Uzbekistan is entering a new stage in the development of its financial market. A draft law "On the Capital Market" is under consideration, which will significantly expand the toolkit available to investors — from derivative securities to Islamic sukuk bonds. Companies will gain new mechanisms for raising capital, but the exact parameters of the incentives and the conditions for issuing securities will only become known after the document is finally adopted.
The draft law has already passed its first reading in the Legislative Chamber of the Oliy Majlis and, as of October 14, was being prepared for the second. The document consists of 16 chapters and 123 articles and substantially revises the provisions of the current 2015 law "On the Securities Market." One of the key goals of the reform is to attract 10 trillion sum in investment to the stock market by 2030.
What instruments will appear on the market
The new law will cover not only stocks and bonds but also derivative instruments: options, futures, forwards, swaps, and contracts for difference. Regulation will extend to covered bonds secured by a pool of assets such as mortgage loans, as well as to securitized securities and sustainability securities for environmental and social projects. Investors will gain a broader choice for investment, and companies will gain new ways to raise money.
A separate section of the draft law is devoted to sukuk — securities based on Islamic finance principles. The document covers the main types of such securities, based on partnership, leasing, trade, and agency relationships. It is proposed to introduce an institution of a representative of sukuk holders and a mechanism for confirming compliance with Islamic standards to protect investors.
How the reform reduces transaction risks
An institution of a central counterparty is being introduced — an organization that becomes the buyer for every seller and the seller for every buyer. This scheme is intended to reduce the risk of default by one of the trading participants. There are plans to license custodial activities and expand the powers of the Central Depository, as well as to create institutions of representatives of bondholders and self-regulatory organizations.
Rating agencies, management companies, and investment funds will operate under a licensing scheme. The law will divide investors into categories and single out qualified investors — this traditionally restricts beginners' access to the most risky instruments.
Tax incentives and access to foreign markets
Tax incentives are proposed to attract long-term institutional and private investors. Tax exemptions may apply to the income of certain investment funds and to certain transactions with covered bonds and securitized securities. Incentives for certain income from corporate bonds and sukuk will be in effect until 2038, but the specific conditions will become clear only after the legislative procedure is completed.
The draft law will also permit the issuance in Uzbekistan of bonds of international financial organizations and will create conditions for local companies to enter foreign capital markets. The EBRD, the International Finance Corporation, the Asian and Islamic Development Banks together with the UN Development Programme, as well as IOSCO, the U.S. Department of Commerce, and the SEC participated in preparing the document.
The need for reform is linked to rapid market growth: the volume of equity issuance increased from 189.7 trillion sum in 2023 to 269.4 trillion sum as of July 1, 2026. Corporate bond issuance over the same period grew from 1.06 trillion to more than 7 trillion sum, and stock exchange trading turnover increased almost sixfold over 2023–2025 — to 17.6 trillion sum.
The legislative update coincided with discussions of floating-coupon government securities: the Central Bank of Uzbekistan and the IMF are considering bonds whose yield will follow the UZONIA interbank rate. The provisions on investor protection and access to foreign markets are also important for the five large state companies that the authorities are preparing for IPOs in 2027–2028, including Uzbekistan Airways and Uzpromstroybank (SQB).
Cryptalist analysis: Uzbekistan is building a full-fledged institutional infrastructure for the capital market, which lowers barriers for foreign capital and opens access to Islamic financial instruments. For the crypto industry, this is a signal that the regulator is moving toward tokenization and securitization of assets, which could become the foundation for future digital instruments. The key risk is the delay in finalizing the parameters of the incentives and the overvaluation of securities at IPO, which could limit the actual inflow of capital.