TASHKENT, Uzbekistan, December 15. Uzbekistan is launching an ambitious strategy to significantly deepen its capital market, setting an explicit goal of attracting at least $1 billion in investment to the domestic market, Trend reports via Uzbek president's office.
The plans were announced during a presentation focusing on the further development of Uzbekistan's capital market and the accelerated implementation of international standards in the banking sector, chaired by the President of Uzbekistan Shavkat Mirziyoyev.
The plan involves major legislative and technical innovations, including authorizing dual listings, which will permit the simultaneous placement of securities on both local and foreign stock exchanges in accordance with international standards. To diversify market offerings, the government is also set to introduce new financial instruments such as foreign currency bonds, Global Depository Receipts (GDRs), foreign securities, and Exchange-Traded Funds (ETFs).
A key reform focuses on expanding the "regulatory sandbox" legal regime. The enhanced sandbox conditions will now extend to residents, establish an unlimited term for foreign investors, and permit the trading of foreign company shares and bonds, a critical move aimed at reducing unofficial trading of these securities.
To boost domestic participation, local companies and banks will be allowed to issue foreign currency bonds on the Tashkent Stock Exchange (TSE). This will enable them to raise foreign currency funds without needing to access the external market. Furthermore, the bond market will be expanded by permitting issuers to issue unsecured bonds and bonds in excess of their own capital.
The measures for the capital market were presented to President Shavkat Mirziyoyev on December 15, where it was noted that while the current market value of outstanding securities stands at 275 trillion soums, the market capitalization accounts for only 20 percent of the gross domestic product, a figure significantly below global indicators. The government plans to align national legislation with the requirements of the International Organization of Securities Commissions (IOSCO), strengthen the regulator's powers, and gradually increase the authorized capital requirements for professional participants.