New foreign investment law comes into effect in Uzbekistan
Uzbekistan will enforce a consolidated foreign investment law today to attract global investors and improve its reputation in the world economy and polity.
The law consolidates a number of previous legislations relating to foreign investments, investor rights and obligations and investment activity. It also encompasses social rights issues, such as freedom of foreign labour, freedom of movement and insurance rights for foreign investors. The New Tax Code was enforced beginning this year to provide a legal regulatory framework for transparency and prevent tax violation and excessive collection.
In a bid to portray itself as a nation capable of institutional reforms, the law comes as part of a package of legislation initiated under President Shavkat Mirziyoev, who succeeded authoritarian President Islam Karimov following his death in 2016.
Among a plethora of comprehensive socio-political reforms, the key geopolitical win has been the abolition of forced labour – including child labour – especially in cotton farming, which has won Tashkent popularity among western investors and officials. While the reforms are at an enforcement stage, their implementation and impact will become visible in the medium term.
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