Russia is reportedly drafting a new bill allowing non-credit financial institutions to specialize in Islamic banking in the country in a bid to help the sanctions-hit state banks to lure investors from Muslim nations.

The non-credit banking institutions would operate as financing partnership organizations (FPO) and offer Sharia-compliant financial products to their clients.

The FPOs would be regulated by Russia’s Central Bank, which would maintain a register of all such companies and oversee their operations.

Such organizations can raise funds from individuals and legal entities and invest them in projects according to the norms of Islamic law on a partnership basis, the proposed legislation sates.

Chairman of State Duma Committee on Financial Market, Anatoly Aksakov, announced that the draft law may be submitted to the parliament’s lower house by the end of the week for approval.

Islamic banks operate under religious and ethical guidelines and ban interest payments and monetary speculations.