LocationsUNDP in cooperation with the Islamic Development Bank supports the Government of Uzbekistan in developing the Waqf system in the country.
Strengthening Waqf as a Tool for Social and Economic Development in Uzbekistan
August 5, 2026
Photo: UNDP Uzbekistan
Tashkent, August 3, 2026 – UNDP jointly with the Committee on Religious Affairs of the Republic of Uzbekistan and the Islamic Development Bank organized a round table dedicated to the presentation and discussion of the findings and recommendations of the Concept paper on Introduction of Waqf System in Uzbekistan developed by a team of UNDP experts. This event was a first of its kind, marking an important milestone in discussing the strategic approaches towards further development and scaling the Waqf institution in the country. It was attended by more than 40 representatives of key stakeholders including the National Agency for Social Protection under the President’s Administration, National Agency for Perspective Projects, Muslims Board of Uzbekistan, “Vaqf” Public Charity Foundation, Ministry of Economy and Finance, Central Bank, Ministry of Justice, Ministry of Culture, Tax Committee, Chamber of Commerce and Industry, International Islamic Academy, Tashkent Islam Institute, and others.
In recent years, the Government of Uzbekistan has been demonstrating its strong interest and commitment to introduce Islamic Finance in the country. In this context, a Law of the Republic of Uzbekistan “On introducing amendments and additions to certain legislative acts aimed at the introduction of Islamic banking in Uzbekistan” was adopted and enforced in June 2026. Currently, the Law “On Capital Market” that contains specific Chapters on Islamic Sukuk securities is in the process of review and deliberation at the Oliy Majlis of Uzbekistan.
The topic of the event was dedicated to another important instrument that is a type of Islamic Social Finance. The Waqf has historically functioned as a key institutional mechanism for social welfare and community development, enabling the allocation of privately held assets for enduring public benefit. Across Islamic history, waqf endowments financed major social institutions and public infrastructure that served communities for centuries.
"Historically Waqf has been a powerful tool for community development and social support. A well-managed Waqf system could offer long-term solutions to poverty reduction rather than a short-term relief, as well as helping us to fund vital sectors like health, education, and housing. By learning from international successes and addressing our own local challenges, we are building a clear roadmap for Uzbekistan's sustainable future," said Akiko Fujii, UNDP Resident Representative in Uzbekistan.
As a form of endowment, waqf supports long-term and sustainable financing for social, educational, and charitable purposes. In contemporary settings, it is increasingly recognized as a complementary mechanism that can contribute to sustainable development, particularly in contexts where public resources alone may not be sufficient.
Waqf resources today represent a considerable pool of wealth with significant potential for development impact. According to a collaborative report by the World Bank, the International Centre for Education in Islamic Finance (INCEIF), and the International Shari’ah Research Academy for Islamic Finance (ISRA), the global value of waqf assets is estimated between USD 100 billion and USD 1 trillion. In Uzbekistan, the potential role of waqf is closely linked to national development priorities, including poverty reduction, human capital development, and improved access to essential services.
The main objective of the round table was to present and discuss a Concept paper on the introduction of the Waqf system in Uzbekistan that provided a comprehensive analysis of international good practices, identified key legal, institutional, and fiscal constraints affecting waqf development, and proposed an implementation-oriented framework aligned with Uzbekistan’s national development priorities.
During the presentation, the UNDP experts pointed out that Uzbekistan has undertaken substantial steps towards promotion of Waqf in the country, and for this purpose a specific “Vaqf” Public Charity Foundation was established in 2018. However, the existing legislature doesn’t provide a proper legal and regulatory framework for efficient and full-scale functioning of a Waqf system. There is a need for a dedicated law to guarantee the rights of the Waqf founders and beneficiaries, as well as to regulate Waqf-related issues. In countries with well-developed Waqf systems, specialized independent bodies are established to oversee, manage and coordinate waqf-related matters. Uzbekistan would also benefit from such an institution. Additionally, relevant financial and tax incentives are required to encourage people to establish Waqf.
Throughout the discussion the participants provided their comments and recommendations to the Concept paper as well as exchanged their views on key points including taxation issues, importance of awareness rising and capacity development of the government, private sector and public on Waqf principles, forms and features. They also emphasized that waqf should not be viewed solely from a religious perspective but also should be considered as an efficient tool with a potential to contribute to sustainable development.
Overall, the round table offered a unique opportunity for key stakeholders to share their views and recommendations towards developing a proper legal, regulatory, and institutional framework for introducing a structured Waqf system in Uzbekistan.
The event was organized within the framework of UNDP’s joint initiative with the Committee on Religious Affairs of Uzbekistan and the Islamic Development Bank on “Developing the Enabling Environment for AWQAF in Uzbekistan,” which has been implemented since 2025 and aims to develop the relevant legislative, institutional, and regulatory framework as well as strengthen government capacities in this area.
