Practical preparation of the financial sector to operate under Sharia norms is beginning in Uzbekistan. Central Bank representatives will explain the mechanics of applying Law No. O’RQ-1126, which forms the legal framework for Islamic financial products, to banks and fintech companies.
What the law changes
The document establishes a dual banking model in the country. This means both traditional financial institutions and entities operating exclusively on Islamic principles can legally work in the market.
To monitor product compliance with the new rules, a specialized supervisory body—the Islamic Finance Council—is being created under the Central Bank. The law also introduces specialized licensing for organizations planning to operate in this segment.
Permitted contracts
The law outlines the scope of permissible operations and introduces six basic Islamic contracts into the legal framework:
- mudaraba;
- wakala;
- murabaha;
- salam;
- musharaka;
- ijara.
For local banks and fintech companies, this opens the possibility of legally designing analogs to loans, deposits, and installment plans without using loan interest. The approved list of contracts gives market participants a clear legal basis for developing digital services.
Market preparation
The regulator and market participants will discuss the details of the law’s practical application in mid-September. As reported by the specialized Telegram channel uzbekfintech, a dedicated webinar featuring Khushnudjon Tuymurodov, chief specialist of the Central Bank’s Islamic finance project office, will take place on September 17, 2026.
The meeting is organized by the academy of IT vendor Fido-Biznes. The event plans to analyze the mechanics of working with the new requirements and potential risks when launching products.
Moving the discussion from theory to an analysis of specific regulatory requirements means the launch of the country’s first legal Sharia-compliant products is entering the practical stage.
