The Islamic Development Bank on Saturday signed a grant agreement worth $265,000 to provide technical assistance to Uzbekistan for the establishment of a legal framework for Islamic banking and finance.
The deal also envisages the development of the requisite regulatory, supervisory, and Shariah guidelines, creating awareness and building capacity for Islamic banking in the country, arabnews.com reports.
IsDB Group President Muhammad Al Jasser told Arab News that his organization has all the necessary expertise to help Uzbekistan establish a Shariah-compliant banking sector.
He said the project aims to establish all modalities to help in the creation of Islamic financial windows in the Central Asian country.
Al Jasser said work on the proposal will start soon but cannot give a timeframe as to when it will end.
The IsDB is also launching an economic development fund in Uzbekistan backed by the Saudi private sector.
It is expected to generate 102,000 jobs and help address poverty in the country.
The government of Uzbekistan will contribute 35 percent to the initial $100 million, the IsDB will contribute 20 percent and the remaining 45 percent will mainly come from Saudi investors.