Central Bank reports explosive growth in Islamic microfinancing during first quarter of 2026

A structural analysis of the sector reveals that Murabaha contracts secured the largest market share, accounting for 69% of the total volume, or UZS 7.7 billion. Under a Murabaha agreement, a financial institution purchases an asset or commodity requested by a client and resells it to them at cost plus a clearly disclosed profit margin. The volume of Murabaha transactions grew an impressive twentyfold year-on-year.

Meanwhile, Mudarabah services stood at UZS 2.1 billion, representing 19% of the quarterly total. Mudarabah is a partnership-based financing model where one party provides the capital while the other contributes labor, expertise, and management skills.

Islamic leasing, or Ijara, reached UZS 1.4 billion, making up 12% of the market. In an Ijara model, the financial institution purchases a specific asset and leases it to the client for an agreed fee. Notably, the volume of Islamic leasing transactions skyrocketed by 300 times compared to the first quarter of the previous year.

The Central Bank report highlights that the vast majority of Islamic microfinancing services during the January–March period were concentrated among four main institutions. Apex Moliya led the market significantly with UZS 8.4 billion, followed by Ael with UZS 2.1 billion. Enterprise Finance provided services worth UZS 670 million, while the Business Development organization recorded UZS 9 million in transactions.

Corporate clients and commercial entities formed the backbone of this growth, with legal entities accounting for 46% of the volume, utilizing UZS 5.2 billion in services. Individual entrepreneurs made up 28% of the market with UZS 3.1 billion, while retail financing for individual citizens represented 26%, or UZS 2.9 billion.

Geographically, the development of Islamic microfinance remains heavily centralized. Tashkent city generated UZS 10.6 billion, commanding a staggering 94% of the nationwide volume. The Namangan region accounted for the remaining 6% of the market, registering UZS 670 million in Sharia-compliant microfinance services.

This financial momentum aligns with major legislative advancements in the country's banking sector. On March 27 of this year, a comprehensive law aimed at introducing and regularizing Islamic banking operations was officially signed in Uzbekistan. The new legal framework is set to enter into force on June 29, 2026, and is expected to further catalyze the integration of Islamic finance into the broader national economy.