Uzbekistan Approves Rules for Trading Foreign Securities within a Special Regulatory Sandbox

Investors and corporate structures in Uzbekistan will gain the right to acquire shares and bonds of foreign firms, as well as stakes in exchange-traded funds (ETFs), through local stock exchanges and electronic systems of investment intermediaries. This change is being introduced as part of a special legal mechanism known as the 'Regulatory Sandbox' for the capital market.

The Ministry of Justice has approved the new rules. According to this document, access to trading foreign securities will be open to qualified investors and legal entities. However, only assets listed in a special register of the National Agency for Advanced Projects can be purchased.

All transactions will be conducted through the stock exchanges of Uzbekistan and electronic platforms of investment intermediaries. It is important to note that using borrowed funds to purchase foreign securities is prohibited, and all financial operations must be carried out in foreign currency.

The contract with an investment intermediary can be concluded remotely after undergoing a digital identification procedure. The new regulation also defines timeframes for processing investor funds: money transferred at the investor's request must arrive within three banking days.

The authorized body is obliged to review applications for permission to trade foreign securities within ten working days. Furthermore, foreign investors are provided with a simplified process for purchasing shares and bonds of Uzbek companies, as they will not need to open a brokerage account in the republic.

Uzbekistan will introduce a simplified procedure for issuing bank guarantees for companies participating in international tenders. President Shavkat Mirziyoyev instructed that the financial solvency of manufacturers, their previous experience, and sales volumes should be taken into account to reduce the need for collateral.

This information was announced on November 9 during a meeting of the head of state with representatives of the electrical engineering industry. It was noted that Uzbek firms are already successfully concluding contracts abroad; for example, NURA Electric won a tender in Cambodia worth two million dollars.

Nevertheless, when submitting applications for large international competitions, manufacturers often face difficulties in obtaining bank guarantees. An example is cited where an enterprise requires collateral equal to the guarantee amount when applying for a ten-million-dollar guarantee. Such requirements can limit the chances even of companies with good financial standing.

The President has instructed the banking sector to develop a streamlined scheme for issuing guarantees that takes into account the production history of enterprises, the reliability of their working capital, and their overall financial capabilities. This new mechanism must be prepared and presented to entrepreneurs within one month. It is expected that such changes will enable local producers to participate more actively in global competitions and bid for more significant foreign orders. However, the exact terms for providing these guarantees have not yet been approved.

Previously, Uzbekistan also announced the launch of a system of state counter-guarantees for entrepreneurs.

Uzbekistan is developing a new Capital Market Law aimed at expanding the range of available financial instruments, bringing market infrastructure in line with international standards, and attracting 10 trillion UZS in investments to the stock market by 2030.

According to information provided by KAP Depo in November 2026, the draft law passed its first reading in the Legislative Chamber of the Oliy Majlis as of October 14, 2026, and is preparing for the second reading. This document includes 16 chapters and 123 articles and provides for a significant overhaul of the current Securities Market Law of 2015.

The main provisions of the draft were presented by the National Agency for Advanced Projects (NAPP) at a press conference on August 12, 2026. In addition to stocks and bonds, the proposed legislation will regulate derivative financial instruments, asset-backed securities, securitized bonds, sustainable development bonds, and sukuk.

The project regulates derivatives such as options, futures, forwards, swaps, and difference contracts. Asset-backed securities are guaranteed by a dedicated pool of assets, such as mortgage loans, while sustainable development bonds are intended to finance environmental and social projects.

Special attention is paid to sukuk, securities structured according to Islamic finance principles. The law provides for the regulation of large sukuk structures based on partnership, leasing, trading, and agency relationships.

To enhance investor protection, the legislation proposes introducing a representative for sukuk holders and a mechanism to verify compliance with Islamic finance standards. The reforms will also affect capital market infrastructure. The project introduces the concept of a central counterparty, which acts as a buyer for every seller and a seller for every buyer in a transaction, aiming to reduce the risk of counterparty default.

Furthermore, the project proposes licensing custodial operations, expanding the powers of the Central Securities Depository, and creating representatives for bondholders and self-regulatory organizations. The legislation provides mechanisms for authorizing rating agencies, management companies, and investment funds, as well as a system for categorizing investors, including defining qualified investors.

A number of tax incentives are proposed to attract long-term institutional and private investors. These include exemption from income received by certain investment funds and special deals with asset-backed and securitized bonds. Tax advantages are also provided until 2038 for a portion of income from corporate bonds and sukuk, although the specific conditions for applying these incentives will depend on the final provisions of the law.

The project also allows international financial institutions to issue bonds in Uzbekistan and establishes conditions for domestic companies to access foreign capital markets.

The European Bank for Reconstruction and Development, the International Finance Corporation, the Asian Development Bank, the Islamic Development Bank, the United Nations Development Programme, the International Organization of Securities Commissions (IOSCO), the U.S. Department of Commerce, and the U.S. Securities and Exchange Commission (SEC) participated in the preparation of the legislation.

According to NAPP representatives, this regulatory transformation aims to create conditions for implementing new financial instruments, attracting long-term investors, and increasing market transparency for foreign participants.

These reforms come against the backdrop of the growth of the Uzbek capital market. Stock issuance increased from 189.7 trillion UZS in 2023 to 265.1 trillion UZS in 2025, reaching 269.4 trillion UZS as of July 1, 2026. Corporate bond issuance has also expanded, rising from 1.06 trillion UZS in 2023 to 3.93 trillion UZS in 2025 and exceeding 7 trillion UZS as of July 1, 2026. Trading volume on the stock exchange has almost sixfold increased between 2023 and 2025, rising from 2.9 trillion UZS to 17.6 trillion UZS.

The final conditions governing the issuance and circulation of new financial instruments, the application of tax incentives, and the entry into force of individual provisions will be determined after the completion of the legislative process.