Tashkent ( WNAM MONITORING ): President of Uzbekistan Shavkat Mirziyoyev held an extended meeting dedicated to the key privatization objectives of state assets for the current year.
In recent years, active measures have been taken as part of a large-scale privatization program to ensure the efficient use of real estate and support entrepreneurship. Between 2021 and 2024, state assets worth 47 trillion soums were sold—30 times more than in the previous decade. This has led to a twofold reduction in the number of state-owned enterprises and a 13% decrease in government participation in the economy. The efficiency of privatized assets has also significantly improved.
While privatization previously focused mainly on small assets, in recent years, large enterprises have also been put up for sale. These include Ferganaazot, the Kungrad Soda Plant, Foton, Temiryul-Container, as well as the International and Lotte hotels. In November last year, Uzbekistan held its first-ever “People’s IPO”, through which more than 3 million shares of the Commodity and Raw Materials Exchange were sold to the public, making 11,000 citizens shareholders.
However, challenges remain in this sector. There are still untapped opportunities in the regions and industries, while the process of preparing assets for auctions is slow. For instance, a 1,500-hectare plot was put up for sale without proper infrastructure analysis and has remained unsold for over a year. Additionally, the approval of 4,000 land plots is delayed, and 243 assets that were designated for privatization last year have yet to be transferred to the Agency for State Asset Management by ministries and local authorities.
Large state-owned companies have also shown weak engagement in the process. To date, 22 enterprises, including Uzavtosanoat, Uzkimyosanoat, Uzmetkombinat, and Uzbekneftegaz, have yet to transition to international financial reporting standards. Moreover, companies such as Uzbekiston Pochtasi, Uzbekistan Airports, and Uzbekiston Temir Yullari lack credit ratings.
At the meeting, these issues were discussed critically, and specific tasks were set to accelerate the privatization process. In 2025, state assets worth 30 trillion soums are expected to be sold, generating at least 10 trillion soums in budget revenues. The plan also includes privatizing state shares in 116 enterprises and 581 real estate properties, as well as auctioning off 6,100 hectares of land with projected sales of 6 trillion soums. Additionally, at least 300 mineral deposits and land plots will be offered to investors, which should generate 500 billion soums in budget revenues.
These measures are expected to attract additional investment into the economy, create new business opportunities, and generate thousands of jobs.
To achieve these goals, entrepreneurs will be granted certain privileges. For example, tenants who have used state-owned properties for at least five years will be given the opportunity to purchase them. There are currently 632 such properties, and their sale to tenants is expected to generate 2 trillion soums. Additionally, 131 unsold assets of Uzpakhtasanoat will be re-auctioned with an option to reduce the starting price by up to 50% and offer installment payments over three years.
The ownership policy for markets and trading complexes will also change. Currently, local authorities own at least 51% of the 537 markets across the country. It has been decided to eliminate the mandatory participation of local governments in their management, creating new opportunities for entrepreneurs.
Additional measures will also be taken regarding land sales. Small, long-unsold plots and adjacent plots will be consolidated and re-auctioned.
Tashkent was highlighted as a positive example of effective state asset utilization. The capital has conducted an inventory of municipal property and created an electronic database. As a result, 102 inefficient buildings and 97 hectares of unused land have already been put up for auction.
In 2023, the privatization of 118 hectares of land under buildings and structures generated 60 billion soums in budget revenues—five times more than in 2022. This approach is set to be implemented in regional centers this year and in districts next year.
Particular attention is being paid to bringing state-owned enterprises onto international markets. This practice has already proven effective and has been recognized by international organizations. As a result, officials have been instructed to continue this process with expert involvement. In 2025, shares of 28 enterprises are planned to be listed on international markets, followed by an additional 10 major companies in 2026.
The Prime Minister has been tasked with approving a corresponding “roadmap” and ensuring its monthly oversight. Ministers, industry leaders, and regional governors presented reports on the work carried out and the solutions proposed to address the discussed challenges.
