Uzbekistan Airways could increase its market value from $1.6bn to $2.3bn if a comprehensive transformation program is fully implemented, according to a presentation reviewed by President Shavkat Mirziyoyev on accelerating reforms at the national carrier and preparing it for an initial public offering (IPO).
The program, developed by global asset manager Franklin Templeton, consists of 115 measures aimed at improving efficiency, increasing revenues and strengthening the airline's competitiveness. Officials estimated that full implementation could generate an additional $120mn in annual operating income.
However, despite being developed several months ago, progress in implementing the transformation program has been slower than expected, the presentation noted.
The review comes as Uzbekistan moves to accelerate reforms at major state-owned enterprises included in the portfolio of the National Investment Fund.
Last month, the fund completed its first international placement of assets worth $690mn. Demand exceeded supply by four times, with investors submitting nearly $3bn in orders, which officials described as a positive signal of international confidence in Uzbekistan's capital market reforms.
Authorities now aim to complete transformation programs and IPO preparations for 13 major companies in the fund's portfolio, including Uzbekistan Airways, Uzsanoatqurilishbank, Uzbekhydroenergo, National Electric Networks of Uzbekistan and Uzbektelecom.
According to Franklin Templeton's assessment, Uzbekistan Airways could improve financial performance through route optimization, increased direct sales, enhanced customer service, shorter aircraft turnaround times, fewer delays and cancellations, and greater efficiency across catering and maintenance operations.
Additional gains could come from improving the airline's ability to respond to market changes and attract qualified specialists.
Mirziyoyev stressed that preparing the company for international capital markets would require significant improvements in corporate governance, financial discipline, international reporting standards and credit ratings.
The government aims to sell 15-20% of the airline's shares through an international IPO by the end of the year. To achieve this, officials were instructed to improve the company's investment attractiveness, conduct an objective assessment of its operations, remove special-purpose aircraft from its balance sheet and establish mechanisms to compensate services provided under state orders.
Tourism growth adds pressure for expansion
The presentation also highlighted the rapid growth of Uzbekistan's tourism sector and the resulting pressure on the national airline to expand capacity.
Since the beginning of the year, the number of foreign visitors to Uzbekistan has increased by 27.5% to nearly 5.5 million. Tourist arrivals from China, Malaysia, Japan and the United States have recorded particularly strong growth.
Officials noted that Uzbekistan Airways has not been adapting quickly enough to this increase in demand, with delays observed in efforts to expand the airline's fleet.
As a result, the president instructed authorities to streamline procurement procedures, accelerate decisions related to fleet expansion and adopt international best practices in aircraft acquisition and management.
Mirziyoyev also reiterated that Uzbekistan has the potential to turn Tashkent into a major aviation hub for Central Asia. He called for closer coordination between Uzbekistan Airways, Uzbekistan Airports and the future New Tashkent Airport to ensure the integrated development of infrastructure, route networks and transit services.
To support broader privatization efforts, officials were instructed to establish a dedicated project office overseeing the transformation of companies within the National Investment Fund portfolio, attract specialists with international capital market experience and develop clear IPO preparation roadmaps for each enterprise.
National Investment Fund and IPO reforms
Uzbekistan has been pursuing large-scale reforms of state-owned enterprises as part of efforts to attract foreign investment, improve corporate governance and expand access to international capital markets. The National Investment Fund (UzNIF), managed by Franklin Templeton, was established to consolidate state assets and prepare major companies for potential public offerings.
In May 2026, UzNIF completed Uzbekistan's first international equity offering, raising approximately $690mn through listings on the London and Tashkent stock exchanges. Investor demand exceeded $3bn, highlighting growing international interest in Uzbek assets and the country's privatization program.
Since the listing, UzNIF's global depositary receipts have traded above their IPO price, supported by strong investor demand and improving sentiment toward Uzbekistan's economic reforms. Authorities view the fund as a key vehicle for preparing major state-owned enterprises, including Uzbekistan Airways, for future public offerings and broader participation in international capital markets.
