Despite the pandemic’s devastating impact on Uzbekistan’s major markets, and despite no growth at all in the first six months as the virus took hold, the nation finished the year with a surprising GDP upswing. In contrast with many other parts of the world, Uzbekistan managed to bring the first wave of the virus under control and since September the infection rate has been on a steady downward path. So large-scale privatization looks set to proceed on schedule. In his year-end address to the Oliy Mazhlis, Uzbekistan’s parliament, President Shavkat Mirziyoyev announced that preparations will be made for the privatizations of Sanoatkurilisbank, Asaka Bank, Mortgage Bank, Aloqa Bank, Turon Bank and Kishlock Kurilish Bank. Negotiations are underway for the acquisition of the state’s stake in at least one of the leading banks by strategic investors. State stakes in scores of other major enterprises, including 83 oil and gas companies, will be put up for auction.
US State Department’s 2020 assessment of Uzbekistan’s investment climate concluded that policies have been implemented which are focused on improving Uzbekistan’s investment attractiveness including through adoption of a new currency regulation law to guarantee freedom of current cross-border and capital movement transactions; a new law on investment activities to guarantee foreign investors’ rights; and, a new tax code featuring lower and more equitable tax rates and simplified reporting requirements. Whether or not they are scheduled for privatization, many of Uzbekistan’s leading state-owned firms are being nudged towards the international financial markets. In the year ahead, for instance, the huge Navoi Mining and Metallurgical Plant, gas monopoly Uzbekneftegaz, hydroelectricity producer Uzbekhydroenergo, and auto manufacturer Uzavtosanoat plan to raise international funds without government guarantees. Several have already or are in the process of securing international credit ratings. The prospectus requirements alone are forcing changes to corporate culture at lightning speed.