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Islamic finance gains momentum in Central Asia
This was discussed at the International PLUS-Forum Digital Uzbekistan in Tashkent by participants of the session “Islamic finance and Islamic banking in Central Asian countries. Current state and prospects”.
The session was moderated by Askhat Giniyatov, Head of Islamic Banking at T Bank, who analyzed the first stage of the partner banking pilot implemented in the Russian Federation. It involves 32 participants, including 7 banks. According to the expert, the first stage of the pilot has improved the level of trust in partner finance and Islamic banking. By 2030, the country will create a legislative framework and pass a fully-fledged law.
As noted by Khondamir Nusratkhuzhaev, international expert in IF, member of AAOIFI Board (2016-2023), Islamic finance has already become part of the global financial industry. In his report, he compared two models of IF development – in Türkiye and Malaysia. In the former, IF began to develop back in 1985, but the share of local population covered by Islamic banking did not exceed 1% until the 2000s, and even now it does not go beyond the 9% mark.
In turn, Malaysia, which initially practiced a systematic approach to IF, today can boast 45% of IF users, while Muslims account for just slightly more than 60% of the population.
AD Wealth Founder and Managing Partner Alisher A. Dzhumanov analyzed the Islamic finance development in Uzbekistan and Central Asia and made some forecasts.
Central Asia is home to 4% of all Muslims in the world. In this context, the expert believes, whether the region can achieve the same 4% of the world turnover of IF is a relevant question.
Valeriy Li, Head of Department for Development of Issuer Activities and Corporate Management at National Agency of Perspective Projects of the Republic of Uzbekistan (NAPP), spoke about the creation of a legal framework for the adoption of alternative (Islamic) financial instruments in the securities market of Uzbekistan. Council Chairman of the Association of Islamic Finance and Takaful Bakhrom Numonov called his presentation “Islamic Finance in Uzbekistan: The Beginning”. He noted that the global Islamic finance grew by 10.6% in 2024 compared to 2023.