Islamic Finance Instruments for the Green Economy: Green Sukuk Opportunities and Institutional Readiness in Uzbekistan

This article evaluates green sukuk as an instrument for financing the green economy and assesses Uzbekistan's institutional readiness for their introduction in the context of the 2026 legislative reforms establishing a legal framework for Islamic banking and the further development of Islamic finance. A credibility function incorporating a Islamic banking principles-compliance gate and a three-stage development model is proposed. Within this framework, commercial banks are considered both as potential originators of green sukuk and as potential investors in sovereign green sukuk that could serve as Islamic banking principles-compliant liquidity-management instruments, subject to the applicable regulatory and prudential framework.