Tashkent, Uzbekistan — November 11, 2025.
Uzbekistan’s Legislative Chamber of the Oliy Majlis has approved in its second and final readings a landmark draft law establishing a comprehensive legal framework for Islamic banking and finance in the country. The bill, which amends key national laws including the Tax Code and Civil Code, will now be submitted to the Senate for review.
The new legislation officially recognizes Islamic banks and introduces a separate licensing regime for institutions providing Shariah-compliant financial services. It also permits conventional banks to operate Islamic windows within the same regulatory framework.
The law defines and enables a range of Islamic financial instruments such as Murabahah, Mudarabah, Musharakah, Wakalah, and Salam, while allowing Islamic financial institutions to engage in trade-based financing and equity participation—activities previously restricted under Uzbekistan’s banking law.
A significant feature of the bill is the creation of a tailored taxation system for Islamic financial transactions. It aims to eliminate the double taxation challenges faced by Islamic products by exempting certain notarial actions, including property registrations by Islamic banks and microfinance institutions, from state fees.
Lawmakers also approved the establishment of a Council on Islamic Finance under the Central Bank of Uzbekistan, which will oversee implementation, licensing, and Shariah standardization.
The bill received overwhelming support, with 125 of 127 deputies voting in favor during the second reading and 126 supporting it in the final vote. Once signed by the President, it will open the path for the gradual integration of Islamic finance into Uzbekistan’s financial system.
Several local banks — including Trustbank, Ipak Yuli Bank, and Kapitalbank — have already begun offering or developing Shariah-compliant products, often in collaboration with the Islamic Corporation for the Development of the Private Sector (ICD). Others, such as Orient Finans Bank, Turonbank, and Xalq Bank, continue to enhance their expertise through training programs organized by the Islamic Development Bank Institute (IsDBI).
Source: https://www.islamicfinancenews.com/all
