Uzbekistan has adopted new legislation to establish “Enterprise Uzbekistan,” a special business regime aimed at attracting global technology companies and investors to the country. The regime, whose legislation was passed in August, is slated to become operational in early 2027, offering a comprehensive package of incentives.
Key benefits under the new regime include significant tax exemptions. Investors will not pay tax on dividends and other income derived from investment activities conducted under the special regime. Participating companies will also be exempt from corporate tax on profits from priority activities, while sales within the center and exports by its participants will be subject to zero-rated Value Added Tax (VAT).
Sultonmurod Rasulov, Head of Strategic Partnerships at Enterprise Uzbekistan, highlighted the regime's advantages during the Enterprise Uzbekistan Summit at ICT Week in Tashkent. “It means a lot, but most importantly, it means 100% foreign ownership,” Rasulov stated. He added that the regime allows for the use of “investment instruments that your foreign international investors already know” and the ability to “hire globally on international employment standards.” While full foreign ownership is already permitted in Uzbekistan, Enterprise Uzbekistan will specifically accommodate foreign companies, branches, and representative offices.
Further incentives extend to personnel. Foreign specialists who meet the criteria for highly qualified employees will be exempt from personal income tax on eligible salaries and dividends. Additionally, foreign employees of participating companies will be able to secure visas lasting up to three years without the need for separate work permits.
A notable feature of the new regime is the introduction of a regulatory sandbox. This mechanism will allow companies to test new technologies, typically for up to 12 months, under specially adapted rules. These rules may include temporary exemptions from certain requirements and simplified licensing procedures. Rasulov explained, “And if you are building something that the rules were not designed for, the regulatory sandbox will allow you to test it first.” This provision is particularly beneficial for developers of artificial intelligence applications or new financial services, offering an alternative to navigating existing regulations that predate their products.
International venture capital funds are already active in Uzbekistan, financing local startups and exploring opportunities in the nation's growing technology sector. Golden Gate Ventures, for instance, opened an office in Tashkent in June, in partnership with the Uzbek-Oman Investment Company. The firm intends to expand its investment activities in Uzbekistan and facilitate the growth of technology companies across Central Asia and the Middle East.
Michael Lints, Founding Partner MENA at Golden Gate Ventures, believes the new regime will encourage more international investors to establish operations in Uzbekistan. “So we'll get more investors, more founders to come and launch here,” he commented.
Bahodir Ayupov, Vice President of Global Business Development at Enterprise Uzbekistan, acknowledged that international technology companies might be hesitant due to unfamiliarity with Uzbekistan’s legal system. For Ayupov, true success would be achieved when companies view Enterprise Uzbekistan “as an integral part of their expansion plans,” rather than merely a gateway to the Uzbek market. His long-term vision is to see “big tech companies coming to this region through Uzbekistan,” using the center as a base to expand into other Central Asian markets.
While the legal framework has been adopted, many of the detailed regulations governing Enterprise Uzbekistan are still under development. Officials are actively inviting technology companies and investors to contribute to shaping these rules before the regime officially begins operating.
Farhod Ibragimov, CEO of Enterprise Uzbekistan, identified regulatory stability as a primary concern for international investors evaluating new markets. He noted, “The first question is: how long will these incentives remain in place? Will they still be available over the next ten years?” To address this, the new regime is designed to remain in force until 2100, providing a long-term framework for investment decisions.
Mark Beer, Chairman of the Metis Institute, cautioned that attracting companies at launch is only the initial step. The ongoing challenge will be to sustain investor confidence and maintain competitiveness with other international business centers. “The real test of any environment is about 10 years from now, because trust takes 10 years to build,” Beer said, suggesting that the center should regularly review its performance against competing jurisdictions and adjust its rules if growth falters. “Tweak the regime and monitor again,” he advised.
Another significant addition is the regulatory sandbox. Companies will be able to test new technologies, normally for up to 12 months, under specially adapted rules that may include temporary exemptions from certain requirements and simplified licensing procedures.
