About Islamic Financing / What is Islamic Finance

An ethical alternative to traditional banking, based on the principles of Sharia — without margins, speculation, and investments in forbidden areas. Honest models such as Murabaha (cost-plus sale), Ijara (leasing), Musharaka, and Mudaraba (partnership) are used. They support the real economy, transparency, and fairness. The sector is actively developing in the country due to public demand and international cooperation.

Islamic finance represents a unique financial system grounded in the ethical and spiritual principles of Sharia. The core requirement for all transactions is compliance with Islamic norms, fairness, and transparency. At the heart of this system lies the prohibition of usury (riba), as well as the financing of unethical or forbidden (haram) activities such as gambling, alcohol, pork, tobacco, weapons, and practices involving deception or speculation. Unlike conventional lending, Islamic finance offers fair, partnership-based models where interest is absent, and relationships between parties are built on trust and mutual benefit.

Islamic finance employs specialized instruments that comply with Sharia principles. One of the most widely used is Murabaha — a cost-plus sale of goods with deferred payments. In this model, the financial institution first purchases the required goods and then sells them to the client at a pre-agreed price that includes a fixed margin. This approach ensures full transparency, as clients know the total payment amount in advance and do not encounter hidden fees or interest charges. Another key instrument is Ijara, or leasing, where the client uses the property and may purchase it at the end of the term. Islamic finance also uses partnership models such as Musharaka — joint participation in a project with shared profits and losses, and Mudaraba, where one party provides capital and the other manages the business.

In practice, Islamic finance is not just an alternative—it is a comprehensive solution, particularly for those who value transparency, stability, and alignment with their ethical beliefs. In the context of global economic changes and uncertainty, more people are turning to such approaches. Sharia-compliant products help clients avoid debt burdens, establish fair partnerships, and contribute to real business growth and financial well-being.

In recent years, Uzbekistan has actively developed Islamic finance, aiming to provide ethical and transparent financial solutions to its population. This trend reflects a growing interest in alternatives to conventional banking. Positive developments are evident, particularly through strengthened collaboration with international Islamic institutions, including the Islamic Development Bank and its subsidiaries. Increasingly, companies and private clients are seeking financial products that align with their moral and spiritual principles.

The benefits of Islamic finance are already being felt across the country. Public trust is increasing, access to alternative financial instruments is expanding, and foreign investment—including from Islamic countries—is growing. Together, these factors create a strong foundation for sustainable economic development.

Today, Islamic finance in Uzbekistan is experiencing a period of rapid growth. This is not merely a trend; it reflects a deep-seated societal demand for fair, honest, and transparent financial relationships.