Tashkent, Uzbekistan (UzDaily.uz) — Open Bank has received Uzbekistan’s first licence to conduct Islamic banking operations, following a decision by the board of the Central Bank of Uzbekistan on 23 October 2026.
Under Resolution No. 28/1, the joint-stock company was issued licence No. 1-I, authorising it to conduct financial operations specified in Article 5¹ of the Law on Banks and Banking Activities.
The Central Bank recommends that customers check whether banks hold the necessary licences on the regulator’s official website before using their services.
Islamic banking operations
The legal framework for Islamic banking was established by a law dated 27 March 2026, which entered into force on 29 June. It defines six types of Islamic financial operations.
Mudaraba involves providing capital to a managing party, with profits subsequently distributed between the parties. Wakalah is based on an agency agreement under which funds are provided or attracted through a trusted agent.
Under murabaha, a bank purchases goods and sells them to a customer in instalments at a pre-agreed markup. Salam involves paying for goods before delivery. Musharaka allows parties to jointly finance projects or participate in companies’ capital. Ijara is a lease arrangement for property, which may include an option to purchase it later.
The law also permits other types of operations, provided they comply with international banking practices and Uzbekistan’s legislation.
Islamic finance replaces interest-based loans with trade markups, lease payments and profit-sharing arrangements. The absence of interest therefore does not mean customers receive financing free of charge.
A licence is required both to establish a standalone Islamic bank and to introduce an “Islamic window” within a conventional commercial bank. Under the latter model, a bank may operate both systems but must keep separate accounts for conventional and Islamic transactions, establish a specialised unit and set up a council to oversee compliance with relevant financial standards.
Open Bank began preparations in the summer
Open Bank’s shareholders approved the move into Islamic banking at the company’s annual general meeting on 29 June 2026. They also decided to establish an Islamic finance council with a three-year term for its members.
The bank’s management was instructed to prepare the documents required to obtain a Central Bank licence. Candidates for the council were to be approved by the regulator, while the council’s operating regulations were to take effect after the licence was issued.
In July, the Ministry of Justice registered amendments to the banking licensing procedures. The new rules established requirements for opening Islamic banks and Islamic windows, including a three-year business plan, risk management mechanisms and controls to ensure that financial products comply with Islamic standards.
Plans to develop Islamic finance
Uzbekistan allowed microfinance institutions to provide Islamic finance services in 2022. In July 2024, the Central Bank approved rules governing such operations, including mudaraba, murabaha, musharaka, ijara and salam.
In March 2026, President Shavkat Mirziyoyev signed a law introducing Islamic banking. The authorities announced plans to establish two fully Islamic banks between 2026 and 2030 and open Islamic banking units in at least one commercial bank. Preliminary estimates suggested the initiative could attract around US$1 billion in additional investment and deposits.
In October 2025, Abrorkhoja Turdaliev, deputy chairman of the Central Bank, spoke about the prospects for opening 10 Islamic banks in Uzbekistan by 2030. The possibility of establishing Islamic windows in three state-owned banks was also discussed.
In April 2026, Central Bank Deputy Chairman Sanjar Nosirov said that four or five foreign banks had expressed interest in entering the Uzbek market, provided the necessary legal framework was established.
In June, the regulator announced plans to adopt up to seven standards for Islamic financial services by the end of 2026. Their preparation is being coordinated by the Islamic Finance Council under the Central Bank.
In July, the Central Bank also established requirements for the composition of Islamic finance councils at banks and the conditions for issuing licences. The mandatory documents include a three-year business plan.
