More than ten Uzbek banks are preparing to introduce Islamic banking services. The announcement was made by Timur Ishmetov, Chairman of the Central Bank of the Republic of Uzbekistan, in an interview with the Uzbekistan 24 television channel. He stated that once the relevant law is formally enacted, the regulator will begin developing the regulatory framework required to establish a comprehensive Islamic finance infrastructure in the country.
The Senate of the Oliy Majlis approved the Islamic banking law in early February 2026. Under its provisions, banks will be permitted to operate either exclusively on Islamic finance principles or to offer such products alongside conventional banking services. The law also provides for the establishment of Islamic financial councils — Sharia compliance bodies — at the Central Bank and within financial institutions. The legislation is currently under review by President of the Republic of Uzbekistan Shavkat Mirziyoyev.
Alongside the legislative process, a first practical milestone is already planned: the opening of the country’s first Islamic window at a commercial bank is scheduled for 2026.
Market potential is assessed as substantial. According to projections by the Eurasian Development Bank (EDB), Islamic banking assets in Uzbekistan are expected to reach $2.4 billion by 2033, with sukuk issuance volumes projected to exceed $1.8 billion over the same period. At the Central Asian regional level, total Islamic banking assets are forecast to reach $2.5 billion by 2028 and approximately $6.3 billion by 2033, while regional sukuk volumes are projected at $2.1 billion and $5.6 billion respectively. EDB analysts attribute this growth to expanding regional populations and sustained demand for Sharia-compliant financial products.
The development of Islamic banking offers Uzbekistan tangible opportunities to attract capital from Gulf Cooperation Council countries and other Islamic financial centres, diversify long-term funding sources for infrastructure and investment projects, and extend financial inclusion to segments of the population seeking Sharia-compliant services.
Source: Kursiv Uzbekistan