City of London expertise moves closer to Tashkent’s investment reforms

Uzbekistan is forging direct ties between its new international financial centre and the City of London as it introduces a special legal regime inspired by English common-law principles to entice foreign investment. The United Kingdom may provide its investment expertise and English common law, according to Javlon Vakhabov, Director of the International Institute for Central Asia.

Speaking at the inaugural Central Asia–UK Think Tank Forum in Tashkent, Vakhabov expressed Uzbekistan's desire for the Tashkent International Financial Centre to collaborate closely with British counterparts, particularly the City of London.

Established by presidential decree in March, the Tashkent International Financial Centre operates under a separate legal framework using English common law principles for commercial activities within the centre, alongside an independent international commercial court and arbitration mechanisms. These provisions, which do not replace Uzbekistan's broader civil-law framework, offer companies access to widely-used international business rules and dispute-resolution mechanisms.

Following the centre's launch on 10 September, Uzbekistan further advanced its efforts by approving organizational measures on the same day. Vakhabov suggested that British knowledge and expertise could enhance cooperation with Uzbekistan and the wider Central Asian region. In May, the National Investment Fund of Uzbekistan, overseen by Franklin Templeton, became the first Uzbek fund to list internationally in London.

Additional state-linked companies are being prepared for potential international listings as Uzbekistan aims to draw private capital while implementing stronger financial reporting and corporate-governance standards.

During the inaugural CA5+UK foreign ministers' meeting in February, political dialogue evolved into a more structured phase focused on turning investment interest into tangible projects. Rebecca Nadin, Director of Global Risks and Resilience at ODI Global, highlighted potential areas of cooperation in critical minerals, agriculture, education, technology, digitalization, and artificial intelligence.

Critical minerals, in particular, were cited as an example where Uzbekistan and other resource-rich Central Asian nations seek to move beyond raw material exports and retain more value through processing and manufacturing.

Potential areas of cooperation include research, processing, and financing. British involvement could encompass partnerships with British universities and research institutions, training programs for geologists, engineers, and environmental scientists, material recovery from mining waste, and processing arrangements between countries.

Financing models could involve UK-backed funding for overseas critical-mineral projects with long-term supply agreements to British manufacturers. However, political agreements alone may not translate into investment, as Annette Bohr, Associate Fellow at Chatham House’s Russia and Eurasia Programme, pointed out.