On December 15, a meeting chaired by President Shavkat Mirziyoyev focused on the development of the capital market. Discussions included implementing dual listing on the Tashkent Stock Exchange, issuing foreign currency bonds, introducing a "regulatory sandbox" regime for residents, and simplifying conditions for foreign investors.
The goal is to attract $1 billion to the country’s economy. The capital market in Uzbekistan accounts for a limited share of the economy, representing only 20% of the gross domestic product (GDP).
So far, a total of 275 trillion soums worth of securities have been issued, but only 4 trillion soums worth are actively traded on the exchange. There is significant potential for market expansion.
During the meeting, it was revealed that the "regulatory sandbox" regime is planned to be expanded beyond residents, removing temporary restrictions for foreign investors. Additionally, the government intends to facilitate the trading of foreign companies’ stocks, bonds, and other securities on Uzbekistan's market.
According to officials, this would help legalize operations involving foreign securities, which currently often take place informally, and integrate such transactions into the official market infrastructure. The possibility of allowing dual listing in Uzbekistan is also being considered.
This would enable companies to place their securities simultaneously on domestic and international markets. Such an approach aims to make trading more transparent and the Uzbek market more accessible and understandable for foreign investors.
Plans are in place to diversify tools within the capital market. Investors will be provided access to foreign currency bonds, depositary receipts, foreign securities, and stock funds.
Such measures will diversify investment directions, freeing the market from dependency on the same types of assets. Companies and banks will be allowed to issue foreign currency bonds directly on the Tashkent Stock Exchange.
This approach will enable them to attract foreign currency funds through the domestic market without needing to access foreign markets. Additionally, plans to relax requirements for issuing securities, allow the issuance of unsecured bonds, and permit companies to issue securities exceeding their equity capital are under consideration.
These steps are expected to serve as an additional stimulus for the development of the bond market. The government also aims to align the capital market with International Organization of Securities Commissions (IOSCO) standards, modernize the oversight system, and strengthen the role of the regulator.
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