By Kamol Ismailov

Copyright trend

TASHKENT, Uzbekistan, September 16. At a recent
gathering of the Legislative Chamber of the Oliy Majlis of
Uzbekistan, the wheels were set in motion as a draft law on the
implementation of Islamic banking was put under the microscope,
Trend reports, citing
the Parliament’s press service.

The draft legislation proposes amendments and additions to the
Tax Code, the Civil Code, and eight other laws. Key provisions
include the legal definition of terms such as “Islamic bank,”
“financial operations and standards,” and “investment deposit.” The
draft also introduces a licensing system for banks wishing to
operate under Islamic banking principles, outlining specific
requirements for obtaining such licenses.

The legislation seeks to enhance fiscal backing for constituents
and enterprises, provide alternative monetary solutions, and draw
in international capital via innovative financial offerings and
instruments that adhere to Islamic finance principles.

The preliminary statute received endorsement during the initial
deliberation by constituents of the Legislative Chamber.

Islamic banking constitutes a financial paradigm that operates
in strict compliance with the tenets of Sharia jurisprudence.
Islamic finance delineates a framework that eschews riba, engages
in gharar avoidance, and mitigates undue risk exposure. It
underscores the principles of equitable profit and loss
distribution, integrity, transparency, and ethical conduct in
fiscal transactions.

Stay up-to-date with more news on Trend News
Agency’s WhatsApp channel