Mirziyoyev Signs Decree on Capital Market Development and Attracting US$1 Billion in Investments

Tashkent, Uzbekistan (UzDaily.com) — On 18 December, President of Uzbekistan Shavkat Mirziyoyev signed a decree introducing additional measures to improve the investment climate in the country’s capital market, the Ministry of Justice’s legal information channel reported.

The decree is aimed at stimulating investment inflows into the national stock market. By 2030, an additional US$1 billion is planned to be attracted through the implementation of modern financial instruments. The decree also mandates the issuance of corporate bonds totaling at least 5 trillion soms.

Special attention is given to investment security: the share of disclosed and resolved violations in the capital market should reach 85%.

The special legal framework known as the “regulatory sandbox,” launched in September 2023, will now become permanent. Both resident and non-resident companies will be able to participate. Participants in the sandbox, including investment funds, will be permitted to provide custodial services for securities, and issuers will gain the right, in certain cases established by law, to issue unsecured bonds beyond their capital.

Earlier, on 15 December, the president reviewed a presentation on capital market development. It was noted that the local market’s low capitalization—only 20% of GDP—indicates significant untapped potential. To unlock this potential, measures will be taken to allow dual listing of securities on domestic and foreign exchanges, issuance of foreign currency bonds, global depositary receipts (GDRs), foreign securities, and exchange-traded funds.

Additionally, under the sandbox framework, trading in foreign company securities will be available on a special platform of the Tashkent Stock Exchange. Companies and banks will also be able to issue bonds in foreign currencies.

The decree places special emphasis on improving oversight and regulation: legislation will be aligned with the standards of the International Organization of Securities Commissions, the powers of the regulator will be strengthened, and requirements for the charter capital of professional market participants will be gradually increased.