On 7 September 2023, the V International Congress on Uzbekistan's Capital Market took place, witnessing participation from around 300 experts, stakeholders, and decision-makers from the financial sector.
Hosted by Cbonds-Congress and the National Association of Investment Institutions, the conference served as a pivotal platform for capital market regulators, investment and production companies, banks, and international financial institutions.
The event began with a warm welcome by Sergey Lyalin, the founder of Cbonds Group.
He noted, "As we mark the 5th year of this esteemed international congress, we are excited to highlight the major IPOs, such as the UzAuto IPO, that have graced our nation since our last gathering."
Lyalin extended his gratitude to the sponsors, including Gazprombank, Portfolio Investments, Alkes Research, and Freedom Broker, among others.
A notable address came from Robert Jensen, Managing Director and Co-Founder of Mosaic Financial Uzbekistan.
He remarked, "The capital markets in Uzbekistan are still in their infancy. A collective effort is required for successful IPOs. Local companies reaching out to brokers for IPOs will be a positive sign for our industry."
Scott Osheroff, Chief Investment Officer at Asia Frontier Capital, emphasized the significance of regional partnerships and the changing global dynamic. He commented, "The world is changing, with the rise of the new fertile crescent stretching from Russia to the Middle East. There is immense potential here, and Uzbekistan can play a pivotal role in this new world order."
"I think Uzbekistan has the ingredients to become the most to become the most influential, if you will, country in the region and certainly the biggest economy. In 10 or 15 years. Kazakhstan has a jump start due to its oil and gas. But Kazakhstan is an exporter of unprocessed commodities. Uzbekistan is sort of the Vietnam of the region, the manufacturing hub. It's diversified and it has the population. So I think that Uzbekistan could become the most, say geopolitically, if you will, important country in the entire region." Osheroff stated when asked for comment by Daryo.
The most anticipated moment for most participants was the opportunity to meet the newly appointed regulator, the National Agency of Perspective Projects (NAPP). Vyacheslav Pak, First Deputy Director of the National Agency of Perspective Projects of the Republic of Uzbekistan, emphasized the significance of innovation and technology.
He said, "Open dialogue is crucial. As we look towards capital market reforms, we believe that the exchange of technology and know-how will play a significant role."
Munir Yakubov, CEO of Portfolio Investments, shed light on the rapid growth and reforms seen in Uzbekistan's capital market, emphasizing the importance of investment opportunities and the prevailing positive atmosphere.
"There are some really positive changes and it's a nice time right now for the investors to come here because a lot of the market is opening, the government offering to the investors, a lot of projects like IPO and SPO. And it's a nice chance for the new coming investors to join to be one of the members of this change. These kind of changes don't happen every day, everyone has to use this opportunity." Yakubov advised.
The day saw several panels discussing diverse topics. The first panel delved deep into the development strategy and regulation of the Financial Market of Uzbekistan. The subsequent discussions focused on topics ranging from macroeconomics, and international cooperation, to the law reforms in joint-stock companies.
Representing UzSAMA, Deputy Director Alisher Miraliyev focused on the need for transparency and digital transition. He informed attendees about the introduction of the Law "On State Property Management" and expressed confidence in the ongoing large-scale reforms serving as a foundation for the country's capital market development.
Bekhruzbek Ochilov of Alkes Research presented on alternative debt capital market opportunities. Highlighting that Uzbekistan's Capital Market should look outside of attracting retail liquidity due to large deposit rates in soums in Uzbek Banks.
"There's a lot of opportunities for banks in the debt capital market, as issuers of debt, for example with subordinated bonds to inject money in tier II capital, or to finance their clients and decrease their tax base by making use of the tax initiatives that are currently available for bonds," Ochilov remarked.
Who is the new regulator?
On September 2, the National Agency for Prospective Projects (NAPP) is now the official overseer of the capital market. They will handle licenses for the insurance sector and the management of securities trading.
Both the Stock Market Information and Resource Center and the Unified Corporate Information Portal have been shifted to NAPP's authority. Furthermore, NAPP has been directed to create a strategy for the ongoing enhancement of the insurance industry.
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