On April 21, 2025, Uzbekistan’s President Shavkat Mirziyoyev signed a decree (№УП-70) approving a comprehensive privatization program for 2025, aimed at reducing state involvement in the economy, attracting private investment, and fostering economic growth. The initiative, detailed by the State Assets Management Agency (UzSAMA) and reported by Spot.uz, outlines plans to privatize 30 trillion soums (approximately $2.4 billion) worth of state assets, including 115 companies, 659 real estate properties, and 6,100 hectares of land. The program is expected to generate around 10 trillion soums in revenue by year-end, signaling a transformative shift toward a market-driven economy.

Key Components of the Privatization Program

Privatization of State-Owned Enterprises

The 2025 program targets the sale of state shares in 115 companies, including major enterprises such as UzAuto Motors, Universal Mobile Systems (UMS, operating as Mobiuz), Uzbekistan GTL, and Tashkent Tractor Plant (TTZ). A total of 29 large state-owned companies will have their shares offered through international public auctions, with the process facilitated by international consultants to ensure transparency and competitiveness.

The privatization timeline varies by company:

• Second half of 2025: Most companies, including thermal power plants like those in Tashkent, Muborak, and Fergana, will see their shares auctioned. An announcement for the privatization of thermal power plants is expected by July 1, 2025.
• First quarter of 2026: Companies such as UzAuto Motors, Uzbek Leasing International, O‘zagrosug‘urta, O‘zagrolizing, TTZ, and Texnopark are scheduled for privatization.
• Second quarter of 2026: Uzbekistan GTL will be offered for sale.

The government has also introduced a moratorium until 2030 on establishing new state-owned enterprises, except in cases related to defense, security, or Facet, or as specified by presidential decrees. This move underscores Uzbekistan’s commitment to reducing state dominance in the economy.

Land Privatization and Market Reforms

A significant aspect of the 2025 program is the privatization of non-agricultural land through online auctions. Citizens and legal entities will be allowed to purchase land plots previously leased, with auctions prioritizing entrepreneurs with ready projects to expand business activities. The program also eliminates the mandatory participation of local authorities in the charter capital of markets and shopping complexes, further liberalizing the market.

Additionally, the government plans to auction rights to at least 30 mineral deposits and sites in the initial phase, aiming to attract investment in the mining sector. Unsold real estate properties that remain unattractive to buyers for over a year will be transferred as shares to the charter capital of other legal entities, ensuring efficient asset utilization.

IPO and SPO Schedule for Major Enterprises

In parallel, Uzbekistan is preparing 12 state-owned enterprises for initial public offerings (IPOs) and secondary public offerings (SPOs) on domestic and international stock markets by the end of 2028. The program, approved by the State Commission on Privatization, includes prominent companies such as Navoi Mining and Metallurgical Combinat (NMMC) and Almalyk Mining and Metallurgical Combinat (AMMC). Between 10% and 25% of these companies’ shares will be offered, with the process managed in collaboration with Franklin Templeton Asset Management’s Singapore subsidiary.

Notably, NMMC is eyeing a potential IPO on the London Stock Exchange in the second half of 2025, with a projected capitalization exceeding £4 billion ($5.2 billion). Rothschild & Co. is serving as the consultant for this high-profile listing. The IPOs are part of a broader strategy to enhance transparency, attract foreign investors, and integrate Uzbekistan’s capital markets with global financial systems.

Institutional Reforms to Support Privatization

To streamline the privatization process, a new deputy minister position dedicated to privatization and public-private partnerships (PPPs) has been established across ministries. The Ministry of Economy and Finance has already appointed such a deputy, reflecting the government’s focus on accelerating reforms. By December 1, 2025, UzSAMA, in collaboration with the Ministry of Economy and Finance and international financial institutions, will develop a strategy for state enterprise reform and privatization through 2030.

The adoption of International Financial Reporting Standards (IFRS) and the involvement of international consultants underscore Uzbekistan’s commitment to transparency and governance. Legislative reforms initiated in 2021 continue to refine the privatization framework, improving valuation mechanisms and protecting minority shareholder rights through mandatory dividend distributions and regulatory oversight.

Economic Impact and Strategic Goals

The 2025 privatization program aligns with Uzbekistan’s Vision 2030 economic roadmap, which seeks to reduce the state’s economic share by 75% by 2025. By privatizing major enterprises, liberalizing land ownership, and integrating with global capital markets, the government aims to:

• Attract foreign and domestic investment.
• Enhance the efficiency and competitiveness of state-owned enterprises.
• Generate significant revenue to fund infrastructure and social projects.
• Foster a private sector-driven economy.

The program builds on earlier reforms, such as the 2021 law on privatization, which outlined methods like auctions, competitive bidding, and exchange trading for state asset sales. The establishment of entities like the Central Securities Depository and the National Clearing Center further supports the development of a robust capital market ecosystem.

Challenges and Outlook

While the privatization program is ambitious, challenges remain. Previous attempts to privatize state banks like Aloqabank, Asakabank, and Uzpromstroybank faced delays, with Fitch Ratings noting that sales may extend into late 2025 due to complex preparations. The success of the IPOs, particularly for high-value enterprises like NMMC, will depend on global market conditions and investor confidence in Uzbekistan’s reforms.

Nevertheless, the government’s proactive measures—such as engaging reputable international consultants, adopting global financial standards, and setting clear timelines—signal strong political will. The collaboration with institutions like the European Bank for Reconstruction and Development (EBRD) for bank privatizations and Franklin Templeton for IPOs enhances credibility and investor appeal.

Uzbekistan’s 2025 privatization program marks a pivotal step toward economic liberalization and global integration. By divesting state assets, liberalizing land markets, and launching IPOs for major enterprises, the government is laying the foundation for a dynamic, private sector-led economy. With a clear timeline, robust institutional reforms, and international partnerships, the program has the potential to transform Uzbekistan’s economic landscape, attract significant investment, and drive sustainable growth through 2030 and beyond.