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The Islamic financial system began its development in the early 1970s, and by 2026 the value of global Islamic financial market assets reached $6tn. According to the Annual State of the Global Islamic Economy (SGIE) Report, the average growth rate of assets in Islamic finance has been increasing at 5.5% per annum.
For decades, Qatar has built one of the world’s most sophisticated Islamic financial ecosystems. With $190bn in assets and a compound annual growth rate of 6.4%, the country is positioning itself as a global hub for Islamic banking, underpinned by a strong regulatory framework and the authorities’ sustained commitment to sectoral development.
Under the visionary leadership of HH the Amir Sheikh Tamim bin Hamad al-Thani, Qatar has been playing a significant role in regional and global Islamic finance industries, leveraging its strong financial infrastructure and strategic initiatives to promote development and innovation. Qatar’s prosperous Islamic finance industry makes up 27% of total financial system assets, hosting two of the region’s largest Islamic banks. Economic growth and diversification have been strong drivers of expansion. With a boost from hosting the FIFA World Cup in 2022, Qatar’s diversification efforts have significantly shifted its economic structure, with non-oil sectors contributing 64% to real GDP by Q3 2024, a rapid rise from 39% in 2013. The financial sector’s contribution also rose, from 5% to 8% of real GDP, according to the Qatar Islamic Finance Report 2025.
The Third Financial Sector Strategic Plan, launched by the Qatar Central Bank in 2023, places strong emphasis on Islamic finance across four central pillars: banking, insurance, digital finance, and capital markets. Qatar ranks sixth globally in Islamic fintech by market size, with projections of $4.8bn by 2029. Recent recognition of Qatar Islamic Bank as a regional leader in SME banking further underscores the quality of its institutions.
These achievements are underpinned by the strategic role of the Qatar Financial Centre (QFC) in shaping a supportive environment for Islamic finance. QFC’s business-friendly environment and common-law legal framework have attracted leading Islamic banks and fintechs. Thanks to these advantages and proactive initiatives such as fintech incubators and regulatory sandboxes, Qatar has been ranked among the top global hubs for Islamic finance, while QFC is among the top 10 global fintech hubs for Islamic finance.
This environment of sustained achievement forms a compelling backdrop for the historic development now unfolding in Uzbekistan — one that warrants Qatar’s close attention.
Uzbekistan opens a new chapter
By the initiative of President Shavkat Mirziyoyev, Uzbekistan reached a milestone by officially adopting a comprehensive Islamic banking law in March 2026 (No LRU-1126, dated 27.03.2026), establishing its first legal framework for Shariah-compliant finance. Developed by the Central Bank of Uzbekistan with the participation of domestic and international experts, the law incorporates international standards and best practices.
The reform unlocks a large, untapped segment of Muslim household savings while positioning Uzbekistan to attract significant capital flows from Islamic financial markets across the GCC and Southeast Asia. As an Islamic Development Bank report notes, Uzbekistan’s young, digitally native population makes it a natural market for Islamic fintech — and a dual-track strategy of regulatory reform and digital infrastructure could enable it to leapfrog more mature markets.
Uzbekistan Strategy 2030 provides a robust foundation for these aspirations. At least one Islamic commercial bank will be established in 2026, with two more planned for 2026–2030. The strategy is expected to attract an additional $1bn in investments and deposits by 2030. The Tashkent International Financial Centre (TIFC), now under establishment, is projected to attract $20bn–$25bn by 2030, add up to 1% to annual GDP growth, create 15,000 skilled jobs, and train 10,000 professionals. According to Islamic Development Bank reports, introducing Islamic finance in Uzbekistan will attract about $10bn in investment and create more than 100,000 jobs.
Islamic banking in Uzbekistan now encompasses various financial instruments adhering to Shariah principles, including sukuk, which offer an alternative investment option emphasising asset-backed financing and profit-and-loss sharing arrangements. A key driver behind adoption is the aim to promote financial inclusion, catering to individuals and businesses with religious or ethical preferences for interest-free banking.
The legislation amends the Tax Code, Civil Code, and seven other laws, while formally introducing concepts including Islamic banking activities, Islamic financial operations, financial standards, and investment deposits. It introduces the full suite of core Islamic instruments — from mudarabah (profit-sharing partnerships) to murabaha (deferred-sale financing) — giving Uzbekistan a complete toolkit from day one. New instruments including sukuk, Islamic PPP financing, and musharaka joint venture structures align Uzbekistan with centres such as Qatar, Saudi Arabia, UAE, Malaysia, and Indonesia.
Prospects for Qatar-Uzbekistan initiatives
By merging Qatar’s robust financial resources and international networks with Uzbekistan’s expanding digital market and youthful, skilled workforce, the two countries can create fertile ground for collaboration. Potential areas include:
1. Uzbek-Qatari Islamic Digital Bank. Licensed under Uzbekistan’s new Islamic banking law and built with modern fintech tools — mobile apps, AI-driven credit scoring, blockchain-based sukuk issuance, and embedded finance. Qatar’s Islamic banking sector is led by world-class institutions like Qatar Islamic Bank and Qatar International Islamic Bank, and its fintech ecosystem is highly advanced.
The Qatar Investment Authority and banks could provide funding and digital infrastructure, while Uzbek regulators offer incentives including VAT and tax exemptions on Islamic products, plus access to Uzbekistan’s 38mn-plus largely Muslim population. The venture would mobilise dormant domestic savings and attract at least $1bn in foreign Islamic investment as envisioned by Uzbekistan’s roadmap.
The joint bank might use a turnkey digital core and fast licensing via the TIFC, launching with basic Shariah products and quickly adding fintech-enabled services such as Islamic digital wallets, online takaful, and robo-advisors for halal portfolios. Qatar’s fintech hub and QFC Innovation Dome, with experience incubating Islamic fintechs, could help integrate these technologies.
2. Strategic Partnership between TIFC and QFC. Under this agreement, the centres would exchange expertise, harmonise regulations, and jointly promote Islamic fintech. QFC offers 100% foreign ownership, fast licensing, fintech sandboxes and common-law regulations that have attracted global fintechs; TIFC could adapt these frameworks. Conversely, TIFC offers QFC a foothold into Central Asia. The partnership might create a joint Islamic Fintech Innovation Lab or co-host an annual GCC-Central Asia Islamic finance forum.
The centres could cooperate on regulatory capacity-building, with Qatar’s regulators sharing experience in setting up Shariah governance and digital banking rules; cross-listing of firms, with QFC-based Islamic fintechs fast-tracked into TIFC markets and Uzbek fintechs setting up in QFC to raise Gulf capital; and joint training programmes for Uzbek bankers in Islamic finance and Qatari experts in Central Asian markets.
3. Qatar-Uzbekistan Islamic Investment Platform. A dedicated platform focused on channelling Qatari capital into high-impact sectors of Uzbekistan’s economy through Shariah-compliant instruments. Jointly managed by sovereign or semi-sovereign entities, it would utilise Qatar’s vast financial resources to fund infrastructure, agriculture, energy, and SME development projects. Structured through sukuk, private equity, and Islamic venture capital funds, the platform would ensure profitability and adherence to ethical investment principles.
Central Asia can become a promising destination for Qatari capital within Doha’s policy of diversifying its investment portfolio. Inspired by successful cross-border initiatives in Southeast Asia and the Gulf, the platform would symbolise Qatar’s role as a catalyst for inclusive growth, serving as a long-term financial bridge between the two nations and deepening strategic ties across the Islamic world.
Conclusion
Qatar’s remarkable expertise in Islamic finance and Uzbekistan’s forward-looking reforms form a powerful synergy that promises to redefine regional financial collaboration. As Uzbekistan opens its doors to Shariah-compliant innovation, Qatar stands as an exemplary partner — offering visionary leadership, capital strength, and global networks. Together, the two nations can build a dynamic bridge of shared prosperity, driving inclusive growth and advancing the Islamic banking frontier across Central Asia and beyond.
- The writer is a Legal Specialist.
