Uzbekistan’s Islamic finance sector is still in its early stages, but it is emerging as one of the country’s fastest-growing segments within the financial industry. According to data from the Central Bank of Uzbekistan 2025 became the first year in which Islamic finance could be considered a distinct market, marking an important milestone for the country’s financial ecosystem.
By the end of 2025, the total volume of Islamic finance products reached UZS 21.1 billion, establishing the first meaningful benchmark for measuring the sector’s future growth. Although the market remains relatively small, its expansion has been remarkably rapid.
During the first quarter of 2026 alone, the market reached UZS 11.2 billion, accounting for more than half of the previous year’s total volume. Compared to the first quarter of 2025, this represents an eightfold increase, highlighting the strong momentum behind the sector despite its still modest size.
At present, Murabaha is the dominant Islamic finance product in Uzbekistan, accounting for 63% of the market. It is followed by Mudarabah with 17%, Musharakah with 13%, and Islamic Ijarah with 7%. Unlike conventional lending, these financing models are based on asset-backed transactions, profit-sharing arrangements, and leasing structures that comply with Islamic financial principles.
For now, Islamic financial services are offered primarily by microfinance organizations. The market is heavily concentrated, with Apex Moliya holding approximately 75% of the sector.
Businesses currently represent the largest customer group, accounting for 46% of all Islamic finance transactions. Individual entrepreneurs make up 28%, while individual consumers account for the remaining 26%. These figures suggest that Islamic finance is increasingly being used not only for personal financing but also as an alternative funding source for businesses.
The market is also geographically concentrated. Tashkent accounts for 94% of the country’s Islamic finance activity, while Namangan represents the remaining 6%, indicating that adoption outside these regions is still at an early stage.
Despite its rapid growth, Islamic finance continues to represent only a tiny fraction of Uzbekistan’s broader financial system. According to the Central Bank, Islamic financial products account for just 0.03% of the total services provided by microfinance institutions. This underscores both the market’s limited current scale and its significant long-term growth potential.
The sector’s next major growth phase is expected to begin once commercial banks are allowed to offer Islamic financial products under a dedicated legal framework. At present, Islamic finance is largely limited to microfinance institutions, but ongoing regulatory developments are expected to expand participation across the banking sector, potentially accelerating market growth in the coming years.
According to Peak Skartaris, the Islamic finance market is projected to reach between UZS 60 billion and UZS 100 billion by the end of 2026. Growth is expected to accelerate further throughout 2027 and 2028, with the market potentially expanding to UZS 5–15 trillion by 2030.
Although Islamic finance will likely remain a relatively small segment compared to Uzbekistan’s overall banking industry, 2025 may be remembered as the year the country’s Islamic finance market truly began to take shape. With its first major players, growing customer base, measurable market data, and an anticipated dedicated legal framework, the sector is laying the foundation for what could become an increasingly important component of Uzbekistan’s financial landscape.
Source: Central Bank of the Republic of Uzbekistan
