Uzbekistan issues its first Islamic banking license
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 regulator’s board approved the decision on October 23, 2026, Fergana news agency reports.
The license allows the bank to conduct Islamic financial operations provided for under Uzbekistan’s Law on Banks and Banking Activities. These include profit-sharing financing, agency arrangements, instalment sales with a pre-agreed mark-up, advance payment for goods, joint project financing and Islamic leasing with a buyout option.
Unlike conventional banking, Islamic finance follows Sharia principles and does not use interest-based lending. Instead, it relies on arrangements such as mudaraba (profit-sharing), wakala (agency), murabaha (sale with a mark-up), salam (advance payment), musharaka (partnership financing) and ijara (leasing).
A law establishing a comprehensive legal framework for Islamic banking in Uzbekistan came into force in the summer of 2026. It allows both dedicated Islamic banks and Islamic banking windows within conventional commercial banks to be licensed.
Authorities expect the sector to attract additional investment and deposits. Plans announced earlier envisaged establishing two full-fledged Islamic banks between 2026 and 2030 and attracting around 1 $ billion in additional funds.
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Open Bank previously operated as Smart Bank before rebranding in 2025. Its sole shareholder is Future Open Technology Group.
Islamic banking in Tajikistan
Tajikistan adopted its Law on Islamic Banking on July 26, 2014, establishing the legal framework for financial transactions based on Islamic principles.
The country’s first full-fledged Islamic bank, Tavhidbank, began operating in 2019 following the transformation of Sohibkorbonk.
According to the National Bank of Tajikistan (NBT), three Islamic credit institutions operate in the country as of 2026: Tavhidbank and Islamic banking windows at the microfinance organizations Humo and Imon.
The license allows the bank to conduct Islamic financial operations provided for under Uzbekistan’s Law on Banks and Banking Activities. These include profit-sharing financing, agency arrangements, instalment sales with a pre-agreed mark-up, advance payment for goods, joint project financing and Islamic leasing with a buyout option.
Unlike conventional banking, Islamic finance follows Sharia principles and does not use interest-based lending. Instead, it relies on arrangements such as mudaraba (profit-sharing), wakala (agency), murabaha (sale with a mark-up), salam (advance payment), musharaka (partnership financing) and ijara (leasing).
A law establishing a comprehensive legal framework for Islamic banking in Uzbekistan came into force in the summer of 2026. It allows both dedicated Islamic banks and Islamic banking windows within conventional commercial banks to be licensed.
Authorities expect the sector to attract additional investment and deposits. Plans announced earlier envisaged establishing two full-fledged Islamic banks between 2026 and 2030 and attracting around 1 $ billion in additional funds.
Want to see more of Asia-Plus on Google? Add us as a preferred source.
Open Bank previously operated as Smart Bank before rebranding in 2025. Its sole shareholder is Future Open Technology Group.
Islamic banking in Tajikistan
Tajikistan adopted its Law on Islamic Banking on July 26, 2014, establishing the legal framework for financial transactions based on Islamic principles.
The country’s first full-fledged Islamic bank, Tavhidbank, began operating in 2019 following the transformation of Sohibkorbonk.
According to the National Bank of Tajikistan (NBT), three Islamic credit institutions operate in the country as of 2026: Tavhidbank and Islamic banking windows at the microfinance organizations Humo and Imon.
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