With fresh reforms in its investment regulations, Uzbekistan seeks to fortify investor protections and encourage sustainable investment growth

In an influential panel session entitled “Private Investment: Discussion of the New Law on Investment,” experts gathered to analyze Uzbekistan’s innovative Law on Investment, aiming to boost the regulatory framework and attract more private investment into the nation. The event, moderated by Tarik Sahovic from the IFC, featured a variety of experienced speakers including Jason Chung, Thomas Emanuel Dans, Anton Konnov, Mikhail Turetsky, and Golib Holjigitov.

World Bank reports have consistently highlighted the necessity of a transparent, predictable, and open regulatory environment for attracting and maintaining foreign investment. In alignment with its ambitious “Uzbekistan 2030” strategy, the nation is committed to establishing favourable conditions for investors by the end of this decade.

The newly introduced provisions within the Investment Law are designed to enhance the regulatory framework significantly. These provisions aim to provide clarity and predictability which are essential to attract private investments. One of the major focal points of the discussion was the support and protection measures for investors, which are pivotal in influencing investment decisions, ensuring the success of project implementations, and the sustainability of reinvestment.

During the session, Thomas Emanuel Dans stressed the importance of protecting investor rights within the new law. He pointed out that addressing the legal complexities and safeguarding investments were paramount. Dans particularly noted expropriation as a potential worst-case scenario for investors, advocating for streamlined processes that facilitate smooth capital flow.

“For thirty years, I have been investing directly in venture capital across various countries, including Uzbekistan,” stated Dans. “Our primary goal as investors is to secure our investments and ensure a robust strategy to protect them. It’s crucial to avoid legal pitfalls that can lead to financial losses and hinder our operations.”

Mikhail Turetsky, another esteemed speaker, provided an in-depth analysis of specific provisions, such as Article 63 of the law. This article requires investors to exhaust domestic remedies before seeking international arbitration, which Turetsky pointed out could be time-consuming and potentially damaging to investor confidence. However, he also highlighted a significant amendment—a 180-day freeze period, which assures investors that if disputes are not resolved within this timeframe, they have the right to proceed with international arbitration. This change is expected to be warmly welcomed by foreign investors, as it provides an added layer of security and predictability.

The panel concluded with a detailed discussion on measures to support and protect investors, emphasizing the critical role these factors play in guiding investment choices, facilitating project implementation, and promoting reinvestment within Uzbekistan