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UZBEKISTAN LEGAL NEWSLETTER: OCTOBER 2025

Notable legal developments in Uzbekistan in October 2025 included a government resolution regulating the borrowing activities of large enterprises, the adoption of a new law establishing a framework for enforcing mediation agreements, the introduction of a special tax regime for foreign citizens, and the expansion of the visa-free regime for citizens of certain countries. Presidential and government decisions were also issued to promote public–private partnerships in the water management sector and to support the development of the aviation industry, as well as to advance the modernisation of transport and logistics infrastructure and transit routes. In addition, the government approved a new bilateral investment treaty with Italy.

 1.  BORROWINGS OF LARGE ENTERPRISES

The Cabinet of Ministers has issued a Resolution to regulate the borrowing activities of systemically important large enterprises (“large borrowers”). Effective immediately, it provides for, among other things, the following key novelties:

  • large borrowers are defined as borrowers (or groups of interrelated borrowers or enterprises) with debt exceeding the equivalent of USD 50 million and that are of systemic importance to the national economy (excluding commercial banks). Private enterprises without outstanding bank loan obligations that intend to attract external borrowings without state guarantees will not be treated as large borrowers;

  • a Coordination Commission has been created to maintain the register of large borrowers, approve their loans and external borrowings, monitor the results of such borrowings, and develop measures to support the financial recovery of borrowers in poor financial condition;

  • the register of large borrowers will be published and updated annually on the official websites of the working bodies of the Commission: the Ministry of Economy and Finance - for external borrowings of state-owned enterprises, and the Central Bank of Uzbekistan - for loans of other large enterprises;

  • large borrowers must report quarterly to the working body on the fulfilment of obligations under their loans and external borrowings and must submit quarterly financial statements;

  • limited liability companies that are classified as large borrowers must be transformed into joint-stock companies within 3 months of their classification;

  • to attract debt, the borrower must submit a project concept and other relevant information to the working bodies. Following a review and analysis of the borrower’s financial condition, the working bodies will prepare proposals for the Commission’s approval;

  • borrowers will be classified as high-, medium-, or low-risk, with different approval procedures for each category. Low-risk borrowers (for any debt amount) and borrowers in other categories (within certain debt thresholds) may submit only the project concept for notification purposes, without requiring prior approval from the Commission.

Resolution of the Cabinet of Ministers No. 670 of 24 October 2025

 2.  ENFORCEMENT OF MEDIATION AGREEMENTS 

On 20 October 2025, the President signed the Law “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan Aimed at Improving the Institution of Mediation and Alternative Dispute Resolution”, which introduces a unified procedure for obtaining an enforcement order for the compulsory execution of a mediation agreement.

The Law establishes a 6-month deadline for submitting an application for the issuance of an enforcement order following the expiry of the voluntary compliance period, with the possibility of reinstating the missed deadline if there are valid grounds.

This reform replaces the previous requirement to initiate a new court case for non-performance of a mediation agreement. Instead, it provides a simplified procedure whereby a party may apply directly for an enforcement order.

Law No. ZRU-1089 of 20 October 2025

 3.  TAXATION OF FOREIGN CITIZENS

The President has signed a Decree introducing a special taxation regime for foreign citizens which, provides, among others, for the following:

  • starting from 1 January 2026, foreign citizens will be exempt from personal income tax on income derived from sources outside Uzbekistan, subject to: (i) payment of a special fee of USD 50,000; (ii) opening a bank account in a specially authorised commercial bank or a crypto wallet on a specially authorised crypto exchange in Uzbekistan;

  • foreign citizens will be considered as tax residents if: (i) they are present in Uzbekistan for more than 30 calendar days within any consecutive 12-month period that begins or ends in the tax period (wherein the special taxation regime applies); and (ii) own or lease local residential property;

  • the special tax regime will also extend to close relatives of eligible foreign citizens, subject to payment of a special fee of USD 10,000 for each adult close relative;

  • a Commission responsible for granting the special taxation regime to foreign citizens shall be established with the Tax Committee serving as its working body;

  • applications submitted to the Commission through the Tax Committee shall be reviewed within five business days. Following approval, foreign citizens must apply to a specially authorised 5 bank to open a bank account or to a specially authorised crypto exchange to open a crypto wallet, and must pay the special fee;

  • within 2 months of the issuance of the Decree, the Cabinet of Ministers shall approve a regulation governing the special taxation regime. By 1 January 2026, the Tax Committee shall publish the list of specially authorised commercial banks and crypto exchanges.

Presidential Decree No. UP-180 of 4 October 2025 


 4.  EXPANSION OF VISA-FREE REGIME

On 21 October 2025, the Cabinet of Ministers adopted a Resolution expanding the visa-free regime and simplifying visa-processing procedures for citizens of certain countries. Among other things, it provides for the following:

  • Bahrain, Qatar, Kuwait, Oman, Saudi Arabia, and Jordan will be added to the list of countries whose citizens may enter Uzbekistan visa-free for 30 days;

  • the visa-free stay for Chinese citizens is extended to 30 days. Residents of Hong Kong remain eligible for 7 days of visa-free entry;

  • visa-processing timelines are established as follows:
    • Austria, Belgium, United Kingdom and Northern Ireland, Germany, Spain, Italy, Latvia, Malaysia, France, Czech Republic, Switzerland, Japan – up to 2 business days;
    • United Arab Emirates – up to 3 business days;
    • Iran, Pakistan – up to 3 business days (in exceptional cases – up to 10 business days).

Resolution of the Cabinet of Ministers No. 662 of 21 October 2025

 5.  PUBLIC-PRIVATE PARTNERSHIPS IN WATER MANAGEMENT

The President has adopted a Resolution on expanding public–private partnerships (PPP) in the water management system. The Resolution, among other things, provides for the following:

  • in 2026, 50% of pumping stations located in the Jizzakh, Kashkadarya, Navoi, Namangan, Samarkand, and Syrdarya regions shall be transferred under the PPP modality;

  • by the end of 2027, all pumping stations in the Namangan region shall be transferred to private sector management under the PPP modality;

  • as a pilot initiative, the pumping stations and irrigation networks in the Namangan region shall be transferred under a PPP arrangement to one of the water users serviced by the respective pumping stations, following negotiations. If only one water user is serviced, the transfer may be made directly to that user without competitive negotiations. The State Institution “Water Supply Service” will remit to the private partner 40% of the water use tax paid by water users, as determined by metering devices installed in the irrigation networks. The private partner shall be responsible for ensuring water supply to water users and household plots within established water abstraction limits, operating all existing water management facilities under its service area, maintaining comprehensive water metering and reporting, including through automated systems, and implementing a phased modernisation program for all water management facilities within the service area;

  • within 3 months of the adoption of the Resolution, the MoWR and the Ministry of Economy and Finance have been instructed to approve and register a regulation governing PPPs in the water management system, together with template documents, including the project concept, project evaluation document, financial model, and PPP agreement.

Presidential Resolution No. PP-302 of 14 October 2025

 6.  DEVELOPMENT OF CIVIL AVIATION

The President has signed a Decree on the development of the civil aviation industry, which sets forth the following key provisions:

  • goals for 2030 include: (i) increasing the number of air passengers served to 24 million; (ii) raising the number of international and domestic flights to 200,000; (iii) expanding the fleet operated by resident airlines of the Republic of Uzbekistan to 180 aircraft; and (iv) implementing the first phase of construction of the new Tashkent International Airport;

  • passenger and cargo aircraft operated by resident airlines will be included in the list of technological equipment exempt from customs duties and VAT upon import into Uzbekistan;

  • construction activities on airport land plots shall be carried out by the competent authorities in coordination with the Uzaviation Agency and in compliance with ICAO flight-safety requirements. Land plots required for airport infrastructure development shall be allocated to the State Assets Management Agency on a permanent-use basis;

  • in 2026–2028, UZS 250 billion (approximately USD 20.7 million) will be allocated annually from the State Budget to (i) modernise aerodrome and air-traffic-management complexes; (ii) procure radio-technical flight-support equipment; and (iii) construct, overhaul, and reconstruct airport aerodrome facilities;

  • by 1 October 2026, a draft of a new version of the Air Code will be submitted to the Cabinet of Ministers, based on ICAO requirements and international best practices;

  • relevant ministries have been instructed to examine the activities of: (i) business entities holding a dominant position in the aviation industry; (ii) all airports classified as natural monopoly entities; (iii) state-owned airlines; and (iv) the State Unitary Enterprise “Uzaeronavigation Centre”, and to submit the findings to the Presidential Administration;

  • the Ministry of Transport has been tasked with: (i) preparing an action plan to improve the technical and interior condition of aircraft of resident airlines operating international flights; (ii) launching, within the Uzaviation Agency, a consumer-relations information system and a call centre for handling proposals and complaints from passengers, as well as for reviewing and commenting on aviation incidents and occurrences during passenger air transport; (iii) introducing pooled procurement agreements with suppliers of certified spare parts; (iv) developing measures to improve the quality of services (catering, passenger and aircraft servicing) provided by external contractors during international flights of resident airlines; and (v) developing and submitting to the Cabinet of Ministers proposals for the introduction of an international system for assessing, monitoring and improving services provided by airlines and airports (Skytrax).

Presidential Decree No. UP-193 of 27 October 2025

 7.  DEVELOPMENT OF TRANSIT ROUTES AND LOGISTICS CENTRES

The Cabinet of Ministers has adopted a Resolution on developing the network of transport and logistics centres and mobilising the potential of transit routes. The Resolution, among other things, provides for the following:

  • standard requirements for equipping transport and logistics centres with modern machinery and equipment (Annex 1 to the Resolution);

  • the Regulation on the procedure for calculating and maintaining the rating of transport and logistics centres (Annex 2);

  • the list of routes designated for the transit movement of motor vehicles through the territory of Uzbekistan (Annex 3);

  • list of routes designated for the transit movement of railway transport through Uzbekistan, (Annex 4);

  • by 1 December 2025, the Ministry of Transport shall ensure the registration and maintenance of transport and logistics centres operating in the country in accordance with the requirements set out in Annexes 1 and 2;

  • the Ministry of Transport, the Tax Committee, the Customs Committee, the Ministry of Ecology, Environmental Protection and Climate Change, and the Ministry of Poverty Reduction and Employment must, within 3 months, integrate the information specified in Annex 2 into the Ministry of Transport’s unified interactive information system “Uztrans” via the interdepartmental Digital Government platform;

  • the Ministry of Transport, the Customs Committee, and the Ministry of Internal Affairs must, within 3 months, submit to the Cabinet of Ministers proposals on introducing an electronic vehicle-tracking system and ensuring strict compliance with designated transit routes across Uzbekistan.

Resolution of the Cabinet of Ministers No. 633 of 8 October 2025

 8.  BILATERAL INVESTMENT TREATY WITH ITALY

The President has signed a Resolution approving the Agreement on Mutual Promotion and Protection of Investments concluded between Uzbekistan and Italy on 29 May 2025. The Agreement provides general guarantees for the protection of investments made by residents of both states and sets out the available dispute-settlement mechanisms. The Ministry of Investments, Industry and Trade is designated as the competent authority under the Agreement.

Presidential Resolution No. PP-326 of 31 October 2025



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