Uzbekistan Unveils Regulatory Framework for Islamic Banking Transition

Uzbekistan Takes Major Step Toward Islamic Finance Integration

Tashkent, Uzbekistan — The Central Asian nation has formalized procedures for financial institutions to adopt Islamic banking models through newly registered amendments to banking regulations. This development follows the passage of Law No. ZRU-1126 in March 2026, which laid the foundation for Sharia-compliant finance in the country.

Flexible Transition Pathways Established

The regulations create multiple conversion pathways including:

• Microfinance organizations to Islamic microfinance banks
• Islamic microfinance banks to full-fledged Islamic banks
• Conventional banks to exclusively Islamic banking operations

Notably, the framework maintains strict criteria for conversions, requiring institutions to fully commit to Islamic principles rather than operating hybrid models.

Infrastructure and Accessibility Requirements

The amendments introduce specific physical infrastructure mandates including:

• Urban planning compliance certification
• Disability accessibility provisions
• Facility requirements for Sharia supervisory boards

These measures aim to ensure Islamic finance institutions meet both regulatory and ethical standards from their establishment.

Expected Market Impact

Banking analysts project the new rules will accelerate Uzbekistan's Islamic finance sector growth, potentially attracting investment from Gulf Cooperation Council countries. The framework provides much-needed clarity for institutions considering Sharia-compliant operations while maintaining robust oversight mechanisms.