THE IMPACT OF ISLAMIC BANKING ON ATTRACTING INVESTMENTS INTO THE REAL ECONOMY

Abstract

The article examines the role of Islamic banking in stimulating the inflow of investments into the real sector of the economy. Islamic financial institutions, based on Sharia principles, ensure fair risk-sharing, transaction transparency, and a focus on projects with real economic value. Based on an analysis of theoretical foundations and the experience of countries with a developed Islamic financial system, it is revealed that Islamic banking contributes not only to attracting domestic and foreign investments but also to enhancing the stability of the financial sector. Particular attention is given to the prospects for implementing Islamic banking in Uzbekistan as a factor in supporting small and medium-sized businesses, developing infrastructure, and strengthening trust in the banking system.