Major Privatisation Push: Uzbekistan Targets over $2 Bn in Asset Sales

Uzbekistan plans to sell state assets worth UZS 30 trillion ($2.3 bn) in 2025, contributing at least UZS 10 trillion ($772.7 mln) to the national budget. President Shavkat Mirziyoyev outlined these targets during an extended meeting on March 27, focusing on privatisation priorities. The initiative aims to attract investment, boost economic efficiency, and create new business opportunities.

Privatisation Progress and Challenges

Between 2021 and 2024, Uzbekistan privatised state assets worth UZS 47 trillion ($3.6 bn)—30 times more than the previous decade. As a result, the number of state-owned enterprises halved, and the government’s share in the economy dropped by 13%. Major assets, including Ferganaazot, Kungrad Soda Plant, and several hotels, have already been sold.

Despite progress, challenges remain. Delays in auctioning state assets persist, with some land plots unsold for over a year. In 2023, ministries and local authorities failed to transfer 243 assets designated for sale to the State Asset Management Agency. Additionally, 22 major state-owned enterprises, including Uzavtosanoat and Uzbekneftegaz, have yet to adopt international financial reporting standards.

2025 Privatisation Targets

The government has set ambitious privatisation goals for 2025:

• Sell state assets worth UZS 30 trillion ($2.3 bn), generating UZS 10 trillion ($772.7 mln) in budget revenue.
• Offer government shares in 116 enterprises and 581 real estate properties.
• Auction 6,100 hectares of land, aiming for UZS 6 trillion ($463.6 mln) in sales.
• Present at least 300 resource deposits and land plots to investors, targeting UZS 500 bn ($38.6 mln) in proceeds.

To support these targets, businesses leasing state-owned properties for at least five years will have the opportunity to purchase them. The government also plans to reduce starting prices for unsold assets and offer flexible payment terms. Additionally, local authorities will no longer be required to hold majority stakes in 537 markets and trading complexes, increasing private sector involvement.

Expanding Market Access and Transparency

Uzbekistan is also pushing state-owned enterprises towards international markets. This year, shares of 28 companies will be listed internationally, with 10 more expected to follow in 2026. The government is implementing a roadmap to ensure transparency and accountability in the privatisation process.

Regional administrations are expected to adopt best practices from Tashkent, where municipal assets have been inventoried and auctioned efficiently. In 2023, the capital raised UZS 60 bn from privatising 118 hectares of land, five times more than in 2022.

The government remains committed to accelerating privatisation, attracting investment, and fostering economic growth. Progress will be monitored monthly to ensure effective implementation of these measures.