IDENTIFICATION AND MANAGEMENT OF RISKS IN ISLAMIC FINANCE IN THE REPUBLIC OF UZBEKISTAN

Аннотация

The importance of developing Islamic finance in the Republic of Uzbekistan is increasing in the context of international economic integration and globalization. The creation and development of financial institutions based on the principles of Islamic finance in our country, including Islamic banks and investment funds, play a crucial role in ensuring the stability and development of the national economy. In 2021, the total value of assets in global Islamic finance markets reached approximately $3.95 trillion. By 2026, the total value of assets in these markets is projected to reach $5.9 trillion, with an annual growth rate of 10-20%. The emergence of Islamic finance as a decisive component of economic changes in Uzbekistan is explained by the government’s efforts to modernize the financial sector and integrate advanced global experiences. The principles of Islamic finance, including the prohibition of interest (riba), risk-sharing, and the requirement to back transactions with real assets, distinguish it from traditional finance. However, these unique characteristics give rise to specific risks that need to be identified and managed effectively. These include compliance, operational, market, and liquidity risks. This thesis examines the identification and effective management methods of these risks.