National Welfare Fund may be established in Uzbekistan

National Welfare Fund may appear in Uzbekistan, follows from the draft presidential decree, developed by CMDA.

The presidential decree approves the roadmap for the implementation of the development Strategy of the capital market in Uzbekistan in 2020-2025.  

The Fund provides for “the accumulation of financial resources for future generations and ensuring the sustainability of fiscal policy, as well as achieving stable macroeconomic indicators”. According to the roadmap, a document on its creation should be adopted at the end of 2021. 

It was also proposed to create a National Investment Company, the main tasks of which will be investment advisory and investment intermediary services. Investment management, as well as their mobilization, provision of underwriting services, facilitation of the privatization and placement of international bonds and other important aspects that contribute to the development of the capital market are also among the main tasks.

The draft decree notes that the main goal of the strategy is to bring the total volume of free float securities to 10% of GDP.

The strategy aims to remove barriers to the purchase by residents and non-residents of all types of securities, including securities of foreign issuers, reform the pension system and introduce accounting procedures in accordance with International Financial Reporting Standards.

Also, independence of the capital market regulator, improvement of the system of financing, training, retraining and advanced training of its employees should be ensured.