Anora Orifjon qizi Saitkulova
Master’s student, International Academy of Islamic Studies,
Tashkent, Uzbekistan.
Email: anorasaitkulova6@gmail.com
ORCID: 0009-0009-6710-6495
Abstract: This article examines the practical importance of Islamic banks in financing sustainable development from the perspectives of the real sector, entrepreneurship, financial inclusion and the green economy. The purpose of the study is to identify how Islamic banking instruments operate as financing mechanisms aligned with sustainable development objectives, to explain their differences from conventional debt-based credit, and to formulate practical recommendations for Uzbekistan based on international experience. The study applies documentary analysis, comparison, scientific generalization, institutional analysis, international experience analysis and tabular classification. The findings show that Islamic banks can contribute directly to sustainable development through asset-backed financing, profit-and-risk sharing, contracts linked to real trade or services, and social responsibility principles. Murabaha and ijarah are particularly relevant for financing business assets and productive capacity; musharaka and mudaraba can support entrepreneurship by distributing business risks between partners; while salam and istisna can be used to pre-finance agriculture, manufacturing and infrastructure projects. International experience demonstrates that the contribution of Islamic banks to sustainable finance depends on a supportive legal framework, Shariah governance, product innovation, sustainability reporting and investor confidence. At the same time, the excessive reliance of some markets on short-term murabaha and commodity-based structures, limited harmonization of Shariah standards, insufficient professional capacity and weak environmental, social and governance (ESG) data infrastructure restrict the full realization of this potential. The article concludes that Islamic banks should be integrated into sustainable finance ecosystems through regulatory neutrality, green and social product development, impact measurement, and stronger links with small and medium-sized enterprises, social finance and climate-resilient projects.
Keywords: Islamic banks, sustainable development, Islamic finance, real sector, entrepreneurship, financial inclusion.