Uzbekistan permits microfinance institutions to offer Islamic finance services

The Central Bank of Uzbekistan has approved a regulation which will enable microfinance institutions (MFIs) to offer Islamic finance services.

The guidelines provide a framework for the organizations to engage in various Islamic finance activities that are in compliance with regulatory standards, news agency Daryo reported. 

MFIs are authorized to offer the Shariah-compliant products including Mudarabah, Murabaha, Musharakah, and Islamic leasing.

The institutions must establish a board comprising a minimum of five members responsible for overseeing Islamic finance operations. The board members should be certified in Islamic finance, with at least one holding a higher education degree in Islamic law.