Ilmiy tadqiqot markazi

2018 YEAR
2019 YEAR
2020 YEAR
2021 YEAR
1.68
1.58
1.77
1.84

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References: 
1.
 
N. Nazarov, a scientific article "Islamic banking: problems, solutions and prospects" p 
3., 2023. 
2.
 
Stability report of IFSI (Islamic Financial Services Industry) 2022. 
3.
 
Rodney Wilson, a scientific article “Islamic and conventional banking”.
 
4.
 
Munawar Iqbal, “Islam
ic banking and finance: new perspectives on profit-sharing and 
risk”
 
5.
 
https://www.isdb.org/
 - an official website of Islamic Development Bank 
PRINCIPLES AND IMPORTANCE OF IMPLEMENTING
ISLAMIC FINANCIAL
INSTITUTIONS AND INSTRUMENTS TO UZBEKISTAN 
 
Yuldoshev Bekhruz Ibrohimovich - 
Tashkent State University of Economics 
Finance and Accounting Faculty 
3
rd
 year student of the group MT-81 
This article analyzes the principles of Islamic finance, international experience and its 
indicators, and the importance of implementing in our country. Also, scientific predictions 
about the results of this type of finance which can occur are given.
In our rapidly developing world, people are facing financial services every day and this 
already has become an integral part of our life. All transactions starting from money in our 
pocket to taxes that we pay every day from our every product we buy or sell are either 
directly or indirectly considered as finance.
More deeply speaking, all financial actions & transactions go through banks. However, 
commercial banks are more common and well spread all over the world from history, Islamic 
banks are also showing great potential despite their recent establishment.
There are different types of financial instruments, and services in use and unfortunately 
not all of them are acceptable equally by people due to their different world overlooking and 
religions. As an example, interest rate-based loans which are the basic operation and source of 
income of traditional banks, speculation, and investing in businesses involved in prohibited 
activities are denied by Muslims as Islam strictly prohibits some of its features. Islamic finance 
is a type of financing activity that is based on Sharia laws which means the laws and rules of 
Islam. This type of finance exists for hundreds of years since the foundation of Islam. 
Currently, the Islamic finance sector increases 15% - 25% per year, while Islamic financial 
institutions oversee over $2 trillion [1].
According to our 
Islamic Finance Development Report 2021
, the Islamic finance 
industry has been enjoying solid growth. In 2020, there was a 14 percent rise in Islamic 
financial assets to $3.4trn, which makes it one of the leading industries in the market. 
The financial institutions play a crucial role in the economy of countries, even if they 
connect communities with each other in particular cases too. From the past, commercial 
banks have been developed and considered as easy to use. But, currently, Islamic banks are 
also in trend, nevertheless, they do not have a large background as traditional banks. There 
have been 3 key attempts to establish modern Islamic financial institutions over the past 
century. The first noninterest financial institution was founded in Pakistan in the 1950s. 
Loans were offered to clients without interest, but minimal charges were imposed to 
cover the operational expenses of the bank. Ahmed El Najjar, in the Egyptian town of Mit 
Ghamr, led the second attempt in Egypt, between 1963 and 1967. 

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[2] 
The institution took the form of savings bank that operated on the basis of profit 
sharing. In 1967, towards the end of the experiment, there were approximately nine similar 
banks established in Egypt. By 1972, the Mit Ghamr Savings Bank became a part of Nasr Social 
Bank. It was described as an interest-free bank although there was no indication in its charter 
that it was an Islamic bank guided by Shariah. The Nasr Social Bank later became the first 
Islamic Bank in Cairo, Egypt. [3] 
Furthermore, the most popular one is Islamic Development Bank (IDB), founded in 
1975. It is a multilateral development finance institution that is focused on Islamic finance for 
infrastructure development and is located in Jeddah, Saudi Arabia. There are 57 shareholding 
member states with the largest single shareholder being Saudi Arabia. In the list of its 
members, Uzbekistan also exists since 2003. Its share in subscribed capital is ID 13.4 million 
(0.03% of IsDB’s total subscribed capital). As of today, there are 
134 projects together and 66 
of them have been completed successfully. Per the official website of IsDB, its total funding in 
Uzbekistan is $3.4bn and it is experiencing growth year by year [4].
Nowadays, Uzbekistan is trying to implement Islamic finance starting with opening 
*Islamic windows under its commercial bank system. It means that it is getting ready to open 
Islamic banks in the future. Specifically, as it is mentioned above, Islamic Development Bank is 
helping to organize and prepare the sphere of Uzbekistan for this type of finance. Back-to-
back training programs for our conventional banks on “Islamic Banking and Finance: 
Fundamental Concepts and Applications” have been conducted in Uzbekistan in 2022 from 24 
January to 25 February. The programs were developed by the Islamic Development Bank 
Institute (IsDBI) in collaboration with the Islamic Corporation for the Development of the 
Private Sector (ICD), the private sector arm of the Islamic Development Bank Group [5]. In 
this way, the law, legislation, tax system, and articles are being changed step by step to make 
them suitable for both current commercial and planned Islamic financial institutions. One of 
the main features of Islamic financial institutions differently from common financial 
institutions is that in some cases they participate in trading processes too. But it is not 
allowed in the current legislation of Uzbekistan.
In Islamic finance, there are several types of contracts, features as Murabaha. Murabaha, 
also referred to as cost-plus financing, is an Islamic financing structure in which the seller and 
buyer agree to the cost and markup of an asset. The markup takes place of interest, which is 
illegal in Islamic law. As such, Murabaha is not an interest-bearing loan but it is an acceptable 
form of credit sale under Islamic law. As with a rent-to-own arrangement, the purchaser 

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doesn’t become the true owner until the loan is fully paid. As a seller, an Islamic financial 
institution plays the role of seller which is one of its services. In a Murabaha contract of sale, a 
client petitions a bank to purchase an item on their behalf. [6] 
*Islamic windows
- the section of a financial institution, other than an Islamic financial 
institution, which conducts Islamic financial business.
*riba
- In Islamic finance, riba refers to interest charged on loans or deposits.
Complying with the client’s request, the bank establishes a contract setting the cost and 
profit for the item, with repayment typically in installments. Because a set fee is charged 
rather than *riba(interest), this type of loan is legal in Islamic countries. Islamic banks are 
prohibited from charging interest on loans according to the religious tenet that money is only 
a medium of exchange and no inherent value; so banks must charge a flat fee for continuing 
daily operations.
Noticeably, nowadays some of e-banks have already started to offer their services which 
are based on Shariah. As an example for Murabaha, Uzum Bank has created its own e-
marketplace which is giving an opportunity to its clients to buy whatever they need in that 
marketplace and it is possible to pay in installments. This type of service is attracting more 
and more not only the Muslim, but also other people of any religion too. Based on this 
position, other payment e-service, and mobile payment applications (ex. Zoodpay, Iman 
Invest) are also working on their system and adding such services too.