Bosh muharrir: Sharipov Qo‘ng‘irotboy Avezimbetovich Bosh muharrir o‘rinbosari: Karimov Norboy G‘aniyevich

Systematic Approach:
A systematic approach is employed to analyze the economic events and pro-
cesses related to Islamic finance in Uzbekistan. This includes an examination of the regulatory frameworks, 
legal structures, and policy initiatives that support the development and implementation of Islamic finance in 
the country. The study investigates the roles and responsibilities of government institutions, financial market 
players, and relevant stakeholders in fostering an enabling environment for Islamic finance practices that align 
with the principles of the green economy. It also considers the potential social, economic, and environmental 
impacts of Islamic finance instruments, such as green Sukuk and ethical investment funds, and their applicabil-
ity within the Uzbekistan context.
Based on the comprehensive analysis of data, expert opinions, and comparative studies, this research 
draws robust conclusions and provides evidence-based recommendations for policymakers, regulators, finan-
cial institutions, and other relevant stakeholders in Uzbekistan. These recommendations aim to guide the de-
velopment and implementation of Islamic finance practices that align with the principles of the green econo-
my, fostering sustainable economic growth, environmental conservation, and social inclusivity. Additionally, the 
study explores potential policy interventions, capacity-building measures, and awareness-raising initiatives to 
promote the adoption and integration of Islamic finance principles within the broader framework of the green 
economy in Uzbekistan.
By employing this multidimensional research methodology, the study endeavors to contribute to the exist-
ing knowledge base surrounding Islamic finance in Uzbekistan and its potential to support the country›s green 
economic objectives. The findings are expected to inform policymakers, practitioners, and researchers in their 
efforts to harness the transformative power of Islamic finance to drive sustainable development and transition 
towards a greener and more inclusive economy in Uzbekistan.

---

T
ARA
QQIY
O
T
ПР
ОГРЕС
С
PR
OGRESS
280
YA S H I L I Q T I S O D I Y O T VA TA R A Q Q I Y O T
https://yashil-iqtisodiyot-taraqqiyot.uz
2023-yil, iyul.
№
7-son.
R E S U LT S
Uzbekistan, as the most densely populated center in Central Asia with a strong Islamic presence, presents 
significant potential for the introduction and development of Islamic finance. However, progress in this area has 
been slow, despite approximately 90 percent of the population identifying as Muslims, indicating a substan-
tial market with high demand for Islamic banking products. Recognizing this opportunity, it is crucial for local 
commercial banks to proactively develop a diverse range of Islamic banking products to meet the needs of the 
population before foreign Islamic financial institutions enter the market.
Cooperation with the Islamic Research and Training Institute (ITB) holds practical importance for Uzbekis-
tan. Established in 1981, ITB aims to enhance the financial literacy and professional skills of the population 
in Muslim countries. The institute has played a vital role in promoting Islamic finance and supporting its de-
velopment worldwide. By providing scholarships and financing educational programs, ITB has contributed to 
reducing poverty and fostering economic growth. As of the beginning of 2020, approximately 17,000 students 
and scholars from ITB member countries and Muslim citizens of non-member countries have benefited from 
the institute›s scholarship program. Notably, the Islamic Research and Training Institute boasts a significant 
financial resource base, with a total financing amount of $134 million (Figure 1).
Figure 1:
Cumulative amount of investments made to IMAN, in billion sum 
[6]
1.21 billion will be allocated to the Iman investment fund in the first quarter of 2021. if soums are included, 
by the end of 2021 it will be 11.9 billion. amounted to soum By the first quarter of 2021, the amount of invest-
ments will be 15.68 billion amounted to soum. 
Efforts to promote Islamic finance in Uzbekistan can be supported through collaboration with the Islamic 
Investment Insurance and Export Credit Corporation (IIIEC). Established in 1994, the IIIEC initially focused on 
developing and diversifying foreign economic relations among member countries of the Islamic Development 
Bank (IDB). Over time, its scope expanded to support export growth, attract foreign direct investment, and 
promote the application of Islamic principles in international trade and insurance. The corporation actively coo-
perates with specialized institutions in IDB member countries, including export agencies, offering risk control 
instruments for businesses. However, the IIIEC exclusively insures commercial contracts that comply with 
Sharia rules, ensuring adherence to ethical and Islamic principles.
Cooperation with the ITB and IIIEC is of great significance for the Republic of Uzbekistan. By leveraging 
the expertise and resources of these institutions, Uzbekistan can effectively introduce Islamic finance princi-
ples and practices. The collaboration can facilitate the establishment of Islamic financial institutions, enhance 
the financial literacy of the population, and provide guidance in developing a regulatory framework that aligns 
with international standards. ITB, as a reputable institution in the field of Islamic finance, benefits from a stable 
resource base. The institute›s authorized capital serves as a stable source of resources, supplemented by 
income from investment activities and resources obtained from the world capital market. Furthermore, ITB has 
established investment cooperation with various international financial and credit organizations. Notably, in 
2011, ITB established investment cooperation with the European Bank for Reconstruction and Development, 
the Asian Development Bank, and, in 2018, with the World Bank Group and the Asian Infrastructure Investment 
Bank. This collaboration facilitates resource mobilization and strengthens the financial capabilities of ITB, en-
abling it to support the development of Islamic finance initiatives in Uzbekistan.

---

281
YA S H I L I Q T I S O D I Y O T VA TA R A Q Q I Y O T
https://yashil-iqtisodiyot-taraqqiyot.uz
2023-yil, iyul.
№
7-son.
T
ARA
QQIY
O
T
ПР
ОГРЕС
С
PR
OGRESS
In Uzbekistan, the IMAN Investment Fund stands out as one of the few financial institutions operating 
based on the principles of Islamic finance. Since its inception in 2020, IMAN has introduced innovative financial 
products and services through its global Islamic mobile app, catering to the needs of individuals and busines-
ses. The fund provides opportunities for interest-free shopping, saving, and investing, allowing users to derive 
more value from their finances in a transparent and ethical manner. Effective collaboration with the government 
of Uzbekistan has been one of IMAN›s strategic goals, aligning its activities with key government policies such 
as globalization and information technology development, socio-economic development and poverty reduc-
tion, development of alternative capital markets and financial instruments, and the pursuit of the Sustainable 
Development Goals. Through political discussions with government agencies, including the Central Bank of 
Uzbekistan, the Ministry of Investments and Foreign Trade, the Ministry of Information Technologies and Com-
munications, and the Ministry of Finance, IMAN has actively contributed to the acceleration of institutional, 
socio-economic, technological, and financial reforms in Uzbekistan.
IMAN, as the first investment fund in Uzbekistan based on the principles of Islamic finance, focuses on 
attracting funds from investors and directing those funds towards trade, subsequently distributing profits from 
trade among investors. To ensure the safety of investors› funds, IMAN follows rigorous measures. Capital 
acceptance is limited to banking or payment systems, requiring compliance with specific requirements and 
checks. Furthermore, IMAN registers every investment or business transaction with the State Services Agency 
under the Ministry of Justice, providing legal recognition and investor protection. The fund maintains a trans-
parent agreement (Public Offer) that outlines the rights and obligations of investors and IMAN, ensuring clarity 
and safeguarding investor rights. Regular reviews by IMAN›s Shariah Council ensure that business activities 
adhere to the requirements and framework of Islamic finance and law, fostering fairness and ethical conduct.
In addition to IMAN, several Islamic leasing companies operate in Uzbekistan. For example, Taiba Leas-
ing, established in 2011, focuses on providing a wide range of leasing services throughout the country. Taiba 
Leasing, a 100% subsidiary of the Islamic Corporation for the Development of the Private Sector (ICD), a mem-
ber of the Islamic Development Bank group, places priority on financing small and medium-sized enterprises 
that produce competitive export products with high levels of localization. Over the past decade, Taiba Leasing 
has successfully financed over 250 projects with a total value of $36 million. Its operations conform to the prin-
ciples of Islamic finance, making it the only leasing company in Uzbekistan operating in accordance with Sharia 
principles.
A survey conducted as part of a research effort by Imomnazarov assessed the need for Islamic banking 
products and identified challenges related to their introduction in Uzbekistan. The survey, conducted online 
using Google Forms and Survey Monkey programs, involved 2,235 respondents. The main reasons for not 
utilizing traditional loans from banking and financial institutions, as highlighted by the survey, included religious 
beliefs, high interest rates, complex requirements, and a perceived lack of necessity for loans. The survey re-
sults indicated a demand for Islamic financial institutions that align with religious beliefs. Even traditional banks 
acknowledged the potential benefits of establishing Islamic financial institutions in Uzbekistan, recognizing 
the possibility of fostering honest and transparent competition within the financial sector, leading to increased 
investment flows and sector diversification (Figure 2).
Figure 2:
Reasons for not using loans from banking and financial institutions

---

T
ARA
QQIY
O
T
ПР
ОГРЕС
С
PR
OGRESS
282
YA S H I L I Q T I S O D I Y O T VA TA R A Q Q I Y O T
https://yashil-iqtisodiyot-taraqqiyot.uz
2023-yil, iyul.
№
7-son.
These findings, derived from comprehensive analysis and surveys, highlight the significant demand and 
potential for Islamic finance in Uzbekistan 
[7]
. Cooperation with reputable institutions such as ITB and IIIEC, 
as well as the presence of financial institutions like IMAN and Taiba Leasing, can facilitate the development 
and implementation of Islamic finance principles in the country. By offering a diverse range of Islamic banking 
products and addressing the specific needs and preferences of the population, Uzbekistan can foster economic 
growth, enhance financial inclusion, and contribute to the principles of the green economy. Collaboration with 
international and domestic institutions specialized in Islamic finance can ensure the introduction of robust regu-
latory frameworks, promote financial literacy, and facilitate the growth of Islamic finance in Uzbekistan, aligned 
with international standards.
D I S C U S S I O N A N D C O N C L U S I O N
In conclusion, the development of Islamic finance in Uzbekistan presents several challenges and areas for 
improvement. Firstly, there is a need for a comprehensive legal framework that addresses the introduction and 
regulation of Islamic banking products. The establishment of a complete legal framework would provide clarity 
and guidance for financial institutions operating in the field of Islamic finance. Furthermore, the development 
and implementation of a taxation system specifically designed for Islamic banking services are essential to 
ensure a fair and efficient financial environment.
Another important aspect is the establishment of Sharia Councils that can provide oversight and guidance 
in matters related to Islamic finance. These councils play a crucial role in ensuring compliance with Sharia 
principles and maintaining the ethical integrity of financial transactions. The availability of well-qualified specia-
lists with knowledge and skills in the field of Islamic finance is also vital. Investment in education and training 
programs that focus on Islamic finance will help bridge this skills gap and contribute to the sustainable growth 
of the sector.
Furthermore, the current banking software used in Uzbekistan is primarily designed for traditional banking 
services. To effectively introduce and deliver Islamic banking services to consumers, significant investments 
are required for software updates. Collaboration with fintech companies specializing in the development of Is-
lamic banking services can be a strategic approach to address this challenge. Partnering with suitable fintechs 
will ensure the availability of technologically advanced solutions that cater specifically to the needs of Islamic 
finance.
Despite these challenges, the field of Islamic financial services holds immense potential for Uzbekistan›s 
future development. With its deep-rooted Islamic culture and heritage, Uzbekistan has the opportunity to attract 
foreign investors who are interested in engaging with Islamic finance. This increased interest from investors can 
contribute to the overall well-being of the people and promote sustainable development in the country.
Moreover, integrating Islamic finance into Uzbekistan›s green economy objectives can yield significant 
benefits. The principles of Islamic finance, such as ethical investments and shared risk-sharing arrangements, 
align well with the goals of environmental sustainability and inclusivity. Islamic finance can support the financing 
of environmentally friendly projects, promote sustainable infrastructure development, and encourage responsi-
ble business practices. Therefore, embracing Islamic finance can contribute to Uzbekistan›s transition towards 
a greener and more sustainable economy.
To realize the potential of Islamic finance in Uzbekistan, it is crucial for the government to collaborate with 
reputable international and domestic institutions specializing in Islamic finance. Cooperation with institutions 
like the Islamic Research and Training Institute (ITB) and the Islamic Investment Insurance and Export Credit 
Corporation (IIIEC) can provide valuable resources, expertise, and guidance in developing robust regulatory 
frameworks, enhancing financial literacy, and facilitating the growth of Islamic finance in Uzbekistan. Such 
collaborations will ensure that the development of Islamic finance in Uzbekistan is aligned with international 
standards and best practices.
In conclusion, the development of Islamic finance in Uzbekistan presents both challenges and opportuni-
ties. By addressing the identified challenges, fostering collaboration, and leveraging the principles of the green 
economy, Uzbekistan can harness the transformative power of Islamic finance to drive sustainable develo-
pment, attract foreign investments, and contribute to the well-being of its people.