Uzbek authorities have set a goal of attracting at least $1 billion in investment to the country’s capital market. Specific measures to achieve this target were presented to President Shavkat Mirziyoyev at a meeting on December 15, according to the presidential press service.
Among the proposed steps is allowing dual listing, enabling securities to be placed simultaneously on domestic and foreign stock exchanges in line with international standards.
Officials also plan to introduce new financial instruments, including foreign-currency bonds, global depositary receipts, foreign securities, and exchange-traded funds.
Special attention was paid to expanding the legal regime of the “regulatory sandbox,” which allows innovative products and services to be tested without the risk of violating existing legislation. It was proposed to extend sandbox conditions not only to foreign partners but also to domestic residents. Participants also suggested granting foreign investors an unlimited sandbox term and permitting the trading of shares and bonds issued by companies from other countries. Experts believe this approach would help curb informal trading in foreign securities.
The meeting also highlighted the need to attract more domestic investors to the capital market. In this context, Uzbek companies and banks will be allowed to issue foreign-currency bonds on the Tashkent Stock Exchange, enabling them to conduct foreign-currency operations without entering external markets.
In addition, the bond market could be expanded by allowing issuers to place unsecured bonds and bonds exceeding their own capital.
Representatives of relevant ministries and agencies presented measures to strengthen market oversight and regulation. These include aligning national legislation with the standards of the International Organization of Securities Commissions, expanding the powers of the regulator, and gradually raising minimum capital requirements for market participants.
It was noted that over the past seven years, banking sector reforms have led to a 5.3-fold increase in bank assets, which now exceed 877 trillion soums ($72.5 billion). The number of banks has reached 35, including three foreign institutions.
Officials also emphasized that Uzbekistan has taken part for the first time in the Financial Sector Assessment Program of the International Monetary Fund and the World Bank. The assessment covered banking supervision, risk management, payment systems, macroprudential policy, and crisis management.
Based on the results, Uzbekistan plans to bring its financial sector fully into line with the Basel Committee’s principles of effective banking supervision by 2026. This will require a full transition by banks to international financial reporting standards and the creation of a Financial Stability Council involving representatives of the government and the Central Bank.
According to figures presented at the meeting, the current market value of outstanding securities stands at 275 trillion soums ($22.7 billion), while the volume of securities in free exchange trading amounts to 4 trillion soums ($330 million). The market includes 717 issuers and 77 professional participants. At the same time, market capitalization remains below 20 percent of GDP, which is lower than global averages. Officials said this indicates significant untapped potential that can be realized through further reforms and the attraction of additional investment.
