Ipoteka bank OTP Group launches private banking in Uzbekistan

The Central Bank of Uzbekistan has issued the country's first license for conducting Islamic banking activities. This license was granted to Open Bank, according to the regulator's press service.

The decision to issue the license was made by the CB board on October 23, 2026 (No. 28/1). The bank has been assigned license No. 1-I, which grants it the right to conduct Islamic financial operations stipulated in Article 5-1 of the 'On Banks and Banking Activities' law. This license is the first of its kind in Uzbekistan after the necessary legislative framework for Islamic banking was established.

Open Bank already operates as a commercial bank. In September 2025, it changed its name from Smart Bank to Open Bank and reissued its banking license No. 89. Thanks to the new license, the bank will be able to develop Islamic financing parallel to traditional banking services.

Future Open Technology Group is the sole shareholder of Open Bank, owning all 500 million shares, with a nominal value of 500 billion soms. Previously, Komilkhodja Sultanov (10%) and Zafar Adilov (4.9%) were also involved in the bank. According to 2025 data, the main owner of the parent company was Investment Development-Textile, which is linked to Sherzod Tashpulov, Chairman of the Open Bank supervisory board.

According to iHamkor, updated in September 2026, the founders of Future Open Technology Group are Sherzod Tashpulov (95.16%) and Infovest Capital — FZCO (4.84%).

What Operations Can Open Bank Perform

The legal basis for implementing Islamic banking was created by the law of March 27, 2026, which came into effect on June 29. This document defines six key types of Islamic financial operations:

• Mudarabah is financing or attracting investment contributions with the condition of profit distribution among participants.
• Wakalah is providing or attracting funds based on an agency agreement.
• Murabaha is financing the purchase of goods by selling them to the client in installments with a pre-agreed markup.
• Salam is financing carried out through advance payment for goods followed by their delivery.
• Musharaka is joint project financing, partnership, or participation in the charter capital of companies.
• Ijara is providing property for Islamic lease, which may include subsequent redemption.

The legislation also permits other Islamic financial operations that comply with international banking practices and do not contradict Uzbek laws. It is important to note that unlike standard lending, Islamic financing uses mechanisms such as trade markups, rental payments, and profit sharing instead of interest loans, although this does not mean the financing is provided free of charge.

A separate license is required for a full-fledged Islamic bank or for opening an 'Islamic window' in an existing commercial bank. In the case of an 'Islamic window,' the bank can operate simultaneously with traditional and Islamic products but must maintain separate accounting for transactions, create a specialized department for Islamic finance, and appoint a council to monitor compliance with established standards.

Open Bank began preparing for the launch of Islamic banking back in June. Corporate information shows that Open Bank shareholders unanimously approved the introduction of Islamic banking activities at the Annual General Meeting on June 29, 2026. On the same day, the decision was made to establish an Islamic Finance Council, whose members are appointed for a three-year term. The bank's management was instructed to take steps to obtain a license from the Central Bank, and the composition of the council was planned to be submitted to the regulator for approval, with the provisions of its operation taking effect after receiving the necessary license.

In July, the Ministry of Justice amended the rules for licensing banking activities. These amendments established requirements for creating Islamic banks and opening 'Islamic windows,' including the need for a three-year business plan, risk management systems, and control over compliance with Islamic financial norms.

How Is Islamic Banking Being Implemented in Uzbekistan

The development of Islamic finance has become part of the process of reforming the banking system of Uzbekistan. In March 2026, President Shavkat Mirziyoyev reviewed proposals for integrating Islamic financial instruments. At that time, intentions were expressed to open at least one 'Islamic window' in a commercial bank by the end of the current year, and to create two full-fledged Islamic banks between 2026 and 2030.

It is projected that the development of this area will help attract approximately $1 billion in additional investments and deposits into the banking system over five years. Central Bank Chairman Timur Ishmetov previously stated that more than ten commercial banks have begun preparations to use Islamic financial instruments.

In June 2026, shareholders of several banks, including Agrobank, Asakabank, Ipak Yuli Bank, and Orient Finans Bank, also approved plans for developing Islamic financing. Before the introduction of special legislation, Islamic financing services in Uzbekistan were mainly provided by microfinance organizations or through agreements between banks and international Islamic financial institutions. The new regulatory framework allows banks to independently offer a wider range of such products, including attracting investment contributions that comply with Islamic financial standards.

The Central Bank of Uzbekistan has issued the country's first license authorizing Islamic banking activities. This decision opens prospects for conducting Islamic financing operations, which are stipulated in the republic's legislation.

License No. 1-I for conducting Islamic banking activities was issued to the joint-stock company Open bank. The regulator's press service reported this information. The issuance of the permit is based on the resolution of the Central Bank Board No. 28/1 dated October 23, 2026, making this document a first of its kind in the country.

This permit applies to Islamic financing operations regulated by Article 5¹ of the Law 'On Banks and Banking Activities,' with such operations being governed by additional regulatory acts.

Within the regulator, there is also a Council for Islamic Finance. Its task is to coordinate the development of Islamic finance and form unified standards for banks, microfinance organizations, and other institutions operating according to Islamic principles. The Central Bank also reminds that before using client services, one should verify the presence of necessary licenses for financial structures on the official portal of the Central Bank.

The Central Bank of Uzbekistan has made changes to the regulations governing bank accounts of business owners undergoing bankruptcy proceedings. Special accounts will now be created for such entrepreneurs, allowing control over funds during rehabilitation, external management, or company liquidation.

In accordance with the updated norms, all transactions on primary and supplementary accounts are temporarily suspended, and funds are transferred to this new special account. Access to these funds is possible only based on a payment order from the client themselves or the appointed judicial manager.

These regulatory steps are aimed at optimizing banking processes and supporting entrepreneurs facing financial difficulties by providing them with the opportunity to maintain financial control and resume their activities.

The changes also affect ordinary citizens. Now, any citizen can request information about all their bank accounts in any bank, not just the one where the main account is held. Furthermore, when opening an account, it is now possible to use a biometric passport for international travel.

Additionally, it should be noted that the procedure for blocking taxpayers' accounts in Uzbekistan has been adjusted: if an entrepreneur disagrees with the decision of the tax authority, they have the right to file an objection, which the court must review within three days.