Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan is preparing a new Law on the Capital Market aimed at expanding the range of financial instruments, aligning market infrastructure with international standards and attracting 10 trillion soums in investment to the stock market by 2030.
As of 14 October 2026, the draft law had passed its first reading in the Legislative Chamber of the Oliy Majlis and was being prepared for a second reading. KAP Depo reported this in its November 2026 information memorandum.
The document consists of 16 chapters and 123 articles and предусматривает a substantial revision of the existing 2015 Law on the Securities Market. The National Agency of Perspective Projects (NAPP) presented the main provisions of the draft at a press conference on 12 August 2026.
In addition to shares and bonds, the proposed legislation will regulate derivative financial instruments, covered bonds, securitised bonds, sustainability bonds and sukuk.
Derivatives covered by the draft include options, futures, forwards, swaps and contracts for difference. Covered bonds are backed by a dedicated pool of assets, such as mortgage loans, while sustainability bonds are intended to finance environmental and social projects.
The draft also devotes particular attention to sukuk, securities structured in accordance with Islamic finance principles. It provides for the regulation of major sukuk structures based on partnerships, leasing, trade and agency relationships.
To strengthen investor protection, the legislation proposes introducing a representative for sukuk holders and a mechanism for verifying compliance with Islamic finance standards.
The reforms would also affect the capital market's infrastructure. The draft introduces the concept of a central counterparty, which acts as the buyer to every seller and the seller to every buyer in a transaction.
This mechanism is intended to reduce the risk of counterparties failing to meet their obligations in trading transactions. The draft also proposes licensing custodial activities, expanding the powers of the Central Securities Depository and establishing representatives of bondholders and self-regulatory organisations.
The legislation предусматривает authorisation mechanisms for rating agencies, management companies and investment funds, as well as a system for categorising investors, including the designation of qualified investors.
To attract long-term institutional and private investors, the draft proposes a range of tax incentives. These include exemptions for income earned by certain investment funds and specific transactions involving covered and securitised bonds.
Tax benefits until 2038 are also proposed for certain income from corporate bonds and sukuk. The specific conditions for applying these incentives will depend on the final provisions of the law.
The draft also allows international financial institutions to issue bonds in Uzbekistan and establishes conditions for domestic companies to access foreign capital markets.
The preparation of the legislation involved the European Bank for Reconstruction and Development, the International Finance Corporation, the Asian Development Bank, the Islamic Development Bank, the United Nations Development Programme, the International Organization of Securities Commissions (IOSCO), the US Department of Commerce and the US Securities and Exchange Commission (SEC).
According to NAPP representatives, the regulatory overhaul is intended to create conditions for introducing new financial instruments, attracting long-term investors and improving market transparency for foreign participants.
The reform comes amid growth in Uzbekistan's capital market. Share issuance increased from 189.7 trillion soums in 2023 to 265.1 trillion soums in 2025, reaching 269.4 trillion soums as of 1 July 2026.
Corporate bond issuance also expanded, rising from 1.06 trillion soums in 2023 to 3.93 trillion soums in 2025 and exceeding 7 trillion soums by 1 July 2026.
Trading volume on the stock exchange increased nearly sixfold between 2023 and 2025, from 2.9 trillion soums to 17.6 trillion soums.
The final terms governing the issuance and circulation of the new financial instruments, the application of tax incentives and the entry into force of individual provisions will be determined after the legislative process is completed.
