Uzbekistan Capital Markets Key Developments in 2025
In 2025, Uzbekistan made a decisive leap forward in the evolution of its capital markets, reinforcing its position as one of the most actively reforming investment destinations in the region. The year was characterized by a combination of large-scale privatization initiatives, structural regulatory reforms, and steadily rising engagement from global institutional investors. Collectively, these developments marked a clear shift toward deeper markets, improved transparency, and closer integration with international capital flows.
A cornerstone milestone was the operational launch of the Uzbekistan National Investment Fund under the management of Franklin Templeton. By consolidating minority stakes in major stateowned enterprises into a single professionally managed vehicle, the fund introduced a new institutional framework for enhancing corporate governance, disclosure standards, and overall investment readiness across state assets. Plans for a future domestic and international IPO position the fund as a potential flagship equity instrument and a centralized entry point for international investors seeking diversified exposure to the country’s state sector.
Privatization momentum extended well beyond the fund itself. During the year, authorities approved expanded IPO and SPO programs for a group of leading state-owned enterprises across key sectors of the economy. Planned free floats were increased materially, reflecting a deliberate effort to improve deal scale, liquidity potential, and investability for institutional investors. These initiatives establish a visible multi-year equity pipeline and reinforce a commitment to sustained market access rather than isolated privatization transactions.
At the same time, strong and sustained foreign direct investment inflows continued to support the broader reform agenda. Investment activity spanned manufacturing, energy, technology, and financial services, contributing to economic diversification and strengthening the productive base of the economy. The scale and consistency of these inflows point to growing confidence in macroeconomic stability and regulatory predictability. Openness to foreign capital has been a key supporting factor.
Regulatory innovation played a central role throughout the year. Authorities actively deployed regulatory sandbox frameworks to pilot new capital-market instruments, including mortgagebacked securities, FX-denominated bonds, and exchange-traded products, while also expanding access for foreign issuers. These efforts were complemented by stricter disclosure requirements, closer alignment with international regulatory standards, and steps to strengthen systemic-risk oversight and financial stability.
Progress in ESG-labelled instruments and Islamic finance further broadened the investor base, while targeted tax incentives improved the economics of long-term capital-market products. Gradual capital-account liberalization, implemented through a disciplined and sequenced approach, underscored a pragmatic policy stance focused on productive investment and investor protection. These developments reflect a coherent strategy to build a deeper, more resilient, and globally connected capital markets ecosystem.
Below are the ten most significant developments shaping Uzbekistan’s capital markets in 2025.
1. Franklin Templeton to List $1.9bn of Uzbekistan State Assets via UzNIF
Franklin Templeton has formally commenced operations in Tashkent as trustee and manager of the Uzbekistan National Investment Fund (UzNIF), marking an important step in the institutional development of the local capital markets. UzNIF consolidates minority stakes in a portfolio of major state-owned enterprises into a single professionally managed vehicle, designed to enhance corporate governance standards, transparency, and investment readiness across state assets.
Authorities have confirmed plans for a future dual-track IPO of UzNIF on both domestic and international markets, positioning the fund as a flagship equity instrument and a primary access point for international investors seeking diversified exposure to the state sector. With an asset base of approximately $1.9bn, UzNIF has the potential to become one of the region’s most significant equity offerings.
Beyond the transaction, the initiative establishes a scalable privatization framework and sets an important benchmark for future listings. The planned IPO is expected to support liquidity formation, index inclusion potential, and broader participation by institutional investors, while serving as a catalyst for further capital-market deepening and state-asset monetization.
2. Expanded IPO and SPO Pipeline for Major State-Owned Enterprises
Uzbekistan has approved a large-scale privatization and capital markets program covering 29 major state-owned enterprises, including IPO and SPO plans for 12 companies across strategic sectors. Flagship candidates include AGMK and NGMK, alongside assets in automotive, telecoms, energy, chemicals, and aviation. Under the updated framework, planned offering sizes have been increased materially, with free floats expanded from an initial 2–5% to 10–25%, depending on the issuer.
The revised structure significantly improves deal scale, liquidity potential, and investability, bringing upcoming offerings closer to the requirements of international institutional investors. Shares are expected to be placed on both domestic and international exchanges, reinforcing a dual-track listing strategy and enhancing global visibility.
Preparation and execution will be supported by international financial and legal advisors in line with a government-approved roadmap. Overall, the pipeline establishes multi-year transaction visibility, supports benchmark formation, and signals a clear shift toward sustained market access rather than one-off privatization events.
3. Structural Reforms and FDI Momentum Strengthen the Investment Case
Over the past eight years, Uzbekistan has attracted approximately €111.8bn in foreign direct investment, reflecting sustained international confidence in the reform agenda and a steadily improving investment climate. These inflows have supported rapid expansion across manufacturing, energy, IT, and financial services, contributing to economic diversification and the scaling of productive capacity.
Beyond headline volumes, the consistency of FDI over multiple years points to greater policy, reduced administrative barriers, and improved investor support mechanisms. Reforms aimed at streamlining approvals, cutting red tape, and expanding digital and one-stop services have helped translate capital inflows into long-term investment rather than short-term opportunistic activity.
With ambitious national targets to significantly expand GDP by 2030, the reform trajectory provides a strong macro and institutional foundation for capital-market development. For international investors, the scale and durability of FDI act as external validation of the policy direction and reinforce the market’s positioning as a credible destination for both strategic investment and portfolio capital.
4. Uzum Emerges as a Flagship Private-Sector Equity Story Ahead of Global IPO
Uzum, the country’s leading e-commerce and fintech platform and its first technology unicorn, is preparing a final pre-IPO funding round in 2026 following a strategic investment by Tencent that lifted the company’s valuation to approximately US$1.5bn. The investment marked a milestone for the local technology ecosystem, validating the scalability of domestically built digital platforms and elevating Uzum’s profile among global growth investors.
Management has indicated a target IPO in 2027 and is evaluating multiple international venues, including Hong Kong, London, Abu Dhabi, and Nasdaq. The planned pre-IPO round is expected to fund further expansion of Uzum’s integrated ecosystem across e-commerce, digital payments, and financial services, while strengthening governance, reporting, and market readiness ahead of a public listing.
Uzum’s trajectory positions it as a potential anchor international IPO from the private sector and a proof point that the equity pipeline extends beyond state-owned enterprises. More broadly, the case underscores the market’s capacity to generate venture-backed, globally relevant issuers capable of accessing international capital markets.
5. First Microfinance Bank Launch Marks Expansion of the Regulated Financial Sector
The launch of Tayanch Mikromoliya Banki JSC marks the first conversion of a microfinance organization into a fully licensed bank, following the transformation of Tayyab Finance Mikromoliya Tashkiloti JSC and an increase in authorized capital to UZS53.9bn. The move represents a structural milestone in the development of the regulated financial sector and signals a more flexible supervisory approach to institutional growth.
With banking status, Tayanch gains the ability to operate under the full banking regulatory framework, broaden its product offering, and access funding instruments previously unavailable to non-bank microfinance institutions. This transition supports deeper financial intermediation, improved funding stability, and expanded access to regulated credit for SMEs and retail borrowers.
Beyond the individual institution, the conversion establishes a scalable precedent for the formalization and consolidation of the microfinance segment. For investors, it highlights continued financial-sector deepening and the emergence of new regulated platforms capable of supporting inclusive growth and long-term capital deployment.
6. Mortgage Loan Securitization Pilot Launched Under a Regulatory Sandbox Framework
A pilot framework for mortgage loan securitization has been approved under a regulatory sandbox regime, marking an important step toward the development of structured finance and local debt capital markets. The initiative, overseen by the National Agency for Prospective Projects, establishes Temporary Regulations governing the issuance and circulation of mortgage-backed securities.
Under the pilot structure, a dedicated special-purpose vehicle, UMRC SPV, is mandated to issue up to UZS1 trillion in mortgage bonds backed by pools of residential mortgage loans originated by five commercial banks. The framework defines eligibility criteria for underlying assets, including loan-tovalue and debt-to-income thresholds, and sets out issuance, trading, and REPO mechanisms, alongside the roles of originator banks, the refinancing entity, the central securities depository, and the regulator.
The pilot lays the groundwork for a scalable securitization market, supporting longer-term funding for housing finance and introducing a new investable asset class for institutional investors. Beyond the initial transaction, the framework establishes legal and operational precedents that can be expanded over time, contributing to yield-curve development, balance-sheet optimization for banks, and broader capital-market deepening.
7. Capital Market Reforms and FX Instruments Gain Momentum Under an Expanded Regulatory Sandbox
A comprehensive capital-market reform package approved in December 2025 targets more than US$1bn in funding through an expanded range of instruments, including dual listings, FX-denominated bonds, global depository receipts (GDRs), and exchange-traded funds (ETFs). A central element of the reforms is the extension of the regulatory sandbox framework, enabling both domestic and foreign issuers to access local markets through controlled pilot structures.
The package is supported by a strengthening of the regulatory architecture, including full implementation of Basel III standards across the banking sector, stricter enforcement of IFRS reporting, and alignment with all 29 Basel Core Principles. In parallel, a Financial Stability Council is to be established to enhance systemic-risk oversight and reinforce confidence in the resilience of the financial system.
Draft presidential measures further envisage pilot FX bond issuances and the admission of foreign issuers’ securities to domestic trading venues within the sandbox environment. Enhanced disclosure requirements, tighter corporate-governance standards, and stronger liability for non-compliance are intended to improve transparency and investor protection. These initiatives significantly broaden the investable universe and move the market closer to international best practice in structure, depth, and credibility.
8. Tax Incentives Approved to Support Long-Term Capital Market Instruments
A package of targeted tax incentives has been approved to support the development of long-term capital-market instruments and enhance after-tax returns for investors. Under the new measures, interest income earned by resident and non-resident legal entities from bonds issued by mortgage refinancing organizations and their authorized special-purpose entities will be exempt from corporate income tax until 1 January 2030.
In addition, dividend income received by the National Investment Fund will benefit from a corporate income tax exemption through the same period, strengthening the fund’s overall investment proposition and reinforcing its role as a cornerstone equity vehicle within the market.
By lowering the tax burden on securitized instruments and strategic equity holdings, these measures reduce funding costs for issuers and improve yield visibility for investors. Together with ongoing regulatory reforms, the incentives are designed to encourage institutional participation, support market depth, and facilitate the growth of longer-dated, investable products aligned with long-term capital allocation.
9. ESG and Islamic Finance Reforms Broaden Capital Market Access
A new wave of ESG and Islamic finance reforms is broadening access to capital and diversifying the range of investable instruments. Plans to issue ESG-labelled bonds build on the strong performance of recent sovereign placements and respond to rising demand from sustainability-focused institutional investors seeking transparent and credible ESG frameworks.
In parallel, a draft law on Islamic banking advances the development of Shariah-compliant finance, opening access to a sizeable and previously underpenetrated market segment. The proposed framework allows for the establishment of dedicated Islamic banks or Islamic windows within conventional institutions, defines permissible instruments, and introduces supporting legal and tax provisions to enable practical implementation.
Together, these initiatives position the market to attract capital from both ESG-oriented investors and Islamic finance pools, particularly from the Middle East and other key regions. The combined agenda enhances product diversity, improves financial inclusion, and strengthens connectivity with global ethical-finance markets, supporting more resilient and diversified funding channels.
10. Direct Investment Access to U.S. Companies Expands While Retail Equity Trading Remains Restricted
From 1 January 2026, residents will be permitted to make direct investments into companies registered in the United States without prior government approval and without quantitative limits, provided funds are transferred from onshore accounts held with licensed banks. The change follows amendments to foreign-exchange regulation aimed at easing capital controls and facilitating outward corporate investment.
The revised framework allows participation in the equity of U.S. companies, the establishment of new entities, and the financing of working capital and operations of foreign subsidiaries. The reform is designed to support structured, long-term capital deployment through corporate channels rather than short-term portfolio flows.
At the same time, access to trading publicly listed U.S. equities remains outside the scope of the liberalization. Purchases of shares such as Apple or Tesla via brokerage platforms continue to be restricted, reflecting a calibrated approach that prioritizes productive direct investment while maintaining safeguards against speculative retail capital movements. Overall, the measure signals a meaningful step toward capital-account opening while preserving a disciplined, sequenced policy framework.
A cornerstone milestone was the operational launch of the Uzbekistan National Investment Fund under the management of Franklin Templeton. By consolidating minority stakes in major stateowned enterprises into a single professionally managed vehicle, the fund introduced a new institutional framework for enhancing corporate governance, disclosure standards, and overall investment readiness across state assets. Plans for a future domestic and international IPO position the fund as a potential flagship equity instrument and a centralized entry point for international investors seeking diversified exposure to the country’s state sector.
Privatization momentum extended well beyond the fund itself. During the year, authorities approved expanded IPO and SPO programs for a group of leading state-owned enterprises across key sectors of the economy. Planned free floats were increased materially, reflecting a deliberate effort to improve deal scale, liquidity potential, and investability for institutional investors. These initiatives establish a visible multi-year equity pipeline and reinforce a commitment to sustained market access rather than isolated privatization transactions.
At the same time, strong and sustained foreign direct investment inflows continued to support the broader reform agenda. Investment activity spanned manufacturing, energy, technology, and financial services, contributing to economic diversification and strengthening the productive base of the economy. The scale and consistency of these inflows point to growing confidence in macroeconomic stability and regulatory predictability. Openness to foreign capital has been a key supporting factor.
Regulatory innovation played a central role throughout the year. Authorities actively deployed regulatory sandbox frameworks to pilot new capital-market instruments, including mortgagebacked securities, FX-denominated bonds, and exchange-traded products, while also expanding access for foreign issuers. These efforts were complemented by stricter disclosure requirements, closer alignment with international regulatory standards, and steps to strengthen systemic-risk oversight and financial stability.
Progress in ESG-labelled instruments and Islamic finance further broadened the investor base, while targeted tax incentives improved the economics of long-term capital-market products. Gradual capital-account liberalization, implemented through a disciplined and sequenced approach, underscored a pragmatic policy stance focused on productive investment and investor protection. These developments reflect a coherent strategy to build a deeper, more resilient, and globally connected capital markets ecosystem.
Below are the ten most significant developments shaping Uzbekistan’s capital markets in 2025.
1. Franklin Templeton to List $1.9bn of Uzbekistan State Assets via UzNIF
Franklin Templeton has formally commenced operations in Tashkent as trustee and manager of the Uzbekistan National Investment Fund (UzNIF), marking an important step in the institutional development of the local capital markets. UzNIF consolidates minority stakes in a portfolio of major state-owned enterprises into a single professionally managed vehicle, designed to enhance corporate governance standards, transparency, and investment readiness across state assets.
Authorities have confirmed plans for a future dual-track IPO of UzNIF on both domestic and international markets, positioning the fund as a flagship equity instrument and a primary access point for international investors seeking diversified exposure to the state sector. With an asset base of approximately $1.9bn, UzNIF has the potential to become one of the region’s most significant equity offerings.
Beyond the transaction, the initiative establishes a scalable privatization framework and sets an important benchmark for future listings. The planned IPO is expected to support liquidity formation, index inclusion potential, and broader participation by institutional investors, while serving as a catalyst for further capital-market deepening and state-asset monetization.
2. Expanded IPO and SPO Pipeline for Major State-Owned Enterprises
Uzbekistan has approved a large-scale privatization and capital markets program covering 29 major state-owned enterprises, including IPO and SPO plans for 12 companies across strategic sectors. Flagship candidates include AGMK and NGMK, alongside assets in automotive, telecoms, energy, chemicals, and aviation. Under the updated framework, planned offering sizes have been increased materially, with free floats expanded from an initial 2–5% to 10–25%, depending on the issuer.
The revised structure significantly improves deal scale, liquidity potential, and investability, bringing upcoming offerings closer to the requirements of international institutional investors. Shares are expected to be placed on both domestic and international exchanges, reinforcing a dual-track listing strategy and enhancing global visibility.
Preparation and execution will be supported by international financial and legal advisors in line with a government-approved roadmap. Overall, the pipeline establishes multi-year transaction visibility, supports benchmark formation, and signals a clear shift toward sustained market access rather than one-off privatization events.
3. Structural Reforms and FDI Momentum Strengthen the Investment Case
Over the past eight years, Uzbekistan has attracted approximately €111.8bn in foreign direct investment, reflecting sustained international confidence in the reform agenda and a steadily improving investment climate. These inflows have supported rapid expansion across manufacturing, energy, IT, and financial services, contributing to economic diversification and the scaling of productive capacity.
Beyond headline volumes, the consistency of FDI over multiple years points to greater policy, reduced administrative barriers, and improved investor support mechanisms. Reforms aimed at streamlining approvals, cutting red tape, and expanding digital and one-stop services have helped translate capital inflows into long-term investment rather than short-term opportunistic activity.
With ambitious national targets to significantly expand GDP by 2030, the reform trajectory provides a strong macro and institutional foundation for capital-market development. For international investors, the scale and durability of FDI act as external validation of the policy direction and reinforce the market’s positioning as a credible destination for both strategic investment and portfolio capital.
4. Uzum Emerges as a Flagship Private-Sector Equity Story Ahead of Global IPO
Uzum, the country’s leading e-commerce and fintech platform and its first technology unicorn, is preparing a final pre-IPO funding round in 2026 following a strategic investment by Tencent that lifted the company’s valuation to approximately US$1.5bn. The investment marked a milestone for the local technology ecosystem, validating the scalability of domestically built digital platforms and elevating Uzum’s profile among global growth investors.
Management has indicated a target IPO in 2027 and is evaluating multiple international venues, including Hong Kong, London, Abu Dhabi, and Nasdaq. The planned pre-IPO round is expected to fund further expansion of Uzum’s integrated ecosystem across e-commerce, digital payments, and financial services, while strengthening governance, reporting, and market readiness ahead of a public listing.
Uzum’s trajectory positions it as a potential anchor international IPO from the private sector and a proof point that the equity pipeline extends beyond state-owned enterprises. More broadly, the case underscores the market’s capacity to generate venture-backed, globally relevant issuers capable of accessing international capital markets.
5. First Microfinance Bank Launch Marks Expansion of the Regulated Financial Sector
The launch of Tayanch Mikromoliya Banki JSC marks the first conversion of a microfinance organization into a fully licensed bank, following the transformation of Tayyab Finance Mikromoliya Tashkiloti JSC and an increase in authorized capital to UZS53.9bn. The move represents a structural milestone in the development of the regulated financial sector and signals a more flexible supervisory approach to institutional growth.
With banking status, Tayanch gains the ability to operate under the full banking regulatory framework, broaden its product offering, and access funding instruments previously unavailable to non-bank microfinance institutions. This transition supports deeper financial intermediation, improved funding stability, and expanded access to regulated credit for SMEs and retail borrowers.
Beyond the individual institution, the conversion establishes a scalable precedent for the formalization and consolidation of the microfinance segment. For investors, it highlights continued financial-sector deepening and the emergence of new regulated platforms capable of supporting inclusive growth and long-term capital deployment.
6. Mortgage Loan Securitization Pilot Launched Under a Regulatory Sandbox Framework
A pilot framework for mortgage loan securitization has been approved under a regulatory sandbox regime, marking an important step toward the development of structured finance and local debt capital markets. The initiative, overseen by the National Agency for Prospective Projects, establishes Temporary Regulations governing the issuance and circulation of mortgage-backed securities.
Under the pilot structure, a dedicated special-purpose vehicle, UMRC SPV, is mandated to issue up to UZS1 trillion in mortgage bonds backed by pools of residential mortgage loans originated by five commercial banks. The framework defines eligibility criteria for underlying assets, including loan-tovalue and debt-to-income thresholds, and sets out issuance, trading, and REPO mechanisms, alongside the roles of originator banks, the refinancing entity, the central securities depository, and the regulator.
The pilot lays the groundwork for a scalable securitization market, supporting longer-term funding for housing finance and introducing a new investable asset class for institutional investors. Beyond the initial transaction, the framework establishes legal and operational precedents that can be expanded over time, contributing to yield-curve development, balance-sheet optimization for banks, and broader capital-market deepening.
7. Capital Market Reforms and FX Instruments Gain Momentum Under an Expanded Regulatory Sandbox
A comprehensive capital-market reform package approved in December 2025 targets more than US$1bn in funding through an expanded range of instruments, including dual listings, FX-denominated bonds, global depository receipts (GDRs), and exchange-traded funds (ETFs). A central element of the reforms is the extension of the regulatory sandbox framework, enabling both domestic and foreign issuers to access local markets through controlled pilot structures.
The package is supported by a strengthening of the regulatory architecture, including full implementation of Basel III standards across the banking sector, stricter enforcement of IFRS reporting, and alignment with all 29 Basel Core Principles. In parallel, a Financial Stability Council is to be established to enhance systemic-risk oversight and reinforce confidence in the resilience of the financial system.
Draft presidential measures further envisage pilot FX bond issuances and the admission of foreign issuers’ securities to domestic trading venues within the sandbox environment. Enhanced disclosure requirements, tighter corporate-governance standards, and stronger liability for non-compliance are intended to improve transparency and investor protection. These initiatives significantly broaden the investable universe and move the market closer to international best practice in structure, depth, and credibility.
8. Tax Incentives Approved to Support Long-Term Capital Market Instruments
A package of targeted tax incentives has been approved to support the development of long-term capital-market instruments and enhance after-tax returns for investors. Under the new measures, interest income earned by resident and non-resident legal entities from bonds issued by mortgage refinancing organizations and their authorized special-purpose entities will be exempt from corporate income tax until 1 January 2030.
In addition, dividend income received by the National Investment Fund will benefit from a corporate income tax exemption through the same period, strengthening the fund’s overall investment proposition and reinforcing its role as a cornerstone equity vehicle within the market.
By lowering the tax burden on securitized instruments and strategic equity holdings, these measures reduce funding costs for issuers and improve yield visibility for investors. Together with ongoing regulatory reforms, the incentives are designed to encourage institutional participation, support market depth, and facilitate the growth of longer-dated, investable products aligned with long-term capital allocation.
9. ESG and Islamic Finance Reforms Broaden Capital Market Access
A new wave of ESG and Islamic finance reforms is broadening access to capital and diversifying the range of investable instruments. Plans to issue ESG-labelled bonds build on the strong performance of recent sovereign placements and respond to rising demand from sustainability-focused institutional investors seeking transparent and credible ESG frameworks.
In parallel, a draft law on Islamic banking advances the development of Shariah-compliant finance, opening access to a sizeable and previously underpenetrated market segment. The proposed framework allows for the establishment of dedicated Islamic banks or Islamic windows within conventional institutions, defines permissible instruments, and introduces supporting legal and tax provisions to enable practical implementation.
Together, these initiatives position the market to attract capital from both ESG-oriented investors and Islamic finance pools, particularly from the Middle East and other key regions. The combined agenda enhances product diversity, improves financial inclusion, and strengthens connectivity with global ethical-finance markets, supporting more resilient and diversified funding channels.
10. Direct Investment Access to U.S. Companies Expands While Retail Equity Trading Remains Restricted
From 1 January 2026, residents will be permitted to make direct investments into companies registered in the United States without prior government approval and without quantitative limits, provided funds are transferred from onshore accounts held with licensed banks. The change follows amendments to foreign-exchange regulation aimed at easing capital controls and facilitating outward corporate investment.
The revised framework allows participation in the equity of U.S. companies, the establishment of new entities, and the financing of working capital and operations of foreign subsidiaries. The reform is designed to support structured, long-term capital deployment through corporate channels rather than short-term portfolio flows.
At the same time, access to trading publicly listed U.S. equities remains outside the scope of the liberalization. Purchases of shares such as Apple or Tesla via brokerage platforms continue to be restricted, reflecting a calibrated approach that prioritizes productive direct investment while maintaining safeguards against speculative retail capital movements. Overall, the measure signals a meaningful step toward capital-account opening while preserving a disciplined, sequenced policy framework.
