By Muhammad Hodiev

Copyright qalampir

A draft law has been developed to introduce Islamic banking in Uzbekistan. The project was reviewed at a meeting of the Legislative Chamber of the Oliy Majlis on September 16.

During the meeting, Deputy Chairman of the Central Bank Abrorkhodja Turdaliev announced that a separate license for Islamic banking would be introduced in the country.

It was noted that the financial operations permitted under this license are clearly defined. Banks will be able either to establish independent Islamic banks or to create specialized departments within existing banks to provide Islamic financial services.

The initiative aims to offer financial services in accordance with Sharia principles to both the population and business entities, increase competition among banks, and attract new investors.

The draft law proposes amendments and additions to the Tax and Civil Codes, as well as eight other laws. In particular, it introduces new legal concepts such as “Islamic bank,” “financial operations,” “Islamic finance standards,” and “investment deposit.”

“This will allow the establishment of Islamic banks, Islamic windows, and Islamic microfinance organizations that provide Sharia-compliant financial services to the population and businesses. As a result, opportunities for alternative financial services will expand, and new tools for supporting businesses will be introduced,” Turdaliev said.

It is worth noting that in 2022, initial work began on creating Islamic windows in more than ten banks.

The President has also stated that the large-scale introduction of Islamic finance in Uzbekistan could generate an additional \$5 billion in resources and have a significant positive impact on the country’s competitive environment.

In 2024, Deputy Chairman of the Central Bank Behzod Khamroev announced that a draft law on Islamic finance had been prepared and would be submitted to parliament by the end of the year.