Publication Details
Abstract
This article examines the emergence and early expansion of Islamic microfinance in Uzbekistan during 2024-2026, focusing on market scale, product structure, institutional concentration, client composition and regulatory change. The analysis uses official and supervisory data from the Central Bank of the Republic of Uzbekistan, including monthly product-level data for 2024-2025 and institution-level statistics as of 1 July 2026. Islamic financing services increased from UZS 3.951 billion in the first half of 2025 to UZS 31.062 billion in the first half of 2026, representing a 7.86-fold increase. Product composition also became more diversified: murabaha declined from 62.6% of annual Islamic financing in 2025 to 39.5% in the first half of 2026, while mudaraba, musharaka and Islamic ijarah gained importance. As of 1 July 2026, outstanding Islamic financing reached UZS 34.367 billion, although the segment remained small relative to the overall microfinance sector and highly concentrated among three providers. Law No. O‘RQ-1126 further broadened the national legal framework for Islamic finance. The article concludes that future development depends on standardized Shariah governance, sustainable funding, effective risk management, regional expansion, consumer protection and improved public reporting.