The Central Bank of Uzbekistan granted Open Bank the country’s first Islamic banking license. The regulator’s board approved the decision on October 23, 2026, issuing document No. 1-I, Spot.uz reports, citing the Central Bank.
What the License Allows
The license gives Open Bank the right to conduct Islamic financial operations outlined in Article 5–1 of the Law on Banks and Banking Activity. The list includes six activities:
- mudarabah — financing a client or attracting money into investment deposits based on profit sharing;
- wakalah — issuing and attracting funds to accounts based on an agency agreement;
- murabahah — financing a client by selling goods in installments;
- salam — financing a client through advance payment for goods;
- musharakah — financing a client through joint activity (partnership) or participation in the authorized capital of legal entities;
- ijarah — providing property under an Islamic lease with a buyout option.
Unlike a traditional loan where a bank earns on interest rates, each of these schemes builds bank revenue on profit sharing, trade markups, or lease payments. For example, under mudarabah, the bank and client agree on the proportion to divide future profits from a deposit or project, rather than a fixed percentage. Under murabahah, the bank buys the product and resells it to the client in installments with a pre-agreed markup—formally a purchase-and-sale transaction, not a loan. Musharakah operates as a partnership: the bank takes a stake in the company or project capital and shares both profits and risks with the client. Ijarah is a lease with a buyout option, economically similar to leasing.
These same six operations appear in the law on implementing Islamic banking, which President Shavkat Mirziyoyev signed on March 27, 2026. The document also sets requirements for banks to obtain licenses in this sector and outlines their taxation specifics.
Why Uzbekistan Needs Islamic Banking
The regulator publicly explained the logic behind this reform before issuing the first license. In October 2025, Central Bank Deputy Chairman Abrorkhodja Turdaliev stated the country expects to open ten Islamic banks by 2030, while three state banks will create “Islamic windows.” He said the Central Bank views Islamic finance as an alternative mechanism to draw funds from the shadow sector into the banking system.
In March 2026, a presidential meeting revealed plans to open an Islamic “window” in at least one commercial bank and establish two fully Islamic banks between 2026 and 2030. Under these plans, the country expects to attract an additional $1 billion in investments and deposits during this period.
Foreign players have also shown interest in the Uzbek Islamic finance market. In early April 2026, Central Bank Deputy Chairman Sanjar Nosirov reported interest from several foreign investors: he noted representatives of “4–5 foreign banks” expressed readiness to enter the local market once the Islamic finance law passed.
How the Regulator Prepared the Market
Islamic banking in Uzbekistan developed in stages, initially touching the non-banking sector. In April 2022, President Shavkat Mirziyoyev signed a law on non-banking credit organizations, allowing microfinance institutions to engage in Islamic financing. Two years later, the Central Bank approved regulations for MFIs providing Islamic finance services, including mudarabah, murabahah, musharakah, ijarah, and salam.
After the Islamic banking law passed in March 2026, the regulator moved to build industry infrastructure. At the V Tashkent International Investment Forum in June 2026, Nosirov outlined plans to adopt up to seven Islamic financial service standards by year-end. The Central Bank’s Islamic finance council coordinates their development.
The council’s composition was approved in July 2026. Saidjamol Masayitov, chief specialist at the Fatwa Center of the Muslim Board of Uzbekistan, became chairman, with Muhammadayubkhon Khomidov as deputy chairman. Fatwa Center specialists Khikmatilla Toshtemirov and Abdulatif Tursunov, along with Orient Audit Group managing partner Akhrorjon Sadullaev, were appointed as council members.
At the same time, the Central Bank approved requirements for bank Islamic finance council members and conditions for issuing preliminary permissions and Islamic banking licenses, including a three-year business plan. Open Bank followed these exact rules to secure its license on October 23, 2026.
What’s Next
Open Bank became the first bank licensed under the new rules. Based on the Central Bank’s stated plans, the next step should be the emergence of other players—at least one commercial bank with a “window” and two fully Islamic banks between 2026 and 2030.