Prospects of Islamic capital market in Uzbekistan: issues and challenges
International Journal of Islamic and Middle Eastern Finance and Management
ISSN: 1753-8394
Article publication date: 11 December 2023
Issue publication date: 16 January 2024
Abstract
Purpose
Despite its potential as an emerging market for Islamic financial services, Uzbekistan has lagged in legislative support. This study aims to evaluate the feasibility of introducing an Islamic capital market (ICM) in Uzbekistan, preceding a broader industry establishment.
Design/methodology/approach
The authors begin by assessing Islamic finance literacy and the potential demand for ICMs in Uzbekistan. The authors then scrutinize Uzbekistan’s capital market legislation and its readiness. This analysis uses primary data, including surveys and interviews, and secondary data from literature and financial legislation.
Findings
This study highlights a significant demand for ICMs, despite low Islamic finance awareness in Uzbekistan. Presently, Uzbekistan’s capital market development is lacking, with regulations not yet suitable for ICMs. As a result, legal and operational enhancements are needed.
Practical implications
The authors provide essential policy recommendations for authorities and practitioners to facilitate the effective launch of ICMs and enhance Uzbekistan’s capital market stature.
Originality/value
To the best of the authors’ knowledge, this is the first study offering an in-depth analysis of the potential and feasibility of ICMs in Uzbekistan.
Keywords
Acknowledgements
The authors would like to thank Prince Sultan University and the Finance and Economics Research Lab for their financial support.
Citation
Asadov, A., Turaboev, I. and Yildirim, R. (2024), "Prospects of Islamic capital market in Uzbekistan: issues and challenges", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 17 No. 1, pp. 102-123. https://doi.org/10.1108/IMEFM-04-2022-0145
Publisher
:Emerald Publishing Limited
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