News
International Certification in Islamic Finance Launched in Uzbekistan
The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), one of the most influential international organizations in the field of Islamic finance, held its certification exams for the first time in Tashkent in September 2023. An agreement with AAOIFI on training, testing, and certification of specialists in Uzbekistan was signed in 2022.
Currently, the opportunity to take such exams is available in Tashkent only for the entire Central Asia region.
Draft Law on Introduction of Islamic Finance to Be Developed
President Shavkat Mirziyoyev approved a "road map" for the implementation of tasks set during the open dialogue with entrepreneurs in 2023, based on a decree signed on September 4 (https://kun.uz/86490868).
According to the document, a draft law on the introduction of Islamic finance will be developed by December 2023. It will provide for:
- creation of a legal framework for Islamic products, services, and banks;
- determination of the specific features of taxation for Islamic products and services, as well as the organizations providing them;
- protection of deposits introduced on the basis of Islamic finance.
Prestigious International Islamic Finance Organization Establishes Cooperation with Uzbekistan
The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) signed a cooperation agreement with Uzbekistan's "Islamic Business and Finance" enterprise. Within the framework of this agreement, training, testing, and certification of specialists in Uzbekistan can now be carried out based on AAOIFI international standards (norms).
The agreement was signed during the 20th anniversary conference of this prestigious organization, held on May 15-16, 2022, in Manama, the capital of Bahrain. According to the agreement, the center to be established in Uzbekistan will be engaged in training and organizing exams in the following areas of AAOIFI:
- Certified Islamic Professional Accountant (CIPA);
- Certified Shariah Advisor and Auditor (CSAA);
- Certificate in Proficiency in Financial Accounting Standards (CPFAS).
Additionally, the established center will be involved in presenting AAOIFI standards and publications in Uzbekistan, working with ministries and agencies, and organizing events on Islamic finance. The establishment of this cooperation will greatly assist in harmonizing the expected introduction of Islamic finance and banking in Uzbekistan with the global Islamic finance industry, as well as effectively cooperating with foreign Islamic banks, insurance (takaful) organizations, funds, and capital market participants.
Islamic Finance Could Attract up to $10 Billion Annually to Uzbekistan
Nearly 20% of Uzbekistan's population does not use conventional credit products for religious reasons, and the introduction of Islamic finance could attract up to $10 billion annually to the country, said Bahrom Numanov, Chairman of Apex Bank, at a financial forum in Tashkent. Zohid Alimov, Chairman of Hayat Bank, and international expert Khondamir Nusratkhodjaev noted that Islamic finance is distinguished by transparency, ethics, and fair distribution of risks.
A "Fintech, Banks, Retail" PLAS forum took place in Tashkent on June 21-22. One of the sessions was dedicated to Islamic finance in Central Asia and its prospects.
Khondamir Nusratkhodjaev, a member of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) board, called Islamic finance a "detox for the modern financial economy." He explained that the basis of Islamic finance lies in human dignity and the inviolability of property.
"In this system, credit must be interest-free, and financial risks must be distributed fairly. Such an approach provides financial inclusion to any secular country," he said.
He emphasized that it is precisely because of providing financial inclusion that Islamic finance is developing around the world.
Another Step Towards Islamic Finance: Islamic Development Bank Summit Concludes in Tashkent
The 46th annual meeting of the Board of Governors of the Islamic Development Bank (IsDB) was held on September 1–4, 2021, at the International Congress Center in Tashkent.
The meetings within the framework of the event were attended by 4,100 participants from member countries and 27 international and regional partner organizations.
At the summit, 30 financial agreements totaling $1.2 billion were signed between the IsDB Group and ten member countries. Of this, funds worth $330 million will be allocated for the benefit of Uzbekistan.