Ethical Investments: How IMAN Holding Is Building New-Generation Islamic Finance Ecosystem in Uzbekistan

A new segment of the financial market is taking shape in Uzbekistan — Islamic and ethical finance focused on preserving and growing capital without interest-based or speculative mechanisms. IMAN Holding is building the region’s first halal fintech ecosystem. To date, more than 60,000 clients have used the company’s investment products.

Digital First

To simplify the path to investing for its clients, the company developed the IMANUM application. An investor does not need to visit an office or collect numerous documents — all actions are completed online.

The user downloads the application, completes identification, creates a profile and selects an investment product. The interface features fund and asset cards, transaction terms, legal documentation, return calculators and mandatory disclaimers. An investment is made by transferring funds to a settlement account. After payment, the investor receives confirmation.

Income begins to accrue from the following day — in trade finance, or after a project reaches the property acquisition stage in real estate investments. Everything that happens with their money afterward can also be monitored by the client on their smartphone screen.

The IMANUM application also features a marketplace of goods and assets. Users can purchase cars, electronics and household goods in instalments under an Islamic model, without interest or hidden fees.

The IMANUM application makes solving everyday financial tasks simpler and more understandable. That is why today the ecosystem has more than 500,000 users from 52 countries, including over 60,000 people who have entrusted it with their capital.

Who Are IMAN’s Clients?

IMAN Holding’s client base brings together different groups of investors for whom transparency, the rejection of riba and a clear understanding of how invested capital works are fundamentally important.

At the same time, the company is not focused exclusively on a religious audience: all citizens of Uzbekistan who share the principles of sustainable and ethical investing can participate in investment projects.

Retail investors view IMAN Holding’s products as an alternative to bank deposits and speculative instruments. The company also works with entrepreneurs interested in preserving and structuring capital, placing excess funds and participating in projects with clear economics and predictable risks.

A separate group consists of families who use investments as a long-term instrument — for savings, major purchases and planning the transfer of capital between generations. In addition, IMAN Holding works with the high-net-worth client segment. These investors interact with the company through personal managers, receive individual investment strategies and gain access to transactions unavailable to the mass market.

Investment Project from Idea to Implementation

A fundamental element of IMAN Holding’s investment model is risk sharing.At all stages, clients receive a full assessment of the risks associated with a transaction.

Entrepreneurial and operational risks related to asset management, execution of the business model, selection of counterparties and transaction administration are assumed by IMAN Holding.

Therefore, the company takes a very careful approach to project selection: every investment idea goes through a multi-stage screening process. At the first stage, an initial screening is conducted. Company specialists evaluate the market, risks and the fundamental business logic.

The company then requests incorporation documents, reviews preliminary reporting, analyses business processes and may conduct site visits to ensure that the business operates as described. A financial model is developed and tested for each specific transaction.

After that, the project is submitted to the investment committee and undergoes approval by the internal AAOIFI compliance committee. The company separates control and execution functions: some employees are responsible for rules and standards compliance, while others handle day-to-day operations and project implementation.

This reduces risks, eliminates conflicts of interest and allows projects to scale without sacrificing quality. In addition to internal controls, there is an independent external layer — an international consulting company that confirms product compliance with AAOIFI standards.

IMAN Holding’s financial reporting is prepared according to IFRS standards, enabling investors to assess the company’s financial position based on internationally recognised accounting principles.

As a result, investors participate in the returns of real projects with clearly understood risks, in accordance with Islamic finance principles and without involvement in operational management.

From Individual Investments to Managed Solutions

There are many private investors in Uzbekistan who have been independently purchasing real estate and living off rental income for years. Some of them already own dozens of properties. This is a full-fledged business: properties need to be sourced, documents checked, rentals managed, and legal and operational issues resolved.

This model works, but it requires constant personal involvement and time. At the same time, there is another group of Uzbekistanis who want to invest and diversify their capital but are not prepared to engage in the daily oversight of processes. It is precisely at this point that demand arises for the services of a professional investment company.

IMAN Holding takes on the functions that, for a private investor, are spread across dozens of decisions and areas of personal expertise: legal due diligence, financial and market analysis, transaction structuring, asset management, and project support throughout the entire lifecycle.

IMAN Holding has established separate professional functions — legal, investment, analytical, and data divisions. This makes it possible to accumulate capital, invest it in real assets, manage projects, and deliver returns to investors without their operational involvement.

Thus, together with the company, the client transitions to a more mature investment model in which the focus shifts away from operational routine to the quality of decisions, risk management, and income sustainability.

How Does the Business Model Work in Practice

The financial model of IMAN Holding’s products complies with AAOIFI standards — the international organisation that establishes uniform requirements for Islamic financial institutions and monitors compliance with Sharia principles.

This guarantees the absence of any forms of riba and uncertainty in transactions. The company’s investment products are built around the principle of a direct connection between capital and the real economy. Returns are generated through trade transactions, real estate, and business activities, while risks and profits are shared among participants.

Returns are not fixed. Profits may be either higher or lower than projected. At every stage, clients can see the full investment logic without financial traps or complex derivative structures.

Trade Finance (Murabaha)

The core investment direction consists of trade transactions structured under the murabaha model. Investor funds are allocated to financing trade operations without the accrual of interest. The company acquires a product or asset and sells it with a pre-agreed markup. The economics of the transaction are completely transparent.

Investors know in advance where their funds are being directed, how returns are generated, what share of the actual profit they will receive, and what costs are involved. Returns are generated not from money itself but from trade turnover and the resale of a real asset.Through trade finance, clients can earn up to 24% per annum. Actual returns are determined by the results of the project and are not predetermined.

IMAN Kvadrat (REIT/REID) — Real Estate Investments

One of the company’s strategic areas of development is the real estate sector. IMAN Kvadrat (REIT/REID). The target return range for these products is 12–16% per annum in U.S. dollars, although actual returns may be either higher or lower depending on performance.

Several investment models are used within this direction:

• Purchase and subsequent resale of commercial properties, where income is generated through the appreciation of the asset’s value;
• Rental model: real estate is acquired and leased out, while investors receive income in proportion to their ownership share through rental payments;
• Equity participation in development companies, meaning direct investment in the business of real estate developers.

IMANUM Kvadrat, as a dedicated management company, provides a full-cycle real estate management service: from preparing assets for leasing (property selection, market valuation, monitoring the elimination of warranty defects, and facilitating ownership transfer) to tenant acquisition and management, including marketing, counterparty verification, insurance, contract administration, and operational management.

The company is also responsible for tenant rotation, incident and claims resolution, calculation of rental income taking into account revenues and operating expenses, receivables management, reporting preparation, and making payments to investors in proportion to their ownership share.

At present, two pilot projects have been launched in partnership with Murad Buildings and BI Group. Participation in commercial real estate projects is possible even with a small amount of capital. The minimum threshold starts from $200, which can be invested in approximately 0.1 square metres of real estate while generating returns proportional to participation. This makes a traditionally closed market segment accessible to a broad audience.

Future Products

IMAN Holding is working on expanding and diversifying its product lineup by complementing existing solutions with new investment opportunities in the real sector. Among the company’s near-term plans is the launch of automobile purchase and sale products under the Islamic finance model.

The company is also considering entering the residential real estate segment through collective investment in construction projects and a home-purchase instalment model as an alternative to traditional mortgages. Another direction is the issuance of sukuk — Islamic bonds backed by real assets. Among the concepts under discussion is a green sukuk aimed at financing environmentally friendly and sustainable projects in transport, infrastructure, and energy-efficiency solutions.

IMAN Holding also plans to attract investments into real-sector businesses, both through equity participation in companies and through structured working-capital financing. In the future, the company intends to launch a digital trading and investment platform called Sukuk, where investors will be able to participate directly in Islamic finance transactions and projects through a single interface. In addition, the company is considering investments in gold and the possibility of investing directly in IMAN Holding with an equity stake in the entire ecosystem.

Read more about Uzbekistan Capital Market in Kursiv Research