Draft Law on Islamic Banking Approved in First Reading

Tashkent, Uzbekistan (UzDaily.com) — Expanding financial support for citizens and entrepreneurs, along with creating favorable conditions for attracting foreign investment through new financial products and services, has become a key priority. In this context, the need arose to amend existing legislation.

A draft law introducing Islamic banking activities in Uzbekistan has been developed to address these goals.

At a recent plenary session of the Legislative Chamber of the Oliy Majlis, the document was conceptually reviewed and approved in its first reading.

The bill proposes amendments to the Tax and Civil Codes, as well as eight other legislative acts. It introduces legal definitions such as “Islamic bank”, “financial operations and standards”, and “investment deposit”.

The draft also establishes a licensing framework for Islamic banking, outlining specific requirements for obtaining such a license, and clearly defining the types of financial operations permitted under it.

According to lawmakers and public representatives, adoption of the bill will create alternative financial instruments alongside traditional ones, thereby expanding financial accessibility for a broader segment of the population.

The draft law has been approved by deputies in the first reading.