Uzbekistan is positioning itself as Central Asia's technology gateway with a new business framework designed to lure international companies. The regime, named Enterprise Uzbekistan, was adopted in August and is slated to become operational in early 2027. It offers tax breaks, simplified hiring for foreign specialists, and a regulatory sandbox for testing innovative products.
Under the new rules, investors will be exempt from taxes on dividends and other investment income, while participating companies will pay no corporate tax on profits from priority activities. Sales within the centre and exports by its participants will be zero-rated for VAT. This is a significant draw for foreign firms, as Sultonmurod Rasulov, Head of Strategic Partnerships at Enterprise Uzbekistan, emphasised at the Enterprise Uzbekistan Summit during ICT Week in Tashkent: “It means a lot, but most importantly, it means 100% foreign ownership.”
Full foreign ownership is already permitted in Uzbekistan, but the new regime goes further by accommodating foreign companies, branches, and representative offices. It also allows foreign employees to obtain visas lasting up to three years without separate work permits, and highly qualified specialists will be exempt from personal income tax on eligible salaries and dividends.
A regulatory sandbox for the future
One of the most innovative features is the regulatory sandbox, which lets companies test new technologies for up to 12 months under adapted rules, including temporary exemptions and simplified licensing. This is particularly valuable for developers of AI applications or new financial services, who often face regulations written before their products existed. Rasulov explained: “If you are building something that the rules were not designed for, the regulatory sandbox will allow you to test it first.”
International venture capital is already taking notice. Golden Gate Ventures opened an office in Tashkent in June, in partnership with the Uzbek-Oman Investment Company, aiming to expand its investment activities and help tech companies bridge Central Asia and the Middle East. Michael Lints, Founding Partner MENA at Golden Gate Ventures, believes the new regime will encourage more foreign investors to set up operations in Uzbekistan. “It's gonna help with cross-border deal flow as well,” he said. “So we'll get more investors, more founders to come and launch here.”
Bahodir Ayupov, Vice President of Global Business Development at Enterprise Uzbekistan, acknowledges that unfamiliarity with the country's legal system may deter some international companies. His goal is for firms to see Enterprise Uzbekistan “as an integral part of their expansion plans,” not just a way to enter the Uzbek market. The long-term ambition is to see “big tech companies coming to this region through Uzbekistan,” using the centre as a base to expand into other Central Asian markets.
The first test will come in 2027, but many detailed regulations are still being developed. Officials are inviting tech companies and investors to help shape the rules. Farhod Ibragimov, CEO of Enterprise Uzbekistan, notes that regulatory stability is a top concern for investors: “The first question is: how long will these incentives remain in place? Will they still be available over the next ten years?”
The regime is designed to remain in force until 2100, providing a long-term framework. Mark Beer, Chairman of the Metis Institute, cautions that attracting companies at launch is only the beginning. “The real test of any environment is about 10 years from now, because trust takes 10 years to build,” he said. He advises the centre to review its performance against competing jurisdictions and adjust its rules if growth stalls: “Tweak the regime and monitor again.”
Uzbekistan's push is part of a broader regional trend. Neighbouring Azerbaijan has also introduced new tech rules to boost its digital economy, and Tashkent's ambitions are backed by significant investment, including $6bn in data centre investment. The country is also urging UN reform and touting Central Asia cooperation, signalling its intent to play a larger role on the global stage.
For European tech firms looking to expand eastward, Enterprise Uzbekistan offers a familiar legal framework with international standards, potentially making Tashkent a viable alternative to other regional hubs. The success of this initiative will depend on the final regulations and the ability to build trust over the next decade.
