As previously reported, the 20th International Islamic Finance Forum is being held in Tashkent. Until now, the event had been hosted in Malaysia.

The main theme of the forum is the development of Islamic finance, the introduction of advanced practices into the country’s financial system, the strengthening of cooperation between scholars, regulators, standard-setting organizations, and industry experts, as well as the creation of a platform for exchanging views on issues of Islamic law.

Leading scholars, experts, and regulators from around the world are participating in the forum. A correspondent of the Uzbekistan National News Agency spoke with the head of the International Union of Muslim Scholars, Sheikh Ali Mohieddin Al-Qaradaghi.

– Today, Islamic financial assets amount to $5.4 trillion. However, in countries with a predominantly Muslim population, Islamic finance is not sufficiently developed. What are the obstacles to this?

– The first Islamic bank was established in Dubai in 1975, with a capital of $100 million. Today, it is developing rapidly, with Islamic finance banks operating in all Islamic countries, as well as in America and the West.

The development of Islamic finance in Uzbekistan is expected to yield very positive results. However, specific challenges are likely to arise along the way. One of them is the absence of a particular law in this field. At today’s forum, I learned that a draft law on the introduction of an Islamic bank in the country has passed its first reading. I believe this is an important step.

The country has every opportunity to study the experience of banks operating based on Islamic finance around the world.

– What opportunities does the use of Islamic finance potential open up? Is there a connection between the adoption of the draft law on the establishment of an Islamic bank in Uzbekistan and the holding of the current forum here?

– I highly appreciate the work being carried out in your country in the field of Islamic finance. In particular, the documents adopted by President Shavkat Mirziyoyev in 2020 deserve high recognition. Now is the right time to introduce Islamic finance in Uzbekistan, which is why it is essential, through such forums, to study the proposals and opinions of international experts on this matter. I would like to emphasize that the development of Islamic finance makes a significant economic contribution to the growth of any country.

I find this step very promising, since 90 percent of Uzbekistan’s population professes Islam. The majority face difficulties in financing and investing through traditional banks. The attractive features of Islamic finance are the transparency and ethical nature of the system, the prohibition of interest-based lending, and the fair distribution of risks and profits.

Such an approach ensures financial inclusiveness for any secular country. It is precisely due to financial accessibility that Islamic finance is expanding globally. Its introduction in your country will bring billions of dollars in investments directed toward the development of infrastructure, industry, and other sectors.

Moreover, it will serve the interests of ordinary people. I am confident that Uzbekistan will adopt the necessary laws for the development of Islamic finance, and that the Central Bank of the Republic will take the required measures to familiarize citizens with the Islamic bank.

All the necessary conditions exist here to unlock the potential of Islamic finance. If this happens, Uzbekistan has every chance to become a regional hub of the Islamic capital market.

Shakhnoza Mamaturopova, UzA