Uzbekistan Moves to Implement Islamic Finance, Ishmetov Says

Anvar Umarov

· 21:10, 27.10.2026 · Updated 23:00 · 2483 views

Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan is moving from establishing a legal framework for Islamic finance to the practical introduction of new financial instruments, with a 2026–2030 roadmap outlining five areas of work and 39 measures.

Central Bank Chairman Timur Ishmetov announced the plan at the International Islamic Finance Forum in Samarkand.

According to Ishmetov, the roadmap covers improvements to legislation, training qualified specialists, raising public financial literacy, expanding international cooperation and developing the infrastructure needed for Islamic banking.

Islamic financial services are currently offered in Uzbekistan by 11 microfinance organisations. They use instruments including murabaha, ijara, mudaraba and musharaka.

Developing the sector through non-bank institutions has helped test financial products that are new to the local market and build practical experience in their application, Ishmetov said.

A key milestone was the adoption in 2026 of a law introducing Islamic banking activities. The legislation established a legal basis for opening fully fledged Islamic banks and dedicated units providing Islamic banking services within conventional banks.

To regulate the sector, the Central Bank introduced a two-tier governance model for Islamic finance and established a five-member Islamic Finance Council. The council is intended to promote compliance with relevant standards, improve the quality of decision-making and strengthen risk management.

The legislation also provides for tax-neutrality mechanisms designed to eliminate differences in the taxation of conventional and Islamic financial transactions arising from their different structures.

The next stage will involve establishing a legal framework for issuing Islamic securities, including sukuk.

Ishmetov said the government had prepared a revised draft law on the capital market that includes a separate chapter on sukuk. Its adoption is expected to provide the legal basis for issuing sovereign and corporate Islamic bonds.

Uzbekistan is also expanding cooperation with international organisations in Islamic finance. In 2025, the Central Bank joined the Islamic Financial Services Board (IFSB), followed in 2026 by membership in the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).

Cooperation with these organisations will help Uzbekistan study international standards and adapt established practices to local market conditions.

Ishmetov stressed that further development of the sector requires coordination among government agencies, international financial institutions, the academic community and market participants. Potential partners include the Islamic Development Bank, Asian Development Bank, International Finance Corporation (IFC) and AAOIFI.

Cooperation with these institutions is expected to support specialist training, the introduction of new financial instruments and the development of practical solutions.

According to the Central Bank chairman, key priorities include implementing the roadmap’s measures on schedule, coordinating the work of responsible organisations and regularly monitoring results.