Uzbekistan Capital Market Bill With Sukuk Clears First Reading

Uzbekistan’s Legislative Chamber approved a draft Law on the Capital Market in its first reading on 28 July 2026, according to Kun.uz. The bill, which Trend.az reported runs 16 chapters and 123 articles, would create a legal basis for sukuk alongside several other new market instruments.

President Shavkat Mirziyoyev first announced plans for a sovereign sukuk program in a June 16 address to the fifth Tashkent International Investment Forum, Kun.uz reported. In a report published on 23 June, Trend.az said Mirziyoyev had reviewed a package of capital market reforms meant to accelerate the market’s development. The draft law, the same report said, would set out rules for issuing sukuk, among them agency-based, trade-based, lease-based and partnership-based structures. Trend.az also reported that the reform package brings in derivatives such as options, swaps, futures and forwards, and that over ten laws already on the books would need amending.

What the Draft Law Would Allow

Kun.uz reported the bill’s stated aims include strengthening investor protections, improving regulation of capital market infrastructure, enhancing corporate governance, and widening the market’s appeal to both domestic and foreign investors. Kun.uz also explained that sukuk are Sharia-compliant instruments which work like conventional bonds but are built on asset ownership or profit-sharing instead of interest.

If the bill is adopted, Kun.uz reported, Uzbekistan would allow circulation of sukuk alongside securitized bonds, covered bonds and sustainable development bonds. Trend.az reported separately that the reform package takes in mortgage-backed securities and covered bonds.

Islamic Finance Momentum Beyond the Bill

Sanjar Nosirov, the Central Bank of Uzbekistan’s deputy chairman, has announced a three-stage rollout of Islamic finance, according to Kursiv Uzbekistan. “Twelve non-governmental microfinance organisations currently offer Islamic financial services, with the volume of services growing fivefold over the past five years to reach $22 mln,” Nosirov said in remarks reported by Kursiv Uzbekistan.

Jan Cherim, managing director of SEAF, said financial institutions are reporting “rapidly growing interest in Sharia-compliant financing, particularly among small and medium-sized businesses,” Kursiv reported. Ramona Manescu, a former Romanian foreign minister, said attracting Gulf capital requires “strong political commitment and long-term strategic partnerships,” and described Uzbekistan as “a key transit hub connecting Central Asia, Asia and Europe,” according to the same report.

Uzbekistan’s Recent Sovereign Borrowing

Uzbekistan borrowed abroad on conventional terms earlier this year. In April 2026, the country placed the equivalent of $1 billion in three-year sovereign international bonds at a rate of 12.25 percent, the Ministry of Economy and Finance reported on gov.uz. That issuance was a conventional bond denominated in Uzbek soum, not a sukuk. Demand for the bonds reached roughly UZS 23.4 trillion, coming from nearly 50 foreign investors, gov.uz reported, and the ministry said the sale was CEEMEA’s largest local-currency transaction in over 15 years.

A Separate Track From Uzbekistan’s Banking Reforms

The capital markets bill sits on a different legislative track from Uzbekistan’s Islamic banking build-out. The Halal Times reported in July that Uzbekistan had finalized Islamic banking licensing rules for banks, and reported earlier the same month that the country’s central bank had set up an Islamic finance council. The capital market bill is a separate legislative instrument, and Kun.uz reported that if it’s adopted, new investment instruments would be allowed to circulate.

Trend.az reported that Mirziyoyev told the relevant agencies to keep talks going with international partners on the capital market bill, build market infrastructure to global standards, bring in new financial instruments, and boost professional training for the financial sector.

Frequently Asked Questions

What is Uzbekistan’s draft Law on the Capital Market?

It’s a bill the Legislative Chamber approved in its first reading on 28 July 2026, according to Kun.uz. Trend.az reported the draft runs 16 chapters and 123 articles and would set out rules for issuing sukuk, among other new financial instruments.

Has Uzbekistan legalized sukuk issuance yet?

No. The bill hadn’t been adopted as of Kun.uz’s 29 July report, which described a first-reading approval on 28 July 2026 and said that, if the bill is adopted, sukuk and other new investment instruments would be allowed to circulate.

Which new financial instruments would the law cover?

Trend.az reported the bill would set out rules for issuing sukuk, among them agency-based, trade-based, lease-based and partnership-based structures, while Kun.uz reported it would also enable covered bonds, securitized bonds and sustainable development bonds.

What has a central bank official said about Islamic microfinance volumes?

Sanjar Nosirov, the Central Bank of Uzbekistan’s deputy chairman, said in remarks reported by Kursiv Uzbekistan that “twelve non-governmental microfinance organisations currently offer Islamic financial services, with the volume of services growing fivefold over the past five years to reach $22 mln.”

Is the $1 billion bond Uzbekistan sold in April 2026 a sukuk?

No. The Ministry of Economy and Finance reported on gov.uz that Uzbekistan placed three-year sovereign international bonds worth the equivalent of $1 billion at a rate of 12.25 percent in April 2026. Those were conventional bonds denominated in Uzbek soum, not sukuk. Kun.uz reported that the draft capital market law would create the legal basis for issuing sukuk.