Exploring the Potential of Islamic Finance in Uzbekistan

Sattorova Nasiba Gʼanijon Qizi

GREEN ECONOMY AND DEVELOPMENT, 2023, vol. 1, issue 7

Abstract: This research explores the potential for Islamic finance to grow in Uzbekistan and its alignment with the principlesof the green economy. It assesses the performance of Islamic financial institutions in the country and identifies obstaclesto its development. Islamic finance has emerged as an alternative to conventional banking, attracting entrepreneurswith its fair profit distribution. Uzbekistan›s President Sh. Mirziyoyev recognizes the need for a legal framework to supportIslamic financial services. Globally, Islamic finance is a rapidly expanding sector, with annual profit growth of 15–20%and asset expansion exceeding 20%. By adopting Islamic finance principles, Uzbekistan can promote sustainable developmentin line with the green economy. Its focus on ethical investments and risk-sharing arrangements supportsenvironmentally friendly initiatives. To seize the opportunities presented, a comprehensive study and implementation ofIslamic finance in Uzbekistan are crucial, along with the examination of regulatory frameworks. The research methodologyinvolves a literature review, expert interviews, data collection, comparative analysis, and examination of regulatoryframeworks. Collaboration with institutions such as the Islamic Research and Training Institute (ITB) and the IslamicInvestment Insurance and Export Credit Corporation (IIIEC) supports the development of Islamic finance in Uzbekistan.Existing financial institutions like the IMAN Investment Fund and Taiba Leasing demonstrate the presence of Islamic financein the country. Addressing challenges, fostering collaboration, and embracing the principles of the green economywill enable Uzbekistan to utilize Islamic finance for sustainable development and attract foreign investments.

Keywords: Islamic finance; green economy; Uzbekistan; financial institutions; performance indicators; challenges. (search for similar items in EconPapers)
Date: 2023
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