OPPORTUNITIES TO IMPLEMENT THE PRINCIPLES OF ISLAMIC FINANCE IN THE CONTEXT OF SOCIO-ECONOMIC REFORMS

Olim Astanakulov

DSc., Professor, International Islamic Academy of Uzbekistan

Head of “Islamic Economics and Finance” Department

Tashkent, Uzbekistan. Email: astanakulov@gmail.com

ORCID: 0000-0002-0536-1214 

Akhmadalieva Zulfizar

Master student, International Islamic Academy of Uzbekistan

Tashkent, Uzbekistan. Email: ahmadaliyeva22@gmail.com

ORCID: 0000-0003-3137-9933

Abstract. This article covers issues such as the structure of Islamic finance, its legal framework, development and analysis of the current situation, as well as the foundations of the Islamic economic model and its differences from the traditional economic model. It is well known that interest in Islamic banking in the Islamic financial system is increasing all over the world and that this system is widely used in Muslim countries as well as in other countries of the world. Furthermore, the Islamic financial system is a holistic system in which all financial activities are carried out within the framework of Islamic law, and the main focus in this system is on the fair distribution of both risks and profits among the participants of the business project.

It helps to ensure the circulation of money in the economy, to increase economic activity and to prevent the concentration of large amounts of money in the hands of certain small groups. In the provision of Islamic financial services, the relationship is directed immediately to real economic assets, the sharing of profit and loss between the parties, or the connection to a specific economic result based on trading practices is highlighted. In Islamic financial services, the financier and the recipient of funds become equal and mutually beneficial partners in the success and efficiency of the project. Actions in this regard are being carried out on a large scale in Uzbekistan. Actions in this regard are also being carried out on a large scale in Uzbekistan. Adoption of various decrees and resolutions on Islamic finance in recent years, as well as the work being implemented on the legislation, the projects being conducted in cooperation with the Islamic Development Bank and the organizations within its group, a number of trainings being organized on Islamic finance, the published literature can be shown as a practical confirmation of this. In particular, the study and analysis of the basics of Islamic finance, financial organizations and their structure, the peculiarities of Islamic banking are now gaining importance. Because this system is fundamentally different from the banking system in our country. In order to introduce it to our national economy, first of all, it is necessary to thoroughly understand the structure, main idea and principles of this system. Additionally, the basics of Islamic economy, types of contracts used by Islamic financial institutions, specific characteristics and criteria of Islamic finance in developed countries are presented.

Key words.  Islamic finance, Sharia, Islamic bank, Sharia Board, Islamic financial institute.

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