November 13, 13:40UzDaily

How Uzbekistan's banks should apply financial monitoring requirements to Islamic finance products

The development of Islamic finance opens up new opportunities for banks in Uzbekistan, but it also raises a number of questions. One of the key issues is the methodology for applying financial monitoring requirements to Islamic products, which are based on a different economic model compared to traditional banking instruments.

According to data from the Islamic Financial Services Board (IFSB), the volume of assets in the global Islamic finance industry reached approximately $4.4 trillion in 2025. Growth was observed across all major segments, including Islamic banking, capital markets, and Takaful, with non-banking segments receiving a particularly strong impetus. The IFSB also notes the strengthening of Islamic finance in developed markets and the expansion of the industry into new territories, particularly in Africa and Central Asia.

The Islamic finance market in Uzbekistan is still in the formative stage, but the development of the regulatory framework lays the foundation for its gradual growth. A significant step was the adoption of the Law of the Republic of Uzbekistan No. ZRU-1126 dated March 28, 2026, aimed at introducing Islamic banking. For the first time, this regulation establishes a comprehensive legal framework for Islamic banking operations and provides for a dual model of market development: specialized Islamic banks and Islamic financial services provided by existing banks through 'Islamic windows.'

Banks engaged in Islamic banking are obliged to implement a separate management system for Islamic operations, including internal audit and control. The institutional model involves establishing an Islamic Finance Council under the Central Bank and relevant councils within banks to ensure that operations comply with established Islamic finance standards. Thus, the new regulation creates preconditions for the gradual expansion of Islamic finance beyond a niche segment and a broader offering of instruments such as Murabaha, Ijarah, Musharaka, Mudarabah, and Wakalah through the existing banking system of Uzbekistan.

Further stimulus for the industry could be provided by the establishment of the Tashkent International Financial Centre (TIFC), which provides for a special legal regime and focuses on developing modern financial instruments, including Islamic finance. Creating such infrastructure alongside the new legislation on Islamic banking creates conditions for attracting new market participants, expanding product assortments, and drawing international investors into Uzbekistan's Islamic finance sector.

Against this backdrop, the main question for financial institutions is not whether financial monitoring requirements (AML/CFT/CPF) should be applied to Islamic products, but how they should be correctly applied, given the more complex structure of transactions.

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Uzbekistan simplifies the procedure for obtaining bank guarantees to participate in international tenders

Uzbekistan will introduce a simplified procedure for issuing bank guarantees for companies participating in international tenders. President Shavkat Mirziyoyev instructed that the financial solvency of manufacturers, their previous experience, and sales volumes should be taken into account to reduce the need for collateral.

This information was announced on November 9 during a meeting of the head of state with representatives of the electrical engineering industry. It was noted that Uzbek firms are already successfully concluding contracts abroad; for example, NURA Electric won a tender in Cambodia worth two million dollars.

Nevertheless, when submitting applications for large international competitions, manufacturers often face difficulties in obtaining bank guarantees. An example is cited where an enterprise requires collateral equal to the guarantee amount when applying for a ten-million-dollar guarantee. Such requirements can limit the chances even of companies with good financial standing.

The President has instructed the banking sector to develop a streamlined scheme for issuing guarantees that takes into account the production history of enterprises, the reliability of their working capital, and their overall financial capabilities. This new mechanism must be prepared and presented to entrepreneurs within one month. It is expected that such changes will enable local producers to participate more actively in global competitions and bid for more significant foreign orders. However, the exact terms for providing these guarantees have not yet been approved.

Previously, Uzbekistan also announced the launch of a system of state counter-guarantees for entrepreneurs.

uzdaily.uzNovember 3, 15:00

Central Bank of Uzbekistan is developing a bank rating based on financial accessibility

The Central Bank of Uzbekistan is working on creating a rating for commercial banks. The goal of this rating is to assess the contribution of banks to expanding access to financial services for both individuals and enterprises.

When compiling the rating, the availability of banking products for individuals, as well as for micro-, small, and medium-sized enterprises, will be taken into account. Furthermore, the evaluation will be based not only on access to services but also on their convenience, security, and overall quality of provision.

Discussion of the Rating Methodology

On October 30, 2026, the Central Bank held a meeting with representatives of commercial banks. During this meeting, the methodology for forming the rating, evaluation criteria, and preliminary calculation results were discussed.

Participants reviewed the data used to calculate the rating indicators, assessed their reliability, and discussed possible ways to further improve the methodology.

This initiative aims to increase the availability of financial services for the population and businesses, stimulate healthy competition among commercial banks, and improve the quality of the banking services they provide.

uzdaily.uzOctober 31, 17:12

Uzbekistan and Turkey Discuss Expansion of Cooperation in Islamic Finance

Uzbekistan and Turkey held discussions on the prospects of deepening cooperation in the fields of Islamic finance, fintech, and digital financial services.

The discussion took place during the Samarkand Islamic Finance Forum 2026. Participants included Sanjar Nosirov, Deputy Chairman of the Central Bank of Uzbekistan, and Dr. Tarik Akin, Head of the Finance Department at the Investment and Finance Directorate under the President of Turkey, according to a statement from the Central Bank's press service.

During the meeting, the Turkish side shared its experience in creating a regulatory framework for participation in financing. Additionally, Akin presented examples of using savings-based financing models for purchasing housing and automobiles.

The parties also focused on the development of financial technologies and digital services. The possibility of establishing bilateral working groups on Islamic finance and fintech was outlined, and approaches to regulating 'buy now, pay later' (BNPL) services were discussed.

Participants reviewed the potential for developing crowdfunding models and exchanging experience in this area. At the conclusion of the negotiations, both sides emphasized the importance of continuous expert involvement and discussed possible formats for regular dialogue.