Investment Activity in Uzbekistan

Investment activity is a key factor in ensuring sustainable economic growth. Under the conditions of modernization and structural transformation in Uzbekistan, the legislative regulation of investment plays a strategic role. Chapter 2 of the Law of the Republic of Uzbekistan “On Investments and Investment Activity” (Law No. ZRU-598) establishes the types of investments, the forms of their implementation, defines the objects and subjects of investment activity, as well as the sources of investment resources.

1. Types of Investments

The Law classifies investments by their purpose into three categories:

• Capital investments — investments in the creation and reproduction of fixed assets;
• Financial investments — investments in securities and other financial instruments;
• Social investments — investments in human capital, skills, and knowledge.

Table 1. Types of Investments by Purpose

Type of Investment	Description	Examples of Application
Capital	Creation and modernization of physical assets	Construction of new plants, reconstruction of enterprises
Financial	Investment in securities	Purchase of shares, corporate and government bonds
Social	Development of intangible assets	Education, professional training, skill development

 

2. Forms of Investment Implementation

The forms of investment reflect the diversity of ways in which funds can be invested:

• Establishment of legal entities or participation in their capital;
• Acquisition of securities;
• Concessions and production-sharing agreements;
• Acquisition of rights to intellectual property;
• Acquisition of rights to land plots and other natural resources.

Table 2. Forms of Investment Implementation

Form	Description	Features
Establishment of legal entities or participation in capital	Creation of enterprises, acquisition of shares	Primary form of direct investment
Acquisition of securities	Purchase of shares, bonds	Refers to financial investments
Concessions	Rights to explore and use resources	Often long-term in nature
Intellectual property	Patents, know-how, trademarks	Important for innovative projects
Land plots and natural resources	Ownership or lease rights	Regulated by land and natural resource law

 

3. Investment Resources

Sources of investment include:

• Monetary funds and loans (including foreign currency);
• Movable and immovable property;
• Rights to intellectual property;
• Land plots and rights to use natural resources.

Table 3. Investment Resources

Resource	Examples
Financial resources	Cash deposits, shares, units, bonds
Tangible assets	Buildings, facilities, machinery, equipment
Intellectual property	Patents, know-how, trade secrets
Land and natural resources	Rights to land, water, and mineral resources

 

4. Objects of Investment Activity

The objects of investment activity include areas of social, entrepreneurial, scientific, and other activities not prohibited by law. Investments are not allowed in projects that violate sanitary, environmental, urban planning, or other regulatory requirements.

Table 4. Objects of Investment Activity

Permitted Objects	Prohibited Objects
Social sphere (education, healthcare)	Facilities violating sanitary norms
Entrepreneurial activity	Objects violating environmental requirements
Scientific research and development	Projects infringing on the rights of citizens and legal entities

 

5. Subjects of Investment Activity

The range of participants (subjects) is broad, covering both domestic and foreign investors:

• Individuals (citizens, entrepreneurs);
• Legal entities (resident and non-resident companies);
• Public authorities and administrative bodies;
• Foreign states and international organizations.

Table 5. Subjects of Investment Activity

Category	Participants	Example
Domestic investors	Citizens and legal entities of the Republic of Uzbekistan	Individual entrepreneur, LLC
Foreign investors	Foreign states, companies, and citizens	Transnational corporation
State authorities	Governmental and administrative bodies	Ministry of Investments and Foreign Trade
International organizations	Intergovernmental structures	World Bank, EBRD

The Law reflects a modern model of investment legislation, based on a combination of entrepreneurial freedom and restrictions related to the protection of public interests. A clear classification of investment types and forms facilitates legal enforcement, while the wide range of subjects and objects demonstrates Uzbekistan’s commitment to integration into the global investment system.

The types of investments, as well as the objects and subjects defined by the Law, form the foundation of the legal framework for investment in Uzbekistan. The legislator has clearly delineated investment types, forms, and sources, established permissible and prohibited objects, and defined a broad spectrum of participants in the investment process. This creates transparent “rules of the game” for investors and strengthens confidence in the country’s investment climate.