Uzbekistan approves regulations for Islamic banking operations

Uzbekistan approves regulations for Islamic banking operations

Uzbekistan has approved licensing regulations governing the operation of Islamic banks. Under the new framework, Islamic banks will operate under separate licenses, while existing commercial banks will be allowed to establish “Islamic windows” within their institutions to provide Islamic financial services.

According to the document, Islamic banking operations will be carried out under the supervision of the Central Bank. In addition, their compliance with Sharia principles will be monitored by Sharia Boards.

Unlike the conventional banking system, Islamic finance does not use interest-based lending. Instead, it is based on the principle of sharing profits and risks. Under this model, banks will be able to offer Sharia-compliant financial instruments such as Murabaha, Musharaka, Mudaraba, Ijarah, and Istisna.

According to the Central Bank’s plan, 10 Islamic banks are expected to be established in Uzbekistan by 2030, and Islamic windows will also be launched in three state-owned banks.