The Uzbek bank has expanded its partnership with the International Islamic Trade Finance Corporation. The funds will support export-import operations and domestic purchases for small businesses under the Murabaha standard.
What Happened
On May 26, Ipak Yuli Bank announced an increase in the total volume of its financing line from the International Islamic Trade Finance Corporation (ITFC) to $75 million. The previous limit was not disclosed in the official release.
The financing is structured using the Islamic Murabaha instrument. This model involves allocating targeted resources for specific trade contracts. The bank’s small and medium-sized enterprise (SME) clients will be able to use this money to purchase equipment, raw materials, components, and finished goods. The line covers both foreign trade transactions and domestic purchases within Uzbekistan.
Country and Market
ITFC is an autonomous entity within the Islamic Development Bank (IsDB) Group, headquartered in Jeddah. Its primary mandate is to support trade among member countries of the Organization of Islamic Cooperation.
For Ipak Yuli Bank, this expansion aligns with its overall strategy of diversifying funding sources. Finteqstan previously reported that the bank raised funds to support micro and small businesses from JICA in December 2025, and in April 2026, it received Confirming Bank status in the Asian Development Bank’s Trade and Supply Chain Finance Program (ADB TSCFP).
Why It Matters
Islamic financial instruments offer businesses an alternative to traditional loans. The mechanics of Murabaha, where a financial institution buys a product and resells it to the client with a pre-agreed markup, makes the cost of resources predictable for importers and exporters.
Uzbek banks are consistently building liquidity corridors through international development institutions to expand their product offerings for trade businesses.
What’s Next
The speed at which the new limit is utilized will serve as an indicator for the market. If demand for Murabaha products among Uzbek entrepreneurs continues to grow, further expansion of such programs can be expected from both Ipak Yuli and other players in the banking sector.
