Ilmiy tadqiqot markazi

DEVELOPING OF THE FINANCIAL MARKET BASED ON THE ISLAMIC MODEL 
 
Bokieva L.D. - 
Tashkent Financial Institute, Faculty of Economics 
 
Islamic finance and Islamic banking system is the hope for the financial system spread 
all over the world and is considered as the best option to overcome the disadvantages of the 
interest based system in the financial industry. Today, the total volume of Islamic banking and 
financing globally exceeds $2.6 trillion and is expected to increase to $3.5 trillion by 2024. The 
growth figures of Islamic finance ensure its strength and global acceptance. Importantly, the 
fact that the recent global financial crisis did not cause significant damage to Islamic finance 
and the Islamic banking industry proved the rationale behind Islamic finance and Islamic 
banking. For this reason, issues related to the implementation of the principles of Islamic 
financial institutions in the country's economic system have recently appeared in many 
countries. In recent years, taking into account the global migrant policy, the governments of 
Great Britain, France, Germany along with the CIS countries (Kazakhstan, Kyrgyzstan) have 
started to develop Islamic finance in their countries. At the same time, interest in Islamic 
finance and banking system is growing in our country and it is considered as one of the 
important issues to be studied. The President of the Republic of Uzbekistan, Shavkat 
Mirziyoyev, in his address to the Parliament on December 29, 2020, emphasized how 
important the Islamic financial system is for our country: "The time has come to create a legal 
framework for the introduction of Islamic financial services in our country. In this regard, 
experts from the Islamic Development Bank and other international financial organizations 
will be involved." The launch of the system in Uzbekistan will first of all create a basis for the 
use of honest and transparent banking practices, in particular for the prevention of "bribery", 
which is considered an evil that destroys the society, and for changing the attitude of the 
population towards our banks. Mainstream financial markets are finding clear evidence that 
Islamic finance is already present in the global financial system and that it has the potential to 
help end extreme poverty and increase overall prosperity. Islamic finance is capital-based, 
asset-backed, ethical, sustainable, environmentally and socially responsible finance. It helps 
spread risks, connects the financial sector to the real economy, and promotes financial 
inclusion and social well-being. 
If we talk about Islamic banking and Islamic financial system in developed countries: 
Great Britain
has been a leader in the development of Islamic finance for more than 
decades. Islamic finance first entered the UK in the 1980s with the introduction of Murabaha 
transactions. Al Baraka international, the first UK Islamic bank, was launched in 1982. After 
that, Shariah-compliant products ordered in trade finance, leasing and project financing grew. 
At the same time, the offer of retail Islamic finance services has grown significantly, providing 
choice to more than 2,5 million Muslims living in the UK. 
Luxemburg 
is considered the birthplace of Islamic Finance in Europe, as the firs Islamic 
bank in the West was opened here in 1978. Daral-Malal-Islami international financial group is 
headquartered in Geneva. 
Major European banks such as