New Era of Capital Market Development in Uzbekistan

The President of the Republic of Uzbekistan has signed a Decree "On Additional Measures to Improve the Investment Climate in the Capital Market," marking a transformative milestone for the national financial system. The document sets ambitious targets: by 2030, the stock market aims to attract at least $1 billion in investments, including corporate bond issuances totaling a minimum of 5 trillion soums.

A cornerstone of the reform is the transformation of the "Regulatory Sandbox" mechanism, which now receives indefinite operational status. Uzbek residents gain unprecedented opportunities: issuing bonds denominated in foreign currency on the domestic market with the right to repayment and interest payments in foreign currency, enabling companies to raise funds without accessing external markets. Dual listing capabilities emerge, allowing simultaneous placement of securities on domestic and international exchanges.

Special emphasis is placed on engaging citizens in investment culture. Local trading platforms will facilitate trading in shares and bonds of leading foreign issuers, including companies from major indices such as Dow Jones, S&P 500, NYSE, Nasdaq, FTSE 100, Hang Seng, Shanghai SSE, and Nikkei. This initiative aims to protect retail investor interests while expanding their investment choices. Issuers receive the right to issue unsecured bonds exceeding their equity capital, significantly broadening corporate financing tools.

Enhanced regulatory oversight becomes a critical reform element. An innovative rating system is introduced to assess issuers' compliance with legislation, transparency levels, and quality of information disclosure. Licensing requirements for professional market participants have been updated in line with IOSCO principles and international best practices: phased increases in charter capital requirements, stricter standards for information technology infrastructure, and strengthened qualification criteria for management and beneficial owners in accordance with international standards on anti-money laundering and combating terrorism financing.

The Decree approves a comprehensive Action Plan for further capital market development and investment security guarantees. These measures are designed to create a modern, transparent, and dynamic capital market, strengthen investor confidence, and facilitate Uzbekistan's integration into the global financial system, ultimately serving as a catalyst for long-term economic growth and improved citizen welfare.