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Uzbekistan has formally announced plans to launch Shariah-compliant Islamic finance services in its banking sector, with the first products expected to be available as early as 2027. The initiative is part of the country’s updated Uzbekistan–2030 Strategy, which lays out a roadmap for financial reform and sector diversification. (The Times Of Central Asia)
According to the draft strategy, Uzbekistan will establish a legal and regulatory framework for Islamic finance, enabling commercial banks to offer Shariah-compliant products and services. Initially, one bank will begin Islamic operations in 2027, followed by two more by 2029–2030, resulting in at least three banks providing Islamic finance within three to four years. (Kun.uz)
Implementation will be financed through the banks themselves, with the Central Bank of Uzbekistan designated as the lead authority overseeing the rollout and supervision of Islamic financial services. (The Times Of Central Asia)
Why the Move Matters
Discussions about introducing Islamic finance in Uzbekistan have been ongoing for several years, with engagement from lawmakers, banking officials, and international organizations. In late 2025, a draft law on Islamic banking was adopted to create legal grounds for Shariah-compliant activities. Uzbek regulators have also joined the Islamic Financial Services Board, an international body that provides best practices for regulating Islamic finance institutions. (Kun.uz)
The government has highlighted a significant existing demand: a portion of the population has historically avoided conventional lending systems for religious reasons, creating a potential market for Islamic financial products. (Trend)
Supporters of the reform argue that adding Islamic finance can help broaden access to banking services, attract new investment, and develop a more resilient financial sector by introducing alternative financing models alongside conventional banking. (Kun.uz)
What Muslim Investors Should Know
For Muslim investors and those interested in Shariah-compliant opportunities, Uzbekistan’s plans represent a notable regional development:
· Growing Opportunity Set: Introducing Islamic finance products expands the range of compliant financial services in Central Asia, a region where such offerings have historically been limited.
· New Market Entry: Businesses and investors seeking to participate in Shariah-based finance may find early-stage opportunities in product development, banking participation, and related financial infrastructure.
· Regulatory Foundations: By building legal and institutional frameworks first, Uzbekistan is creating an environment where Shariah-compliant products can be supervised, standardized, and trusted.
· Local Demand: With a population that includes a significant share of people preferring non-interest financial solutions, there is a built-in user base for Shariah-compliant banking services. (Trend)
Longer-Term Outlook
Uzbekistan’s phased approach — starting with one bank in 2027 and expanding to at least three by 2030 — suggests an attempt to balance innovation with financial stability. If fully realized, observers believe these reforms could also draw new investment into the financial sector and encourage more participation from Islamic finance institutions regionally. (Kun.uz)
The development is part of a broader trend of countries in the wider Muslim world and neighboring regions exploring Islamic finance as a way to increase financial inclusion, diversify capital flows, and offer alternatives to conventional interest-based lending.
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