Turonbank and "Uzexpocentre" may be privatized as part of a new privatization drive
Turonbank and "Uzexpocentre" may pass into private hands under a new privatization wave
In Uzbekistan, the state property privatization program will be significantly expanded. Controlling stakes in Turonbank, the "Uzexpocentre" exhibition complex, and the International Cooperation Center will be put up for auction. In addition, there are plans to fully transfer large industrial and financial enterprises into private ownership.
The decision to transfer assets to investors is secured by a presidential decree dated August 28. Under the document, state shares in 84 business entities, 1,242 real estate properties, and around 8,000 hectares of land will be put up for auction. The total value of the offered assets is estimated at 100 trillion soums.
In particular, the state intends to sell 98.9% of shares in Turonbank, 91.83% in "Uzexpocentre", and 79.27% in the International Cooperation Center. The concepts and terms of sale for the latter two properties are subject to separate approval by the Presidential Administration.
Subject to 100% privatization are the Xalq Sug’urta insurance company, the Tashkent Passenger Carriage Construction and Repair Plant, the Andijan Mechanical Plant, as well as a number of joint and technological companies. The program will affect road sector enterprises, regional markets, and shopping complexes. Another 85 enterprises with state participation face liquidation or reorganization.
To stimulate demand, the authorities are lowering the financial barrier for buyers: the minimum down payment has been reduced from 35% to 15%, and interest will no longer be charged on the remaining amount. With full payment for the property within six months, the investor will receive a 25% discount, and if a large initial payment is made, interest-free installments for up to 5–7 years will be allowed.
The next wave of sales will continue the course towards a large-scale reduction of the state's presence in the economy. For comparison: in 2020–2025, the volume of privatization reached 77.6 trillion soums, whereas in the preceding decade this figure was only 1.1 trillion soums. Over 2021–2025, the number of enterprises with state participation has already decreased by 61%. To date, around 1.5 million properties have been put up for auction through the E-auksion electronic platform, over 1.2 million of which have been successfully sold.
By 2030, the authorities of Uzbekistan expect to bring the share of the non-state sector in the economy to 85%, and to reduce the number of companies with state participation by almost six times.
, that the state share in the Gold Moon Tashkent company, which owns the Fonon jewelry factory, has been put up for sale in Uzbekistan. The initial value of the asset amounted to 316.7 billion soums.