Why Uzbekistan — and Why Now

We live in Tashkent and see how regulators actually work — from negotiation rooms, not from reports. None of the nine reasons below come from ministry presentations. Each one is tested through our practice.

1. The regulatory framework is changing faster than anywhere else in the region

In the last six months, we've reworked client recommendations three times — the regulatory landscape was shifting faster than we could update memos. For business, this isn't chaos. It's a signal: the country adapts its laws to real market needs, and it does it fast.

Three examples — each of which would take years in other jurisdictions:

2. Regulators who actually help business

In our practice — and this is observation, not flattery — Uzbek regulators behave differently than most countries in the CIS. They don't just issue licenses and check compliance. They talk. They want to understand your business model before saying yes or no.

The Central Bank holds working meetings with market participants before adopting regulations. There's a FinTech Office at the CB, and a regulatory sandbox is operational — stablecoins, tokenized assets, new payment models. The TIFC legislation is open for public comment, and that's not a formality — market feedback actually shapes the final version.

3. A digital state — not a slogan, but working infrastructure

Uzbekistan entered the "very high" e-government development index (EGDI) group for the first time — ranked 63rd globally in 2024 by the UN. The goal is top 30 by 2030. But rankings aside, here's what it means in practice:

• The my.gov.uz portal — 760+ government services online. 16 million requests in the first half of 2025 alone.
• Company registration — 30 minutes.
• Tax reporting — exclusively electronic.
• The MyID biometric system lets you confirm identity remotely.

In the World Bank's technology maturity rankings for 2025, Uzbekistan jumped to position 71 and cracked the global top 10. This is not a typo.

4. Licensing: digital, fast, transparent

The vast majority of licenses in Uzbekistan are issued entirely online — through the single e-government portal. No physical visits, no "bring us a paper copy."

Licensing timelines are regulated and monitored. Business registration: 30 minutes to 3 business days. IT Park entry: around 15 business days (online application).

The system isn't perfect — delays happen, document questions arise. But the principle of "digital by default" already works, and works better than neighboring jurisdictions.

5. A tax regime that competes for your business

The numbers: corporate tax — 15%. VAT — 12%. For small business (turnover under 1 billion soums) — a unified turnover tax of 4%, replacing both VAT and corporate tax.

For context: Kazakhstan's corporate tax is 20%, Russia's is 25%, Turkey's is 25%. Uzbekistan is one of the region's most competitive jurisdictions on base rates.

But the real story is the incentives. IT Park residents have full exemption from corporate tax, VAT, social tax, and property tax. Individual income tax at a reduced 7.5% instead of 12%. Similar perks for free economic zones (3–10 years), creative industries (Decree of the President №90, March 3, 2026 — from architecture to game development), and future TIFC residents (exemption through 2076).

6. Infrastructure for foreign capital

Uzbekistan doesn't just allow foreign investment — it actively pursues it. The "On Investments" Law (ZRU-598) guarantees equal rights for foreign and domestic investors, protection from expropriation with full compensation, free repatriation of profits and dividends after taxes, and ICSID arbitration.

Bilateral investment treaties (BIT) with over 50 countries. With TIFC launching, there's now a venue where international business can operate in familiar legal systems — English common law, international commercial court — within Uzbek jurisdiction. For those familiar with DIFC or AIFC, it's a similar model but with different economics of entry.

Islamic finance creates another channel: $1 billion targeted inflow from the Gulf and Southeast Asia. For business that knows Islamic financial instruments, Uzbekistan becomes a market with a dual entry point.

7. Comfortable AML for legitimate capital

A delicate topic, but important to say directly: for legitimate business, Uzbekistan is one of the region's most comfortable jurisdictions for compliance and capital clearance.

The country is not on FATF's gray or black lists. AML law is being updated, but without the excess that turns routine transactions into multi-month projects in some jurisdictions. Banks verify transaction purpose — that's normal. But procedures are predictable, requirements are clear, and with a complete document set, transactions move on reasonable timelines.

8. Young, educated, and hardworking population

60% of Uzbekistan's population is under 30. This isn't presentation statistics — it's reality you feel when you start hiring. The labor market is one of the most competitive in Eurasia for the cost-to-quality ratio.

Uzbeks are industrious. This isn't a figure of speech — work ethic is woven into the cultural code. Average salaries are significantly lower than in Kazakhstan or Russia, with comparable motivation and learning capacity. For companies building operating teams in the region — manufacturing, BPO, service centers — this is a competitive advantage that's hard to replicate.

Education is actively reforming: new universities (including Westminster, MDIS, Inha branches), IT training programs through IT Park, growing numbers of English speakers. Population: 38 million and growing. No other Central Asian market offers this resource base.

9. A startup ecosystem growing at 500% a year

The 2025 numbers speak for themselves:

Uzbekistan already has two unicorns — tech companies valued over $1 billion. Seven new VC funds launched in 2025 alone. AI captures 24.4% of the market, e-commerce 12.5%, SaaS 11.7%. $293.7 million of the total is foreign capital.

IT Park — 1,500+ residents. IT sector growth over five years — 200–300%. Open banking infrastructure planned for September 2026. For startups and tech companies, Uzbekistan isn't "an emerging market that might ripen someday." It's already ripe — and those entering in two years will compete with those entering today.

Why Now

Each of the nine points above is a standalone reason to look at Uzbekistan. Together, they create a picture that's hard to ignore: a country simultaneously building legal infrastructure for international business (TIFC, Islamic finance), offering some of Eurasia's most competitive tax conditions, digitizing government, and sitting on a young, industrious population of 38 million.

But here's what matters to understand: the best terms go to the first movers. The stabilization clause locks your tax regime for 10 years from your entry, not from the day you decide to "think about it a bit more." Special economic zone and IT Park incentives aren't permanent either — as slots fill, terms will be renegotiated.

We're not saying Uzbekistan is a perfect market. The law is young, court practice is forming, regulation is still evolving. But for business that knows how to operate in developing markets — or is ready to learn — this is one of Eurasia's most attractive windows right now.

This is the first article in the "Uzbekistan Playbook" series — seven pieces that give you a complete market map. Coming next: tax incentives in detail, business structures, currency regulation, IP protection, labor law, and exit strategy.

This article is not legal advice. Making investment decisions requires analysis of your specific situation.