Uzbekistan moves to practical implementation of Islamic finance according to the plan until 2030
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Uzbekistan moves to practical implementation of Islamic finance according to the plan until 2030

Uzbekistan is transitioning from establishing the legal framework for Islamic finance to practically introducing new financial instruments. To achieve this, a roadmap has been developed for the period from 2026 to 2030, covering five areas of work and including 39 measures.

The Chairman of the Central Bank, Timur Ishmetov, presented this plan at the International Forum on Islamic Finance in Samarkand. According to Ishmetov, this roadmap provides for legislative improvements, training of qualified specialists, increasing public financial literacy, expanding international cooperation, and developing the infrastructure necessary for Islamic banking.

Currently, 11 microfinance organizations in Uzbekistan provide Islamic financial services, utilizing instruments such as Murabaha, Ijarah, Mudarabah, and Musharaka. Ishmetov noted that developing the sector through non-banking institutions allowed for testing new financial products for the local market and gaining practical experience in their application.

A significant step was the adoption of a law in 2026 that introduces Islamic banking activities. This legislation laid the foundation for opening full-fledged Islamic banks, as well as specialized units offering Islamic banking services within traditional banks.

To regulate the industry, the Central Bank established a two-tiered governance model for Islamic finance and created a Council for Islamic Finance consisting of five members. This council is intended to promote compliance with relevant standards, improve decision-making quality, and strengthen risk management.

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

The next stage will be creating the legal basis for issuing Islamic securities, including Sukuk. Ishmetov reported that the government has prepared a revised draft Capital Market Law, which includes a separate chapter on Sukuk. The adoption of this law is expected to provide the legal basis for issuing sovereign and corporate Islamic bonds.

Uzbekistan is also increasing its interaction with international organizations in the field of Islamic finance. In 2025, the Central Bank joined the Islamic Financial Services Board (IFSB), and membership in the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is planned for 2026.

Cooperation with these organizations will help Uzbekistan study international standards and adapt established practices to local market conditions. Ishmetov emphasized that further development of the sector requires coordinated actions among state agencies, international financial institutions, the academic community, and market participants. Potential partners mentioned include the Islamic Development Bank, the Asian Development Bank, the International Finance Corporation (IFC), and AAOIFI.

Collaboration with these structures 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 timely execution of roadmap measures, coordination of responsible organizations' work, and regular monitoring of achieved results.

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Uzbekistan and Islamic Development Bank Discuss Agricultural Modernization and Financing
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Uzbekistan and Islamic Development Bank Discuss Agricultural Modernization and Financing

Uzbekistan and the Islamic Development Bank (IsDB) held discussions on agricultural modernization, infrastructure development, and expanding enterprise access to financing.

The meeting took place on October 15, 2026, in Bangkok during the annual meetings of the International Monetary Fund and the World Bank. Participants included Jamshid Kuchkarov, Deputy Prime Minister and Minister of Economy and Finance of Uzbekistan, and Muhammad Al Jasser, President of IsDB. This meeting was reported by the Information Service and the Department of Communications of the Ministry of Economy and Finance of Uzbekistan.

Rami Ahmad, IsDB Vice President for Operations, Nodirbek Ochilov, Deputy Chairman of the Central Bank of Uzbekistan, Jasur Karshibayev, Advisor to the Minister of Economy and Finance, and other representatives also took part in the event.

The parties reviewed the priorities of Uzbekistan's economic reforms and opportunities to deepen cooperation in promising projects. Special attention was paid to updating the agrarian sector, including equipping farmers with modern machinery and equipment.

During the meeting, the parties signed an agreement with IsDB to implement a project on agricultural mechanization. The goal of this project is to increase the use of modern, climate-adapted equipment, improve labor productivity, promote efficient resource utilization, and develop value chains in agriculture.

Furthermore, the development of irrigation systems, road and rural infrastructure, as well as issues of agricultural lending and mortgage market support were discussed. Significant attention was given to small and medium-sized businesses and the broader application of Islamic financial instruments, particularly the potential use of Murabaha and Ijarah in the financial sector.

At the conclusion of the meeting, the parties agreed to strengthen cooperation and continue working on the issues raised. The Ministry did not disclose the financial cost of the reached agreement or the timeline for implementing the agricultural mechanization project.

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