Uzbekistan plans to privatize five state-owned banks by 2030

At present, the state owns nine banks: National Bank of Uzbekistan, Agrobank, Uzsanoatqurilishbank, Asakabank, People’s Bank of Uzbekistan, Business Development Bank, Mikrokreditbank, Aloqabank, and Turonbank.

According to the draft strategy, the number of state-owned banks will be reduced to eight in 2026 and further to four by 2030, implying that at least one bank will be privatized each year. In the previous version of the strategy, approved in September 2023, the government planned to retain ownership of three to four banks.

The updated document also introduces a new target to lower the share of state-owned banks in total banking assets from 65 percent in 2026 to 55 percent by 2030. As of December 1 this year, banks with state participation accounted for 64.53 percent of total banking system assets, equivalent to UZS 576.2 trillion.

Notably, the revised strategy no longer includes a provision to attract at least four large and reputable foreign banks to Uzbekistan’s banking market.

Economist Otabek Bakirov suggested that a smaller bank could be privatized next year, most likely Aloqabank or Turonbank. Given the planned reduction in the state’s share of banking assets, he does not expect the sale of Uzsanoatqurilishbank or Asakabank before 2028.

Earlier, it was reported that the European Bank for Reconstruction and Development would acquire a 15 percent stake in Asakabank as part of preparations for its privatization and will join the bank’s shareholder structure in 2026.

According to the financial strategy of the Ministry of Economy and Finance, the final stage of privatization of Uzsanoatqurilishbank is expected in 2025–2026, while Asakabank, Aloqabank, and Turonbank are slated for privatization in 2026–2027.

At the same time, the sale of the National Bank of Uzbekistan, Agrobank, Mikrokreditbank, People’s Bank of Uzbekistan, and the Business Development Bank is not envisaged for the 2026–2028 period.

In September, the president approved the transfer of a 30 percent stake in Uzsanoatqurilishbank to the National Investment Fund of Uzbekistan. At the same time, the fund excluded its 40 percent stake in Mikrokreditbank and a 25 percent stake in the Business Development Bank from its portfolio.

Analysts at Fitch Ratings believe that the Uzbek government has revised its approach to privatizing state-owned banks, placing priority on the sale of Uzsanoatqurilishbank.