Non-Bank Financial Institutions’ Legal Structures And The Factors Influencing Their Selection: A Theoretical And Practical Analysis

Abstract

This study examines the organizational and legal structures of non-bank financial institutions (NBFIs) in Uzbekistan and analyzes the factors influencing their selection, with a particular focus on housing finance under Islamic finance principles. Using a comparative theoretical and practical approach, the research evaluates limited partnerships (Kommanditgesellschaft), limited liability companies (LLCs), and joint-stock companies (JSCs) in terms of participant composition, liability, investor participation in management, profit and risk distribution, compliance with Islamic finance, and suitability for small and medium housing projects. The findings indicate that limited partnerships are the most appropriate legal structure for Sharia-compliant housing finance due to their alignment with Mudaraba contracts, flexibility in investor participation, and effective risk-sharing mechanisms. The study provides practical insights for policymakers, investors, and practitioners in designing legal frameworks that support Islamic housing finance while ensuring financial stability and compliance with national legislation.