The Islamic financial system is being introduced in Uzbekistan.

On March 25 of the current year, President of Uzbekistan Shavkat Mirziyoyev reviewed a presentation on introducing an Islamic finance system in our country. Zamin.uz reported this.

Within the framework of this important program, new and effective financial mechanisms are planned to be introduced into the economy. The main directions in the plan include selling goods on short-term credit, cooperation based on profit sharing, ensuring capital turnover through agency agreements, financing production on a prepayment basis, and implementing joint investment projects.

In addition, leasing of property will also be organized based on Islamic principles. Tax incentives are also envisaged within the new system.

For example, value-added tax is not calculated on the price of sold goods. Furthermore, income received from deposits placed for investment purposes will be exempted from taxation.

Islamic leasing contracts are equated to the current financial leasing and leasing systems. Through these measures, it is aimed to create favorable conditions for our people and the business sector.

To systematically manage processes in the field, a special Islamic Finance Council will be established under the Central Bank. Separate councils will also operate in each bank providing Islamic services.

These bodies are tasked with developing new standards, improving legislative documents, and monitoring contracts. At least one commercial bank will launch an Islamic finance department this year.

In the future, it is planned to establish two banks operating fully on Islamic principles during the period from 2026 to 2030. As a result of these reforms, an additional inflow of foreign investments and deposits amounting to one billion dollars is expected for our country.

We remind you that the legislative document regulating the activities of Islamic banks was discussed and approved in the Senate at the beginning of February.