Uzbekistan Moves Toward Legal Framework for Islamic Banking

The UzLiDeP party discussed a draft law on Islamic banking in Uzbekistan on September 15, the party’s press service reports.

The proposed legislation is designed to tackle the shadow economy, regulate Islamic windows and banking operations, and create conditions for attracting overseas investment. Adoption of the law would also establish a legal basis for Islamic banks in Uzbekistan, drawing on international standards.

Citing a UNDP survey, UzLiDeP noted that 60% of Uzbek businesses avoid traditional banking for religious reasons, while the figure stands at 68% among the wider population.

According to forecasts by the Eurasian Development Bank, assets of Islamic banking in Uzbekistan could reach $2.3 bn by 2033, compared with $1.8 bn in 2028. The bank’s experts highlight strong growth potential for Islamic finance across Central Asia.