BAKU, Azerbaijan, June 23. President Shavkat
Mirziyoyev reviewed a package of measures aimed at accelerating the
development of Uzbekistan’s capital market, part of broader efforts
to attract investment, expand private sector financing, and
modernize the country’s financial system.
This was reflected in the statement by the press service of the
Uzbek president.
The presentation highlighted recent progress in economic
liberalization, state-owned enterprise reform, privatization, and
the creation of a more investor-friendly business environment.
Officials emphasized that developing a modern capital market is a
key component of these reforms.
Last month, Uzbekistan reached a significant milestone in its
financial sector when the National Investment Fund’s shares were
listed on both the London Stock Exchange and the Tashkent Stock
Exchange through an initial public offering. This was seen as a
significant step towards integrating Uzbekistan’s capital markets
with the global financial system.
According to the press service, international investors are
showing increasing interest in Uzbekistan’s financial markets.
Several major international financial institutions, including the
Asian Development Bank, the International Finance Corporation and
the European Bank for Reconstruction and Development, have also
expressed an interest in issuing local-currency bonds in
Uzbekistan.
During the presentation, officials stressed the importance of
building a modern market infrastructure, establishing a legal
framework aligned with international standards, providing
appropriate tax incentives, and ensuring a transparent and
predictable business environment.
A centerpiece of the reform agenda is a new draft Law on the
Capital Market, developed in cooperation with international
financial organizations. The proposed legislation, consisting of 16
chapters and 123 articles, is designed to regulate the capital
market according to modern market principles, strengthen investor
protections, improve market infrastructure, and introduce new
financial instruments.
The draft law would allow the introduction of derivatives widely
used in global financial markets, including options, swaps,
futures, and forwards. The framework would also incorporate netting
agreements and align with standards established by the
International Swaps and Derivatives Association (ISDA).
The reforms would establish a legal basis for banks to issue
covered bonds and mortgage-backed securities, measures intended to
attract long-term financing, support mortgage market development,
and expand access to financial services.
Officials also outlined plans to introduce Islamic finance
instruments for the first time in Uzbekistan’s securities market.
The legislation would define rules for issuing sukuk, including
partnership-based, lease-based, trade-based, and agency-based
structures commonly used in Islamic finance.
Additional measures focus on strengthening market
infrastructure. Under the proposals, the Central Securities
Depository would receive expanded authority to manage centralized
dividend payments and open correspondent accounts with foreign
banks.
Financial institutions would be authorized to provide
professional custody and securities administration services, while
simplified procedures for foreign nominee holders would facilitate
greater participation by international institutional investors.
The reforms also seek to align the powers of market regulators
with international standards, enhancing oversight of market
participants, improving transparency, strengthening enforcement
mechanisms, and providing stronger protection for investors.
In order to support the international placement of shares in
Uzbek companies and improve safeguards for investor assets, it is
planned that more than ten existing laws and legal codes will be
amended.
“Our country’s president emphasized that the capital market is
an important source for attracting long-term resources into the
economy, transforming enterprises, and expanding the flow of
private investment.” the press service said.
He instructed relevant agencies to continue consultations with
international partners on the draft legislation, develop market
infrastructure in line with global standards, introduce new
financial instruments, and strengthen professional training for the
financial sector.
