BAKU, Azerbaijan, June 3. Uzbekistan’s Central Bank has unveiled a draft regulation that would establish licensing procedures for banks engaged in Islamic banking, a significant step in the country’s efforts to introduce and expand Shariah-compliant financial services, Trend reports via the bank.
The proposed resolution, published on the government’s portal for public consultation, would amend several existing regulatory acts adopted by the Central Bank’s board. The initiative was developed in accordance with a recently adopted law introducing amendments to Uzbekistan’s legislation aimed at creating a legal framework for Islamic banking.
Under the proposal, the Central Bank would define procedures for granting preliminary authorization to establish Islamic banks, as well as rules governing their registration and licensing. The draft also outlines documentation requirements and standards that applicants must meet when seeking approval to operate Islamic banking institutions.
The regulation would provide a pathway for existing commercial banks to enter the Islamic finance market by obtaining licenses to offer Islamic banking services through so-called “Islamic windows,” which allow conventional banks to provide Shariah-compliant products alongside traditional financial services.
In addition, the draft sets out procedures for conventional banks that wish to fully convert their operations to Islamic banking. The framework would enable financial institutions to transition from traditional banking models to exclusively Islamic banking activities.
The proposal also introduces qualification requirements for members of an Islamic bank’s Islamic Finance Council, commonly referred to as a Shariah board, as well as for senior managers responsible for overseeing Islamic banking operations.
The publication of the draft regulation marks another milestone in Uzbekistan’s efforts to diversify its financial sector and attract new sources of investment. Islamic finance has gained increasing attention across Central Asia in recent years as governments seek to broaden access to financial services and strengthen ties with international Islamic financial institutions.
Once adopted, the new rules are expected to provide the regulatory certainty needed for the launch and expansion of Islamic banking services in Uzbekistan, supporting the development of a sector that operates in accordance with Islamic financial principles while complementing the country’s existing banking system.
