New initiatives in finance and digital technology presented
Uzbekistan
On March 25, President Shavkat Mirziyoyev reviewed a presentation on the establishment of the Tashkent International Financial Center, the launch of the International Center for Digital Technologies, and the introduction of Islamic finance mechanisms into the banking system.
Amid global geopolitical tensions, competition for investment is intensifying. Rich natural resources and economic potential, as well as ongoing reforms, provide our country with a significant advantage in this area.
"Many international companies, having assessed regional risks, have already begun exploring new markets. This is a historic opportunity for us. In this situation, we must not miss this opportunity and are obliged to 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 investor access to the Uzbek market, provide them with modern infrastructure, a legal regime that meets international standards, additional preferences, and, most importantly, a reliable and transparent business environment.
In this regard, the presentation discussed three priority areas aimed at further enhancing our country's investment attractiveness: the creation of international financial and digital technology centers and the introduction of Islamic finance services.
During the discussion of the Tashkent International Financial Center, it was noted that this center will become an effective tool for attracting new types of investment and ensuring sustainable economic growth. According to estimates, by 2030, the financial center will be able to attract an additional $20-25 billion to the economy, provide up to 1 percent of additional growth in gross domestic product annually, create up to 15,000 new highly skilled jobs, and facilitate the professional development of 10,000 specialists.
A special legal regime is planned for the center's activities. Thus, the common law of England and Wales will apply to the extent that it does not conflict with the law establishing the center. The center's governing bodies will be empowered to adopt their own regulations. The Tashkent International Commercial Court and International Arbitration Center, specializing in dispute resolution, will be established. The center's residents will enjoy a wide range of opportunities, including the free movement and repatriation of capital, free foreign exchange transactions, the use of modern payment instruments, including digital assets, as well as a preferential tax regime and simplified visa procedures.
The center's main areas of activity will be financial investment and banking, insurance, digital asset and securities transactions, payment systems and services, and financial technology services.
The second area of activity is the creation and development of an International Digital Technology Center under the "Enterprise Uzbekistan" brand.
The presentation announced that a special legal regime will be provided for this center until 2100. Within the center's "regulatory sandbox," it will be possible to test new solutions, pay wages 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, and exports, as well as customs and tax incentives.
Artificial intelligence technologies, digital transformation, research and development, certification, startups, and data centers are the center's core areas of activity.
By 2030, the center plans to attract up to 1,000 companies, create over 300,000 jobs, and achieve an export potential of $5 billion. Several major international technology companies have already expressed interest in this initiative.
The third area of focus is the introduction of Islamic banking in our country.
The plan envisages the introduction of such operations as murabaha – financing through the sale of goods on an installment plan, muzaraba – financing on the terms of profit sharing or raising funds, wakala – providing or raising funds through an agency agreement, salam – financing through prepayment for goods, musharaka – financing through joint activities, Islamic leasing and other instruments of Islamic financing that do not contradict the law.
Moreover, it is stipulated that value-added tax will not be charged on product margins, income from investment deposits will also be exempt from taxation, and Islamic lease agreements will be treated as equivalent to financial leases and leasing.
To ensure systematic governance in this area, an Islamic Finance Council will be established under the Central Bank. Separate councils will also be established at banks providing Islamic finance services. These councils will develop standards, assist in the preparation of draft regulations, provide clarifications on contentious issues, review contracts and internal documents, and ensure compliance monitoring.
This year, it is planned to launch an Islamic "window" in at least one commercial bank, and between 2026 and 2030, two banks fully engaged in Islamic banking will be established. Overall, it was noted that these innovations in this area will make it possible to attract approximately 1 billion in additional investments and deposits between 2026 and 2030.
The head of our state, emphasizing that these three areas will contribute to the formation of a modern financial and technological ecosystem in our country, ordered the acceleration of their practical implementation.
"Many international companies, having assessed regional risks, have already begun exploring new markets. This is a historic opportunity for us. In this situation, we must not miss this opportunity and are obliged to 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 investor access to the Uzbek market, provide them with modern infrastructure, a legal regime that meets international standards, additional preferences, and, most importantly, a reliable and transparent business environment.
In this regard, the presentation discussed three priority areas aimed at further enhancing our country's investment attractiveness: the creation of international financial and digital technology centers and the introduction of Islamic finance services.
During the discussion of the Tashkent International Financial Center, it was noted that this center will become an effective tool for attracting new types of investment and ensuring sustainable economic growth. According to estimates, by 2030, the financial center will be able to attract an additional $20-25 billion to the economy, provide up to 1 percent of additional growth in gross domestic product annually, create up to 15,000 new highly skilled jobs, and facilitate the professional development of 10,000 specialists.
A special legal regime is planned for the center's activities. Thus, the common law of England and Wales will apply to the extent that it does not conflict with the law establishing the center. The center's governing bodies will be empowered to adopt their own regulations. The Tashkent International Commercial Court and International Arbitration Center, specializing in dispute resolution, will be established. The center's residents will enjoy a wide range of opportunities, including the free movement and repatriation of capital, free foreign exchange transactions, the use of modern payment instruments, including digital assets, as well as a preferential tax regime and simplified visa procedures.
The center's main areas of activity will be financial investment and banking, insurance, digital asset and securities transactions, payment systems and services, and financial technology services.
The second area of activity is the creation and development of an International Digital Technology Center under the "Enterprise Uzbekistan" brand.
The presentation announced that a special legal regime will be provided for this center until 2100. Within the center's "regulatory sandbox," it will be possible to test new solutions, pay wages 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, and exports, as well as customs and tax incentives.
Artificial intelligence technologies, digital transformation, research and development, certification, startups, and data centers are the center's core areas of activity.
By 2030, the center plans to attract up to 1,000 companies, create over 300,000 jobs, and achieve an export potential of $5 billion. Several major international technology companies have already expressed interest in this initiative.
The third area of focus is the introduction of Islamic banking in our country.
The plan envisages the introduction of such operations as murabaha – financing through the sale of goods on an installment plan, muzaraba – financing on the terms of profit sharing or raising funds, wakala – providing or raising funds through an agency agreement, salam – financing through prepayment for goods, musharaka – financing through joint activities, Islamic leasing and other instruments of Islamic financing that do not contradict the law.
Moreover, it is stipulated that value-added tax will not be charged on product margins, income from investment deposits will also be exempt from taxation, and Islamic lease agreements will be treated as equivalent to financial leases and leasing.
To ensure systematic governance in this area, an Islamic Finance Council will be established under the Central Bank. Separate councils will also be established at banks providing Islamic finance services. These councils will develop standards, assist in the preparation of draft regulations, provide clarifications on contentious issues, review contracts and internal documents, and ensure compliance monitoring.
This year, it is planned to launch an Islamic "window" in at least one commercial bank, and between 2026 and 2030, two banks fully engaged in Islamic banking will be established. Overall, it was noted that these innovations in this area will make it possible to attract approximately 1 billion in additional investments and deposits between 2026 and 2030.
The head of our state, emphasizing that these three areas will contribute to the formation of a modern financial and technological ecosystem in our country, ordered the acceleration of their practical implementation.
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