UZBEKISTAN · CORPORATE & COMMERCIAL LAW
Privatisation in Uzbekistan
Bond Stone advises foreign investors on privatisation in Uzbekistan — acquisition routes, due diligence on state assets, post-privatisation obligations and investment protections.
Primary authority: Law of the Republic of Uzbekistan "On Privatisation of State Property" No. ZRU-907 dated 14 February 2024 (in force 16 May 2024, as amended); Law "On Investments and Investment Activity" No. ZRU-598 dated 25 December 2019; Presidential Resolution No. PP-145 dated 21 April 2025 (public sale of stakes in 29 large SOEs). Authority: lex.uz
Uzbekistan — Market Context 2025
7.7%
Real GDP growth in 2025
USD 43B
Investment implemented in 2025, of which USD 38.2B FDI — up 24% year on year
22,000+
Foreign-invested enterprises operating in Uzbekistan at 1 October 2026
Key Considerations
Scale of Uzbekistan's privatisation programme
Presidential Resolution No. PP-145 of 21 April 2025 set targets for the public sale of stakes in 29 large state-owned enterprises, with IPOs and SPOs of 12 large SOEs on domestic and international stock exchanges. The National Investment Fund of the Republic of Uzbekistan was established by Presidential Resolution No. PP-303 of 27 August 2024. On 3 February 2025 the Ministry of Economy and Finance announced the Fund's investment asset management agreement with Franklin Templeton Asset Management FE LLC, covering the Fund's portfolio of 18 state-owned enterprises and commercial banks.
Acquisition routes
Foreign investors can participate in Uzbekistan's privatisation programme through: direct share acquisition via negotiated sale or public tender; participation in IPOs and SPOs on the Tashkent Stock Exchange; acquisition of assets from state-owned enterprises; and PPP arrangements for infrastructure assets. Bond Stone advises on the most appropriate route based on the target asset, investor profile, and investment objectives.
Due diligence — privatisation-specific risks
Privatisation transactions in Uzbekistan require specific due diligence beyond standard corporate review — including whether the original privatisation was lawfully conducted, review of post-privatisation investment obligations that may bind the acquirer, assessment of environmental liabilities from Soviet-era operations, and identification of any state or municipal claims against the target.
Investment protections
Foreign investors in privatised Uzbek enterprises have the guarantees of the Law on Investments and Investment Activity: protection against nationalisation, compensation on requisition, free transfer of funds after tax, and treatment no less favourable than domestic investors. Uzbekistan's bilateral investment treaties may provide additional treaty arbitration access. Bond Stone advises on how these protections apply in privatisation transactions.
Experience
Bond Stone advises foreign investors on participation in Uzbekistan's privatisation programme — including due diligence on privatisation targets, acquisition structuring, and investment protection advice. Client confidentiality is maintained across all matters.
Privatisation · Uzbekistan · Manufacturing
SOE Acquisition — Manufacturing Sector
Advising a foreign investor on the acquisition of an Uzbek state-owned manufacturing enterprise — privatisation due diligence, post-privatisation investment obligations, SPA negotiation, and BIT protection analysis.
Privatisation · Uzbekistan · China
Tender Procedure — Chinese Buyer
Advising a Chinese buyer on participation in a competitive tender for an Uzbek state asset — tender documentation review, bid structuring advice, and post-acquisition regulatory compliance strategy.
Advisory · Uzbekistan · Investment
Investment Protection — Post-privatisation
Advising a foreign investor on available investment protections following acquisition of a privatised Uzbek enterprise — BIT treaty analysis, stabilisation clause review, and dispute resolution clause structuring for post-acquisition commercial agreements.
Privatisation · Uzbekistan · Capital Markets
IPO Participation — Foreign Institutional Investor
Advising a foreign institutional investor on participation in an IPO of an Uzbek state-owned enterprise on the Tashkent Stock Exchange — eligibility requirements, investment documentation, and post-acquisition shareholder rights.
Privatisation · Uzbekistan · Manufacturing
Asset Acquisition — Industrial Plant
Advising on the acquisition of an Uzbek state-owned industrial plant through a direct negotiated sale — asset due diligence, environmental liability assessment, post-privatisation investment obligation analysis, and SPA negotiation.
Advisory · Uzbekistan · Investment
BIT Protection Analysis — Gulf Investor
Advising a Gulf investor on available BIT protections for a planned investment in a privatised Uzbek enterprise — treaty selection, stabilisation clause negotiation, and structuring of the investment to maximise treaty protection.
Privatisation · Uzbekistan · Infrastructure
PPP Structure — Infrastructure Asset
Advising on a public-private partnership arrangement for an Uzbek infrastructure asset — PPP agreement structure, concession terms, risk allocation, government guarantee provisions, and dispute resolution under Uzbek law.
Investing in Uzbekistan
Uzbekistan — Investment Framework
- 100% foreign ownership permitted in most sectors — no mandatory local partner requirement
- Enterprise with Foreign Investment (EFI) status confers additional guarantees — Law on Investments and Investment Activity No. ZRU-598 dated 25 December 2019
- 34 Special Economic Zones, 400 Small Industrial Zones (1 July 2026) — tax and customs duty exemptions for qualifying residents
- Active privatisation programme — 29 SOEs being privatised in 2025–2026, IPOs and SPOs of 12 large state enterprises
- Bilateral investment treaties — treaty arbitration access for qualifying investors
- Most foreign-invested enterprises by country at 1 October 2026 — China (6,649), Russia (3,690), Türkiye (2,410), Kazakhstan (1,378), Republic of Korea (744)
Uzbekistan — International Financial Centre (Not Yet Operating)
Tashkent International Financial Centre (TIFC)
Created by Presidential Decree No. UP-48 of 30 March 2026 and Constitutional Law No. ZRU-1158 of 13 July 2026 (in force 25 July 2026), but not yet operating: activation requires TIFC Acts and presidential confirmation. The regime provides for TIFC Acts backed by the common law of England and Wales, an independent TFSA regulator, the Tashkent International Commercial Court, and tax exemptions for qualifying participants, most of them until 1 January 2076. Bond Stone is monitoring the TIFC Acts and will advise on TIFC entry once the Centre is activated.
Tashkent International Financial Centre — full guide →Why Bond Stone
- Tashkent office — direct engagement with Uzbek authorities, registration bodies, and local counterparties
- Active Uzbekistan corporate practice — joint ventures, M&A, commercial contracts, and restructuring across energy, manufacturing, and trading sectors
- Chinese investor expertise — Bond Stone advises Chinese investors entering Central Asia through Uzbekistan
- Ranked Legal 500 EMEA and IFLR1000
Primary authority: lex.uz
Discuss your Uzbekistan matter
Contact Bond Stone for a confidential discussion about privatisation in Uzbekistan.
[email protected]
+7 (701) 729 76 72 — Almaty
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