AIFC Estimates Uzbekistan Capital Market at US$22 Billion

Tashkent, Uzbekistan (UzDaily.uz) — The total market capitalization of Uzbekistan's stock market stands at approximately US$22 billion, while the country's nominal gross domestic product grew from US$66.4 billion in 2020 to US$115 billion in 2024, according to a report by the Astana International Financial Centre titled "Capital Markets in Kazakhstan, Uzbekistan, Kyrgyzstan and Azerbaijan: Prospects and Trends."

According to the report, Uzbekistan's capital market is developing within a state-coordinated privatization program, including the "People's IPO" initiative. However, the ratio of market capitalization of listed companies to GDP remains low by international standards, declining from 16.4% in 2020 to 6.7% in 2024, which the authors attribute to the early stage of market development.

The report notes that the debt market remains the most active segment of Uzbekistan's domestic capital market. In 2025, the government issued US$1.5 billion in sovereign Eurobonds, primarily to finance the budget deficit and support mortgage lending. Total state and state-guaranteed debt stood at approximately 32.6% of GDP at the end of 2024.

Capital market oversight is consolidated under the National Agency for Prospective Projects of the Republic of Uzbekistan, which acts as the authorized body for securities market regulation, licensing, and market development. The authors of the report also draw attention to the regulatory sandbox regime introduced to test new financial products.

Among key developments in 2025, the report highlights the appointment of Franklin Templeton as the management company for the Uzbekistan National Investment Fund, whose portfolio includes 18 state-owned enterprises. The report also notes the debut corporate bond issuance by Navoi Mining and Metallurgical Combinat and the preparation of a similar bond program by Almalyk Mining and Metallurgical Combinat.

Kazakhstan possesses the most developed capital market architecture among the four countries, according to the report. The country's nominal GDP reached US$291.2 billion in 2024, with the government aiming to increase this figure to US$450 billion by 2029.

The report highlights an institutional feature of the country: the coexistence of two exchanges, the Kazakhstan Stock Exchange, operating under national civil law, and the Astana International Exchange, operating under English common law principles within the jurisdiction of the Astana International Financial Centre.

The total volume of outstanding bonds in Kazakhstan stood at approximately US$81.4 billion, or roughly 43% of GDP, at the end of September 2025. The number of retail brokerage accounts grew from 103,000 in 2020 to 2.17 million at the Astana International Exchange Central Securities Depository and 4.62 million at the Kazakhstan Central Securities Depository as of September 2025, with individual investors accounting for over 62% of secondary equity market turnover in 2024. Meanwhile, the National Bank of Kazakhstan raised its base rate to 18% in October 2025 amid renewed inflationary pressures.

The report also points to several major initial public offerings of state-owned companies, including Kazatomprom, KazMunayGas, and Air Astana, which expanded the private investor base. Kazakhstan is currently classified as a frontier market by FTSE Russell.

In Kyrgyzstan, the capital market is in a formation stage, with the banking sector playing the leading role in financing the economy, according to the report. The country's nominal GDP stood at US$17.4 billion in 2024, with growth projected to reach US$28.2 billion by 2030. As of September 2025, shares of 23 issuers were traded on the Kyrgyz Stock Exchange, with a total market capitalization of approximately US$2.6 billion.

The authors of the report note a marked acceleration in market activity in 2024–2025, with trading volume on the Kyrgyz Stock Exchange reaching US$573.9 million by early June 2025, exceeding the figure for the entirety of 2023. Primary issuances of government securities accounted for the bulk of the growth, while secondary market liquidity remains low. In 2025, the government expanded the regulatory framework of the exchange by introducing electronic document submission for listings and granting access to foreign issuers.

Azerbaijan's capital market functions within an economy where the oil and gas sector maintains a dominant role, according to the report. The country's nominal GDP rose from US$42.7 billion in 2020 to US$74.3 billion in 2024. A key milestone for the equity market occurred in 2024, when the country conducted its first-ever initial public offering and launched remote secondary stock trading.

As of October 2025, seven companies had completed initial public offerings, collectively raising approximately US$340 million and helping increase the total market capitalization of the Baku Stock Exchange to US$18.4 billion. The Baku Stock Exchange development strategy for 2024–2026 provides for growth in bond placements by state-owned enterprises, institutional investors, and corporate issuers.

The report's authors also note that foreign institutional investors increased their holdings of Azerbaijani securities by 78% amid partial easing of foreign exchange restrictions by the Central Bank of Azerbaijan and enhanced regulatory transparency.