TASHKENT, Uzbekistan, March 28. Uzbekistan has enacted legislation introducing Islamic banking, establishing a comprehensive regulatory framework for the development and operation of this sector, TurkicWorld reports via the country's Ministry of Justice.
The law provides clear definitions for Islamic financial operations, investment deposits, licensing requirements, and the scope of permissible activities for licensed banks.
Developed by the Central Bank of Uzbekistan with contributions from domestic and international experts, the legislation amends the Tax and Civil Codes as well as other relevant legal acts to ensure alignment with international standards and best practices. It also mandates the creation of specialized councils within the Central Bank and commercial banks to oversee compliance and facilitate the structured growth of Islamic finance in the country.
Under the new framework, licensed banks will be authorized to conduct trading operations, establish legal entities, acquire equity stakes, and operate broadly within the permitted range of Islamic financial services. The law further clarifies taxation rules for these operations, fostering a supportive environment for sectoral expansion. The legislation is scheduled to take effect three months after its official publication.
