ITFC Signs $100 Million Islamic Finance Deal with Uzbekistan’s Hamkorbank

The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, has signed a $100 million financing agreement with Uzbekistan’s Hamkorbank, marking the largest standalone Islamic trade finance facility extended to a bank in Uzbekistan. The agreement, announced on July 23, 2026, aims to support small and medium-sized enterprises (SMEs) through Shariah-compliant trade finance while advancing women’s entrepreneurship, green finance, and food security initiatives.

Context and Background

The ITFC, headquartered in Jeddah, Saudi Arabia, is a leading provider of Islamic trade financing across member countries of the IsDB Group. This agreement builds on the existing partnership between ITFC and Hamkorbank, which has been instrumental in enhancing trade finance accessibility and fostering private sector growth in Uzbekistan. The deal underscores the growing influence of Islamic finance in Central Asia.

Key Details

The $100 million facility is designed to provide Shariah-compliant financing solutions to Uzbek SMEs, enabling them to expand their operations and contribute to the country’s economic development. The agreement also includes provisions to support women-led businesses, promote environmentally sustainable projects, and strengthen food security measures—key priorities for both ITFC and Uzbekistan’s economic agenda.

Implications and Impact

This financing agreement is expected to significantly boost Uzbekistan’s private sector by improving access to Islamic trade finance. It aligns with the country’s broader economic reforms aimed at diversifying its economy and integrating into global markets. Regionally, the deal highlights Saudi Arabia’s leadership in fostering economic cooperation through Islamic finance, reinforcing the Kingdom’s role as a key player in international development.

Vision 2030 Alignment

The ITFC’s initiative reflects Saudi Arabia’s Vision 2030 goals of strengthening economic ties with Muslim-majority countries and promoting sustainable development through Islamic finance. By supporting SMEs and green initiatives in Uzbekistan, the agreement contributes to the Kingdom’s broader strategy of enhancing global trade partnerships and fostering inclusive economic growth across the Muslim world.

20 Questions

Q1. What is the ITFC?

A1. The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group, based in Jeddah, Saudi Arabia, specializing in Shariah-compliant trade financing.

Q2. How much is the financing agreement worth?

A2. The agreement is valued at $100 million, making it the largest standalone Islamic trade finance facility for a bank in Uzbekistan.

Q3. Who is the beneficiary of this agreement?

A3. The primary beneficiaries are small and medium-sized enterprises (SMEs) in Uzbekistan, particularly women-led businesses and green initiatives.

Q4. What are the key objectives of this financing?

A4. The financing aims to support SMEs, advance women’s entrepreneurship, promote green finance, and enhance food security in Uzbekistan.

Q5. When was the agreement signed?

A5. The agreement was signed on July 23, 2026, as announced by the Saudi Press Agency (SPA).

Q6. Where is ITFC headquartered?

A6. ITFC is headquartered in Jeddah, Saudi Arabia.

Q7. What type of financing is being provided?

A7. The financing is Shariah-compliant trade finance, adhering to Islamic financial principles.

Q8. How does this agreement benefit Uzbekistan?

A8. It improves access to trade finance for SMEs, supports economic diversification, and aligns with Uzbekistan’s reform agenda.

Q9. What role does Saudi Arabia play in this agreement?

A9. Saudi Arabia, through ITFC, demonstrates leadership in promoting Islamic finance and international economic cooperation.

Q10. How does this align with Vision 2030?

A10. It supports Vision 2030’s goals of strengthening economic ties and fostering sustainable development in Muslim-majority countries.

Q11. What is Hamkorbank?

A11. Hamkorbank is a leading bank in Uzbekistan, partnering with ITFC to enhance trade finance accessibility.

Q12. Why is Islamic finance important in Uzbekistan?

A12. Islamic finance offers Shariah-compliant alternatives, attracting investment and supporting economic growth in Muslim-majority Uzbekistan.

Q13. How will women entrepreneurs benefit?

A13. The agreement includes provisions to support women-led businesses, improving their access to financing and resources.

Q14. What is green finance?

A14. Green finance refers to financial support for environmentally sustainable projects, a key focus of this agreement.

Q15. How does this agreement promote food security?

A15. The financing will support agricultural and food-related projects, enhancing Uzbekistan’s food security measures.

Q16. What is the significance of this being the largest facility in Uzbekistan?

A16. It highlights the growing demand for Islamic finance and ITFC’s commitment to expanding its impact in Central Asia.

Q17. How does this support private sector growth?

A17. By providing SMEs with much-needed financing, the agreement enables business expansion and job creation.

Q18. What other countries has ITFC supported?

A18. ITFC has provided trade financing across IsDB member countries, including in Africa, Asia, and the Middle East.

Q19. How does this reflect Saudi Arabia’s global role?

A19. The agreement showcases Saudi Arabia’s leadership in Islamic finance and its commitment to international development.

Q20. What are the long-term goals of this partnership?

A20. The long-term goals include sustainable economic growth, increased trade, and stronger bilateral ties between Uzbekistan and Saudi Arabia.

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