Uzbekistan is preparing a law “on alternative investment funds”. This was announced by President Shavkat Mirziyoyev at the plenary session of the Tashkent International Investment Forum on 10 June.
According to the head of state, the country is actively developing alternative financing instruments, first of all – venture capital.
“Last year, the valuation of two national startups – Uzum and TBC – exceeded $1 billion for the first time. We intend to significantly increase the number of such companies,” the President stressed.
In this regard, a draft of the relevant law has been prepared, which will make it possible to bring the volume of venture capital and other forms of alternative investments to one billion dollars within the next five years.
In parallel, structural changes will be introduced in the banking system, insurance, finance and capital market. In particular, the country plans to establish a Financial Stability Council, and specialised platforms aimed at developing financial technology and cybersecurity will operate under the Central Bank.
Three venture capital funds have already been set up to stimulate the industry, with a combined capital of $50 million.
According to a study of the venture capital market in Central Asia, conducted by RISE Research with the participation of KPMG, by the end of 2024, the total volume of venture capital investments in the region will reach approximately $95 million, an increase of 7 per cent compared to the previous year.
Uzbekistan showed one of the highest growth rates in the region – 2.7 times, from $6.3 million to $17.5 million. The number of venture deals in the country also increased to 38 per year (compared to 34 in 2023 and 24 in 2022). The average amount per investment more than doubled from $204,000 to $460,000.
In terms of the number of startups (over 400) and active investors (over 25), Uzbekistan ranks second in Central Asia, behind only Kazakhstan, which has about 1,000 registered startups and over 50 investors.