Guarantees for Investment Activities and Their Protection in Uzbekistan

Publication date: 02.06.2025

Investments represent a key factor in sustainable economic development and modernization of the national economy. To attract both domestic and foreign investors, the Republic of Uzbekistan, through the Law “On Investments and Investment Activities” dated December 25, 2019, No. ZRU-598, has established a comprehensive system of guarantees and measures to protect the rights of subjects of investment activity. These guarantees form the foundation of the investment climate, contribute to reducing legal risks, and increase trust in state institutions.

1. State Guarantees of the Rights of Investment Activity Subjects

According to Chapter 3 of the Law, the State undertakes the obligation to ensure a non-discriminatory regime, legal certainty, and protection of investments.

The main directions of these guarantees include:

Guarantee of rights of investment subjects — prohibition of unlawful interference by public authorities, equality of investors’ rights, and prohibition of discrimination based on nationality or origin of capital.
Guarantee of use and transfer of funds — free disposal of income, reinvestment, and repatriation of capital and profits in foreign currency without restrictions.
Guarantee of return of investments upon termination of activity.
Guarantee against adverse legislative changes — the investor has the right to apply the legislation effective at the time of investment for a period of 10 years, if new norms worsen the conditions.
Guarantee of transparency and openness — unpublished acts have no legal force; decisions of state bodies must be made public.

2. State Protection of Investments

Protection of investments in Uzbekistan is ensured through a set of measures aimed at preventing unlawful expropriation of assets and minimizing political risks:

Prohibition of nationalization and expropriation. Requisition is permitted only in exceptional cases (emergency circumstances) with mandatory compensation.
Right of investors to judicial and arbitral protection.
Additional guarantees and protective measures — possibility of granting tax and customs benefits, financing, monitoring, and other forms of state support.
Most-favored-nation principle — in case of conflict of norms, the most favorable provisions for investors shall prevail.

3. Tables

Table 1. State Guarantees of the Rights of Investment Activity Subjects

№	Type of Guarantee	Content	Legal Basis
1	Inviolability of activity	Authorities have no right to interfere without legal grounds	Art. 15
2	Non-discriminatory regime	Equal conditions for foreign and domestic investors	Art. 15
3	Free disposal of income	Ability to reinvest or use income at one’s discretion	Art. 16
4	Free transfer of funds	Repatriation of profits, capital, and compensations in foreign currency	Art. 17
5	Guarantee of investment return	Right to repatriate assets upon termination of activity	Art. 18
6	Protection from legislative deterioration	Application of previous legal conditions for 10 years	Art. 19
7	Transparency and openness	Unpublished acts have no legal effect	Art. 20

Table 2. State Measures for the Protection of Investments

№	Protection Measure	Implementation Mechanism	Legal Basis
1	Prohibition of nationalization	Investments are not subject to nationalization	Art. 21
2	Limited cases of requisition	Only in emergencies, accidents, epidemics; with compensation	Art. 21
3	Judicial and arbitral protection	Ability to challenge the legality and amount of expropriations	Art. 21, 63
4	Additional guarantees	Tax incentives, financing, preferences	Art. 22
5	Most-favored-nation principle	Application of the most advantageous norms	Art. 23

The established guarantees reflect international standards of investment protection, including provisions of the Washington Convention (ICSID) and model investment agreements. A special significance is attached to the ten-year stabilization clause (Art. 19), which helps neutralize legal risks and creates a predictable environment for investors.

At the same time, the Law maintains a balance between state and investor interests: the protection of national security and environmental interests may justify certain limitations of rights, consistent with the principle of proportionality in international law.

State guarantees and investment protection in Uzbekistan form the legal foundation of a favorable investment climate, enhancing confidence in the national jurisdiction. They combine legal stability, protection from political risks, and equal treatment for both domestic and foreign investors.

Thus, the Republic of Uzbekistan demonstrates a clear commitment to integrating international standards into its national investment legislation — a vital condition for long-term economic growth.