Uzbekistan intends to create infrastructure for Islamic banking and finance
The draft resolution of the President of Uzbekistan “On measures to create the infrastructure of Islamic banking and finance in the Republic of Uzbekistan” was published on the portal for discussion of draft normative legal acts.
The document is developed to create alternative financing opportunities and meet the growing needs of the population and entrepreneurs, expand the range of offered banking and financial services, and mobilize resources from the domestic and foreign markets based on the principles of Islamic banking and finance.
The resolution envisages introduction banking and financial services in Uzbekistan, implemented on the basis of the principles of Islamic banking and finance.
Within the framework of the document, a Commission on development and implementation of the principles of Islamic banking and finance will be established.
The commission will implement measures to create the necessary infrastructure for the introduction of Islamic principles of banking and finance in Uzbekistan.
The Commission will also develop and submit for approval, in accordance with the procedure established by law, regulations on implementation of the principles of Islamic banking and financial infrastructure the implementation of insurance activities (takaful), leasing activities (ijarahs), operations with securities (sukuk) and other operations based on the principles of Islamic finance.
The commission will coordinate the activities of ministries, departments, as well as other interested organizations in order to facilitate the prompt consideration, harmonization and approval of draft relevant legal acts.
The Commission will take measures to publicize the benefits and opportunities of using banking and financial services based on the principles of Islamic banking and finance, as well as explaining their main differences from traditional banking services among the population and business entities.
The working body of the Commission on implementation of the project of introducing Islamic principles of banking and finance in the country is the "initiative group" created by the Ministry of Finance from among experts and experts in the field of Islamic banking and finance.
Within the framework of the resolution it is planned to implement the project "Creation of legislative bases for introduction of the infrastructure of Islamic banking and finance in the Republic of Uzbekistan" with the assistance of a grant from the Islamic Development Bank.
The Commission, upon completion of the project, was instructed to introduce a draft decision of the President of the Republic of Uzbekistan on establishment of the Islamic Development Bank of Uzbekistan (IBRU).
The IBRU will provide a wide range of standard retail services, including export-import financing, housing finance, commercial real estate financing, leasing, insurance, and securities services through structural divisions.
The Bank will provide structured complex financial products, such as investments in venture capital, as well as in direct investment funds and / or hedging of risks.
The new financial institution will refinance commercial banks of Uzbekistan to provide services through "Islamic windows" for the population and business entities.