AGP Executive Report

Uzbek Finance & Markets: Galt&Taggart helped investors join the “historical IPO” of Uzbekistan National Investment Fund (UzNIF), with demand topping $2.8bn and a $603.6m placement. Housing & Capital Markets: Uzbekistan registered its first mortgage bond issuance (40.5bn soums) via UMRC SPV, aiming to connect mortgage lending with capital markets. Tax Administration: Uzbekistan’s Tax Cashback program paid 1.5tn soums in 2025, but delays and rising fraud are eroding trust; the Tax Committee points to missing merchant reporting and merchant tax debts as key causes. Banking Oversight: The Central Bank fined four lenders and temporarily suspended a payment organization’s license in its May review; Fitch also lifted outlooks on three state utilities to Positive. Trade & Transport: Uzbekistan and South Korea advanced plans for Tashkent–Samarkand high-speed rail, while Qanot Sharq resumes Tashkent/Samarkand–Tel Aviv flights from June 24. Energy & Industry: Uzbekistan and Japan signed JICA-backed energy-efficiency deals; Uzbekistan–Sweden agreed to deepen mining cooperation. Labor & Migration: Uzbekistan and ILO advanced labor reform talks in Geneva; Uzbekistan also dismantled a Korea job-visa scam network. Digital Economy: IT Park Ventures invested $1m in UK Islamic fintech Ayan Capital, and Yandex Maps volunteers added 1m+ objects across Uzbekistan.

Uzbekistan–South Korea Rail Push: Uzbekistan and South Korea reviewed the next phase of the Tashkent–Samarkand high-speed rail feasibility study, with talks also covering potential corridors toward Andijan and Termez. Middle Corridor Momentum: At the Trans-Caspian Forum in Washington, officials highlighted the Middle Corridor’s growing strategic role for energy, technology and critical minerals cooperation. Air Connectivity Boost: Qanot Sharq resumes regular flights between Uzbekistan and Israel from June 24, restarting Tashkent–Tel Aviv and Samarkand–Tel Aviv routes. Textiles to Azerbaijan: Uzbekistan’s textile industry is stepping up exports to Azerbaijan via plans for trade houses and showrooms to help local producers reach new buyers. Human Trafficking Crackdown: Uzbek police detained a woman suspected of exploiting victims in a scheme linked to Turkish authorities, with the case tied to alleged forced sexual services. Business Diplomacy: Uzbekistan is set to host a Uzbekistan–U.S. Business Forum in Tashkent, aiming to match U.S. investors with projects in industry, transport, digital tech and finance. World Cup Angle for Uzbekistan: Uzbekistan’s national team is set to call Metro Atlanta home during the 2026 World Cup group stage, underscoring the tournament’s growing business and tourism pull.

Tax & Compliance: Uzbekistan’s Tax Committee says cashback delays usually come down to businesses not filing returns or having outstanding tax debts, with taxpayers told to check receipt status via hotline 1198. Investment & Finance: Fitch upgraded the outlook on seven Uzbek state banks to positive, while Uzbekistan also joined the New Development Bank as the first Central Asian member, opening the door to new multilateral projects. Digital Economy & Talent: Uzbekistan is moving to attract foreign talent with a tax residency regime that can include crypto wallets, plus incentives for employers under the dual education system. Mining & AI: Mirziyoyev reviewed plans to digitize mining and geology using AI to speed reserve assessments and drilling, alongside a broader push to expand mining investment. Trade Facilitation: Uzbekistan and Kazakhstan agreed to clear border bottlenecks with real-time coordination, and Uzbekistan expanded customs broker cooperation with China to streamline documentation. Business Partnerships: Uzbekistan and Hong Kong signed an MoU to set up a joint business council and organize forums and trade missions. Law Enforcement & Markets: Authorities detained a jewelry firm employee in Tashkent region over an alleged illicit gold and silver operation, and a court banned “Samsyng” counterfeit electronics sales. Geopolitics & Energy: The U.S. launched a new C5+1 critical minerals dialogue in Astana, signaling renewed focus on Central Asia supply chains.

Tashkent Investment Forum Build-Up: Uzbekistan is positioning the June 16–18 Tashkent International Investment Forum as a project-focused magnet for foreign capital, with 8,000 guests from 99 countries and a deal pipeline across energy, transport, construction, pharma, digital tech and AI. Bilateral Trade & Investment: Uzbekistan and the U.S. are moving toward a structured Joint Investment Platform with the DFC, while high-level talks also pushed the American-Uzbek Business and Investment Council to convert interest into jobs and agreements. Regional Connectivity: Uzbekistan and Kazakhstan agreed to tackle border bottlenecks via tighter customs coordination and real-time information exchange, and Uzbekistan–China talks aim to link customs broker networks to speed clearance and cut paperwork delays. Finance & Credit Outlook: Fitch upgraded the outlook on seven state banks to Positive, citing improved sovereign support capacity. Energy Transition: Solar and wind output jumped 28% in 2026, with renewables displacing gas use and cutting emissions. Labor & Standards: Uzbekistan expanded anti-discrimination labor protections to match ILO Convention 111, and Uzbekistan’s Senate chief met ITUC in Geneva to align labor reforms with international worker standards. Industrial Push: Uzbekistan is betting $30B on AI to transform mining, while a Chinese firm Si Jie Stone is exploring battery recycling and export-oriented lighting manufacturing in Uzbekistan. Legal & Enforcement: A court banned sales of “Samsyng” counterfeit electronics, and authorities seized 60kg of silver in an illegal metals sting.

Uzbek-US Trade & Tech Push: Uzbekistan and the United States signed a trade cooperation MOU as bilateral commerce topped $1B, with talks spanning energy, transport, agriculture, finance and new areas like AI and telecoms. Digital & Cybersecurity Partnership: A US delegation met Uzbekistan’s digital authorities to deepen cooperation on IT services, AI adoption and cloud/data-center investment, including a tour of UZINFOCOM projects. Anti-Corruption Crackdown: Tashkent tax inspectors were arrested in a sting over a $5,000 tender bribery scheme. Customs Enforcement: Uzbek customs seized $155K worth of undeclared Chinese goods in Fergana after discrepancies between manifests and shipments. Tax Fraud Case: Prosecutors charged a fraud ring that used Soliq Mobile to siphon 28.5B soums in cashback via fake invoices and Telegram distribution. Competition Watch: Uzbekistan’s regulator approved TBC Bank Group’s acquisition of OLX under strict antitrust conditions. Energy & Climate: Uzbekistan’s solar and wind generation hit 5B kWh since the start of the year (+28%); meanwhile, a GEF-backed CAWLN water-land program was launched across Central Asia to tackle water scarcity and land degradation. Regional Investment Shift: China overtook Russia as Central Asia’s top direct investor, with cumulative Chinese investment above $35B over the past decade. World Cup Context (Business Angle): FIFA’s US-hosted tournament is also driving scrutiny of visa and entry practices affecting teams and officials.

Uzbekistan-U.S. Dealmaking: Tashkent will host the Uzbekistan–U.S. Business Forum on June 16 during TIIF-2026, with major American firms and finance groups (from JPMorgan and BlackRock to Boeing, Oracle and Visa) set to explore industrial, mining, transport, digital and agriculture investment opportunities. Investment Push: TIIF-2026 (June 16–19) is positioned as Uzbekistan’s flagship platform for shaping Central Asia’s investment agenda, building on last year’s 8,000+ delegates and $30.5bn in signed agreements. Islamic Finance Rules: The Central Bank of Uzbekistan has released draft licensing and registration procedures for Sharia-compliant banks and “Islamic windows,” with a June 29 start date for the broader Islamic finance law. Trade & Exports: BMB HOLDING has shipped Uzbek raisins to Senegal for the first time, aiming to diversify West African market access. Regional Connectivity: Uzbekistan is part of WCO-JICA’s risk management and time-release work to improve border efficiency along the Middle Corridor/Trans-Caspian route. Border Watch: Uzbekistan’s Customs Committee warns of temporary queues at the Uzbekistan–Kazakhstan border due to Kazakh IT maintenance. Corporate Spotlight: Yandex Uzbekistan received Top Employer 2026 certification.

Copper Investment: President Shavkat Mirziyoyev reviewed major copper industry projects, including the US$2.7bn Yoshlik-1 deposit push and Copper Concentrator Plant No. 3, with phased ramp-up aimed at boosting output and value-added processing. Islamic Finance Rules: Uzbekistan’s Central Bank published draft licensing and registration rules for Sharia-compliant banks and “Islamic windows,” setting out a centralized approval path and governance requirements ahead of the Islamic finance law’s June 29 start. Aviation Green Fuel Pressure: IATA warned that sustainable aviation fuel remains below 1% of jet demand and that the industry faces both jet fuel cost stress and a looming SAF shortfall that could trigger billions in compliance penalties. Trade & Investment Links: Hong Kong’s business mission to Uzbekistan wrapped up with 23 signed agreements and a plan for a reciprocal 30-day visa-free arrangement, while Qatar Chamber discussed boosting trade and investment with Uzbekistan. Border Logistics: Uzbekistan’s Customs Committee warned of temporary queues at the Uzbekistan–Kazakhstan border due to Kazakhstan IT maintenance affecting customs systems. Industrial Output: Uzbekistan’s rubber and plastics sector output rose 25.7% in early 2026, with Tashkent and Tashkent Region driving more than half of production. Energy Infrastructure: Uzbekistan and Russia moved ahead on construction of the country’s first nuclear power plant, with cost caps and project launch developments highlighted across recent coverage. Business Dealmaking: The Uzbekistan–USA Business Forum is set for June 16 in Tashkent, with major US finance and tech firms listed among participants.

Nuclear Power Milestone: Uzbekistan officially began construction of its first nuclear power plant, with Putin and Mirziyoyev authorizing the first unit via video link in Jizzakh; the project is led by Rosatom and framed as a long-term energy and engineering boost under IAEA supervision. Aviation Carbon Credits: IATA singled out Uzbekistan as a top supplier of CORSIA-eligible aviation carbon credits, praising progress on the administrative steps needed for Eligible Emissions Units. Air Industry Pressure: IATA warned that a backlog of 18,000 undelivered aircraft is still crippling airline capacity and raising costs, while also noting that crises in the region are leaving lasting impacts on travel patterns. Regional Business Links: Hong Kong Chief Executive John Lee wrapped up a five-day Kazakhstan and Uzbekistan mission, delivering 96 cooperation deals worth over $1.65B and pushing “hub-to-hub” ties in finance, innovation, aviation, and trade. Construction Reform: Uzbekistan moves to simplify construction services from 1 July and introduce a risk scoring system for developers, aiming to cut permitting bottlenecks. World Cup Context (Uzbek angle): Uzbekistan faces the Netherlands in a key pre-tournament friendly in New York as the 2026 World Cup kicks off June 11 across the US, Canada, and Mexico.

Nuclear Energy Deal: Uzbekistan has officially started construction of its first nuclear power plant in Farish district, Jizzakh, with the first concrete poured for a hybrid SMR unit under IAEA supervision, in a ceremony linked to Russia’s St. Petersburg and attended by Presidents Mirziyoyev and Putin. Construction Deregulation: From 1 July, Uzbekistan will simplify construction public services via “one application, one payment, all connection points,” unify architectural/urban planning assignments from 1 September, extend correction deadlines by five working days for deficiencies, and drop repeated approvals for minor project changes. Developer Risk Scoring: The construction regulator is drafting a points-based risk analysis for developers and management companies (high/medium/low risk), using permit and violation history plus complaints and permitted open-source data, with inspections tied to risk levels and preventive measures. Finance & Credit Growth: Uzbekistan’s microfinance lending rose 17% in Q1 2026 to 35.8 trillion soums; factoring services jumped 75% to 2.3 trillion soums, showing businesses leaning on working-capital tools. Reserves Watch: Central bank data show international reserves at $70.58bn as of 1 June, down $307.2m in May, with gold and foreign currency both falling. Banking Results: Apex Bank reported 56.4bn soums net profit in Q1 2026, swinging from a loss a year earlier, as revenues surged. Digital Cooperation: Uzbekistan and Russia agreed to prepare a bilateral roadmap on AI, data centres, e-government, e-signatures, and cross-border data exchange. Aviation & Climate: IATA launched a CORSIA supply alliance to boost eligible emissions units by spring 2027, while warning sustainable aviation fuel still covers under 1% of jet fuel demand. Trade Diplomacy: Uzbekistan and South Korea will hold an investment forum in Tashkent on 16 June, and Uzbekistan–India talks in Bishkek reviewed industrial cooperation and a growing trade/investment pipeline.

Aviation Strategy Push: IATA urged Uzbekistan to adopt a national airport master plan and a unified aviation strategy, warning that rapid growth in passenger and cargo demand is fragile without coherent planning and stronger safety controls. Housing & Construction Rules: Uzbekistan tightened housing structural safety rules, banning layout/structural changes in apartment buildings older than 50 years and shifting more liability to contractors for defects during warranty periods. Vehicle Import Flexibility: Uzbekistan lifted a rule limiting individuals and companies to one vehicle compliance certificate per year, easing hurdles for corporate fleets and multi-vehicle imports. Uzbekistan-Russia Economic Ties: At SPIEF, President Mirziyoyev highlighted expanding Uzbekistan-Russia trade and investment cooperation, while Putin used the forum to stress BRICS momentum and multipolar trade shifts. Digital Trade Growth: Putin said Uzbek goods on Wildberries are set to surge toward $2bn in 2026, reflecting how e-commerce is helping small manufacturers scale across Eurasia. Tourism & Diplomacy: Cyprus’ foreign minister pledged to deepen trade, investment, transport and logistics cooperation with Uzbekistan after talks in Tashkent. Environment Finance: The GEF assembly in Samarkand drew calls for faster, simpler climate adaptation funding, with Tanzania urging stronger support for vulnerable countries.

Housing Rules: President Mirziyoyev signed new regulations banning structural and layout changes in multi-family apartment buildings older than 50 years, while shifting warranty-era defect responsibility more clearly onto contractors through penalties tied to corporate ratings. Vehicle Imports: Uzbekistan lifted a yearly cap on how many vehicles individuals and legal entities can import using compliance certificates, easing barriers for corporate fleets and families. Construction & Permitting: The government also eased some blueprint-stage re-approvals for minor layout tweaks that don’t break urban planning codes, aiming to cut bureaucratic delays. Nuclear Power Push: Uzbekistan and Russia moved forward on building the country’s first nuclear power unit, with cost guidance cited at US$9.5 billion. Digital Trade & Platforms: Wildberries expects Uzbek goods sales to jump toward $2bn in 2026, while SPIEF-linked platform rules aim to equalize commissions for Russian and foreign sellers and tighten transparency. Regional Business Ties: Hong Kong Chief Executive John Lee wrapped up a Uzbekistan visit, signing 35 deals across trade, finance, tech, and aviation. Climate Finance: At the GEF assembly in Samarkand, Tanzania urged more adaptation funding as the world races to meet 2030 environmental targets.

Uzbekistan–Hong Kong Business Push: Hong Kong Chief Executive John Lee led a delegation to Tashkent, signing 35 MoUs on trade, investment, finance, tech and aviation, with Mirziyoyev and Lee highlighting Hong Kong as a “super connector” for Uzbekistan’s modernization. Nuclear Power Dealmaking: Uzbekistan’s first integrated nuclear plant is pegged at a $9.5bn cost ceiling, with plans to seek mostly external credit (up to 85–90%) and talks with BRICS’ New Development Bank. Competition & Digital Markets: Uzbekistan’s regulator gave preliminary approval for Tapuz Limited to acquire OLX Classifieds, but only under conditions restricting dominance and misuse of user data. Public Transport Reform: The government extended a zero recycling fee for imported new buses, electric buses and trolleybuses until end-2027, and set a new validator-based exit payment system from Sept 2026. AI for Jobs: Digital Technologies Minister Sherzod Shermatov said Uzbekistan’s AI strategy prioritizes job creation and bringing remote work home. Regional Connectivity Talks: At the second Termez Dialogue, Uzbekistan discussed advancing an Afghan-transit rail project with feasibility work aimed to finish by year-end. Aral Sea Restoration Cooperation: Xinhua reports China–Central Asia research efforts based in Tashkent to monitor and tackle Aral Sea shrinkage and land restoration. Ukraine War Spillover: St. Petersburg faced a large-scale Ukrainian drone attack during SPIEF, with dozens of UAVs reportedly shot down and no damage reported.

Public Transport Reform: Uzbekistan extended a zero recycling fee for imported buses, electric buses and trolleybuses until end-2027, tied to Euro-5+ standards, and will roll out a new validator-based exit payment system from 1 Sept 2026 using cards, NFC phones, QR and other digital methods. AI & Jobs: At SPIEF, Digital Technologies Minister Sherzod Shermatov said Uzbekistan’s AI strategy is human-centric, aiming to create jobs and bring remote work home as foreign IT offices expand rapidly. Education & PPP: ADB will back Samarkand’s preschool expansion via PPP: about 100 kindergartens (37 new, 49 reconstructed, 66 renovated), with land allocation first and an international tender expected next. Competition Oversight: Uzbekistan’s regulator gave preliminary approval for Tapuz Limited’s planned 100% OLX acquisition, but imposed conditions to prevent dominance abuse and misuse of user data. Nuclear Power Push: Uzbekistan set the integrated nuclear plant cost ceiling at $9.5bn and signaled financing talks (including BRICS New Development Bank), while a “first concrete” ceremony marked construction start with Russia. Eurasian Trade & Diplomacy: Mirziyoyev told SPIEF that Uzbekistan-Russia trade has risen to $13bn and proposed deeper industrial and digital integration; Belgium also announced it will open an embassy in Tashkent. Regional Business Climate: Ferghana officials are looking at new chemical projects after a Chirchiq technopark visit, building on recent investment and job creation.

Nuclear Power Push: Russia and Uzbekistan have officially started construction of Uzbekistan’s first nuclear power plant, with Rosatom’s RITM-200N design and a hybrid setup (two large units plus two small modular reactors) in Jizzakh Region, expected to cover about 15% of national power demand. Capital Markets & Investor Mood: Uzbekistan’s GDRs on the London Stock Exchange jumped after Fitch revised the country’s outlook to positive, signaling growing confidence in the reform agenda. Trade Snapshot: Uzbekistan’s foreign trade hit $26.3bn in Q1 2026, with imports rising faster than exports as machinery and industrial inputs drove demand. Logistics Investment: Oman’s Asyad Group agreed to acquire a controlling stake in key Uzbek logistics platforms, aiming to link Omani port operations with Central Asian rail/road, warehousing, customs and last-mile delivery. Digital Mobility Deal: VEON’s Kyivstar unit Uklon will buy electric scooter operator E-wings for about $2.2m, expanding ride-hailing into a broader multimodal mobility ecosystem. Agribusiness Acceleration: ICBA and Uzbekistan’s Agency for Innovative Development launched a Farmers’ Accelerator Program in Karakalpakstan to help farmers commercialize crop value chains and improve market access. Regional Diplomacy: Uzbekistan and Kyrgyzstan reaffirmed strategic partnership, while Uzbekistan and Hong Kong moved toward a 30-day mutual visa-free arrangement and deeper fintech/green cooperation.

Markets & Finance: Uzbekistan’s GDRs jumped on the LSE after Fitch revised the country’s outlook to positive, lifting investor sentiment around reforms and the push toward an investment-grade rating. Logistics & Trade: Oman’s Asyad Group agreed to acquire a controlling stake in key Uzbek logistics platforms, aiming to strengthen cargo corridors linking ports and Central Asia. Energy & Diplomacy: President Mirziyoyev arrived in St. Petersburg for talks with Putin and to formally kick off construction of Uzbekistan’s first integrated nuclear power plant reactor, while the wider SPIEF agenda continues amid drone-related security concerns. Business & Mobility: Hong Kong and Uzbekistan moved closer to easier travel with a 30-day mutual visa-free arrangement, while Hong Kong’s business delegation in Tashkent highlighted new trade and investment deals. Power & Cities: A technical fault at Tashkent’s thermal power plant caused a brief blackout and metro disruptions, underscoring the economic cost of urban outages. Environment & Climate Finance: Uzbekistan used the GEF Assembly in Samarkand to push green investment plans and research capacity, as partners discussed scaling natural resource and food-system projects. Consumer Safety: Uzbekistan removed several Chinese-made children’s toys from sale after safety tests found formaldehyde and other compliance failures. Regional Cooperation: Uzbekistan and South Korea launched a new phase of aquaculture cooperation, focusing on technology transfer and training.

Sovereign Credit Boost: Fitch upgraded Uzbekistan’s outlook to “Positive” from “Stable” while keeping the “BB” rating, citing progress on structural reforms, macro stability, privatization, and stronger fiscal transparency. Gold Demand Signal: World Gold Council data shows central banks resumed net gold buying in April (+17 tonnes), with Poland the biggest buyer and China extending its streak—supporting the broader “reserve diversification” theme. Trade & Connectivity Push: Hong Kong and Uzbekistan agreed to move toward a mutual 30-day visa-free regime, with talks also covering investment, finance, digital transformation, AI, and transport/logistics. Regional Deals: Uzbekistan and Kyrgyzstan discussed expanding trade, transport links, and cultural ties after Kyrgyzstan’s UN Security Council win. Competition Watch: Uzbekistan’s competition authority opened cases over alleged violations worth over 8 billion soums, including coal and flour sales not routed through required exchange trading. Cross-border Transit: Afghanistan and Uzbekistan moved to strengthen transit and trade cooperation, focusing on logistics facilitation and removing obstacles for Afghan exporters. Business Diplomacy: Hong Kong’s trade chief is targeting new Uzbekistan deals after signing 43 MoUs in Kazakhstan, including plans for direct flights.