Construction Market of Uzbekistan: Growth and Structure | An interview with Aziz Akhtamov, Partner at REVERA Uzbekistan

20.05.2026

Entering the Construction Market of the Republic of Uzbekistan

Interview conducted by Sergey Suschenya, Head of the Industry Projects Sub-practice, REVERA.

 

— Aziz, let us begin with a general overview. What is the current state of the construction market in Uzbekistan, and what should those who are just considering this region be aware of?

 

— Uzbekistan has more than 30,000 construction enterprises. Statistical data shows steady growth; however, the market structure is heterogeneous: a significant share is occupied by small companies, and the informal sector remains noticeably present. The market is growing, but organisationally fragmented.

In terms of ownership structures, the limited liability company (LLC) remains the primary corporate form. As of early 2026, of the more than 400,000 commercial entities registered in the country, over 320,000 are registered in this form — an important reference point for foreign players considering full-scale operational activity.

Among foreign companies present in the market, approximately 1,500 organisations with foreign capital were active as of early 2026. China, Russia, and Turkey lead by number of companies represented. European companies are present in smaller numbers but hold established niches — primarily in design, equipment supply, and technology.

 

— How is the sectoral structure organised? Are there segments with clearly accelerated growth?

 

— The market encompasses several major segments: civil construction, industrial construction, transport and engineering infrastructure, and technically complex specialist facilities. Warehousing and logistics, as well as industrial construction, are showing notably active development. Major infrastructure projects are being implemented in parallel — in particular, the construction of nuclear power plants has already commenced.

For the full year 2025, total construction output grew by approximately 14% — a high figure even by the standards of a fast-growing economy. This is what explains the sustained interest of foreign companies in the Uzbek market.

The Belt and Road Initiative and Export Financing

 

— Uzbekistan participates in the Belt and Road Initiative. How does this affect the construction sector and the economy more broadly?

— The Initiative is primarily of infrastructural and industrial significance: transport corridors, logistics, industrial zones, energy, and manufacturing. According to World Bank assessments, Uzbekistan is considered one of the key beneficiaries of enhanced transport connectivity under this initiative.

At the 2025 summit, the President of Uzbekistan proposed developing a long-term agenda within the framework of the Initiative — an industrial infrastructure corridor "Central Asia — China". This entails further development of roads, logistics hubs, and pipelines connecting Central Asian countries with China, as well as transit links towards Europe and the Middle East.

 

— One of the questions from our participants concerns export financing. Is this model practised in Uzbekistan, and how applicable is it as a tool for entering the construction market?

 

— There are quite a few examples. China actively employs this model, financing its own companies entering the market — predominantly within the framework of intergovernmental projects.

Speaking of export financing more broadly, it is a viable entry tool, provided the project can be structured as an export transaction with sufficient national content. At the same time, it is important to treat it not as an alternative to obtaining permits and licences, but as a complementary element of the overall structure: the financing party's control may confer competitive advantages, yet the Uzbek regulator's requirements in respect of licensing and permits remain fully applicable.

Permits and Licensing of Construction Activities

 

— How is the permits system structured for contracting and design companies?

 

— Access to construction and design activities is built on a multi-tier regulatory model. Licensing applies to specific types of activity — in particular, the construction of particularly hazardous facilities (bridges, tunnels, hazardous industrial installations) and the preparation of urban planning documentation. In parallel, there are personnel admission requirements: specialists employed by contracting organisations must undergo attestation and certification.

Accordingly, market entry almost always entails satisfying several conditions simultaneously: establishing a legal entity or other form of presence; obtaining the relevant licence or registering under a notification procedure; and securing project approvals and permitting documentation for specific facilities.

The government's policy in recent years has been directed at strengthening oversight of design organisations and of architectural and technical supervision. In particular, for projects involving state participation or state-owned enterprises holding a 50% or greater stake, the establishment of a dedicated employer's technical supervision service is mandatory. Specialists within that service are subject to qualification requirements — they undergo certification by the Ministry of Construction, and the certificate is issued for a term of three years.

 

— So licensing does not apply to all construction activities, only to specific ones? What about technical supervision — is that also subject to licensing?

 

— Precisely. General construction works as such do not require a licence. Licensing applies to specialist facilities of heightened hazard, as well as to certain types of design activity.

As regards technical supervision — this activity is not directly licensed; however, it is regulated through mandatory admission and certification of specialists. In substance, competence control here is exercised through personnel qualifications rather than through a corporate licence.

With respect to foreign specialists: qualifications and documents issued in other states are taken into consideration, but there is no automatic recognition — specialists are in any case required to undergo training and obtain a local certificate.

 

— Is a track record required to obtain a licence? Can a newly established subsidiary — which formally has no portfolio of its own — obtain one?

 

— Where general construction works are concerned, no licence is required. For specialist facilities, a category-based system applies. First-category licences may not require a demonstrated track record. For the second, third, and fourth categories, requirements progressively increase: obtaining a licence at each successive level presupposes a confirmed track record under the preceding category.

— To take a specific example: the construction of a ten-storey residential building — is a special licence required?

— If the construction does not involve industrial rope-access work or other specialist technologies, no licence is required for the construction itself. Design is a separate matter: it is subject to mandatory licensing.
Competence control in residential construction operates differently: mandatory state technical supervision is provided for all projects. In the course of such supervision, primary documentation and the qualifications of specialists are verified: site managers and foremen must hold valid certificates.

— Are foreign licences and permits automatically recognised in Uzbekistan?

— Automatic recognition is not provided for. The logic of urban planning legislation is anchored to the local legal regime. Foreign licences and permits may carry commercial weight in tender procedures and during initial market entry, but they do not in themselves substitute for local authorisations.

Stages of Market Entry

 

— What does the sequence of steps look like when a foreign construction company enters the Uzbek market?

 

— Six principal stages can be identified.

• First — determining the form of presence: a representative office, branch, permanent establishment, or subsidiary. For full-scale operational activity, a subsidiary in the form of an LLC is generally the most suitable option.
• Second — state registration, accreditation, and tax registration. These are standard formalities.
• Third — obtaining a licence or registering under a notification procedure. The specific route depends on the types of activity envisaged: if the company is entering the market in connection with a specific project, it is necessary to assess whether that project requires licensing.
• Fourth — forming the personnel framework. This involves recruiting local specialists or processing the documentation for foreign employees — including undergoing training, obtaining certificates, and securing work permits.
• Fifth — the design phase with respect to the specific facility.
• Sixth — obtaining the permitting documentation for the construction itself.

— What are realistic timelines for obtaining a licence? What lead time should be factored into planning?

 

— Administrative regulations declare a 15-day review period. Actual timelines are, as a rule, considerably longer — and this is attributable not to any arbitrariness in the process, but to objective factors: the need to ensure the requisite personnel and material and technical resources are in place, to complete certification, and to prepare the documentation.

If the company has all the necessary resources and is able to promptly satisfy all requirements, a realistic optimistic scenario is three months from market entry to licence issuance. For most companies, this lead time ranges from three to six months.

 

— In what language is the examination for specialist certification conducted? Is this a barrier for foreign personnel?

 

— Officially, all documentation and interaction is conducted in the state language — Uzbek. In practice, however, a transition to Russian as a lingua franca is possible in the majority of cases. This does not, as a rule, constitute a significant barrier.

Form of Presence and Partnership Models

 

— What form of presence would you recommend for construction activity — a branch, representative office, permanent establishment, or subsidiary?

 

— For full-scale operational activity, I would recommend registering a subsidiary in the form of an LLC. This form is convenient from a corporate standpoint, straightforward to administer, and opens the possibility of obtaining a general licence for the engagement of foreign personnel.

 

— Is it possible to operate via subcontract through a locally licensed partner? For instance, where a foreign company acts as general contractor but does not hold a licence for certain types of work?

 

— There is no direct prohibition on such a structure. A foreign general contractor is entitled to engage subcontractors holding the necessary licences for the relevant types of work. The one substantive condition is the requirements imposed by the client: if the client has prohibited subcontracting or has stipulated that the general contractor must itself hold the licence, such a structure will not be available. In the absence of such restrictions, the arrangement is entirely workable.

Registration, Bank Accounts, and Common Difficulties

 

— Do difficulties arise in opening a bank account — for a subsidiary or for a foreign company operating through a permanent establishment?

 

— Where a local resident is concerned — a subsidiary or a permanent establishment that has completed tax registration and complied with all formalities — opening a bank account does not, as a rule, present difficulties.

 

— What difficulties are most typical for foreign companies entering the market?

 

— Several key areas can be identified.

• First — preparation of the parent company's documents: apostilisation, translation, and localisation of the package to meet the requirements of the competent authorities.
• Second — recruitment of local specialists or processing foreign personnel to satisfy qualification requirements and complete certification.
• Third — adapting design documentation prepared abroad to local regulatory requirements.
• Fourth — employment and immigration processing of foreign employees.
• Fifth — obtaining licences and permits where the chosen types of activity require them.

 

— On the subject of specialist certification: a question frequently arises as to whether Belarusian conformity attestations or similar documents from other countries are accepted.

 

— For employment purposes in an organisation where a higher education degree is required of the employee, Uzbekistan provides a nostrification procedure — the recognition of educational qualifications.

Where admission to the performance of construction works is concerned, the certification logic described above applies: a foreign document confirming a qualification is taken into account, but the specialist is in any case required to undergo training and obtain a local certificate. Examinations are conducted; the procedure is standardised — there are no material differences for foreign specialists.

The Construction Process and Digitalisation

 

— What is the general procedure for construction in Uzbekistan — from obtaining initial design data to commissioning a facility?

 

— In summary, the sequence is as follows: selection of a corporate structure and market entry; obtaining initial design data and formalising the land plot; design; obtaining approvals and expert review; obtaining permitting documentation; construction and installation works; technical and authorial supervision; commissioning of the facility.

 

— How is digitalisation of the construction sector progressing?

 

— Digitalisation is proceeding steadily. Permitting and approval procedures are increasingly transitioning to electronic format via public services centres. Some permits and authorisations are issued exclusively in digital form.

Since 2020, Uzbekistan has been implementing and developing the "Transparent Construction" system — a comprehensive digitalisation of oversight covering the entire project lifecycle: from electronic tendering to funding monitoring. It is of particular significance for public-sector projects.

Regulatory Framework and Contractual Models

 

— Which regulatory instruments should be studied first by those planning to enter the Uzbek construction market?

— The principal instruments are the Urban Planning Code, the Land Code, and the Civil Code. With specific reference to the construction sector, I would also recommend consulting subordinate legislation — in particular, Presidential Decree No. 151, which governs specialist qualification requirements and certification procedures.

Uzbekistan's regulatory framework is published in the national legal database Lex.uz — the majority of instruments are available in Russian, which significantly facilitates initial review.

 

— Are there specific requirements for construction contracts? Or are the parties free to agree the terms?

 

— There are no rigidly prescribed requirements as to the form and content of contracts. In practice, the terms are shaped by the clients themselves — depending on the project, the facility, and the source of financing.

International contracting models — EPC, EPCM, and their analogues — are familiar to the market.

Where projects involve international financial institutions, FIDIC forms of contract are applied fairly widely. On private-sector projects, contractual freedom is virtually unrestricted.

Investment Incentives

 

— In a number of post-Soviet jurisdictions, there is a practice of granting individual preferences for specific projects — through an investment agreement with the state or a special subordinate instrument. How does this work in Uzbekistan?
 

— Since 2020, amendments to the Tax Code have prohibited the granting of individual tax concessions. Where concessions are provided, they are sectoral or project-based in nature and are available to all parties satisfying the established criteria.

— Aziz, thank you for such a detailed conversation. The final word is yours.

 

— The construction market of Uzbekistan is a market of growth, industrialisation, and infrastructure expansion. Entering it requires a carefully considered local legal architecture.

At REVERA Uzbekistan, we are ready to support such projects — from the first steps through to full-scale business operations.

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For enquiries regarding entry into the Uzbek construction market, as well as the establishment and support of business operations in Uzbekistan, we recommend contacting REVERA Uzbekistan at the initial planning stage — this will allow for advance assessment of regulatory requirements, the structuring of a correct form of presence, and the mitigation of risks.