A new law concerning the capital market is currently being prepared in Uzbekistan. This legislative act aims to expand enterprises' opportunities to attract investments and introduce a number of new financial instruments, including Islamic sukuk securities.
The return on sukuk will be determined according to the principles of Islamic finance, rather than through traditional interest payments. The draft law, which was presented on October 14th to the National Agency for Advanced Projects (NAAP), includes 16 chapters and 123 articles. It has already passed its first reading in the Legislative Chamber of the Oliy Majlis and is preparing for consideration in the second reading.
What Instruments Will Appear in the Market
One of the most important changes will be the regulation of sukuk. Unlike standard bonds, where an investor receives interest for the loan provided, the income from sukuk can be generated from project profits, rental payments, or other asset operations, which complies with the norms of Islamic finance. For example, a company can use funds to build an object, and investors receive income from its operation based on the issued securities.
The draft law also provides for the issuance of bonds focused on sustainable development, intended to support environmental and social initiatives. Furthermore, it plans to regulate the use of instruments such as futures, options, forwards, swaps, and price difference contracts. These instruments help manage financial risks and apply diverse investment strategies, although they carry additional risks.
The issue of covered and securitized bonds is also being considered: the former are guaranteed by a specific pool of assets, while the latter allow attracting financing based on assets or related cash flows. Rules for issuing international financial institution bonds are also proposed.
The expansion of the range of available instruments should give investors broader opportunities to place funds, and companies additional ways to attract capital beyond traditional bank loans.
Why Change the Legislation
NAAP explains the necessity of this reform by stating that the financial market is developing, and new types of instruments are emerging that require their own regulation. The new bill is based on an analysis of existing securities market rules adopted in 2015. The current law contains 64 articles, whereas the updated document has 123.
Representatives of international financial institutions, including the European Bank for Reconstruction and Development, the International Finance Corporation, and the Asian Development Bank, participated in its development. According to NAAP, the volume of share issuance grew from 189.7 trillion soms in 2023 to 265.1 trillion soms in 2025, and by July 1, 2026, this figure is expected to reach 269.4 trillion soms.
Similarly, the volume of corporate bond issuance increased during the same period from 1.06 trillion to 3.93 trillion soms. There is also growth in trading volumes on the stock exchange: they rose from 2.9 trillion soms in 2023 to 17.6 trillion soms in 2025.
NAAP predicts that thanks to the introduction of new instruments, an additional 10 trillion soms in investments will be attracted by 2030. It should be noted that this is a target indicator, not an already achieved volume.
What Will Change in Stock Market Operations
The draft law also introduces changes to market infrastructure. The introduction of a central counterparty institution, the expansion of the functions of the Central Securities Depository, and the improvement of the regulation of management companies and rating agencies are planned.
The document provides for the creation of self-regulatory organizations and the establishment of the institution of bondholders' representatives. This latter mechanism is designed to ensure the protection of the general interests of debt security holders. Nevertheless, all the listed changes are currently only proposals, as the bill must still undergo further discussion in parliament, which may lead to adjustments in the final list of instruments and their application rules.
The actual result of the reform will directly depend on the effectiveness of the new mechanisms and the conditions created for market participants—both investors and companies.