TKBB and BFA sign MoU to support the development of islamic fınance in Uzbekistan

The MoU targets to establish a framework for cooperation in the field of Islamic finance by sharing the knowledge and expertise in order to promote the growth of Islamic banking activities in Uzbekistan. As per the agreement, TKBB and BFA will work together to organise common projects, summits, forums, conferences, seminars, webinars and other events related to the developments in Islamic banking and finance. The partnership also sets out to conduct joint training and exchange programmes, capacity building and publication activities, facilitate data, provide technical assistance, conduct mutually academic activities.

The agreement was signed by Mr. Ismail Vural, Secretary General of TKBB and Dr. Elmurod Khoshimov, Rector, Banking and Finance Academy (BFA).

On the occasion, Mr. Ismail said ‘’Considering the potential and capacity of the Uzbekistan in the field of Islamic finance, it is an important step for the establishment of Islamic /participation finance sector in the country and the collaboration between TKBB and BFA through this MoU presents an opportunity to explore areas of collaborations for both organizations in the field of Islamic finance. As highlighted at the signed MoU agreement, we aim to conduct joint initiatives such as certification programs, workshops, capacity building programs etc. with BFA to increase the awareness about Islamic finance products and services. It will also enable regular exchange of information and best practices between the two bodies and sharing 40-years’ experience of Türkiye in this field.

Meanwhile Dr. Elmurod said that ‘’There is significant interest in participation banking services in Uzbekistan. The government is exploring ways to tap into this potential within the country's financial market. In response to the President's initiative, as outlined in his Address to the Oliy Majlis on December 28, 2020, which emphasized the importance of establishing a legal framework for Islamic finance, the government has begun actively developing such a framework. Following the Address, the Law of the Republic of Uzbekistan NOQ-765, "On Credit Organizations and Micro-Financing Activities," was passed on April 20, 2022. Article 5 of this Law states that commercial banks are also authorized to provide services related to Islamic financing.’’

The partnership between TKBB and BFA aspires to encourage the development of the Islamic banking industry in Uzbekistan through the exchange of information and best practices, develops new Islamic banking products and services that meet the needs of the Uzbekistan market, provides high-quality, sophisticated and customized training and certification to the personnel of the Parties to enhance their skills and knowledge in the Islamic finance field. It will enable both parties to work together in increasing awareness about participation banking in the region in general and in Uzbekistan in specific by way of exchange of experiences about the financial sector. It also stimulate economic growth in both countries through collaborative initiatives that enable penetration of Islamic banking and provides opportunities to support real sector and customers with well-designed and value-oriented products and services.