Sobirov Askarbek Ozodovich
Chief specialist at JSCB “Uzbek Industrial and Construction Bank”, Tashkent, Uzbekistan
E-mail:asqarbeksobirov@gmail.com
ORCID: 0000-0002-2327-6670
Abstract. Today, Islamic banking has become an important and integral part of the global financial market. The development of this sector around the world is reflected in its growing market share and the growing number of institutions and initiatives in the field. However, the lack of a legal framework and a strong financial infrastructure in our country hinders the development of this sector. Currently, some work is being done in Uzbekistan to create a legal framework for the Islamic banking and to open Islamic windows in several commercial banks. However, so far, the country does not have a strategy for the development of Islamic finance, which reflects the main priorities and tasks for the introduction of full-fledged Islamic banking, which allows the practical application of Islamic financial instruments as an alternative to traditional banking. Risky financial instruments such as Mudaraba and Musharaka have not been used by commercial banks in Uzbekistan. Therefore, today, the issue of improving the practice of the introduction and development of Islamic banking in Uzbekistan is one of the most urgent and promising tasks. This article analyzes the essence of Islamic banking, the scientific and theoretical basis, the means of financing used by Islamic banks, the experience of foreign countries in the introduction and development of Islamic banking, and the analysis of the Islamic Development Bank and its groups in Uzbekistan; problems in the introduction of Islamic banking in Uzbekistan; and improving the practice of developing Islamic banking in Uzbekistan. The article also contains suggestions and recommendations on the introduction and development of Islamic banking in our country. Research methodologies such as descriptive statistics, grouping, comparative analysis, dynamic analysis, and SWOT[1]analysis were used as research methodologies. At the end of the article, the stages are developed that reflect the main directions of the introduction and development of Islamic banking, based on foreign experience in the introduction and development of Islamic finance.
Key words: Islamic banking, traditional banking, Uzbekistan, Islamic Development Bank, Islamic financial intermediation