ISLAMIC FINANCE DEVELOPMENT IN UZBEKISTAN: A COMPARATIVE BENCHMARK STUDY WITH LESSONS FROM MALAYSIA

Abstract

This article examines the development potential of Islamic finance in Uzbekistan through a comparative benchmark with Malaysia. The study combines survey evidence from Uzbek SMEs with semistructured interviews conducted with institutional stakeholders. The quantitative analysis identifies a strong intention to use interest-free finance and significant associations with debt pressure, knowledge, trust, and perceived business vulnerability. The qualitative evidence indicates that the principal constraints are concentrated on the supply side, particularly in relation to funding sources, regulatory clarity, and institutional capacity. Malaysia is used as an adaptive benchmark rather than as a model for direct replication, given that its system combines legal certainty, tax neutrality, and ecosystem-based sequencing. The scientific contribution of the study lies in integrating demand-side and supply-side evidence into a phased, governance-led development framework for Uzbekistan. The findings support gradual implementation, beginning with operationally simpler asset-based instruments and progressing toward more complex risk-sharing and capital-market products as institutional capacity develops.