Protection of intellectual property rights (IPR)

Insufficient IPR protection remains a persistent challenge for foreign businesses in Uzbekistan. The government took important steps in 2018 to address longstanding issues pertaining to IP protection and enforcement. In particular, Uzbekistan’s accession to the Geneva Phonograms Convention and two WIPO Internet Treaties represented progress towards adequate copyright protection for foreign sound recordings. The country’s leadership has acknowledged that the practice of copying well-known international brands by local entrepreneurs discourages foreign investment. The government has also indicated its awareness of the importance of paying author royalties when copyrighted video materials are broadcast or streamed online in paid subscription services. In April 2022, President Mirziyoyev signed a decree “On additional measures for the further development of the field of intellectual property”, which approved the Strategy for the Development of the Field of Intellectual Property in the Republic of Uzbekistan for 2022–2026. 

The country has achieved significant progress since 2022: Uzbekistan joined the Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually Impaired, or Otherwise Print Disabled in 2022, and the International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations (Rome, 1961) in 2024. The Singapore Treaty on the Law of Trademarks (Singapore, March 27, 2006) and Geneva Act of the Hague Agreement Concerning the International Registration of Industrial Designs (Geneva, 1999) entered into force with respect to Uzbekistan on January 10, 2025. Uzbekistan enacted new Customs Code amendments in February 2024 that introduced ex officio authority to suspend and seize counterfeit imports and exports. Uzbekistan was removed from the Watch List in 2024 U.S. Trade Representative’s (USTR) Special 301 Report on Intellectual Property due to sustained progress on long-standing issues pertaining to IP protection and enforcement.

Inefficient Banking Sector

Nine banks fully or partially owned by the state account for more than 65% of the sector’s total assets and loans, 61% of capital and 50% of deposits. Privately-owned commercial banks are relatively small niche players. State-owned banks are virtually agents of the government in implementing government development strategy. All banks are closely monitored by the government, which imposes non-core functions on them, including tax withholding and financial oversight of their clients. In its May 2025 Banking Industry Country Risk Assessment (BICRA) Update S&P put very high-risk scores for Uzbekistan for economic resilience, credit risk in the economy and systemwide funding components, as well as extremely high risk for institutional framework, high risk for competitive dynamics and intermediate risk score for economic imbalances component. In recent years the government’s policies have demonstrated a notable transition from financial isolationism to greater transparency and integration into international financial markets. The government also announced privatization efforts to attract more investments from the non-public sector. 

Lack of Transparency

Following its 1991 independence, Uzbekistan for many years remained largely a closed country that preferred to rely on its own resources and on loans and investments from political allies. State owned enterprises (SOEs) have traditionally been the largest actors in the economy. Both factors contributed to the creation of a poorly functioning market economy without inherent transparency and clear-cut rules. After coming to power in 2016, President Mirziyoyev initiated large-scale reforms to open the country to foreign investments. These reforms are ongoing, and there have been instances when government representatives or SOEs fail to adhere to the terms of agreements or signed contracts. 

The government has introduced initiatives to bring transparency to the functioning of state bodies and SOEs, including: 

• Creating an anti-corruption agency in 2020.
• Prohibiting, from 2022, civil servants from opening and owning foreign bank accounts, and keeping cash or owning real estate and other property outside the territory of the country.
• Introducing protocols in 2022 to prevent conflicts of interest in the field of public procurement
• Establishing an obligation for the 24 largest state-owned enterprises (SOEs) and seven ministries to conduct procurement only through public tenders.
• Obtaining international credit ratings for the 23 largest SOEs to enable them to attract financing in domestic and foreign financial markets for their investment projects.
• Abolishing the power of local governments to allocate land and issuing a decree introducing an e-auction system for the sale or rent of non-agricultural land to private sector entities.
• Adopting a 2022 law to provide comprehensive legal regulation of the civil service, including the creation of an independent and competitive hiring process, and to create a legal basis for the prevention of corruption in public civil service.
• Adopting a 2023 law 3 to increase the efficiency of state property management and disclose information on state property to the public, except in cases prohibited by law. The first Consolidated report on the efficiency of operations of state enterprises and the use of state property was published in August 2023.
• Adopting a law  in June 2024 aimed at identifying and preventing conflicts of interest in government agencies and organizations.

State Involvement

SOEs dominate Uzbekistan’s economy and limit fair competition in some key industries, including but not limited to energy, telecommunications, automotive, aviation, chemical, mining, etc. State-owned banks, ministries, and agencies interfere in business operations and reduce their efficiency.

Judicial System and Trade Legislation

In general, the judicial system upholds the sanctity of contracts but, if a government-affiliated entity is involved, judgments tend to favor the local partner. U.S. firms should consult with a local attorney and develop relationships with Uzbek partners before entering the market. Also, authorities sometimes announce new regulations and laws affecting major sectors of the economy on short notice before going into effect, with little or no advance consultation with representatives of the impacted industries.