Measures to Improve the Efficiency of State-Owned Enterprises and Commercial Banks Adopted

A Presidential Resolution of the Republic of Uzbekistan, “On Measures to Improve the Efficiency of Enterprises with State Participation and Commercial Banks” (No. PR-74, dated February 25, 2026), has been adopted.

The Resolution provides for the following measures:

• Development of a corporate governance culture in state-owned enterprises and commercial banks, including the introduction of modern management practices and an increase in the proportion of non-executive directors on supervisory boards to 50 percent;
• Conducting an initial public offering (IPO) of up to 30 percent of the share capital of JSC “National Investment Fund of the Republic of Uzbekistan” (the Fund) on domestic and international stock exchanges by the end of 2026.

In addition, the Resolution stipulates that:

• Representatives of Franklin Templeton Asset Management LLC, acting as the Fund’s trust manager, will be appointed to the supervisory boards of relevant companies;
• Measures will be implemented to transfer certain state-owned shareholdings in «O‘zsuvta’minot» JSC, «O‘zbekinvest» JSC, «O‘zbekiston temir yo‘llari» JSC, «O‘zbektelekom» JSC, «Navoiyazot» JSC, «Xalq banki» JSCB, and «O‘zsanoatqurilishbank» JSCB to the Ministry of Economy and Finance and the Fund;

The adoption of normative legal acts permitting dividends accrued by companies in which the Fund holds a stake to be retained by those companies is prohibited.