According to a report by Podrobno.uz correspondent, following a press conference by the National Agency for Advanced Projects (NAPP) dedicated to the draft law on the capital market, foreign investors will be able to acquire shares and bonds of Uzbek enterprises without the need to open a brokerage account directly in Uzbekistan.
The regulator recognizes the right of certain foreign financial structures, including custodians, investment intermediaries, foreign banks, and depositaries, to open direct accounts at the Central Securities Depository of Uzbekistan. These organizations will be able to purchase and store local assets on behalf of their clients.
This scheme allows foreign investors to interact with the local market using their familiar financial infrastructure, bypassing the need to complete all procedures within Uzbekistan. Furthermore, local banks and investment intermediaries will be able to provide custodial services provided they comply with international compliance requirements.
The Central Depository will also be permitted to open correspondent accounts outside the country, in foreign banks and organizations that handle the accounting and storage of securities. NAPP expects this to improve connectivity with leading global systems such as Euroclear and Clearstream.
It is also stipulated that the transfer of securities between the accounts of a foreign nominee holder, provided the actual owner remains unchanged, will not be classified as a sale and will therefore not incur tax obligations, which will facilitate asset movement within the international depository system.
The bill also covers issues of placing Uzbek securities abroad and allowing foreign issuers onto the domestic market, with the regulator defining appropriate quotas and procedures.
It was previously known that the National Investment Fund of Uzbekistan had placed shares on the London Stock Exchange.
A legal framework is being developed in Uzbekistan that will allow for the issuance of sukuk—securities compliant with the principles of Islamic finance. According to the draft law, four varieties of such instruments are provided for: partnership, lease, trade, and agency.
Unlike traditional bonds, where the interest rate is fixed in advance, the yield on sukuk will depend on a specific commercial enterprise or asset. Furthermore, funds raised through these securities cannot be used in sectors that contradict the norms of Islamic finance, such as alcohol, tobacco production, or gambling.
The issuance of these securities will be carried out by a special financial company (SPV) created by the project initiator. This company acquires certain assets, and the proceeds from them are directed towards repaying obligations to investors. To ensure the protection of sukuk holders in case of financial difficulties for the initiator, this property will be accounted for separately from the company's own capital.
The Sharia council is responsible for confirming the compliance of all transactions, income sources, and assets with the principles of Islamic finance. An authorized representative of the sukuk holders will monitor compliance with the issuance terms and the protection of investor rights.
The draft law also allows for the issuance of both corporate and government sukuk. Government issuances can be placed on behalf of Uzbekistan by the Central Bank or another state body granted the necessary authority by a decree of the President or Cabinet of Ministers.
To implement the new instrument, it is proposed to introduce tax incentives. It is planned to exempt sukuk income from personal income tax and profit tax until 2038. These preferences also apply to transactions between the special financial company and the issuer. This document has already passed its first reading in the Legislative Chamber.
It was previously announced that the preparation of the regulatory framework for 'green sukuk,' which are intended to support environmental and sustainable projects in Uzbekistan, has been completed.
Joint Stock Company 'Tashkent Invest', which is under the control of the capital's hokimiyat, has acquired significant new powers and rights, confirming its status as a major owner of urban real estate.
The company will create a so-called 'apartment bank'. This bank is intended for providing housing for rent and making compensation payments to owners of property located in renovation zones. The acquisition of residential and non-residential premises for this purpose will be carried out through a request for proposals, using funds from the Tashkent Development Fund and other authorized sources.
In addition, 'Tashkent Invest' will take on the role of the client when implementing market sites. State shares in these markets, which will be put up for public auction, will come under the management of this company. Furthermore, in the fourth point of the document, the company was granted exclusive rights to certain land plots, although the document does not reflect tasks regarding increasing transparency and accountability in connection with the expansion of its powers.
