Why is this important
Удовлетворит религиозные предпочтения населения и бизнеса: многие не используют обычные банковские услуги из‑за убеждений. Может привлечь иностранных инвесторов и новые источники финансирования в финансовый сектор. Снизит теневую экономику, расширит финансовую инклюзию и диверсифицирует банковские продукты, что важно для устойчивого роста.
Key facts
- At the meeting of the UzLiDeP faction, a draft law aimed at introducing Islamic banking activities is being discussed.
- There are limitations in the existing legislation: commercial banks are prohibited from directly participating in trade activities, and in Islamic financing, trade finance is one of the key methods.
- The draft law is aimed at compliance with the standards of AAOIFI and IFSB, international organizations regulating Islamic financial institutions.
- UNDP conducted a survey: 68% of the population and 60% of businesses allegedly do not want to use traditional banking services due to their religious beliefs.
- The President previously estimated that Islamic banking could attract around $5 billion in resources annually.
What they say
“UzLiDeP” emphasizes that the draft law will serve as a basis for organizing Islamic banks and “windows” — which could be a key factor in attracting foreign investment.
Central Bank representatives note the need to amend banking legislation and laws regulating banks’ participation in trade and the authorized capital of legal entities.
Context
Uzbekistan is already taking its first steps: the 2022 law “On Non-Banking Credit Organizations and Microfinance Activities” includes provisions allowing Islamic financial operations for microfinance organizations. The capital market bill provides for a separate chapter on Islamic securities — sukuk.
The main obstacles are the lack of clear norms in banking, tax, and civil legislation, the shortage of specialists, and issues of double taxation for certain Islamic products of the murabaha type.
