MECHANISMS FOR INCREASING THE EFFECTIVENESS OF USING ISLAMIC FINANCE INSTRUMENTS IN SMALL BUSINESS DEVELOPMENT IN UZBEKISTAN
DOI:
https://doi.org/10.5281/zenodo.21324759Keywords:
small business, Islamic finance, murabaha, ijara, salam, musharaka, sukuk, financial inclusion, effectiveness mechanism, UzbekistanAbstract
The article examines mechanisms for increasing the effectiveness of using Islamic finance instruments
in small business development in Uzbekistan. While small business generates more than half of the country’s GDP, a
significant share of entrepreneurs remains outside conventional interest-based financing for religious reasons. The law
introducing Islamic banking, signed on 27 March 2026 and effective from 29 June 2026, created the legal basis for mobilising
this latent resource. Drawing on international reports (ICD–LSEG IFDI, GIFT), an analysis of national regulations, the
IMAN platform case study and a systemic approach, the paper assesses the fit between Islamic instruments (murabaha,
ijara, salam, musharaka, mudaraba, sukuk) and small-business needs and proposes a five-track organisational-economic
mechanism for raising effectiveness. The recommendations include a regulatory sandbox, Shariah-compliant analogues of
state support programmes, digital-native Islamic windows, a salam pilot for agriculture and small-denomination retail digital
sukuk.
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