The President reviewed a presentation on the introduction of Islamic finance mechanisms in the banking system.

On March 25, President Shavkat Mirziyoyev reviewed a presentation on introducing Islamic financing into Uzbekistan’s banking system, the presidential press service reported.

The presentation addressed the rollout of Islamic financial services, including: Murabaha – financing through deferred payment sales, Mudaraba – profit-sharing or investment agreements, Wakala – agency contracts for providing or attracting funds, Salam and Istisna – financing through joint activities, Musharaka – Islamic leasing and partnership operations, alongside other instruments permitted by law.

By 2026, at least one commercial bank is expected to launch an Islamic “window,” with two fully Islamic banks to be established between 2026–2030. These initiatives are projected to attract an additional $1 billion in investments and deposits during that period.

To ensure effective governance, an Islamic Finance Council will be set up under the Central Bank, with similar councils within banks offering Islamic services. These councils will develop standards, assist in drafting regulations, clarify disputes, review contracts and internal documents, and monitor compliance.

Central Bank Chairman Timur Ishmetov told Uzbekistan 24 that once the law is adopted, the regulator will begin drafting by-laws and building Islamic finance infrastructure. He highlighted the need to strengthen staff capacity through training and certification, ensuring the regulator is prepared to maintain stability once fully Islamic banks begin operating.

Ishmetov added that the Central Bank has already joined two international Islamic finance organizations in accounting, auditing, and banking supervision. Following the law’s adoption, Islamic financial products will be offered both through specialized banks and Islamic “windows” in conventional banks, with all legal restrictions already lifted.

More than 10 banks have started preparations in this direction, and the use of Islamic financing tools is expected to expand gradually once the law takes effect. Earlier, the Senate approved the law on introducing Islamic banking in Uzbekistan, which provides for licensing Islamic banks, listing Islamic operations, and clarifying their taxation features.