Uzbekistan issues its first Islamic banking license
License follows 2026 law creating a legal framework for Islamic banking, as country seeks to attract about $1 billion in additional funds
TASHKENT, Uzbekistan (MNTV) – Uzbekistan’s central bank has issued its first license for Islamic banking operations, to Open Bank, marking a new stage in the development of Islamic finance in the country, the Fergana news agency reported.
The regulator’s board approved the decision on Oct. 23.
The license allows Open Bank to conduct Islamic financial operations permitted under Uzbekistan’s banking law, including profit-sharing financing, agency arrangements, installment sales with a pre-agreed markup, advance payments for goods, joint project financing and Islamic leasing with a buyout option.
Unlike conventional banking, Islamic finance follows Shariah principles and prohibits interest-based lending, using arrangements such as mudaraba (profit-sharing), wakala (agency), murabaha (sales with a profit), salam (advance payment), musharaka (partnership financing) and ijara (leasing).
A law establishing a comprehensive framework for Islamic banking came into force in the summer of 2026, allowing regulators to license both dedicated Islamic banks and Islamic banking windows within conventional banks.
Authorities expect the sector to attract additional investment, with earlier plans envisaging two full-fledged Islamic banks between 2026 and 2030 and about $1 billion in additional funds.
Open Bank, whose sole shareholder is Future Open Technology Group, previously operated as Smart Bank before rebranding in 2025.
Islamic banking in Tajikistan
Neighboring Tajikistan adopted its Law on Islamic Banking in 2014.
Its first full-fledged Islamic bank, Tavhidbank, began operating in 2019 after the transformation of Sohibkorbonk.
According to the National Bank of Tajikistan, three Islamic credit institutions operated in the country as of 2026: Tavhidbank and Islamic banking windows at the microfinance organizations Humo and Imon.
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