Uzbekistan to launch two full-fledged Islamic banks and attract $1 billion by 2030

According to the presentation, at least one commercial bank will begin offering Islamic financial services through a specialized "window" within the current year. Looking further ahead, the government plans to establish two full-fledged Islamic banks between 2026 and 2030. These initiatives are projected to attract an additional $1 billion in foreign investment and deposits over the next five years.

To integrate Islamic finance into the economy, several key instruments will be introduced:

• Murabaha: Financing customers through installment credit sales.
• Mudaraba: Profit-sharing investments or fund attraction.
• Wakala: Providing or attracting funds via agency agreements.
• Musharaka: Financing clients through joint business activities.
• Salam and Istisna: Financing through advance payments for goods.
• Islamic leasing (Ijara): Providing property under Sharia-compliant lease terms.

  

To support the adoption of these tools, the government will implement specific tax exemptions. Specifically, value-added tax (VAT) will not be applied to the markup on goods sold via Murabaha, and income generated from investment deposits will be tax-exempt. Furthermore, Islamic leasing agreements will be legally equivalent to financial leasing and traditional leasing.

To ensure systemic management and compliance with Sharia standards, an Islamic finance council will be established under the Central Bank of Uzbekistan. Additionally, banks providing these services will be required to form their own internal councils.

These governing bodies will be responsible for:

• Developing industry standards and drafting regulatory legal acts.
• Providing clarifications on disputed issues.
• Reviewing contracts and internal documentation.
• Ensuring overall compliance with Islamic financial principles.

This move follows the Senate’s approval of the law on the introduction of Islamic banking activities on February 5, 2026, marking a significant step toward the modernization of the country’s banking sector.