Deputies approved the introduction of Islamic banking

The Legislative Chamber of the Oliy Majlis adopted a draft law on Islamic banking, the press service of the lower house of the Oliy Majlis reports.

This refers to defining the legal basis for Islamic banking activities in Uzbekistan. The document defines the main terms related to Islamic finance, including the concept of “islamic bank”. The draft law also includes requirements for obtaining a license in this area.

In addition, credit institutions operating in the Islamic banking sector will be granted the right to conduct trading activities to finance clients in accordance with Islamic financial standards. They will be allowed to establish legal entities, acquire shares or shares in the authorized capital of other legal entities.

When preparing for the second reading, proposals on financial standards and investment deposits were taken into account. The document includes provisions regulating the taxation of Islamic financial transactions and aimed at increasing their volume, — the deputies noted.

In the second reading, 125 of the 127 deputies present at the session voted “for”, one abstained, and one did not vote. In the final reading, 126 votes were cast in support of the document. Now the draft law is awaiting approval from the Senate. After that, it will be signed by the president.

As a reminder, microfinance organizations will begin providing Islamic financial services. The decision was made in accordance with the government decree.