European Bank for Reconstruction and Development to help Uzbekistan organize international financial center, prepare feasibility study

TASHKENT. Aug 3 (Interfax) - The European Bank for Reconstruction and Development (EBRD) will assist the Uzbek government in creating and launching the work of the Tashkent International Financial Center (TIFC).

The EBRD's website, Uzbekistan's financial markets are developing quickly, but nonetheless encounter persistent problems related to the depth of the investor base and the level of financial competency among local companies. Demand for Uzbek securities on international markets remain high, while supply is insufficient, partly because foreign investors do not have access to the domestic market.

"In this context, the Uzbek government recently announced the creation of the Tashkent International Financial Center (TIFC), which will constitute a separate jurisdiction based on English common law, with favorable conditions for foreign investors wishing to participate. Among key priorities are to create an independent regulator and court for the TIFC and determine conditions and mechanisms for the functioning of financial infrastructure serving TIFC participants [...] For Uzbekistan, it will be important to use the jurisdiction of the international center to attract foreign investors while avoiding fragmentation issues, which could lower market activity and liquidity in the long term," the bank said.

Taking this into account, the EBRD is planning to prepare a feasibility study to define the legal and infrastructural mechanisms necessary to bring TIFC participants and participants of the domestic market together in a single liquidity pool using experience of similar structures with a dual market.

In connection with this, the EBRD has plans to implement two projects in parallel to assist the Uzbek government. The first is to determine optimal mechanisms for financial infrastructure which can serve both TIFC participants and participants of the domestic market; the second is to develop the necessary legal, regulatory and supervisory framework to support these mechanisms.

For the first task, the EBRD intends to use the consulting services of companies or a consortium of companies specializing in capital market infrastructure; for the second, it will use a legal firm or consortium.

The Uzbek president signed a decree on the establishment of the Tashkent International Financial Center in March 2026. The decree orders that a draft constitutional law on the TIFC be drafted and submitted to parliament.

The government estimates that the center will bring an additional $20-25 billion of investments to the country's economy by 2030, create additional GDP growth of up to 1% each year, create up to 15,000 high-qualified jobs and facilitate the training of around 10,000 specialists.