ISLAMIC FINANCE PROSPECTIVES TO THE GOVERNMENT OF UZBEKISTAN IN FUTURE

Abstract

The incorporation of Islamic finance into Uzbekistan’s financial sector necessitates the establishment of an enabling legal, regulatory, and supervisory framework. The government’s role in shaping such frameworks is critical for the orderly introduction and growth of Islamic financial institutions, products, and services. International experience suggests that well-defined laws regarding the operations, governance, and risk management of Islamic financial entities are prerequisites for soundness and stability. Initiatives related to the licensing of Islamic financial institutions, introduction of Shariah-compliant products by conventional banks, and facilitation of capital market instruments must all be underpinned by detailed and harmonized regulations. Regulatory authorities would need to acquire capacity in Shariah-compliant finance, including training supervisory staff, engaging with international Islamic finance standard-setters, and coordinating with regional financial centers. Progress in this domain can enhance market confidence, foster innovation, and mitigate risks