EXPLORING THE POTENTIAL OF ISLAMIC FINANCE FOR SME DEVELOPMENT IN UZBEKISTAN: A QUALITATIVE PERSPECTIVE

This study explores the potential of Islamic fnance as a viable alternative for small and medium enterprises
(SMEs) in Uzbekistan, a country where Islamic banking is not yet institutionalized. Using a qualitative approach based
on semi-structured interviews with 12 SME owners and 3 fnancial professionals, the research investigates perceptions,
ethical concerns, fnancial needs, and institutional readiness regarding Shariah-compliant fnancial instruments. Thematic
analysis revealed four major themes: ethical and religious alignment, limited fnancial accessibility, latent demand for
Islamic alternatives, and regulatory challenges. Findings indicate a strong interest among SME stakeholders in adopting
Islamic fnance due to its moral congruence and perceived fairness. However, widespread implementation is hindered
by legal, institutional, and informational gaps. The study concludes that, while signifcant barriers remain, Islamic fnance
has the potential to enhance fnancial inclusion and SME development in Uzbekistan if introduced through gradual, well
regulated, and context-sensitive reforms.