Uzbekistan issues first Islamic banking licence to Open Bank

Uzbekistan has issued its first Islamic banking licence, to Open Bank, one of the country's youngest banks. The licence allows the bank to carry out Islamic financial operations and introduce new products, such as ijara, a form of Islamic leasing with a right to buy.

Islamic finance was first legalised in 2022, when microfinance organisations were allowed to offer Islamic products. Banks had to wait four more years, until the Islamic banking law was signed in March 2026. The Central Bank has formed an Islamic finance council and expects at least 10 Islamic banks and Islamic windows in three state banks by 2030. About $1 billion in investment and deposits is planned to be attracted through Islamic banking in 2026-2030.

Experts say the licence does not mean the full product range is ready. Murabaha, which accounts for about 63% of Islamic microfinancing volume according to the Central Bank, is expected to come first. More than ten commercial banks are preparing to offer Islamic financing, and experts warn that some Islamic products may initially cost more than conventional loans.