On March 25 of this year, the President of Uzbekistan reviewed a presentation on the establishment of the Tashkent International Financial Center, the launch of the International Center for Digital Technologies, and the introduction of Islamic finance mechanisms into the banking system.
It was noted that the current geopolitical situation opens up additional opportunities for attracting international capital, and it is important for Uzbekistan to promptly take advantage of this window of opportunity. To achieve the goal of attracting more than $50 billion in investments this year, the focus is on simplifying market access for investors, creating a transparent business environment, adopting international legal standards, and offering additional incentives.
The key areas identified are the development of the financial and digital sectors, as well as the diversification of banking services through Islamic finance. It is expected that the institutions being established will ensure an influx of new types of investment, job creation, export growth, and the improvement of workforce skills. The initiatives include:
- the establishment of the Tashkent International Financial Center with a special legal regime based on the common law of England and Wales, as well as the creation of an international commercial court and an arbitration center;
- providing residents of the financial center with free movement of capital, foreign exchange operations, access to digital assets, and tax and visa benefits;
- attracting an additional $20–25 billion in investments by 2030, creating up to 15,000 jobs, and ensuring up to 1% annual GDP growth;
- launching the “Enterprise Uzbekistan” International Digital Technology Center with a special legal regime until 2100;
- introducing a “regulatory sandbox” regime for testing innovative solutions, allowing for the payment of salaries in foreign currency, and applying international labor standards;
- creating favorable conditions for intellectual property protection, startup development, investment attraction, and export growth;
- attracting approximately 1,000 companies by 2030, creating over 300,000 jobs, and achieving an export potential of $5 billion;
- introducing Islamic finance instruments, including murabaha, musharaka, muzaraba, wakala, salam, and Islamic leasing;
- establishing tax incentives, specifically exempting the margin on goods and income from investment contributions from VAT;
- establishing an Islamic Finance Council under the Central Bank and specialized councils within commercial banks;
- launching an Islamic “window” in at least one bank this year and establishing two full-fledged Islamic banks between 2026 and 2030;
- attracting an additional $1 billion in investments and deposits through the introduction of Islamic financial instruments.
Following the presentation, the President instructed that the practical implementation of certain initiatives be accelerated, emphasizing their importance for the development of a modern and competitive economy.
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BANKING, UZBEKISTAN
