New finance and digital technology initiatives presented

Amid global geopolitical tensions, competition for investment is intensifying. Uzbekistan’s rich natural resources, strong economic potential, and ongoing reforms provide the country with a significant advantage in this area.

“Many international companies, having assessed regional risks, have already begun exploring new markets. For us, this is a historic opportunity. In such a situation, we must not miss the moment and must attract international financial companies as quickly as possible,” the President noted.

To achieve this year’s goal of attracting over $50 billion in investment, it is necessary to facilitate investors’ entry into the Uzbekistan market and provide them with modern infrastructure, a legal regime aligned with international standards, additional incentives, and, most importantly, a reliable and transparent business environment.

In this regard, the presentation focused on three priority areas aimed at further enhancing the country’s investment attractiveness – the establishment of international centers for finance and digital technologies and the introduction of Islamic finance services.

During the discussion of the Tashkent International Financial Center, it was noted that the center will become an effective tool for attracting new types of investment and ensuring sustainable economic growth. According to estimates, by 2030, the center will attract an additional $20–25 billion into the economy, contribute up to 1 percent of annual GDP growth, create up to 15,000 highly skilled jobs, and support the professional development of 10,000 specialists.

It is planned to introduce a special legal regime for the center’s work. The norms of the common law of England and Wales will be applied insofar as they do not contradict the law on the center, the center’s governing bodies will be empowered to adopt their own regulatory legal acts, and the Tashkent International Commercial Court and the International Arbitration Center, specializing in dispute resolution, will be established.

For the center’s residents, broad opportunities will be created, including the free movement and repatriation of capital, unrestricted foreign exchange operations, access to modern payment instruments, including digital assets, as well as a preferential tax regime and simplified visa procedures.

The main areas of the center’s activities will include financial and investment services, banking, insurance, operations involving digital assets and securities, payment systems and services, as well as financial technology services.

The second area is the establishment and development of the International Center for Digital Technologies under the Enterprise Uzbekistan brand.

It was reported at the presentation that a special legal regime is planned for this center until 2100. Within the center’s “regulatory sandbox,” it will be possible to test new solutions, pay salaries in foreign currency, implement international labor standards, and process personal data based on international standards and cloud technologies. Favorable conditions will be created for the protection of intellectual property, investment, startups, while exports, and customs and tax benefits will be provided.

Artificial intelligence technologies, digital transformation, research and development, certification, startups, and data centers have been identified as the main areas of the center’s activity.

By 2030, it is planned to attract up to 1,000 companies through the center, create more than 300,000 jobs, and achieve export potential of up to $5 billion. It was noted that a number of major international technology companies have already shown interest in this initiative.

The third area considered was the issue of introducing Islamic banking in our country.

It provides for the introduction of such operations as murabaha – financing through the sale of goods in installments, mudarabah – profit-sharing financing or the attraction of funds, wakalah – the provision or attraction of funds through an agency agreement, salam – financing through advance payment for goods,musharakah – financing through joint activities,Islamic leasing, and other Islamic finance instruments that do not contradict the legislation.

Additionally, it is provided that value-added tax will not be charged on the margin of goods, income from investment deposits will also be exempt from taxation, and Islamic lease agreements will be equated to financial lease.

To ensure systemic management in this area, an Islamic Finance Council will be established under the Central Bank. Separate councils will also be created within banks that provide Islamic finance services. These councils will be responsible for developing standards, assisting in the preparation of draft regulations, providing clarifications on disputed issues, reviewing contracts and internal documents, and ensuring compliance.

This year, Islamic “window” operations are planned to be launched in at least one commercial bank, and between 2026 and 2030, two fully fledged Islamic banks are planned to be established. Overall, it was noted that innovations in the sector will make it possible to attract approximately an additional $1 billion in investments and deposits during this period.

The Head of State emphasized that these three areas will contribute to the development of a modern financial and technological ecosystem in the country and instructed officials to accelerate their implementation.