This research paper has been complied by Abhishek Thommandru, Abdumukhtor Rakhmanov, Shokhrukhbek Tillaboev and Varda Mone. It explores the historical trajectories and modern dynamics of Islamic financial law in Central Asia, a region characterised by a rich tapestry of cultural influences and a predominantly Muslim population. The paper traces the evolution of Islamic finance from its roots in Sharia principles, such as the avoidance of riba, gharar, and maysir, to its current sophisticated framework that promotes equity, transparency, and social welfare. The unique blend of traditional practices and modern regulations in Central Asian Islamic financial jurisprudence is examined, along with the factors driving the industry's growth, including increasing awareness, regulatory support, and integration with global markets.

The paper also delves into the key principles underpinning Islamic financial institutions, such as the prohibition of interest, risk-sharing, and asset-backed financing, and discusses the progress made by Central Asian countries in establishing regulatory frameworks, Shariah compliance oversight, and legal infrastructure. The development of Islamic banking practices, capital markets and takaful in the region is also explored, highlighting the availability of Sharia-compliant products and services. However, the challenges of harmonising Islamic and conventional laws, ensuring consistent Shariah interpretation, and establishing effective dispute resolution mechanisms are also addressed.

The economic impact of Islamic finance in promoting financial inclusion, attracting investments, and fostering stability is also analysed, along with the influence of cultural considerations, social welfare, and ethical investing on the acceptance and growth of Islamic finance in Central Asia. Case studies from Kazakhstan, Uzbekistan, and Tajikistan are presented to illustrate successful implementation strategies. The paper concludes by emphasising the potential for Islamic finance to drive sustainable economic development in Central Asia and the need for ongoing research, collaboration, and policy support to navigate the complex dynamics of this evolving field. The findings contribute to a deeper understanding of the historical trajectories and modern dynamics of Islamic financial law in Central Asia, providing valuable insights for policymakers, practitioners, and researchers in this rapidly growing sector.

This paper examines the historical development and contemporary landscape of Islamic financial law in Central Asia. Rooted in Sharia principles such as avoiding riba (usury), gharar (uncertainty), and maysir (gambling), Islamic finance has evolved into a sophisticated framework that promotes equity, transparency, and social welfare. In Central Asia, a predominantly Muslim region shaped by diverse cultural influences, Islamic financial jurisprudence reflects a unique blend of traditional practices and modern regulations. The growth of Islamic finance in this region is driven by increasing awareness, regulatory support, and integration with global markets. Key principles like the prohibition of interest, risk-sharing, and asset-backed financing underpin the operations of Islamic financial institutions.

Case studies from Kazakhstan, Uzbekistan, and Tajikistan illustrate successful implementation strategies. The paper concludes by emphasizing the potential for Islamic finance to drive sustainable economic development in Central Asia and the need for ongoing research, collaboration, and policy support to navigate the complex dynamics of this evolving field.

Islamic banks create an interest in their own right as a rising branch infinancial intermediation, particularly in the post-crisis era. In addition, theyalso deserve the attention of students of Islamism due to their possibleconnection with Islamic movements. Through a comparison of Islamic andconventional banking, we analyze the motivations and behavior of Islamiceconomic actors who determine the cash flow to Islamic banks. Our findingssuggest that, in contrast to popular views that portray these actors asideologues or financiers of radical Islam, they have pragmatic motivations andmay adapt to liberal systems in order to seize economic incentives.

Islamic finance has been growing significantly across the globe. In Southeast Asia, interest in Islamic finance and its growth is significant in Malaysia. Compared with Malaysia, in Indonesia, however, the largest Muslim population country where an Islamic resurgence has been widely taking place, the growth of Islamic banks remains slower and on a smaller scale. Furthermore, recent research shows that Islamic piety does not systematically translate into the use of Islamic banks among middle-class Indonesians. Against these findings, this article highlights a relatively understudied Islamic finance institution, Islamic Savings and Credit Cooperatives, in Indonesia commonly known as Baitul Maal wat Tamwil (BMT). The BMT sector is separate from the banking sector and as such has received little scholarly attention as part of Islamic finance in Indonesia. The number of the BMTs in Indonesia has increased significantly since the 1990s and they are grass-roots Islamic financial institutions offering financial services to relatively small-scale traders in urban areas. Based on data from anthropological research in Central Java, this article argues that Islamic propagation is an important element among the BMT founders and workers. They perceive their economic activities as Islamic propagation by deeds (dakwah bil hal) to achieve social justice.

Recent events and trends have led to an increased awareness of the importance of Islamic law and a more widespread interest in the subject. However, many areas remain inaccessible and have received relatively little scholarly attention. One such is the law of business associations. The aim of this and a previous article (‘the first article’) is to alleviate this situation somewhat, providing a critical overview and facilitating further research.

The first article contained an overview of the classical sharia, looking at three Sunni schools by way of example, plus a comparison with Western concepts. This article considers the replacement of the sharia regimes by Western-style law and the interaction of the sharia with Western-style law.

One of the areas of the financial industry that appears to be the least harmed by the current market turmoil is the Islamic finance industry. Generally, it is accepted that the history of Islamic finance started in the early 1960s, but is that really where it all began? This article shows that Islamic finance has a much longer history than expected and is applying similar principles as debated by the Greek philosophers as well as early theologians. In addition, the main product types such as partnership contracts, predictable return products, leasing and investment certificates are explained.