The draft law will provide a legal framework for Islamic banking in Uzbekistan, enabling the establishment of Islamic banks and windows, curbing the hidden economy, and attracting foreign investment in line with international Islamic finance standards.
Uzbekistan’s Parliament is reviewing a draft law on 16 September 2025 that would incorporate Islamic banking into the Tax Code, the Civil Code, and eight additional laws.
The adoption of this draft law will create the necessary legal basis for Islamic banking in Uzbekistan, in line with the standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and the Islamic Financial Services Board (IFSB).
The draft law will also help establish Islamic banks and Islamic “windows” in Uzbekistan, reduce the share of the “hidden” economy, and attract foreign investments in the country aimed at developing Islamic banking.
The draft law introduces regulations for financial transactions conducted by banks licensed in Islamic banking, which operate under principles that forbid charging interest and excessive uncertainty in dealings.
Islamic finance relies on trade-based and partnership-based methods of financing. The proposed legislation seeks to remove these barriers, enabling the use of Islamic financial instruments like murabaha, mudaraba, musharaka, wakala, and salam.
