Uzbekistan: Law introducing Islamic banking enacted
Effective on June 29, 2026
Law No. ЎРҚ-1126, introducing a legal framework for Islamic banking and Islamic finance activities in Uzbekistan, was enacted on March 27, 2026, and becomes effective on June 29, 2026.
- The law authorizes the Central Bank of Uzbekistan to approve Islamic finance standards and to establish an Islamic Finance Council under the Central Bank, while requiring banks and other licensed entities conducting Islamic banking activities to establish their own Islamic finance (Shariah) councils to ensure Shariah compliance of their operations.
- The law provides for legal recognition of Islamic financial instruments and Shariah-compliant financing arrangements, including profit‑sharing and trade‑financing structures.
- The law also introduces specific regulatory, licensing, governance, accounting, and tax provisions applicable to Islamic finance transactions, including certain VAT and income tax rules applicable to Shariah‑compliant financial operations and activities of Islamic financial institutions.
For more information, contact a KPMG tax professional in Uzbekistan:
Sardor Shermatov | sshermatov@kpmg.co.uz