Uzbekistan has set a bold target to increase the share of regional industry in the national industrial output to 45 percent by the end of 2026, while simultaneously launching 34 high-technology manufacturing projects designed to modernize production capabilities and create over 3,500 new jobs.
The initiative encompasses a micro-program spanning 316 industrial projects across various districts and cities, with each locality tasked to identify and mobilize additional production reserves. Regional industrial headquarters will coordinate efforts to achieve an additional 5 percent increase in manufacturing output through better resource utilization and operational efficiency improvements.
Export transformation and growth points
A particularly noteworthy aspect of the program involves converting 100 enterprises that have never exported their products into active exporters. These companies, located in districts overseen by specialized project offices for accelerated industrial development, will receive targeted support to access international markets. The authorities plan to establish up to five industrial growth points in each district and city, creating localized centers of manufacturing excellence and innovation.
The strategy aims to increase the share of technologically advanced products in the industrial mix to 25 percent, signaling a deliberate move toward higher value-added manufacturing. This approach addresses systemic challenges facing industrial enterprises through a coordinated republic-region-district framework, ensuring that obstacles are resolved swiftly at the appropriate administrative level.
Tax relief and operational support
Starting January 1, 2026, and continuing through January 1, 2028, manufacturing enterprises will benefit from significant tax advantages. Companies paying workers at least twice the minimum wage will be able to deduct employee transportation and meal expenses from their social tax base, up to one basic calculation value per worker monthly. This measure effectively reduces the tax burden while incentivizing better compensation and working conditions.
Construction materials sector receives targeted benefits
Enterprises extracting gypsum for their own needs and manufacturing finished construction materials from it will enjoy a 50 percent reduction in land use taxes for gypsum extraction areas during the same period. Additionally, cement producers will see a 25 percent reduction in the mandatory exchange trading requirement, which currently mandates that at least 50 percent of cement production be sold through commodity exchanges. These changes provide greater operational flexibility and improved profit margins for building materials manufacturers.
Investment in capacity building and expertise
The program includes financial reimbursement mechanisms to encourage enterprise modernization and knowledge transfer. The government will cover 50 percent of costs for engaging foreign consulting firms to develop specialized industrial development strategies for four regions selected through competitive bidding, with reimbursement capped at 250,000 US dollars per region. Similarly, private industrial enterprises conducting energy audits will receive 50 percent cost reimbursement, up to 100 million soums per enterprise.
Training initiatives will receive full funding support, with the state covering 100 percent of expenses for organizing educational courses focused on implementing modern management mechanisms, including precise resource assessment methodologies and efficiency enhancement techniques. Each enterprise can receive up to 20 million soums for such training programs.
The comprehensive package of measures was formalized through Presidential Resolution PP-295, adopted on October 4, 2025, and officially entered into force on October 9, 2025, following publication in the National Legal Database.
For international companies in furniture manufacturing, construction materials, interior and exterior design, and related sectors, this development signals significant opportunities. The push to increase regional industrial capacity, combined with substantial tax incentives and government support for technology transfer, creates favorable conditions for partnerships, joint ventures, and supply chain integration. The focus on high-technology projects and export orientation particularly benefits foreign manufacturers seeking production bases with competitive costs and improving business environments. The emphasis on construction materials modernization and the creation of multiple growth points across districts suggests expanding demand for equipment, technology, and expertise that international players can provide.
