Uzbekistan’s financial sector is on the verge of a significant development as plans emerge to establish a new commercial bank in the country. This was announced by the press service of the Ministry of Investments, Industry and Trade of Uzbekistan.
On November 28, Minister Laziz Kudratov held talks with the CEO of the UzOman, Omar Bahram. The meeting focused on expanding bilateral cooperation in the financial sector, with particular attention given to the initiative to establish a new bank in Uzbekistan together with foreign partners.
During the discussions, the parties thoroughly reviewed:
- organizational arrangements,
- regulatory requirements,
- and the importance of a consistent and well-structured approach to each stage of the project.
Brief overview of UzOman
According to official records, UzOman was registered in February 2010 with an authorized capital of $256 million. The company specializes in market research and investment analysis. Its shareholders include Oman’s Investment Authority (75%) and the Fund for Reconstruction and Development of Uzbekistan (25%). The company is headed by Omar Bahram.
Banking sector and the future of Islamic Finance
At present, 35 traditional banks and one microfinance bank operate in Uzbekistan. Recently, the Legislative Chamber of the Oliy Majlis approved a draft law on Islamic banking, which has now been forwarded to the Senate for consideration.
Meanwhile, Deputy Chairman of the Central Bank of Uzbekistan, Abrorkhodja Turdaliev, stated that up to 10 Islamic banks are expected to be established in the country by 2030. In addition, three state-owned banks are set to introduce so-called “Islamic windows”, allowing Islamic financial services to operate within conventional banking institutions.
The regulator sees Islamic finance as an alternative and effective tool for channeling funds from the shadow economy into the formal banking system.
Foreign investors show growing interest
Interest in establishing a new Islamic bank in Uzbekistan has also been expressed by the Noor Financial Investment Company. This further underscores the growing international attractiveness of Uzbekistan’s banking and financial market.
