Tashkent, Uzbekistan (UzDaily.com) — A meeting was held at Uzbekistan’s embassy in Kuala Lumpur with Saiful Bahri bin Saroni, chief consultant of the Malaysian company Strategic Horizon Management System, and Idrus bin Mat Nayan, director of Abkari Risk Management, Dunyo news agency said.

During the meeting, the Malaysian side presented a detailed overview of the Malaysian takaful system of Islamic insurance and discussed the potential for its implementation in Uzbekistan.

Saiful Bahri highlighted the growing interest in Islamic financial services among Uzbek entrepreneurs, suggesting a significant potential for the development of Islamic insurance in the country. The experts proposed a phased introduction of takaful services in private insurance companies in Uzbekistan. Initially, certain takaful services are expected to be launched within state insurance companies.

The Malaysian delegation also expressed an intention to collaborate with prominent Malaysian insurance companies such as Syarikat Takaful Malaysia Bhd., Takaful Ikhlas Sdn. Bhd., and ETIQA Takaful Bhd., which are government-owned entities in Malaysia.

It’s noteworthy that Malaysia began developing its Islamic insurance ecosystem in 1982, and in 1984, the Takaful Act was passed, allowing the establishment of the first state-run Islamic insurance company.

The key difference between takaful and traditional insurance lies in the creation of a special fund into which participants contribute. These funds are used to cover participants’ losses, and any remaining balance can either be distributed among participants or reserved for future use.