ISSUES OF INTRODUCING ISLAMIC FINANCE SERVICES IN UZBEKISTAN

Аннотация

This article analyzes the issues of introducing Islamic finance in the Republic of Uzbekistan. It highlights the need to diversify the country's financial system, the basic principles of Islamic finance and its advantages. It also discusses the main obstacles to the development of Islamic finance, including the lack of a legal and regulatory framework, the shortage of qualified specialists, and the population's insufficient awareness of Islamic finance. The author also provides recommendations on the infrastructure and products necessary for the development of Islamic finance. This article serves as an in-depth study of the opportunities and limitations of Islamic finance in the conditions of Uzbekistan. Keywords: Islamic finance, Islamic banking, Islamic economics, usury, Islamic jurisprudence, mudarabah, murabahah, musharaka. Any state or organization functions only if there are laws that regulate it. The set of laws and regulations that regulate the way of life of Muslims is Sharia. Sharia is a 1500-year-old spiritual, moral, legal and economic system. Islamic finance is an economic system based on these Sharia laws and regulations. The principles of Islamic finance were first used by the Arabs in the Arabian Peninsula in 622-661. Even the Prophet Muhammad (PBUH) traded using these principles before the revelation. At that time, riba [i.e., interest-based financial relations] was very widespread. Then Allah forbade riba, and after the revelation, Muhammad (PBUH) was the first to prohibit this relationship. Later, Islamic finance went through several stages and reached the present day. These laws have 4 sources: 1. The Holy Quran, which is considered the original and unchangeable source of religious knowledge. The Quran contains the revelations of Allah, conveyed through the angel Gabriel to the Prophet Muhammad S. A. W., and is a divine guidance for all humanity. 2. Hadith. A narration that describes the people of the Prophet Muhammad S. A. W. or the realities related to them, and forms the basis of the Sunnah of Muhammad S. A. W. 3. Ijma is a solution developed by reputable Islamic scholars for a specific issue or situation. In Islamic tradition, a person who has the right to draw conclusions independently of the Quran and Sunnah is called a “Mujtahid”. 4. Qiyas - the original meaning of this term is derived from the words measuring or 74 Acumen: International Journal of Multidisciplinary Research Acumen: International Journal of Multidisciplinary Research ISSN: 3060-4745 IF(Impact Factor)10.41 / 2024 Volume 2, Issue 1 comparing two things, Qiyas is the development of new solutions and rulings by mujtahids on complex and complex issues, based on the principles set forth in the Quran and hadiths. There are several transactions in Islamic finance, the main ones being: The first transaction is “sarf”. Sarf refers to the exchange of products with material value between the parties, such as dinars (gold), dirhams (silver) or their minted, ingot or other forms, and currently circulating monetary units (currencies). The second transaction is “murabaha”. Murabaha is a contract in which a seller or financial institution sells a product (such as equipment) to a buyer who has placed an order, with a certain margin agreed upon with the buyer, and then sells it to the buyer on the condition that it is paid in installments over a certain period of time. The third transaction is “mudaraba”. Mudaraba is a type of partnership agreement, in which the investor (rabb-ul-mal) allocates capital to conduct business activities in partnership with the manager (mudarib). In such a partnership, the business activity is fully managed by the mudarib. The profits made during the activity are divided in a pre-agreed ratio, and the losses are borne solely by the investor. The fourth transaction is “salam”. Salam is a transaction in which payment for the product is made immediately, and the product is delivered to the buyer later (in this case, the product being sold may or may not exist at the time of the transaction). The salam contract is more commonly used in agriculture. The fifth agreement is an “exception”. An exception, like salam, is a contract for the sale of a product that has not yet been produced. This contract provides that the manufacturer will manufacture the ordered product from its own raw materials. In order for this agreement to be legally binding, the price, quality and characteristics of the product to be produced must be clearly agreed upon between the parties. The sixth agreement is “musharaka” which is a property partnership between two or more parties, in which each partner invests a certain amount of money or property in a common business, and the profits made within the framework of this business are distributed, based on the agreement of the parties, in proportion to the share of each partner in the total investment. The difference between Islamic banks and conventional banks is that in Islamic banks: 1. In