Uzbekistan is launching a project to support small and medium-sized enterprises in partnership with the Islamic Development Bank.

The government of Uzbekistan is launching a large-scale project aimed at enhancing the financial stability of small and medium-sized enterprises (SMEs) with the support of the Islamic Development Bank (IDB). This was stated in a resolution by the Cabinet of Ministers, adopted on December 30, 2024.

https://uzdaily.uz/ru/uzbekistan-zapuskaet-proekt-po-podderzhke-malogo-i-srednego-biznesa-sovmestno-s-islamskim-bankom-razvitiia/2025-01-08 08:47:54

Of this amount, $30 million will be allocated to support small businesses through the murabaha principle (an Islamic financial instrument).
Additionally, $7.5 million will be provided to the Trade Development Company for loan guarantees.

Another $1.75 million will be allocated for business engineering programs and enhancing entrepreneurs' capacities.

The remaining funds will be utilized for project management, conducting audits, and creating a reserve for unforeseen expenses.

The allocated funds are provided for a period of 10 years, including a three-year grace period. Additional loan costs are determined based on the 10-year average swap rate plus 1.85%.

The aim of the program is to support and develop small businesses, enhance their financial stability, and strengthen the entrepreneurial sector in Uzbekistan.

The program will be implemented from 2025 to 2027, with plans to attract up to $100 million from various funding sources.

This project is part of the state strategy to stimulate entrepreneurial activity and ensure sustainable economic growth.