Islamic banking law is being drafted in Uzbekistan

A draft law is being developed in Uzbekistan to launch Islamic banking operations, Bankir reported.

Several political parties discussed the draft during their faction meetings. According to UzLiDep, current legislation prohibits commercial banks from directly engaging in trade, while Islamic banks widely utilize this practice.

In Islamic finance, funding is allowed on a partnership basis. However, Uzbek law currently restricts commercial banks from establishing legal entities or participating in their charter capital.

According to the “Milliy Tiklanish” faction, 68% of Uzbekistan’s population prefers not to use traditional banking services. This situation requires improvements in legislation.

The new draft law is expected to create a legal foundation for Islamic banking in Uzbekistan in line with international standards.