Uzbekistan Approves Rules for Banks to Adopt Islamic Model
Uzbekistan has approved new rules allowing eligible banks and microfinance institutions to transition to an Islamic banking model under legislation adopted in 2026.
Uzbekistan's Ministry of Justice has officially approved new regulations that outline the process for banks and microfinance organizations to convert to an Islamic banking model. These amendments, registered as No. 3656-1 on August 1, 2026, establish the framework for credit institutions to adopt Sharia-compliant financial practices.
This move follows the implementation of Law No. ZRU-1126, "On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan Aimed at Introducing Islamic Banking in Uzbekistan," which was enacted on March 27, 2026.
The updated rules permit microfinance organizations to transform into microfinance banks that exclusively conduct Islamic banking operations. Furthermore, the regulations facilitate several other conversions: an Islamic microfinance bank can become an Islamic bank, an Islamic bank can convert to an Islamic microfinance bank, an Islamic microfinance bank can revert to a microfinance organization, and a conventional bank can transition to a bank solely focused on Islamic banking activities.
It is specified that only microfinance banks already operating strictly under Islamic banking principles are eligible to convert into an Islamic bank.
The amendments also introduce new prerequisites for the state registration of a microfinance bank and the issuance of a banking license. Prospective applicants are now required to provide a report from the Inspection for Supervision in the Construction and Housing and Utilities Sector. This report must verify that the proposed building adheres to all urban planning rules and regulations, including accessibility standards and the provision of necessary amenities for individuals with disabilities.