The Eurasian Development Bank has signed its first Islamic finance agreement, marking a milestone in its efforts to diversify financial instruments and expand regional infrastructure investment, the development bank said in a press release.

The General Commodity Murabaha Agreement was signed on November 20 in Astana between the EDB and Eastcomtrans, Kazakhstan’s largest private rolling stock operator. The deal was executed by Ruslan Dalenov, Vice Chairman of the EDB Management Board, and Almas Abaideldinov, Chief Executive of Eastcomtrans.

The pilot project is being financed through a Murabaha structure, a widely used Islamic finance mechanism in which goods are sold at a markup and repaid in instalments. The funds will be used for repairs and maintenance of Eastcomtrans’s fleet of railcars, with the aim of boosting freight transport efficiency and strengthening logistics infrastructure across the region.

“The project is a significant achievement for the Bank. It demonstrates our commitment to implementing financial instruments and expanding our business,” said Dalenov. “The EDB plans to continue opening up new horizons that make a real contribution to the region’s prosperity.”

The initiative marks the EDB’s entry into Islamic finance, a strategic move intended to establish what the Bank called its "Islamic window"—a dedicated platform for Sharia-compliant financial services. The Bank said the project opens new opportunities to support infrastructure and key sectors in its member countries.

The move is in line with the EDB’s broader goal of promoting sustainable and alternative financial solutions. The Bank, which was established 19 years ago, reported a portfolio of 319 projects worth $19.1bn as of July 2025, with a focus on transport, digital systems, green energy, manufacturing and agriculture. It adheres to the UN Sustainable Development Goals and ESG principles.

Eastcomtrans, which operates over 11,000 railcars and maintains offices across Kazakhstan and Russia, ranks among Kazakhstan’s 50 largest private companies.

The EDB said it intends to replicate and scale similar projects across the region following this pilot scheme.