The core idea

Islamic finance means handling money according to shariah. The point is not to "rename interest" but to earn from real trade, leasing or partnership — where there is an asset and shared risk. Transparent contracts, asset backing and risk sharing are useful guides for any investor.

Three prohibitions

  • Riba (interest). Money should not generate money by itself; a pre-agreed charge for using money is prohibited. Profit from trade, leasing or business participation is allowed.
  • Gharar (excessive uncertainty). Terms must be clear: what is sold, at what price, by when. You cannot sell what you do not own or hide conditions.
  • Maysir (gambling). Deals where the outcome depends on chance and one side's gain is the other's loss are prohibited.

Money also must not go into prohibited industries such as alcohol, gambling or tobacco.

Key contracts with examples

Murabaha — cost-plus sale

The bank buys an item at your request and sells it to you at a known markup, payable in instalments. The markup does not grow if you are late. Example: a car costs 200 million so'm; the bank buys it and sells it to you for 236 million over 24 months — about 9.83 million a month. The bank must actually own the car first.

Mudaraba — capital and labour

One side provides money, the other runs the business. Profit is split by a pre-agreed ratio, not a fixed amount; capital losses fall on the investor. Example: you invest 50 million so'm with a 60/40 split. If the business earns 10 million, you get 6 million; if it earns nothing, you get nothing.

Musharaka — joint partnership

Both sides invest and manage. Profit is split by agreement, losses by capital share. "Diminishing musharaka" is used for home purchase: the client gradually buys out the bank's share and pays rent on the rest.

Ijara — leasing

The bank buys an asset and leases it; in "ijara with purchase" the asset passes to the client at the end. While leased, the bank owns it and bears ownership risks.

Sukuk

Sukuk give holders a share in a specific asset or project, and income comes from that asset — for example, rent from a building — rather than from interest on a loan.

What is happening in Uzbekistan

  • On 27 March 2026 a law on introducing Islamic banking mechanisms was signed; it came into force at the end of June 2026.
  • Banks may carry out Islamic operations — including murabaha, mudaraba, musharaka, ijara, salam and wakala — through "Islamic windows" in conventional banks or through separate Islamic banks.
  • Licences are issued by the Central Bank.
  • A Council on Islamic Finance at the CBU develops standards, assesses products and advises banks; banks must also have their own councils.
  • The law sets special tax rules for Islamic operations.

Implementation is gradual, so check availability and terms with each bank. Before the law, halal products were offered mainly by non-bank organisations and fintech platforms under general civil law; Islamic banking rules do not automatically apply to them.

How to check a product is really shariah-compliant

  1. Is there a shariah board opinion with named members?
  2. What contract type is it — murabaha, ijara, mudaraba? A "halal loan" with no named contract deserves questions.
  3. Is there a real asset? If money simply lands on your card and the debt grows over time, it looks like a regular loan.
  4. How is investor income calculated? In mudaraba and musharaka, it is a share of profit, not a fixed percentage.
  5. What happens on late payment? Penalties should not become the financier's income; they are commonly given to charity.
  6. Standards. Many institutions follow AAOIFI, the international body that sets shariah and accounting standards for Islamic finance.

Risks: halal is not risk-free

Profit is not guaranteed — partnership contracts can lose money. A murabaha markup can cost as much as a conventional loan, so compare total payments. A "halal" label is not a contract. Fraudsters exploit religious trust: a fixed monthly "profit share" and recruitment bonuses are the same red flags. Check whether any guarantee applies to a specific product — a mudaraba investment account carries risk by nature.

Next step

Open the ONPUL investment products section, where halal products are listed with their contract model and the date terms were checked. Check any product against the six points above and remember that returns from partnership contracts are not guaranteed.