Uzbekistan's Central Bank has approved rules for banks to adopt an Islamic banking model, a move aimed at expanding financial services in the country. The regulations, announced in early August 2026, provide a legal framework for Sharia-compliant banking operations, which prohibit interest-based transactions and speculative activities.
The new rules allow existing banks to open Islamic windows or establish dedicated Islamic banks. They outline requirements for Sharia boards, profit-sharing arrangements, and asset-backed financing. The Central Bank stated that the framework aligns with international standards, including those of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
This initiative is part of Uzbekistan's broader financial sector reforms to attract investment from Muslim-majority countries and cater to the growing demand for ethical banking. The country has a predominantly Muslim population, and the move is expected to increase financial inclusion.
The approval follows a presidential decree from 2025 that mandated the introduction of Islamic banking principles. The Central Bank has been working with international experts to develop the regulatory framework, and pilot projects are expected to launch in late 2026.
