Uzbekistan is stepping up efforts to diversify its debt issuance strategy , building on recent successes in the sustainable bond market and exploring new financing opportunities in Islamic finance.
The country’s dollar-denominated bonds have shown impressive returns this year, climbing nearly 14%, which significantly outpaces the average 10% return seen across emerging and frontier markets tracked by Bloomberg. This performance comes after years of market isolation prior to 2016, followed by a period of economic reforms under President Shavkat Mirziyoyev, including the introduction of a free-floating currency regime.
In recent years, Uzbekistan has made significant strides in sustainable finance. The nation successfully issued a €600 mln sustainable bond in May 2024, followed by an additional €500 mln issuance later this year. The country also introduced a soum-denominated green bond in 2023.
Jasur Karshibaev, adviser to the Minister of Economy and Finance, highlighted the government’s commitment to expanding sustainable financing.
«We are preparing regular ESG reports and plan to further expand this type of financing,» he said in a Tashkent interview.
The government is also actively exploring Islamic finance opportunities, with legislative reforms already underway to establish a framework for this sector. These efforts complement broader financial market reforms aimed at attracting more foreign investors into the local bond market.
Uzbekistan’s economic growth has been robust, with GDP expanding by 7.2% in the first half of 2025. The government has set an ambitious target to double its economy to $200 billion by 2030, aiming to narrow the gap with regional leader Kazakhstan.
Current debt structure shows approximately 65% denominated in US dollars, with over 10% in local currency soums, and the remainder in other currencies including euros, yen, and yuan. The government prioritizes developing the domestic market as the most reliable funding source while continuing to diversify its investor base.
These strategic moves position Uzbekistan as an increasingly attractive destination for international investors seeking exposure to emerging markets with strong growth potential and a commitment to sustainable development.
