Monthly Meeting on April 12, 2019

Atabek Nazirov, director of the Capital Market Development Agency (CMDA) of the Republic of Uzbekistan, spoke at April monthly meeting of the American Chamber of Commerce in Uzbekistan (AmCham) on April 12. Fifty representatives from the AmCham membership were present at the event, which was held at the Wyndham Tashkent Hotel.
The CMDA was created by the Presidential Degree #4127 . As an authorized capital market regular, the agency aims to develop the capital markets in Uzbekistan and exercises its authority independently of all state bodies and organizations.
“We have an ambitious goal to develop the capital market strategy in our country where capital markets are currently non-existent,” said Nazirov. “In other large markets, the size of the capital market exceeds the size of the banking sector several times over.”
The overall goals of the agency vary from inventarization of the existing laws and building institutional capacity, to contributing to raising the financial education of the population. The newly-created agency is currently working on a number of issues, e.g. studying available financial instruments, be it corporate, municipal or Islamic finance; facilitating the privatization process; gaining experience and building relations with the International Finance Institutions ( IFIs) and professional market players; and gaining an experience by visiting U.S. Securities and Exchange Commission ( SEC).
To achieve these goals, coordination of several government agencies will be required. For example, the current the tax regime does not stimulate companies to grow. On the contrary, businesses prefer to remain small and split, allowing for lower tax burden/obligations. Therefore, the agency is currently working on recommendations to introduce new forms of ownership, and a multi-partner working group consisting of experts from related ministries and agencies, IFIs, and other businesses will jointly work on the development of the Capital Market Development Strategy.