Capital Market Development Agency of Uzbekistan has published a draft presidential decree on measures to introduce securities based on the principles of Islamic finance.
The draft document provides for the introduction of the concept of sukuk securities, a pilot project for the issuance of sukuk securities in 2021, within which the norms of English law and a special tax regime will be applied.
The document states that financing through sukuk securities provides for the absence of loan interest and implies that investors who purchase sukuk securities receive non-guaranteed income from the profit of the funded project.
A special tax regime, which provides for the exemption of originators and issuers from paying several types of taxes and fees on operations (activities) within the framework of the pilot project, will be applied.
The Committee on Religious Affairs under the Cabinet of Ministers will act as an authorized body confirming the compliance of the issue of sukuk securities with the principles of Islamic finance.