Uzbekistan has introduced a new initiative to broaden opportunities in the gold jewelry sector by granting jewelers the right to operate as individual entrepreneurs and legally trade in gold products. The decision was made during a presidential meeting chaired by President Shavkat Mirziyoyev on May 26, aimed at strengthening the domestic jewelry industry and tackling its unofficial market challenges.
In 2024, Uzbekistan’s jewelry production surpassed $200mn, with exports rising 17% to reach $92mn. However, despite the country’s annual gold mining output exceeding 100 tons, only a fraction of its potential is currently utilized. The meeting highlighted that a large share of the jewelry market operates informally, with approximately $550-600mn worth of gold items circulating in unofficial channels annually.
A stark example of this hidden economy (shadow market) is the drastic fall in gold contributions from independent prospectors, who delivered 40 kilograms in 2020 but only a tiny fraction last year. To combat this shadow market and foster industry transparency, the government proposed enabling individual entrepreneurs to legally trade in gold products.
President Mirziyoyev approved these proposals, which include modernizing informal jewelry stalls in local areas and legalizing their operations. The state will support the industry by subsidizing up to $2,500 of the costs incurred in bringing in foreign specialists—such as designers, technologists, and gemologists—on the condition that they train at least five apprentices locally.
The meeting stressed the importance of transitioning to an industrialized approach, protecting the domestic market, and nurturing national jewelry brands. To support these goals, all equipment and components used in jewelry manufacturing will be exempt from import duties. Additionally, the installment purchase scheme for gold from Navoi and Almalyk mining combines will be extended for another three years.
In efforts to boost creativity and quality, partnerships with prestigious international brands will be encouraged, with subsidies covering up to $30,000 for importing design templates and patterns.
Further regulatory measures were introduced in July 2024 through a presidential decree aimed at improving competitiveness in the jewelry sector. Under this degree, since November 1, 2024, it has been prohibited to display or sell foreign-made jewelry at retail without documentation proving that all customs duties have been paid.
Meanwhile, import customs duties on finished jewelry will be reduced from 20% to 10% until January 1, 2027.
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