On December 15, President Shavkat Mirziyoyev reviewed a presentation outlining major priorities for transforming Uzbekistan’s capital market and accelerating the adoption of international standards in the banking sector. Judging by the official figures and policy direction, the country is entering one of the most significant turning points in its financial-market history.
These decisions are not only for regulators. They open new opportunities for startups, private companies, banks, and foreign investors alike.
Capital market: a low base, high potential
As of today, Uzbekistan’s capital market shows the following indicators:
- Market value of outstanding securities — UZS 275 trillion
- Freely traded securities on the exchange — UZS 4 trillion
- 717 issuers and 77 professional market participants
- Market capitalization at around 20% of GDP
For comparison, in developed and emerging markets this ratio typically ranges between 60% and 120% of GDP. In other words, the problem is not demand — it is structure and available instruments. This is why the government has set a clear target: attract at least $1 billion in investment into the domestic capital market
Dual listing and new instruments: the market opens up
The most important signal is the decision to allow dual listing.
What does this mean in practice?
- Uzbek companies will be able to list their securities simultaneously on the Tashkent Stock Exchange and foreign exchanges
- Liquidity and exit opportunities for foreign investors will improve
- Pressure for stronger corporate governance and transparency will increase
In parallel, a range of new financial instruments is planned for introduction:
- Foreign-currency-denominated bonds
- Global Depositary Receipts (GDRs)
- Foreign securities
- Exchange-Traded Funds (ETFs)
This signals that capital-raising opportunities are expanding not only for banks, but also for fast-growing private companies.
Regulatory sandbox: now open to residents as well
The expansion of the regulatory sandbox regime deserves particular attention.
Under the new approach:
- The sandbox will apply to resident companies, not only non-residents
- It will operate without time limits for foreign investors
- Trading in foreign shares, bonds, and other securities will be officially permitted
This addresses two challenges simultaneously:
- Reduces informal and off-market trading
- Allows local investors to access global markets through domestic infrastructure
Foreign-currency bonds: new breathing room for companies
One of the most practical decisions is the following: Local banks and companies will be allowed to issue foreign-currency bonds on the Tashkent Stock Exchange
This changes several fundamentals:
- Companies can raise hard-currency funding without accessing external markets
- Currency risks can be managed domestically
- The private sector gains more direct access to capital
In addition, allowing issuers to place unsecured bonds exceeding their equity capital could significantly expand the corporate bond market.
Banking sector: Basel III and global alignment
Over the past seven years:
- Commercial bank assets have grown 5.3×, exceeding UZS 877 trillion
- The number of banks has reached 35
- Three foreign banks have entered the Uzbek market since 2017
However, scale alone is not enough — quality is decisive.
For the first time, Uzbekistan has participated in the IMF and World Bank’s Financial Sector Assessment Program (FSAP). As a result, by 2026 the banking sector is expected to be fully aligned with:
- The 29 Core Principles of the Basel Committee
- Basel III standards
- Full IFRS-based financial reporting
Additionally, a Financial Stability Council involving the Government and the Central Bank will be established.
Conclusion: who do these reforms matter for?
These reforms are critical for:
- Banks — a new stage in risk and capital management
- Private companies — growth through IPOs and bond issuance
- Startups — infrastructure for later-stage financing
- Foreign investors — a more open and predictable market
Uzbekistan’s capital market is no longer just a state-centric system. It is moving toward becoming a real financing mechanism for the private sector.
From the Pivot.uz perspective, this is a strategic inflection point. The key question is no longer “Will the regulations be adopted?” but: Which companies will be the first to seize these new opportunities?
