LEGAL GUIDE · 2026 EDITION
Uzbekistan Legal Guide
Foreign Investor Edition — 2026
Uzbekistan is Central Asia’s most populous country — 37.5 million people, USD 43.1 billion in investments attracted in 2025, GDP growth of 7.7% in 2025, and a reform programme that has fundamentally restructured the investment legal framework since 2017. It is also a jurisdiction where the pace of reform has outrun the consistency of implementation — where what the law says today may be revised by presidential decree next month.
This guide is written for foreign investors, GCs, and CFOs making real decisions about Uzbekistan — not for readers who want a balanced academic overview. It tells you what matters, what changed in 2026, and what has tripped up investors who did not take the legal environment seriously enough.
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The five decisions every Uzbekistan investor faces
1. Civil law entity or TIFC?
Uzbekistan operates a civil law system. The Tashkent International Financial Centre (TIFC) — established 2023 — is developing as a separate English common law jurisdiction within Uzbekistan with its own corporate framework and dispute resolution. For most current investment structures, civil law LLP (МЧЖ) remains the standard vehicle, but TIFC structuring is increasingly relevant for financial services and cross-border transactions.
2. МЧЖ, АО, or production-sharing?
The МЧЖ (LLC equivalent) is the standard vehicle for most foreign investors — flexible, no minimum capital for most sectors, 100% foreign ownership permitted. The АО (JSC equivalent) is required for regulated financial services and public companies. Oil and gas investors typically operate through production-sharing agreements (PSAs) negotiated with the Ministry of Energy and Uzbekneftegaz. Structure determines tax exposure, repatriation rights, and dispute resolution options.
3. EFI status or SEZ?
Uzbekistan offers two principal incentive tracks. Foreign Direct Investment (EFI) status grants guarantees against worsening of legislation, repatriation rights, and additional guarantees under the Law on Investment. Special Economic Zones (SEZs) — 21 as of 2026 — offer CIT and customs exemptions, simplified procedures, and dedicated infrastructure. Choosing the right track depends on sector, investment size, and location. The two can be combined in certain structures.
4. New Investment Law or existing framework?
The draft 2024 Law on Investment and Investment Activities — approved by the Senate in January 2025 and awaiting presidential ratification — will significantly reform the investment legal framework when enacted. Investors structuring transactions in 2026 face a transitional environment: the 2019 Law governs today, but implementing regulations for the new law are under development. Bond Stone tracks the legislative process and advises on structuring for both frameworks.
5. How will you resolve disputes?
Uzbekistan courts have improved but remain an uncertain environment for foreign investors in high-value commercial disputes. The Tashkent Arbitration Centre provides institutional arbitration. Uzbekistan is a New York Convention signatory — foreign arbitral awards are enforceable. Investor-state arbitration is available under Uzbekistan’s 50+ BITs. For contracts governed by Uzbek law, pre-trial mandatory demand procedure (досудебный порядок) applies before court filing. Choosing your dispute resolution mechanism at the contract stage — including governing law and arbitration seat — is not optional.
What changed in 2026
New Investment Law — pending ratification
The draft 2024 Law on Investment and Investment Activities was approved by the Uzbek Senate in January 2025 and is awaiting presidential ratification. When enacted, it will replace the 2019 Law on Investment and Investment Activity — the primary investment legislation — and introduce revised investor protections, updated dispute resolution provisions, and reforms addressing restrictions identified by the OECD in its 2025 investment policy review. Implementing regulations are under development. Bond Stone advises clients on structuring under both the current and incoming framework.
Presidential Decree No. UP-97 — June 2025 FDI stimulus
Presidential Decree No. UP-97 of 23 June 2025, “On additional measures to stimulate the attraction of foreign direct investment,” entered into force 25 June 2025. The Decree expanded the scope of FDI incentives and introduced additional guarantees for foreign investors. Bond Stone advises on qualifying for and structuring around the Decree’s provisions.
SOE privatisation — USD 2 billion fund, major pipeline
An April 2025 presidential decree stipulated that significant shares of major Uzbek SOEs will be privatised by end of 2026. Franklin Templeton was appointed in February 2025 as asset manager of the newly launched USD 2 billion Uzbekistan National Investment Fund (UzNIF), which will facilitate IPOs of Uzbek SOEs at international stock markets. This represents the largest privatisation pipeline in Uzbekistan’s post-independence history and a significant M&A opportunity for international investors.
Tax Code amendments — effective 1 January 2026
A series of legislative acts adopted December 2025 introduced amendments to the Uzbek Tax Code effective 1 January 2026. The IMF’s 2026 Article IV mission recommended phasing out income-based tax incentives — CIT holidays and reduced CIT rates — and eliminating CIT and customs duty exemptions as part of a medium-term revenue strategy. Investors relying on CIT exemptions or reduced rates should assess the stability of their incentive structures under the evolving tax framework.
WTO accession — targeting 2026
Uzbekistan is targeting WTO accession in 2026. Legislative changes have already been made to comply with WTO requirements — unifying state duties, excise taxes, and procedures for non-residents and local companies, and removing market-distorting subsidies. WTO membership will further open the Uzbek market and increase the predictability of trade regulation for international investors.
Renewable energy target — 25% by 2026
The Development Strategy of New Uzbekistan 2022-2026 targets increasing the share of renewables to 25% of electricity generation by 2026. Significant renewable energy projects are under development across solar, wind, and small hydro. Renewable energy producers benefit from CIT at reduced rates. The energy market liberalisation programme is advancing, creating new investment opportunities in generation, transmission, and supply.
The legal landscape — what you need to know
Legal system
Civil law — Soviet/Continental tradition. Presidential decrees carry significant legal weight alongside codified law. The TIFC is developing as an English common law jurisdiction within Uzbekistan. Reform pace is rapid — legal positions can change by decree with short notice.
Foreign ownership
100% foreign ownership permitted in most sectors. Restrictions apply in media, certain infrastructure, and defence. Agricultural land cannot be owned by foreign entities — only leased. State remains dominant in energy, telecoms, and banking — privatisation programme creating new entry points.
Tax environment
CIT 15% standard rate. VAT 12%. WHT on dividends 10%. 55+ DTTs. SEZ participants may receive CIT and customs exemptions. Tax incentive framework under IMF-recommended revision — stability of current incentives should be verified. Tax Code amendments effective 1 January 2026.
Dispute resolution
Uzbek economic courts, Tashkent Arbitration Centre (institutional arbitration), and investor-state arbitration under 50+ BITs. Pre-trial mandatory demand procedure required before court filing. New York Convention signatory — foreign arbitral awards enforceable. TIFC dispute resolution developing.
Currency & repatriation
Uzbek Som (UZS) freely convertible since 2017 reforms. Law on Investment guarantees unrestricted transfer of funds out of Uzbekistan. Currency transactions above threshold require Central Bank registration. Historical currency restrictions have been substantially liberalised — but monitoring is advisable.
Key risks
Legislative instability — reform pace means legal positions change frequently. State dominance in key sectors limits genuine private competition. IP enforcement improving but not yet reliable. Corruption risk — improving since 2017 but material in permitting, licensing, and procurement. Tax incentive stability uncertain under IMF reform recommendations.
Uzbekistan by sector — where the opportunities are
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Energy & Natural Resources Oil · Gas · Uranium · Renewables Major natural gas reserves, significant uranium and gold production. Renewable energy target 25% by 2026. PSA framework for oil and gas. Energy market liberalisation underway. ADB and World Bank active in infrastructure financing. |
Privatisation & M&A SOE Acquisitions · IPOs · State Assets Largest privatisation pipeline in post-independence history. USD 2B UzNIF fund facilitating SOE IPOs. April 2025 decree — major SOE shares to be privatised by end 2026. Foreign investors participate equally with domestic entities. |
Pharmaceuticals & Healthcare Import · Manufacturing · Distribution Growing import and local production market. EAEU non-member but bilateral agreements cover pharmaceutical registration. Ministry of Health licensing required. Bond Stone advises multiple international pharma companies including Hetero Labs and Macleods Pharmaceuticals. |
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Construction & Infrastructure EPC · ADB/WB Projects · PPP Significant ADB and World Bank infrastructure pipeline. PPP Law 2019 (amended 2021) enables private participation in public infrastructure. FIDIC contract standards widely used. Construction licensing required for foreign contractors. EPC mandates from Chinese, Korean, and European contractors active. |
Agriculture & Agribusiness Food Processing · Exports · Logistics Uzbekistan is a major exporter of cotton, fruit, and vegetables. Agricultural land cannot be owned by foreign entities — only long-term leases available. Food processing and agribusiness investment actively encouraged. Modern packaging sector CIT incentive active through 2028. |
Fintech & TIFC TIFC · CBU Licensing · Payments Tashkent International Financial Centre developing as English common law hub. CBU licenses payment organisations and microfinance. Digital banking and fintech active. WTO accession expected to further open financial services to foreign competition. |
Bond Stone in Uzbekistan
Tashkent office. Full-service. Partner-led.
✦ Bond Stone Tashkent — Tashkent — the only internationally ranked law firm with a dedicated Uzbekistan managing director (Assadullah Muradov, admitted to the Uzbek Bar since 2009)
✦ Deep EPC, FIDIC, PSA, and ADB/World Bank contract expertise — built over 15+ years of construction and energy mandates in Uzbekistan
✦ Track record: Hetero Labs, Macleods Pharmaceuticals, multiple Chinese EPC contractors, Clean Development Mechanism mandates, PSA advisory
✦ Ranked Legal 500 EMEA Top Tier and IFLR1000 Market Leader — full Uzbekistan PA suite across corporate, M&A, investment, tax, employment, data protection, and dispute resolution
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