On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the United Arab Emirates on the opening of an Islamic Bank in the Republic of Kazakhstan

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On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the United Arab Emirates on the opening of an Islamic Bank in the Republic of Kazakhstan

Law of the Republic of Kazakhstan dated July 7, 2009 No. 168-IV

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the United Arab Emirates on the opening of an Islamic Bank in the Republic of Kazakhstan, signed in Astana on June 11, 2009.

President of the Republic of Kazakhstan N. Nazarbayev

Agreement Agreement between the Government of the Republic of Kazakhstan and the Government of the United Arab Emirates on the opening of an Islamic Bank in the Republic of Kazakhstan

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on December 21, 2009)

The Government of the Republic of Kazakhstan (hereinafter referred to as the Government of the Republic of Kazakhstan) and the Government of the United Arab Emirates (hereinafter referred to as the UAE Government), hereinafter referred to as the Parties, expressing their common interest in cooperation and strengthening cooperation between the Republic of Kazakhstan and the United Arab Emirates, in order to open an Islamic Bank in the Republic of Kazakhstan, have agreed as follows:

Article 1

1. In this Agreement, an Islamic Bank is understood to be an Islamic Bank established in the territory of the Republic of Kazakhstan by Al Hilal Bank Public Joint Stock Company (hereinafter referred to as Al Hilal Bank), which is a public joint stock company established by Decree of the Emir of Abu Dhabi No. 21 dated June 18, 2007 as an Islamic bank wholly owned by the Board of Directors Abu Dhabi Investment Authority (ADIC), for banking operations and services, as well as activities permitted for Islamic banks by the legislation of the Republic of Kazakhstan. 2. The Parties shall cooperate in accordance with the provisions of this Agreement in order to facilitate the opening of an Islamic Bank in the Republic of Kazakhstan. 3. An Islamic Bank is opened for the purpose of carrying out activities in accordance with the legislation of the Republic of Kazakhstan.

Article 2

1. Al-Hilal Bank is the parent bank of the Islamic Bank. At the same time, the Parties agreed that the requirements The Law of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan" (hereinafter referred to as the Law on Banks) regarding the parent bank's minimum required rating from one of the rating agencies does not apply to Al-Hilal Bank. 2. The Parties agreed that the requirements of the legislation of the Republic of Kazakhstan regarding the need to obtain permission from the Agency of the Republic of Kazakhstan for Regulation and Supervision of the Financial Market and Financial Organizations (hereinafter referred to as the Financial Supervision Agency) to open an Islamic Bank in order to register it as a legal entity with the justice authorities of the Republic of Kazakhstan do not apply to Al-Hilal Bank. 3. The Parties agreed that the status of a bank holding company and/or a major participant in an Islamic Bank, when opening an Islamic Bank, is assigned by the Financial Supervision Agency without taking into account the requirements of the Banking Act on the basis of an application from Al-Hilal Bank. 4. The parties agreed that Al-Hilal Bank will be subject to regulation and supervision on a consolidated basis by the authorized body of the United Arab Emirates, and that the Islamic Bank and its subsidiaries, branches and representative offices will be subject to regulation and supervision on a consolidated basis by the Financial Supervision Agency. 5. The Parties agreed that, within the framework of regulation and supervision, the affiliated companies of the Islamic Bank are determined in accordance with the current legislation of the Republic of Kazakhstan. At the same time, in order to determine the circle of affiliated persons of the Islamic Bank, Al-Hilal Bank is recognized as a major participant and the person controlling the specified bank. Affiliated persons of an Islamic Bank are not persons who independently or jointly with their affiliated persons own, use, dispose of ten percent or more of the voting shares of Al-Hilal Bank, as well as persons in whom Al-Hilal Bank is a major participant or exercises control. 6. The requirement of the legislation of the Republic of Kazakhstan that legal entities registered in offshore zones or having affiliated persons registered in offshore zones, or individuals who are participants (founders, shareholders) of legal entities registered in offshore zones, the list of which is established by the Financial Supervision Agency, cannot directly or indirectly own and (or) use and (or) dispose of voting shares of resident banks of the Republic of Kazakhstan does not apply to the shareholders of the Islamic Bank and their affiliated persons.

Article 3

1. The authorized capital of the established Islamic Bank must be paid by Al-Hilal Bank in the amount of at least 5 billion tenge exclusively in cash at the time of applying for a license to conduct banking and other operations. 2. The Parties agreed that in order to form and pay for the authorized capital of the newly created Islamic Bank, Al-Hilal Bank has the right to open an account with the National Bank of the Republic of Kazakhstan or any second-tier bank of the Republic of Kazakhstan in its own name as a legal entity. At the same time, the conditions and procedure for opening, maintaining and closing an account, the procedure for making payments and money transfers, as well as other conditions regarding the account are determined in accordance with the legislation of the Republic of Kazakhstan, taking into account the principles of Islamic finance. 3. The Parties agreed that when applying for a license to conduct banking and other operations, the newly established Islamic Bank will submit the documents provided for by banking legislation.

Article 4

1. The Parties agreed that the regulation, control and supervision of the activities of the Islamic Bank will be carried out in accordance with the requirements of the Law on Banks and other regulatory legal acts of the Republic of Kazakhstan. 2. The parties agreed that the Islamic Bank has the right to open its branches and representative offices both in the territory of the Republic of Kazakhstan and abroad. At the same time, the requirements of the banking legislation of the Republic of Kazakhstan regarding the mandatory conditions for opening branches and representative offices do not apply to the Islamic Bank, with the exception of the requirements established for the location of the bank's branch, as well as for the minimum amount of the bank's equity. 3. The Parties agreed that prior to the establishment of five or more Islamic banks in the Republic of Kazakhstan, the requirements of the antimonopoly legislation of the Republic of Kazakhstan do not apply to the Islamic Bank.

Article 5

1. The Parties have agreed that the issuance of permits to attract foreign labor to the Islamic Bank is carried out in accordance with the legislation of the Republic of Kazakhstan. Permits for the recruitment of foreign workers will be issued in a simplified manner without searching for suitable candidates on the domestic labor market. 2. The Parties agreed that the requirements of banking legislation regarding the availability of candidates for the leadership position of an Islamic Bank with established work experience in international financial organizations, the list of which is established by the authorized body, and (or) work experience in the provision and (or) regulation of financial services and (or) audit services of financial organizations, as well as the need to provide documents confirming the candidate's impeccable business reputation., and passing the test upon approval by the Financial Supervision Agency does not apply to candidates for a senior position in an Islamic Bank. 3. The Parties agreed that the requirements of the legislation of the Republic of Kazakhstan regarding the mandatory election (appointment) of independent directors to the Board of Directors of the Islamic Bank do not apply to the Islamic Bank.

Article 6

1. The UAE Government promotes: 1) the provision of all documentation and information in accordance with the requirements of the legislation of the Republic of Kazakhstan for obtaining a license to conduct banking and other operations; 2) the dispatch by Al-Hilal Bank of its employees with experience in the field of Islamic banking to manage the Islamic Bank and train local staff. 2. The Government of the Republic of Kazakhstan promotes: 1) obtaining a license to operate in accordance with the legislation of the Republic of Kazakhstan; 2) allocation of quotas for attracting foreign labor to the Islamic Bank, issuing work visas and other types of visas for employees of Al-Hilal Bank and/or the Islamic Bank and their advisers in accordance with the legislation of the Republic of Kazakhstan.

Article 7

The Parties agreed that the provisions of the legislation of the Republic of Kazakhstan will apply to all other issues of the opening and operation of the Islamic Bank that are not regulated by this Agreement.

Article 8

The Parties, in accordance with the national laws of their States, independently bear the costs that will arise during the implementation of this Agreement.

Article 9

By mutual agreement of the Parties, amendments and/or additions may be made to this Agreement, which are formalized in separate protocols that are integral parts of this Agreement and enter into force in accordance with the procedure provided for in paragraph 1 of Article 10 of this Agreement.

Article 10

1. This Agreement shall enter into force on the date of receipt through diplomatic channels of the last written notification confirming that the Parties have completed the internal procedures necessary for its entry into force. 2. This Agreement is concluded for an indefinite period and remains in force until the expiration of six months from the date when one of the Parties receives through diplomatic channels a written notification from the other Party of its intention to terminate this Agreement. At the same time, actions initiated in connection with the execution of this Agreement, the execution of which has not been completed by the expiration of the specified six months from the date of receipt of the written notice of termination of this Agreement, are subject to execution until their full completion, unless otherwise agreed. 3. The Parties agreed that in the event of termination of this Agreement, the Islamic Bank will not be subject to the provisions of the legislation of the Republic of Kazakhstan, exceptions to which are provided for in this Agreement, and such exceptions will remain in force with respect to the Islamic Bank.

Done in Astana on June 11, 2009, in two original copies, each in Kazakh, Arabic, English and Russian, all texts being equally authentic. In case of disagreement in the interpretation of the provisions of this Agreement, the Parties shall refer to the English text.

For the Government For the Government of the Republic of Kazakhstan United Arab Emirates

The RCPI's note. The text of the Agreement in English and Arabic is attached.

President

Republic of Kazakhstan

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