Islamic finance, explained simply
Murabaha, ijara, and musharaka — how they work and how they differ from a regular loan
Uzbekistan's Islamic banking law took effect on June 29, 2026, and banks are opening "Islamic windows" one after another. Behind the unfamiliar terms are mechanisms that are easy to understand — here's how they apply to your business.
Three tools
Murabaha
The bank buys the asset and sells it to you with a markupThe bank buys the goods, materials, or equipment you need from the supplier, then sells them to you in instalments — at a price above the purchase cost. The markup is fixed in advance and doesn't change even if payments stretch out longer than planned.
How it differs from a loan
In a regular loan, the bank lends you money at interest. In murabaha, the bank buys and resells the asset — you pay for the goods, not for the use of money, and the markup doesn't grow over time.
Buying equipment, vehicles, raw materials, or goods for a specific deal.
Ijara
A lease with the right to buy — similar to leasingThe asset — real estate, machinery, equipment — stays owned by the bank while you use it for a rental payment. At the end of the term, you can buy the asset at a price agreed in advance.
How it differs from a loan
Unlike a regular lease, an ijara contract is built around renting a real asset: the bank carries part of the ownership risk until the buyout, rather than simply financing a purchase at interest.
Real estate, specialised machinery, and production equipment over a long term.
Musharaka
A partnership: the bank and the entrepreneur share profit and riskThe bank and the entrepreneur jointly invest capital in a business or project and become partners. Profit is split in a proportion agreed in advance, while losses are shared in proportion to each side's stake.
How it differs from a loan
There's no interest or fixed markup at all: the bank's return depends on the business's actual results, like a co-investor rather than a lender.
Equity financing for a growing business or a large project.
Uzbek banks don't yet list ready-made musharaka products on bank.uz — ask banks directly which Islamic windows already offer this format.
Test yourself
Scenario: an entrepreneur needs a new machine for their workshop. They're ready to pay in instalments, but want to know the exact markup upfront — no floating interest. Which tool fits best?
Important
This material is educational and is not a religious ruling (fatwa). Confirming that a product complies with Sharia is the responsibility of the bank's own Sharia board — check directly with the bank before applying.