TASHKENT, Uzbekistan, February 4. Uzbekistan has presented a draft law “On Alternative Investment Funds,” designed to establish a comprehensive legal framework for the development of venture capital and private equity, Trend reports via the Ministry of Investment, Industry, and Trade of Uzbekistan.
The draft legislation was discussed at an expanded meeting of the Working Group of the Foreign Investors Council under the President of the Republic of Uzbekistan, held in Tashkent. The meeting was organized by the Ministry of Investment, Industry, and Trade in cooperation with the Secretariat of the Foreign Investors Council.
The law is being developed jointly by the Ministry, the International Finance Corporation, Kosta Legal, PwC, and a group of international experts.
The proposed framework introduces internationally recognized concepts such as private equity and venture capital funds, as well as business angels. It provides for a limited partner/general partner (LP/GP) structure, incorporates modern investment instruments including SAFE agreements and convertible notes, and establishes pass-through taxation principles.
According to the Ministry, adoption of the law is expected to demonstrate Uzbekistan’s commitment to building a competitive alternative investment market and fostering an enabling environment for innovative and high-growth businesses.
SAFE (Simple Agreement for Future Equity) agreements in Uzbekistan, introduced by IT Park Uzbekistan, are designed to facilitate early-stage funding for startups by providing a simpler alternative to traditional equity financing. These agreements allow founders and investors to postpone company valuation until a later investment round. Established in 2025, the standardized package includes SAFE templates compliant with local laws. Like global SAFEs, they grant investors future equity rights during triggering events, making them more favorable for founders compared to convertible notes, as they lack maturity dates and interest accrual. They cater to both resident and nonresident investors interested in Uzbek tech startups.
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