Nearly €1bn earmarked as five-part plan targets business growth, AI and exports

Uzbekistan has announced a five-part business reform plan, with nearly €1 billion in explicitly earmarked funding across measures covering finance, artificial intelligence, exports and business expansion.

President Shavkat Mirziyoyev presented the measures during his annual open dialogue with entrepreneurs in Khiva, in western Uzbekistan, on Entrepreneurs Day, marked in the country on 20 August.

Around 25,000 business representatives took part from across the country, including via district studios. The format was launched five years ago.

Over that period, the business loan portfolio has nearly tripled to about €33 billion and investment by companies in fixed capital has also tripled, according to official figures.

"Today, our entrepreneurs are moving from the stage of 'starting a business' to that of 'growing their capital'," Mirziyoyev said.

Finance and working capital

A new digital credit portal allows businesses to submit one application and receive competing offers from banks, the government said. New entrepreneurs will also be able to apply online for loans of up to around €365,000.

A separate guarantee system is intended to make larger loans more accessible to smaller companies. For loans of up to 10 billion soums (around €731,000), businesses will need to provide only 25% of the collateral themselves, with the remaining 75% shared between the state, the Business Guarantee Company and banks.

Another measure is intended to free up working capital. Businesses connected to automated electricity and gas metering systems, and compliant with payment rules, will see advance payments fall from 100% to 15%.

Goʻzal Tojimirzayeva, director general of B.A. Technopark, said the previous system could tie up substantial amounts of company capital.

"Sometimes, across several of our factories, 20 billion [€1.5mn] to 30 billion soums [€2.2mn] could go towards advance payments alone," she said. "Now that this has been reduced to 15%, a significant amount of that money will remain in our working capital."

Banks will also be allowed to sell 2,500 properties on their balance sheets, worth around €658 million, on preferential terms including no initial payment and interest-free instalments. The measure concerns the value of the assets being offered, rather than direct government spending.

AI and access to capital

Under a new programme called "AI Partner for 10,000 Enterprises," the state plans to cover half of companies' costs of introducing AI. Businesses developing models for new products will also be offered free access to supercomputing capacity, according to the government.

At least $100 million (€86mn) is earmarked for the programme's first phase.

The government also says it wants to give larger private companies greater access to international capital markets.

Under a planned acceleration programme, the government will select 50 companies a year with annual revenues above 1 trillion soums (€73mn) and cover half the cost of preparing them for initial public offerings and bringing financial reporting in line with international standards.

The stated aim is to help private companies attract at least $1 billion (€862mn) in foreign capital each year — a target for private financing, not government expenditure.

Expanding beyond the domestic market

Exports form the largest explicitly funded part of the package.

The government says $1 billion (€862mn) will go to a unified export-support system. A planned Export Navigator tool is meant to give companies information on foreign demand, tariffs and logistics, while authorities plan to identify 100 products with export potential.

The plan also calls for adapting production at 2,000 companies to foreign market requirements. Support is also meant to cover part of the cost of international branding, selling through online marketplaces and participating in international tenders.

Umida Rahmonova, head of lighting company Miss Lighting, which operates showrooms in Dubai and Milan, said expanding abroad was a natural next step for growing businesses.

"The next stage after moving from small business to medium-sized business, and from medium-sized to large business, is developing the brand and fully entering export markets," she said.

Changing the relationship with regulators

The package also includes changes to inspections, penalties and disputes between businesses and state authorities.

Small businesses will receive a three-year moratorium on inspections, except those related to harm to human health or the interests of other businesses. Business fines are also due to be cut by half on average, the government said.

From next year, the government plans to introduce what it calls a "presumption in favour of the entrepreneur": until a business is found at fault in court, no fines or other sanctions will be imposed.

Davronbek Ahmatov, chairman of the Association of Lawyers and Legal Consultants, said the change would shift the burden of proof to the state.

"Previously, entrepreneurs would usually have to prove that they were in the right," he said. "Now, it will be the state authority that has to prove otherwise."

The package combines measures already in place with others announced for future implementation. For businesses, its impact will ultimately depend on how the new financing tools, lower upfront costs, export support and regulatory changes work in practice.