RIYADH: The International Islamic Trade Finance Corp., a member of the Islamic Development Bank Group, has signed a $100 million financing agreement with Hamkorbank of Uzbekistan, marking the largest standalone Islamic trade finance deal granted to a bank based in the country.
The ITFC explained that the agreement aims to support small and medium-sized enterprises across the country by providing Shariah-compliant trade finance. It will also support women's entrepreneurship, green finance and food security initiatives.
This partnership builds upon the existing cooperation between the ITFC and Hamkorbank to improve access to trade finance and support private sector growth. It reflects the growing role of Islamic finance in Uzbekistan and expands the range of financing available to private sector companies.
The ITFC continues its efforts to promote trade to improve the economic and living conditions of people in member countries of the IsDB and throughout the Muslim world.
ITFC expands trade finance strategy
The latest financing reflects the ITFC’s broader strategy of expanding access to trade finance across its member countries by working with local financial institutions. Through such partnerships, the corporation aims to strengthen private sector participation in international trade while promoting sustainable and inclusive economic development.
Uzbekistan advances economic reforms
The agreement comes as Uzbekistan continues to strengthen its economic and financial reforms while expanding the role of Islamic finance in the country.
In June, Fitch Ratings revised Uzbekistan's outlook to positive from stable while affirming its long-term foreign-currency issuer default rating at “BB”, citing progress on structural reforms and continued commitment to macroeconomic stability. Fitch also expects Uzbekistan’s economic growth to remain resilient over the medium term, supported by continued investment, structural reforms and steady progress in liberalizing the economy despite a challenging external environment.
Fitch forecasts Uzbekistan’s economy will grow by 6.3 percent in 2026, supported by robust domestic demand, rising investment and continued implementation of structural reforms despite a challenging external environment.
Ratings highlight growth prospects
In April, S&P Global Ratings also affirmed Uzbekistan’s sovereign credit rating at “BB” with a Stable outlook, highlighting Uzbekistan’s resilient economic growth prospects despite external challenges. The agency expects ongoing reforms and investment to continue supporting the country's medium-term economic outlook.
