THE ROLE OF ISLAMIC FINANCE IN PROMOTING FINANCIAL INCLUSION IN UZBEKISTAN

Аннотация

Islamic finance is getting to be increasingly prevalent all through the world as a workable substitute monetary framework that regards the ethical and devout feelings of Muslims. Islamicbanking offers a calculated chance to make strides in monetary incorporation in countries like Uzbekistan, where a sizable area of the people is still unbanked and abused by customary money-related education. The potential commitment of Islamic funds to growing Uzbekistan's access to monetary administrations is inspected in this exposition. Employing a desk-based technique, the ponder analyzes current investigations, develops controls, and hones worldwide best practices. It highlights vital issues like regulation capability, open numbness, and limited legitimatesystems. It moreover draws consideration to potential, such as growing political backing, intrigue from universal financial specialists, and developing open requests. The creation of a money-related foundation that complies with Sharia law, administrative changes, and open mindfulness activities are afew ofthearrangement thoughts. Keywords: islamic finance, financial inclusion, financial development, Islamic microfinance, islamicart, Muslims. 1.Introduction Oneof themost powerful powers behind financial development is monetary consideration, or the accessibility and utilization of formal money-related administrations by both people and undertakings. Uzbekistan still has challenges coming to unbanked populations in spite of headways in money-related segment changes, particularly in country districts and among people who have devout sensitivities to conventional interest-based budgetary items (World Bank, 2022). Sharia-based money-related items, including risk-sharing, interest prohibition (riba), and instability shirking (gharar), are given by Islamic funds (El-Gamal, 2006). Muslim communities trying to find ethically sound financing may discover it engaging since it incorporates a variety of instruments like Ijara (rent), Murabaha (cost-plus financing), and Mudarabah (profit-sharing) (Ali, 2011). This exposition investigates what vital measures are required for the development of Islamic banking and how it seems to offer assistance to Uzbekistan in accomplishing its objective of expandingbudgetary consideration. https://ijmri.de/index.php/jmsi volume 4,issue5,2025 21 2.Literature Review Islamic banking has extended rapidly on a worldwide scale, with resources surpassing USD 3 trillion by 2022 (IFSB, 2023). With noteworthy authoritative backing and public-private participation, countries such as Malaysia, Indonesia, and the joined-together Middle Eastern Emirates have viably joined Islamic back into their standard budgetary frameworks (Zin et al., 2020). Islamic back and monetary consideration: Islamic funds have appeared to be valuable instruments for budgetary consideration, especially in regions with a larger part of Muslims. The IMF (2021) claims that Islamic microfinance organizations have played a noteworthy part in making a difference in low-income and rustic communities in countries like Bangladesh and Sudan. Obstacles in Creating Markets: In numerous creating countries, Islamic banking experiences troubles in spite of its potential because of hazy directions, a need for Sharia administration, lacking itemadvancement, and lowclient mindfulness(Obaidullah and Khan, 2008). Setting of Uzbekistan: With the assistance of collaborations with the Islamic Development Bank (IsDB) and eagerness to order laws relating to Islamic managing an account, Uzbekistan has illustrated an expanding interest in Islamic finance (IsDB, 2022). Be that as it may, ordinary banks proceed to overwhelm its money-related division, advertising a little determination of Islamicitems. 3.Methodology This considered utilizing a desk-based, subjective technique, looking at auxiliary information from: Distributionsfrom organizations that give Islamicmoney WorldBank, IMF, and Islamic Development Bank reports Thelawful and established establishments ofUzbekistan Advertise, investigate, and academicdistributions. The analysis's fundamental objectives are to pinpoint the impediments that must be evacuated and the potential commitment Islamic funds might make to extending access to monetary administrations. 4.FindingsandDiscussion 4.1IslamicFinance's Potential for Money-Related Consideration The majority-Muslim populace of Uzbekistan can have their devout inclinations obliged by means of Islamic money-related administrations. Little undertakings and clients in need of financing that acclimates with Islamic standards might advantage significantly from items likeMurabaha and Ijara (Ali, 2011). Also, Islamic microfinance can give ethically sound and comprehensive substitutes for conventional advances, especially for lady agriculturists, casual specialists, and trade proprietors. (IFSB, 2023). https://ijmri.de/index.php/jmsi volume 4,issue5,2025 22 4.2TheShowCircumstance ofUzbekistan's IslamicFund In Uzbeki