Uzbekistan Plans Major Reform of Foreign Investor Protection

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan plans to modernize its system for resolving disputes with foreign investors and introduce new legal mechanisms to strengthen the country’s investment attractiveness, Deputy Prime Minister Jamshid Khodjaev said on May 5 at the 59th Annual Meeting of the Board of Governors of the Asian Development Bank in Samarkand.

According to Khodjaev, the government has prepared a draft law introducing a modern framework for alternative dispute resolution between the state and foreign investors. The document prioritizes pre-trial settlement through negotiations before cases are referred to international arbitration, introduces standard agreements, and establishes shortened response timelines. It also proposes centralizing state representation through a single contact center.

He said the new system would eliminate institutional fragmentation and ensure a unified state position in investment disputes. The draft law also introduces qualification requirements for international legal advisers and launches a long-term program for training national specialists in leading global legal centers.

The Deputy Prime Minister also announced amendments to the Civil Code introducing call and put options, escrow accounts, and indemnity and warranty mechanisms used in international investment practice. These tools are intended to reduce risks, improve risk management, and ensure full compensation of losses.

He also proposed that the Asian Development Bank consider co-financing innovative startup projects.

Special attention is being given to the implementation of Responsible Business Conduct standards. A draft regulation aims to gradually align national businesses with international ESG standards and OECD principles.

Khodjaev said the document strengthens corporate responsibility in human rights, environmental protection, and labor relations, while increasing transparency in both public and private sectors. These measures are expected to improve Uzbekistan’s position in international rankings and boost investor confidence.

Uzbekistan has also signed a memorandum with the Organisation for Economic Co-operation and Development and formally applied to join the OECD Declaration on International Investment and Multinational Enterprises of 1976.

Khodjaev said cooperation with the OECD will help consolidate reforms in investment climate, anti-corruption, governance, privatization, green economy, and human capital development. He added that the OECD will provide technical assistance, strengthen public sector capacity, and offer access to analytical resources and international standard-setting processes.

Within an Asian Development Bank initiative, the Regional Alliance of Investment Councils of Central Asia and the Caucasus (RAIC-CAC) is being established. The planned memorandum envisions a regional platform for policy coordination and cross-border investment projects.

Khodjaev said the alliance would enhance the region’s visibility on the global investment map, strengthen competitiveness, and create conditions for large-scale projects with international financial institutions and investors. The memorandum is expected to be signed at the Fifth Tashkent International Investment Forum.