Uzbekistan has taken another decisive step toward deepening its financial markets and strengthening investor confidence. A recently adopted presidential decree on additional measures to improve the investment climate in the capital market establishes a comprehensive framework aimed at accelerating capital-market development, expanding investment opportunities, and aligning domestic regulation with international best practices.

The decree represents a continuation of Uzbekistan’s broader economic reform agenda and its commitment to transforming the capital market into a key engine of long-term economic growth.

 

Strategic Targets for Capital Market Development Through 2030

 

The decree sets out clear, measurable benchmarks for the development of the capital market through 2030, reflecting both quantitative growth objectives and qualitative improvements in governance and transparency.

Key strategic targets include:

• Attracting at least USD 1 billion in investments to the stock market, including:
• Raising the share of detected and resolved violations in the capital-market sphere to 85 percent, strengthening regulatory enforcement and market discipline.
• Increasing mandatory disclosure levels of:

These objectives demonstrate a balanced policy approach that combines capital mobilization with robust compliance and transparency standards.

 

Permanent Regulatory Sandbox for Capital Market Innovation

 

A key feature of the reform package is the further development of the special legal regime known as the “Regulatory Sandbox” in the capital market. The decree institutionalizes this mechanism as a permanent regulatory tool.

 

Key Enhancements

 

Under the updated framework:

• The regulatory sandbox will operate on an unlimited basis, providing long-term legal certainty for market participants.
• Resident companies are granted the right to obtain sandbox participant status.

Sandbox participants are allowed to:

• Issue bonds denominated in foreign currency on the domestic stock market, including the repayment of principal and payment of interest in foreign currency, enabling access to foreign-currency financing without entering external markets.
• Conduct dual-listing operations, allowing securities to be placed simultaneously on domestic and foreign stock exchanges.
• Facilitate trading of securities of foreign issuers on local platforms, including shares and bonds linked to leading international indices and exchanges in the United States, the United Kingdom, China, and Japan.

These measures are intended to expand investment options for citizens, encourage participation in the stock market, and enhance investor protection through regulated domestic access to global financial instruments.

Additionally, sandbox participants are granted the right to issue unsecured bonds and bonds exceeding their own capital, subject to regulatory oversight, significantly expanding corporate financing opportunities.

 

Enhanced Investor Protection and Supervisory Framework

 

To ensure compliance with existing legislation and in line with IOSCO principles and international best practice, the decree introduces stronger supervisory mechanisms.

 

Issuer Compliance Rating System

 

• A rating system for issuers is introduced to assess compliance with legal requirements, transparency standards, and disclosure quality.
• The system is designed to improve market discipline and support informed investment decisions.

 

Updated Licensing Requirements

 

Licensing conditions for professional participants in the securities market have been updated to include:

• Gradual increases in minimum charter capital requirements;
• Enhanced information-technology and operational capacity standards;
• Strengthened qualification and fitness requirements for senior management and owners of professional market participants.

These reforms aim to increase professionalism, reduce systemic risk, and improve overall market resilience.

 

New Regulatory Instruments and Market Infrastructure

 

The decree also approves a comprehensive set of regulatory instruments governing capital-market activity, including:

• Licensing requirements for professional securities-market activities;
• Rules governing the licensing of stock exchanges and organizers of over-the-counter trading;
• Notification-based requirements for investment advisers;
• Procedures for foreign-currency settlements and payments within the regulatory sandbox;
• Core rules for organizing trading in financial instruments on stock-exchange platforms and electronic platforms of investment intermediaries;
• Approved fee schedules applicable to issuers in connection with state registration and documentation procedures.

 

Conclusion

 

The presidential decree on improving the investment climate in the capital market constitutes a systemic reform of Uzbekistan’s capital-market framework. By combining ambitious growth targets with regulatory flexibility, strengthened supervision, and enhanced investor protection, the reforms are designed to transform the capital market into a transparent, liquid, and internationally competitive segment of the national economy.

As these measures are implemented, Uzbekistan’s capital market is expected to attract increased domestic and foreign investment, deepen market participation, and support sustainable economic growth over the medium and long term.