Tashkent, Uzbekistan (UzDaily.com) -- The development of Islamic finance as an alternative financial model for achieving the Sustainable Development Goals (SDGs) in Uzbekistan has united three players in the international and local markets by signing a Statement of Intent between the Agency for development of the capital market of the Republic of Uzbekistan, the UN Development Program and the Islamic Development Bank.

On 16 July 2020, the process of signing this agreement in the format of an online conference was completed, within the framework of which the parties confirmed their commitment to the SDGs and further joint efforts in the development of the financial market of Uzbekistan.

“The agency is firmly committed to the SDG agenda and the development of new financial instruments, in particular the Sukuk bonds to bridge the gap in achieving national sustainable development goals in Uzbekistan,” said Atabek Nazirov, Director of the Capital Market Development Agency.

“Uzbekistan, along with other countries of the world, is going through difficult times due to the pandemic. Against this backdrop, the Uzbek government is adept at providing support and developing long-term recovery and recovery strategies. This promising approach can be seen in the Agency's intention to accelerate the development of new, alternative financing instruments. Efforts to create favorable conditions for the introduction of green sukuk in Uzbekistan are highly commendable, UNDP is ready to cooperate in this direction and support the process of its implementation,” summarized Ms. Matilda Dimovska, UNDP Resident Representative in Uzbekistan during the online signing ceremony agreement.

As the Vice-President of the Islamic Development Bank for Country Programs, Mr. Mansur Mukhtar, noted: “Our bank is pleased to support the initiatives of Uzbekistan on the way to expanding financial opportunities for the development of the country.”

This agreement will help create the necessary foundation for the securities market in Uzbekistan. The joint cooperation will help develop a legal and institutional framework for the introduction of a new financial instrument and take the next steps already for the release of an Islamic financial product in 2021.