Privatization

Privatization is a key process aimed at transforming state and municipal ownership into private assets. The primary objective of this process is to enhance the efficiency of management and utilization of these assets, as well as to attract significant investments to stimulate sustainable economic growth.
Transferring ownership to the private sector creates conditions for the implementation of innovations, improves the quality of services provided, and maximizes the potential of resources. This, in turn, contributes to the formation of a more competitive economy and the improvement of societal welfare as a whole.


The Government of Uzbekistan is actively enhancing its economic landscape by prioritizing foreign investor involvement in privatization efforts. This initiative seeks to reduce state ownership in key sectors, elevate private enterprise participation, and attract foreign direct investment. Recent legislative changes now allow for the acquisition of state assets at zero redemption value, provided significant investment commitments are made. A key aspect of this strategy is the planned online auction of 247 state-owned enterprises, designed to boost transparency and efficiency.


Additionally, Uzbekistan is preparing to facilitate IPOs and SPOs for 12 major enterprises, with four slated for international markets, further extending its global investment appeal. Key milestones in the privatization process include the sale of the Coca-Cola bottling plant to Turkey's Coca-Cola İçecek Group and the acquisition of a 75% stake in Ipoteka Bank by OTP Bank. The government also plans to reduce its share in the economy by 75% by 2025, with ambitious goals to modernize and privatize key sectors like banking and mining, positioning Uzbekistan as a competitive global investment destination.

Key highlights of the new stage in the privatization program include:

  • The privatization of approximately 300 companies with state shares.

  • The sale of over 1,600 real estate properties.

  • The sale of shareholdings in 40 companies through IPOs, following the principle of “one share - one lot”.

  • The full sale of 1,001 state shareholdings at public auctions.

State Assets Management Agency


The privatization process of SoEs in Uzbekistan consists of two stages:

1. SoE Institutional Transformation

This stage envisages the transformation of SoEs into LLCs or JSCs, transitioning towards International Financial Reporting Standards (IFRS), obtaining international credit ratings, and developing an appropriate privatization strategy that covers financial projections and operational reorganizations, etc.

2. SoE Sale

Upon transformation, the sale of SoE assets is carried out through one of the following methods:

  • An auction or competition managed and organized by State Assets Management Agency or jointly with a specialized private organization.

  • An Initial Public Offering (IPO) or Secondary Public Offering (SPO) placed on the stock exchange.

Auction and Competition Procedures

State Assets Management Agency, as the seller of state assets, determines the type of privatization procedure (i.e., auction or competition) based on the nature of the asset to be privatized. For example, while state-owned shares in JSCs can only be sold through competition with specific selection criteria for bidders, shares in LLCs' charter capital and real estate objects can be sold through either auction or competition. More detailed information on the types of bids and requirements for participants is published on the website of the State Assets Management Agency., the E-AUKSION platform, the Republican Stock Exchange Toshkent’s website, the newspaper "Birja," periodicals of the Council of Ministers of the Republic of Karakalpakstan, regional authorities (khokimiyats), and Tashkent.

Both auctions and competitions may be held online through the E-AUKSION platform. A sale and purchase agreement is then conducted with the winner of the auction or competition.

Public Offering

The sale of state shares through IPO/SPO is a relatively recent development as part of the privatization program. The public offering of state shares can be conducted via the following:

  • The local Republican Stock Exchange (RSE) Toshkent: The local listing is conducted in accordance with national legislation. The roadmap for each company's IPO/SPO process must be approved by the Cabinet of Ministers.

  • International foreign exchanges: This is regulated according to foreign stock exchange rules and applicable foreign laws. From January 1st, 2023, domestic issuers are able to offer their shares in foreign stock markets only after a preliminary listing on the national stock exchange.