Uzbekistan is reforming the financing and management of the culture and arts sector by introducing a results-oriented funding model, expanding public-private partnerships (PPP) and strengthening private sector participation.

The reform reflects a broader shift toward commercialization, efficiency and digitalization of the cultural ecosystem.

Transition to performance-based financing

A key feature of the reform is the introduction of a results-based financing system.

Starting from 1 July 2026, performance management will be strengthened through:

• mandatory annual KPIs for heads of cultural departments;
• evaluation-based incentives or reassessment of positions;
• ranking of cultural institutions based on performance indicators.

Priority is given to metrics such as:

• public engagement in cultural activities;
• preservation and promotion of national cultural values.

Centralization of funding flows

From 1 January 2027, a new financing model will be introduced:

• funding of cultural institutions will be centralized through the republican budget;
• allocations will be administered through the Ministry of Culture and its territorial bodies.

This is intended to improve efficiency and transparency in budget utilization.

Expansion of PPP and private sector participation

The reform significantly expands the role of private investors:

• a simplified PPP regime is introduced (on an experimental basis until 1 January 2030) for projects up to USD 1 million;
• cultural facilities may be transferred to private partners under PPP structures;
• private partners will operate under performance-based KPIs.

In addition, pilot cultural cluster projects (“Madaniyat mehmonxonasi”) will be implemented across regions starting from 1 July 2026.

New grant and incentive mechanisms

From 1 August 2026, a structured grant system will be introduced to support:

• theatre, music, dance, cinema and animation;
• cultural education and creative industries;
• startups and creative projects;
• AI, innovation and digitalization in culture.

A dedicated digital platform will be used to manage and publish grant-supported projects.

Support measures for private sector

Additional incentives include:

• subsidies and compensation mechanisms for financing cultural projects;
• partial reimbursement of interest expenses on loans;
• coverage of up to 50% of utility costs for certain private cultural initiatives (up to 5 years);
• allocation of land plots through online auctions for cultural projects.

These measures are aimed at lowering entry barriers for private investors.

Transformation of cultural infrastructure

The reform also introduces:

• restructuring and optimization of underperforming cultural centers;
• transfer of cultural institutions to local government (hokimiyat) management;
• development of centers promoting intangible cultural heritage, crafts and creative industries.

Education and talent development

Changes will also affect the education system:

• modernization of specialized schools and colleges in arts and culture;
• introduction of integrated educational formats (e.g., “2+2” models);
• alignment of education programs with sector needs.

Digitalization and AI integration

The reform places emphasis on digital transformation:

• creation of databases of national cultural content;
• use of AI platforms for preservation and promotion of culture;
• implementation of digital management systems within the sector.

Implications

The reform signals a structural shift:

• culture becomes investment-driven, not only state-funded;
• private sector gains access to new PPP and grant mechanisms;
• governance becomes performance-based;
• digitalization and AI become integral to cultural policy.

This approach is expected to improve efficiency, expand access to cultural services and create new opportunities for creative industries.

The document entered into force on 23 April 2026.

Uzbekistan has adopted a new Law on Limited Liability Companies, introducing a significantly updated corporate governance framework and strengthening investor protection mechanisms.

The reform modernizes the regulation of LLCs, aligning key elements with international corporate governance standards and addressing long-standing gaps in practice.

Key Legal Developments

Enhanced corporate governance framework

The Law formalizes the role of the supervisory board in LLCs, including its powers, composition and procedures for appointment. It also explicitly allows for remote decision-making, including absentee voting, reflecting modern governance practices.

Introduction of fiduciary duties

For the first time at a legislative level, fiduciary obligations are clearly defined for members of the supervisory board and executive bodies. This introduces a higher standard of conduct, including duties of care and loyalty, and increases potential liability exposure for management.

Minority shareholder protections

The Law strengthens the position of minority participants by:

• enabling the establishment of internal committees;
• allowing the initiation of independent audits;
• enhancing oversight over company management.

These mechanisms are expected to improve transparency and internal accountability.

Regulation of affiliated party transactions

Clearer rules are introduced for affiliated persons and related-party transactions, addressing a key risk area in corporate structures and improving safeguards against conflicts of interest.

Enforcement of capital contribution obligations

Participants who fail to fully contribute their share in the charter capital may now be excluded through court proceedings, reinforcing capital discipline and protecting other participants.

Optional centralization of capital records

LLCs are permitted to transfer the accounting of charter capital to the Central Securities Depository on a contractual basis is an option that may improve transparency and reliability of ownership records.

Practical Implications for Businesses

The new Law will require companies and investors to reassess existing structures and documentation:

• Charters (constitutional documents) should be reviewed and potentially updated;
• Governance models (including the introduction of a supervisory board) should be reconsidered;
• Shareholder and joint venture agreements may need alignment with new rules;
• Internal policies on conflicts of interest and related-party transactions should be strengthened;
• Businesses should monitor capital contribution compliance more closely.

Overall, the reform increases both compliance expectations and governance accountability.

Entry into Force

The Law will enter into force on 22 July 2026.

This reform represents a significant step toward improving corporate governance and investor confidence in Uzbekistan. While it introduces additional compliance considerations, it also provides clearer rules and stronger protections for market participants.

Uzbekistan is introducing a unified QR code system for payments, aimed at simplifying cashless transactions and enabling interoperability across banks and payment service providers.

The framework is designed to accelerate digital payments, reduce the shadow economy and create a more integrated payment ecosystem.

Single QR code for all payment providers

The key feature of the reform is the introduction of a unified QR code standard allowing:

• customers to pay using any banking or payment application;
• seamless interaction between different payment systems;
• elimination of fragmentation in QR-based payments.

The system is built to ensure interoperability across all market participants.

Mandatory implementation across businesses

The rollout of the unified QR code forms part of a broader policy:

• all businesses in trade and services are expected to accept payments via the unified QR system;
• non-use of the system may be treated as a violation of trading rules.

This positions the QR code as a standard payment acceptance tool across the economy.

Static and dynamic QR codes

The framework distinguishes between two types of QR codes:

• static QR codes – linked to fixed payment details;
• dynamic QR codes – generated per transaction, including amount and parameters.

Dynamic QR codes:

• include a unique identifier;
• have a limited validity period;
• enhance transaction security and traceability.

Role of banks and payment providers

Banks acting as acquirers are responsible for:

• issuing QR codes to merchants;
• ensuring secure and uninterrupted payment processing;
• providing devices or solutions for generating dynamic QR codes.

Payment service providers must:

• integrate QR scanning functionality into mobile applications;
• ensure user-friendly payment interfaces.

User functionality and transparency

Mobile applications must provide:

• automatic population of payment details;
• display of payment amount and applicable fees;
• confirmation of transactions;
• access to transaction history and real-time receipts.

In addition, users must have access to:

• customer support services;
• complaint submission and tracking tools.

System operator and infrastructure

A dedicated QR system operator is responsible for:

• managing the infrastructure;
• ensuring real-time data exchange between participants;
• processing clearing information;
• monitoring transactions and risks.

The system also includes:

• a unified registry of QR identifiers;
• real-time transaction monitoring and alerts.

Compliance and security requirements

The framework imposes strict requirements on participants:

• compliance with AML/CFT rules;
• adherence to cybersecurity and data protection standards;
• secure processing and storage of transaction data.

The Central Bank retains supervisory authority over the system.

Implications

The introduction of a unified QR code system has several implications:

• businesses gain a standardized and widely accepted payment method;
• consumers benefit from flexibility and ease of use;
• banks and fintechs operate within an integrated ecosystem;
• regulators gain better visibility over transactions.

The reform is expected to significantly expand cashless payments and strengthen financial transparency across the economy.