Uzbekistan has introduced new mechanisms for the privatization of state assets, including reduced down payments, extended installment periods and new auction procedures, under a presidential decree signed by President Shavkat Mirziyoyev.
Presidential Decree UP-177 establishes measures aimed at reducing state participation in the economy and expanding opportunities for private investors, according to the State Assets Management Agency. The document approves a new program covering the privatization of state-owned real estate, land and stakes in enterprises. The total value of assets to be offered for sale amounts to UZS 100 trillion (over $8.4bn). The government expects proceeds from privatization to reach at least UZS 14 trillion (around $1.2bn) by the end of 2026.
Under the program, state-owned stakes in 84 business entities will be offered to investors. A further 1,242 real estate properties and land plots covering approximately 8,000 hectares will be made available for business and urban development projects. The program also provides for the liquidation or reorganization of 85 state-owned enterprises. In addition, 84 properties that were previously offered but remained unsold will be returned to auction with a starting price of UZS 1mn (over $80).
The decree introduces changes to payment conditions for state assets. The required initial payment will be reduced from 35% to 15%, while no interest will be charged on the outstanding balance. For larger transactions, buyers will be eligible for a 25% discount if they pay the full purchase price within six months after signing the purchase agreement. Previously, the period for receiving this discount was one month.
Interest-free installment periods will also be extended. Investors who pay 35% of the asset price within three months will be able to pay the remaining amount over five years. Buyers who pay 50% within six months will be eligible for an installment period of seven years. The decree also changes procedures for assets that remain unsold. If an asset is not purchased within three months after being offered for sale, its price will be gradually reduced. A hybrid auction mechanism will also be introduced, combining increases and decreases in the offered price during the bidding process.
The new privatization mechanisms and incentives will apply both to state property and to assets held by banks with state participation. Measures are also planned to prepare land plots for investors before their sale. Under the decree, certain plots will be offered as ready-made packages with permits and technical specifications for connection to utility networks prepared in advance.
The decree also provides for the gradual commercialization of large state universities and specialized medical centers as part of the broader changes concerning state participation in the economy.
