Law on Tashkent Financial Centre Adopted by Lower House

Tashkent, Uzbekistan (UzDaily.com) — The Legislative Chamber of Uzbekistan’s Oliy Majlis has adopted in the second reading a draft constitutional law “On the Tashkent International Financial Centre,” which provides for the creation of a specialised financial zone with a special legal and investment regime. The bill has been forwarded to the Senate for further consideration.

The draft is aimed at developing a competitive capital market, increasing inflows of foreign investment, and positioning Uzbekistan as a regional financial hub.

The document defines the legal status of the financial centre, its governing principles, institutional structure, and the powers of its bodies, as well as a special legal regime within its territory.

It also establishes the possibility of applying the principles of the law, legislation, and case law of England and Wales in cases where they do not conflict with the Constitution of the Republic of Uzbekistan, the constitutional law itself, and decisions of the financial centre’s governing bodies.

In preparing the draft, international experience from leading financial centres, including the Dubai International Financial Centre, the Astana International Financial Centre, and Singapore, was studied. Based on this experience, the institutional structure of the Tashkent International Financial Centre was developed.

The bill strengthens the legal status of the centre’s administration, the Tashkent Financial Services Authority, and the Tashkent International Commercial Court. The financial regulator will be empowered to issue licences, conduct supervision, and apply enforcement measures, while the commercial court will independently handle disputes between centre participants.

Participants in the centre and their employees are expected to be granted the right to conduct transactions in foreign currency, attract foreign specialists, and obtain special visas valid for up to five years. Tax and customs incentives are also envisaged within the centre.

The draft proposes a special legal regime including simplified procedures for registration, licensing, and business operations, as well as the application of international standards for commercial regulation. A flexible tax and customs framework is also being considered, including exemptions for certain activities until 2100 and simplified import procedures for equipment, technologies, and materials.

A separate section concerns the International Centre for Digital Technologies, which would be regulated under special legislation based on the Constitution of Uzbekistan and elements of English common law, as well as international financial centre standards.

The bill also introduces support mechanisms for participants, including a “single window” registration system, protection of intellectual property and investments, and regulated interaction with government authorities.

Ahead of the second reading, several amendments were introduced to strengthen information security and data protection in cloud technologies, as well as to improve investor safeguards.

According to developers, the implementation of the law is expected to increase the share of the IT sector in GDP, boost foreign direct investment in the digital economy, expand IT service exports, and strengthen Uzbekistan’s position as a regional digital hub.