This article examines the economic essence of the performance efficiency of Islamic financial institutions, their role in the modern financial system, and their significance in financing the real sector of the economy. The paper analyses the fundamental principles of Islamic finance, including the prohibition of riba, gharar and maysir, the reliance of financial transactions on real assets, the equitable distribution of profit and loss, and the compliance of financial operations with Shariah requirements. Particular attention is paid to the economic content, operational mechanisms, risk characteristics and profitability potential of Islamic financial instruments such as musharakah, mudarabah, murabahah, ijarah, salam, istisna, sukuk, qard hasan and takaful. The study substantiates the role of Islamic financial institutions in expanding financial inclusion, supporting small and medium-sized enterprises, financing investment projects and reducing systemic financial risks. The AAOIFI and IFSB international standards are considered important methodological foundations for the legal, accounting and prudential regulation of Islamic financial institutions. The article argues that the efficiency of Islamic financial instruments is reflected in their ability to distribute risks fairly, ensure asset-backed financing, strengthen social responsibility and contribute to sustainable economic development.

The article analyzes the role and prospects of Islamic finance in Uzbekistan's sustainable development system. The study examines global Islamic finance market growth trends, Uzbekistan's legislative reforms in implementing Islamic banking, as well as the application of Islamic financial instruments — mudaraba, musharaka, murabaha and sukuk — in the national economy. Based on the research results, scientific conclusions and practical recommendations for integrating Islamic finance into the national financial system have been developed.

This article explores the experience and practical analysis of using Islamic finance instruments with a focus on successful project case studies. It examines how key instruments such as mudaraba, musharaka, sukuk, and ijara have been applied in financing infrastructure, energy, and business projects across Muslim-majority countries, with particular emphasis on Malaysia and the Middle East. The study highlights that these instruments not only provide alternatives to conventional credit but also ensure ethical, risk-sharing, and sustainable approaches to financing. Lessons from successful projects are discussed for possible implementation in Uzbekistan.

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.

This article discusses the ways of developing Islamic banking services in the activities of commercial banks and member countries of the Islamic Development Bank (IDB) group, as well as an analysis of existing problems and improving development prospects. The article also presents the existing problems in the prospects for developing the use of Islamic banking services in the activities of commercial banks of the Republic of Uzbekistan, as well as the author's approaches and proposals for their elimination.

An Islamic window is a separate branch, department or subsidiary of a bank operating under the principles of Islamic finance under traditional banks. The Islamic branch mainly operates in conditions where there is no legal basis for the activity of an Islamic bank, subject to any commercial bank within the framework of certain laws. We have analyzed about 25 articles on Islamic windows in this study. In the analysis, we mainly conducted a scientific research on the statistical analysis between the Islamic bank, the Islamic window and the traditional bank, their achievements, shortcomings and the quality of service and gave the necessary suggestions.

This article provides information about the theoretical basis of investment instruments, musharakah and mudarabah, organizational and management system, as well as the principles of practical application, as well as their differences from each other. In addition, issues related to the possibility of attracting domestic and foreign investments in Uzbekistan by implementing these agreements are presented.