22.01.2023 International Scientific Journal "Science and Innovation". Series A. Volume 2 Issue 1
Abstract. Uzbekistan is a country in Central Asia with an emerging economy with great human capital, an openness to micro-investments, and a high encouragement of small and medium businesses. Small and medium enterprises represent 70 percent of the economic landscape and 78 percent of the employment rate in the country. However, small and medium size enterprises are facing many challenges such as the high interest rates and complicated loan requirements. Similarly, many Muslim citizens in Uzbekistan with a capital in hand, are facing difficulties in dealing with banks in terms of investment activities due to the interest rates involved. Therefore, this study attempts to explore the opportunities and to propose the necessary steps and procedures towards implementing an Islamic banking and finance system in the Republic of Uzbekistan. In order to do that, 7200 responses were collected from individuals, business enterprises and banks in the form of survey questionnaire to analyze their willingness to use Islamic Finance products and services. During the survey, which was conducted in the first half of this year with the cooperation and financial support of the UNDP office in Uzbekistan and Republican Training Center for Entrepreneurship Principles under the Chamber of Commerce and Industry of Uzbekistan it was found that the majority of individuals and companies, because of their religious belief, go for Islamic financial products, while bankers claim that the demand for Islamic financial services is strong as the country’s population is predominantly Muslims.
Keywords: Islamic Finance, Islamic Finance products and services, MSME sector
SCIENCE & INNOVATION