Uzbekistan plans to establish two fully operational Islamic banks by 2030, as announced during a presidential briefing. In the short term, at least one commercial bank will introduce an “Islamic window” this year to begin offering Sharia-compliant financial services.
What are the key development plans?
Between 2026 and 2030, the country aims to launch two full-scale Islamic banks. These efforts are expected to attract an additional $1 billion in investments and deposits over five years, strengthening the financial sector.
Which Islamic finance instruments will be introduced?
The initiative includes implementing several key instruments such as murabaha (cost-plus financing), mudaraba (profit-sharing agreements), wakala (agency-based financing), salam and istisna (advance payment contracts), musharaka (joint partnership financing), and Islamic leasing models.
Are there tax and regulatory incentives?
Yes, the framework предусматривает important incentives: value-added tax will not be applied to profit margins on goods, income from investment deposits will be tax-exempt, and Islamic leasing contracts will be treated similarly to financial leasing and leasing agreements under current law.
How will the system be governed?
To ensure proper oversight, an Islamic Finance Council will be established under the Central Bank. Similar advisory bodies will also operate within banks offering Islamic financial services, focusing on standard-setting, regulatory support, and compliance monitoring.
What is the broader economic impact?
These reforms are expected to diversify Uzbekistan’s financial system, attract foreign capital, and provide new financial opportunities for businesses and individuals. More details can be found via Kun.uz.