Journal of FinTech and Sustainable Finance

Articles

Vol. 2 (2026)

Potential for Sustainable Finance in Uzbekistan: Case of Waqf-Based Microfinance

DOI:
https://doi.org/10.31875/2755-8398.2026.02.03
Submitted
March 3, 2026
Published
2026-03-03

Abstract

This study explores the prospects for introducing a sustainable finance alternative in Uzbekistan through the example of waqf-based microfinance (WMF). Using survey data, the study employs a combination of Literature Review and Exploratory Data Analysis (EDA) to assess feasibility, demand, and supply patterns for WMF in the country. The findings indicate a strong potential demand for WMF, influenced by individual characteristics such as gender, marital status, type of residence, occupation, income, savings, and familiarity with the waqf concept. On the supply side, the availability of waqf funds is closely associated with public awareness, trust, and perceived transparency of waqf institutions. Overall, the results reveal significant untapped potential for the development of sustainable finance in Uzbekistan, particularly in the form of Islamic social finance instruments such as WMF. The study suggests that Uzbek society could benefit substantially from this model, provided that foundational measures, such as supportive legal frameworks, financial incentives, and enhanced public awareness, are effectively established.

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