Ilmiy tadqiqot markazi

Importance of Islamic finance in Uzbekistan 
Islamic finance is considered one of the most important factors which can help to 
develop the economy and financing system of Uzbekistan. Here some of the reasons are given: 
1. Islam is the predominant religion in Uzbekistan. It totals 94% of the population.
2. There is a high demand for the financial sector in Uzbekistan now as it is trying to 
attract more investment and loans from foreign countries in order to develop several features 
simultaneously.
3. As Uzbekistan is geographically located in the center of Central Asia, it is a good place 
for investors, entrepreneurs, and business organizations to meet with each other and make 
agreements.
According to the factors above, Islamic financial institutions are predicted to be 
successful in use in Uzbekistan. Nevertheless, this type of institution will affect the cash inflow 
and operations of current market holders, this will be a good challenge to them and forces 
them to work on their services in order to attract more clients. As a result, a news financial 
system encourages other players to be more competitive and regularly make innovations.
In conclusion, implementing Islamic financial Institutions will lead to encouraging a 
massive population to use financial instruments effectively and helps money circulation in the 
economy too. Per the governor of Central Bank Mamarizo Nurmuratov, The volume of money 
remittances to Uzbekistan increased by 2.1 times in 2022 - to a record $16.9 billion [7]. It 
means, there is a huge potential in Uzbekistan to cycle the money across the country. But as 
almost 70% of the population lives in a medium life standard, they are likely to invest their 
money and enlarge their pocket. In this case, Islamic Banks indirectly force them to use their 
money which is under their pillow. So, because of these kinds of reasons, opening Islamic 
institutions in our country will be effective and profitable for both government and the 
population.