This article is the analysis of the Islamic banking as an alternative model to institute the financial relations based on the principles of Sharia law: it reviews the prohibition of Riba (interest), inadmissibility of Gharar (excessive uncertainty) and prohibition to finance the Haram activities. The key instruments of Islamic banking such as Murabaha, Ijarah, Musharakah, Mudarabah, Sukuk and their applicability in the realm of the economy of Uzbekistan.
