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Islamic corporation, Uzbek firm boost SMEs with $15m

The Islamic Cooperation for Development, ICD, has signed a $15 million Murabaha Facility Agreement with Uzbek Leasing International to assist financial institutions in increasing on-financing to SMEs in Uzbekistan.

ICD aims to increase access to Islamic finance by directing funds to established financial institutions in its member countries.

Eng. Hani Salem Sonbol, the acting CEO of the Islamic Corporation for the Development of the Private Sector (ICD), and Mr. Zafarjon Mustafaev, the CEO of the Joint-Stock Company Joint Venture “Uzbek Leasing International A.O.” (the Uzbek Leasing International), both signed the USD 15 million Murabaha facility agreement.

The agreement will further be used by the company to finance private sector businesses, particularly SMEs in Uzbekistan.

With the intention of advancing Islamic finance, enhancing financial inclusion, and assisting the development of the private sector in Uzbekistan, ICD has extended its fourth Murabaha financing loan to Uzbek Leasing International.

Uzbek Leasing International will use this Murabaha Financing facility to assist the economic operations of private sector firms in Uzbekistan, which are essential to the growth and development of the nation.

The three lines of financing facilities totalling USD 13 million that were made available in 2007, 2014, and 2017 have benefited Uzbek Leasing International. The banking institution was able to finance 36 new projects thanks to these lines of credit in industries like healthcare services, construction and the manufacturing of building materials, agriculture, and food processing.

Through the Company’s leasing facilities, the funding also generated more than 1000 new jobs in Uzbekistan.

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