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.