Ankit Chaturvedi, Partner and Elyorbek Buribayev, Business Development Manager at شركة سينرجي للاستشارات, share insights on Untapped Opportunities in Islamic finance in Uzbekistan.
Uzbekistan is entering a pivotal phase in the development of Islamic finance – and the scale of the opportunity is often underestimated.
Despite strong cultural alignment with Shariah principles, 68% of the population and 60% of businesses still avoid conventional banking due to religious considerations. This has effectively created a large “shadow demand” – a pool of capital and economic activity that remains outside the formal financial system.
Today, this is beginning to change.
Recent legislative reforms – including the approval of a dedicated law enabling Islamic banking – are establishing, for the first time, a formal legal foundation for the industry. The planned creation of an Islamic Finance Council under the Central Bank is another important step toward building a credible and regulated ecosystem.
At the same time, early market signals are already visible:
- Local banks have started launching Islamic windows and products (e.g., Murabahah)
- The first private corporate Sukuk has already been issued in the market
- Development partners such as the Islamic Development Bank are actively supporting projects and frameworks
- Fintech players are entering and scaling rapidly
The implications are significant:
- Islamic deposits could reach 10–12% of total savings by 2030
- Islamic banking assets may account for 8–10% of the sector
- Potential foreign investment inflows are estimated at $3–5 billion
- New structures such as Sukuk, Islamic PPPs, and Musharakah JVs can unlock infrastructure financing
At its core, Islamic finance in Uzbekistan is not just about offering an alternative — it is about bringing a large portion of the economy into the formal system and connecting it with global capital markets.
Uzbekistan is no longer asking if Islamic finance will develop — the question now is how fast and who will lead it.
In our latest article published by Islamic Finance News, we explore the regulatory evolution, market barriers, early transactions, and what it will take for Uzbekistan to position itself as a regional Islamic finance hub.
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