The current report analyzes the Islamic Finance landscape in Central Asian states (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan) and Russian Federation. As these countries are home to about 90 million Muslims, there is tremendous potential for Islamic Finance. Kazakhstan and Kyrgyzstan are pioneers in this field having formally introduced Islamic financial institutions in their jurisdictions more than two decades ago, while Muslims in Russia have been using Islamic financial instruments by adapting them to local legal requirements. The industry’s key challenges are a lack of public awareness and Islamic financial literacy, a shortage of qualified human capital, double taxation and government support. Thus, to foster the growth of the Islamic financial services industry in the region, there is a need to develop a complete Islamic Finance infrastructure including all segments such as Islamic banking, Islamic capital market, Islamic insurance (Takaful), Islamic social finance and Halal sector. The essential steps towards this direction include designing a comprehensive strategic master plan that addresses the need for standardization/harmonization of Islamic financial products and services, reporting and governance by adopting or adapting the standards of international Islamic standard-setting organizations such as AAOIFI, IFSB, IIFM and IILM establishing a centralized Shari’ah advisory council with the mandate to guide the market and ensure its compliance with Islamic finance principles; introducing Islamic Finance programs, seminars and training by educational institutions for human capacity building and creating a conducive regulatory environment resulting in tax neutrality and more liberal market entry requirements.