Uzbekistan plans to launch a program to issue sovereign Islamic bonds (sukuk) as part of efforts to further develop Islamic finance, Governor of the Central Bank of Uzbekistan Timur Ishmetov said, Trend's special correspondent reports from Tashkent. Speaking at the Silk Road Finance & Technology Forum, Ishmetov said the development of Islamic finance is an important element of diversifying Uzbekistan’s financial system and attracting new sources of investment. "We will launch a program to issue sovereign Islamic bonds.
This will give a powerful impetus to attracting knowledge and $10 billion in additional investment into our enterprises in the future," Ishmetov said. According to him, the development of modern Islamic finance in Uzbekistan is being pursued across three main areas: Islamic microfinance, Islamic banking and Islamic capital markets. The first stage was linked to establishing a legal framework enabling microfinance organizations to offer Islamic financial products.
Currently, 12 microfinance organizations provide such services based on murabaha, salam, mudaraba and musharaka contracts. "Interestingly, one microfinance institution has fully specialized in financing and supporting entrepreneurs through profit-sharing contracts," the governor said. Ishmetov said the second stage began with the adoption of the law on the introduction of Islamic banking activities on June 29 this year.
The new law establishes a legal framework for Islamic banking in Uzbekistan and allows Islamic banks and Islamic windows within conventional banks to operate under a dedicated Islamic banking license. It also introduces an Islamic finance governance framework, including the establishment of an Islamic Finance Board at the Central Bank and Islamic finance boards within banks. The governor noted that ensuring tax neutrality for Islamic financial transactions remains an important issue.
"A dedicated taxation regime was introduced within the new law. Tax neutrality is provided in regard to VAT and income tax, as well as relevant exemptions related to state duties," he said. Regarding the development of Islamic capital markets, Ishmetov said a draft law on the capital market includes a dedicated chapter on sukuk.
According to him, the draft legislation is intended to establish the legal basis for issuing sovereign sukuk, set requirements for compliance with Islamic finance standards and provide mechanisms for investor protection and asset segregation. Ishmetov also announced the development of a five-year roadmap for the development of Uzbekistan’s Islamic finance industry for 2026–2030. "Over the coming years, our efforts will focus on further strengthening the legal and regulatory framework, developing human capital and enhancing public awareness, deepening international cooperation, facilitating the start of Islamic banking operations and building supporting infrastructure for Islamic finance," he said.
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