The Islamic Corporation for the Development of the Private Sector (ICD) is seeking to channel up to $10 million into Uzbekistan’s private sector through a proposed Shariah-compliant financing facility targeting small and medium-sized enterprises (SMEs) and corporate businesses.
The initiative follows the signing of an Expression of Intent (EoI) between ICD, the private sector arm of the Islamic Development Bank (IsDB) Group, and Uzbekistan-based Joint Stock Company Open Bank in Jeddah, Saudi Arabia, on October 26, 2026.
Under the proposed arrangement, ICD intends to provide Open Bank with a Shariah-compliant Line of Financing (LoF) of up to $10 million, which the Uzbek financial institution would distribute to eligible private enterprises across the country.
The proposed facility is expected to expand access to financing for businesses, particularly SMEs, which play a significant role in employment generation, economic diversification and private sector development.
Open Bank, a privately owned digital financial institution licensed by the Central Bank of Uzbekistan, will act as the intermediary institution, connecting ICD funding to businesses seeking capital to expand their operations, invest in productive activities and create employment opportunities.
The partnership comes as Uzbekistan seeks to strengthen its private sector and broaden access to financial services for businesses, with SMEs remaining an important driver of economic activity and job creation.
Access to affordable and appropriate financing remains a major consideration for smaller businesses, which often face challenges securing capital to invest in equipment, technology, working capital and business expansion.
By working through a digital banking institution, ICD intends to improve the distribution of Shariah-compliant financing to eligible businesses while supporting greater participation in the formal financial system.
The proposed facility will operate in accordance with Islamic finance principles, providing an alternative financing channel for businesses seeking funding structured around Shariah requirements.
For Open Bank, the arrangement presents an opportunity to strengthen its SME financing portfolio and expand its capacity to serve businesses through digital banking services.
The institution’s role as a financial intermediary will be central to ensuring that resources reach eligible enterprises across Uzbekistan’s productive sectors.
The potential $10 million facility also reflects growing efforts by development finance institutions to mobilise capital through local financial institutions rather than relying exclusively on direct corporate lending.
Such arrangements can help broaden the reach of development financing by using established banking networks to identify, assess and finance businesses with growth potential.
ICD’s engagement with Open Bank forms part of its wider mandate to promote private sector development in member countries of the Islamic Development Bank Group through Shariah-compliant financial solutions.
The institution focuses on expanding investment opportunities, strengthening financial institutions and supporting businesses capable of contributing to sustainable economic development.
The proposed partnership is expected to contribute to job creation, SME growth and broader economic participation in Uzbekistan.
However, the Expression of Intent represents an initial step towards the potential financing arrangement, with the proposed facility subject to further development and the completion of the necessary processes before implementation.
If concluded, the partnership would strengthen the role of Islamic finance in mobilising resources for Uzbekistan’s private sector while providing businesses with an additional source of capital to support investment, expansion and employment generation.
