1, pp. 70–81. https://doi.org/10.65324/if019