The Central Bank of Uzbekistan has established an Islamic Finance Council to coordinate the work of banks, microfinance organizations, the Deposit Guarantee Agency and other institutions operating under Islamic financial principles.
The council was created weeks after Uzbekistan’s new Islamic banking law took effect on June 29. It will prepare national standards, issue regulatory and supervisory recommendations, advise financial institutions and represent the Central Bank in its work with international standard-setters.
Building an Islamic Finance Framework
Islamic finance prohibits interest and generally requires financing to be linked to assets, trade, leasing or risk-sharing. Common structures include murabaha, in which a bank buys and resells an asset at an agreed markup, and ijara, which operates broadly like leasing.
Sharia Specialists Form Council Majority
The council has five members: four specialists from the Fatwa Center under the Muslim Board of Uzbekistan and one financial-sector expert.
Saidjamol Masayitov, a chief specialist at the Fatwa Center, will chair the council. Muhammadyubkhon Khomidov, also a chief specialist at the center, will serve as deputy chairman.
The other members are Fatwa Center specialists Hikmatilla Toshtemirov and Abdullatif Tursunov, along with Akhrorjon Sadullayev, managing partner of Orient Audit Group. Sadullayev has more than 20 years of experience in banking, finance and auditing.
The council is intended to combine Sharia expertise with financial regulation. It will report annually to the Central Bank’s board.
From Legislation to Implementation
Uzbekistan has been developing an Islamic finance framework for several years. Legislation adopted in 2022 allowed microfinance organizations to provide services based on Islamic principles, while detailed regulations introduced in 2024 covered instruments including mudaraba, murabaha, musharaka, ijara and salam.
The Central Bank is also preparing a national Islamic finance roadmap for 2026-2030 with assistance from the Islamic Financial Services Board. The work covers banking, capital markets, insurance, professional training and the wider legislative framework.
Law No. O’RQ-1126, signed on March 27, established a dual banking model. Stand-alone Islamic banks can operate alongside Islamic “windows” within conventional commercial banks. The law also created a special licensing system and defined permitted Islamic financial operations.
Uzbekistan had previously planned to introduce its first Islamic finance services through a commercial bank in 2027, with at least three banks expected to offer them by 2030.
Licensing Rules Approved
The Central Bank has now amended its licensing regulations for Islamic banks and Islamic windows. The changes were registered by the Ministry of Justice on July 17 and took effect upon official publication.
Applicants must submit Sharia-compliance policies, information about their institution-level Islamic finance council, evidence of dedicated internal oversight and audit systems, and a three-year business plan. Existing conventional banks will require a separate license to open an Islamic window.
Council candidates must receive Central Bank approval and meet education and professional-experience requirements. At least one member must hold a certificate from the Accounting and Auditing Organization for Islamic Financial Institutions, or AAOIFI. Certification will become mandatory for all council members from July 1, 2027.
Adopting International Standards
The Central Bank joined AAOIFI as a regulatory member on May 27. The Bahrain-based organization develops standards for accounting, auditing, governance, ethics and Sharia compliance.
The new national council will adapt international standards to Uzbekistan’s regulatory system and market conditions. That work will shape how banks design products, account for transactions and demonstrate that their services comply with Islamic principles.
A regional report published in 2025 forecast that Islamic banking assets across Central Asia could reach $6.3 billion by 2033, with Uzbekistan expected to become the region’s second-largest market after Kazakhstan.
The council’s establishment moves Uzbekistan’s reforms from legislation toward operation. Banks must now secure licenses, establish internal Sharia oversight, train specialists and develop products that customers understand and trust.
