Uzbekistan has launched an ambitious business transformation initiative that promises to reshape the country’s entrepreneurial landscape through unprecedented financial support and regulatory reforms. President Shavkat Mirziyoyev signed a comprehensive decree on August 20, 2025, implementing proposals that emerged from the fifth open dialogue with the business community — a move that signals the government’s commitment to creating a more business-friendly environment.
The decree allocates a massive 270 trillion soums over the next two years (2026-2027) to support entrepreneurial activities across multiple sectors. This substantial financial commitment represents one of the most significant business support packages in the region, demonstrating Uzbekistan’s strategic pivot toward private sector development as a key economic driver.
Financial Architecture of the Support Program
The financial framework reveals a carefully structured approach to business development. Commercial banks will channel 250 trillion soums directly to small and medium enterprises, with 30 trillion soums earmarked for specialized business programs. The state-owned Company for Entrepreneurship Development will receive 4 trillion soums to support at least 5,000 business projects, creating a comprehensive ecosystem of financial assistance.
Infrastructure development receives significant attention with targeted allocations: 4 trillion soums for free economic zones and industrial areas, 5 trillion soums for driver projects, and 6 trillion soums for urban and regional development programs. These investments in infrastructure backbone are designed to create favorable conditions for both domestic and foreign investors seeking to establish operations in Uzbekistan.
Revolutionary Changes in Credit Assessment and Tourism Development
Starting May 1, 2026, Uzbekistan will introduce an alternative scoring system for evaluating business creditworthiness, utilizing data from both government agencies and private sector sources. This innovation promises to make credit more accessible to entrepreneurs who may not meet traditional banking criteria but demonstrate business viability through alternative metrics.
The tourism sector receives special treatment with a dedicated program launching in 2026. The government will allocate at least 5,000 hectares of land for tourism infrastructure through electronic auctions, while commercial banks will provide hotel construction credits for up to seven years. Regional centers including Tashkent and Nukus can access up to 30 billion soums, while other regions receive up to 10 billion soums for hospitality projects.
An innovative incentive mechanism includes a 1 million US dollar prize for hotels achieving international recognition, while the state will subsidize construction costs and equipment for new hotels — a program that will also extend to expansion of existing facilities.
Tax System Modernization and Administrative Simplification
The decree introduces significant tax reforms designed to reduce bureaucratic burden on businesses. From January 1, 2026, entrepreneurs becoming VAT payers for the first time will enjoy a one-year exemption from profit tax. The government is implementing a moratorium on penalties for overdue receivables for private companies without state ownership, valid until January 1, 2027.
Perhaps most importantly, the tax reporting system will become proactive, with tax authorities taking responsibility for preparing reports on property tax, land tax, income tax, and social contributions. This shift removes significant administrative burdens from entrepreneurs and reduces compliance costs across the business community.
Strategic Implications for International Business
These comprehensive reforms create substantial opportunities for international companies across multiple sectors. The infrastructure investments in free economic zones and the streamlined credit assessment system make Uzbekistan increasingly attractive for foreign manufacturing operations, particularly for companies seeking to establish regional production bases with access to Central Asian and broader markets.
For furniture and interior companies, the tourism infrastructure development program presents significant opportunities, as the planned hotel construction boom will drive demand for furnishing, interior design services, and hospitality equipment. The government’s commitment to subsidizing hotel construction and expansion projects creates a favorable environment for suppliers of construction materials, furniture, and interior solutions.
The regulatory simplification measures, combined with improved access to credit and reduced administrative burden, lower entry barriers for international businesses considering Uzbekistan as a market entry point or regional hub. The proactive tax reporting system and reduced compliance requirements make the operational environment more predictable and cost-effective for foreign investors, while the alternative credit scoring system opens new possibilities for innovative businesses that may not fit traditional banking profiles but offer strong growth potential in the evolving Central Asian market.
