Uzbekistan Plans to Launch Islamic Finance Services by 2027

Uzbekistan plans to introduce Islamic finance services at a national level, with the first offerings expected in 2027, according to the updated draft of the Uzbekistan 2030 development strategy.

By the end of the decade, at least three commercial banks are projected to provide Sharia-compliant financial services, The Caspian Post reports, citing The Times of Central Asia.

The strategy envisions creating a legal and institutional framework to support Islamic finance, starting with one commercial bank in 2027 and expanding to three banks by 2029-2030. The initiative will be funded through the banks’ own resources, with the Central Bank serving as the lead regulatory authority.

This move follows earlier legislative steps to diversify Uzbekistan’s financial system. In September 2023, the Legislative Chamber of the Oliy Majlis passed a draft law on Islamic banking in its first reading, marking a key milestone in the country’s efforts toward financial innovation and inclusion.

The draft legislation includes amendments to the Tax Code, Civil Code, and other legal statutes. It introduces formal definitions for Islamic banks, Sharia-compliant operations, investment deposits, and relevant regulatory standards.

Central Bank Deputy Chairman Abrorkhuja Turdaliev has emphasized that the reforms go beyond removing legal obstacles. In comments to local media, he highlighted the need to establish institutional mechanisms, including specialized Sharia councils, audit and accounting frameworks, and a dedicated tax regime, to ensure the system functions in accordance with Islamic financial principles.