Uzbekistan Drafts Decree on Introduction of Sukuk Securities Via Pilot Project in 2021

Uzbekistan has drafted a presidential decree on measures to introduce securities based on the principles of Islamic finance or Sukuk, and plans to implement a pilot project for the issuance of Sukuk securities in 2021, according to the Capital Market Development Agency of Uzbekistan.

The draft regulation, which has been published for public discussion, covers several types of Sukuk, and legal and tax considerations. According to media reports, the pilot project would allow local companies to issue Sukuk both domestically and abroad within the confines of English law. Furthermore, a special tax regime, which would exempt originators and issuers from paying several taxes and fees on operations, would be applied within the...