Investor Protection: The New Investment Law, International Arbitration, and Domestic Court System

On June 11 of this year, a panel session on “Investor Protection: New Investment Law, International Arbitration and Domestic Court System” was held at the Tashkent International Investment Forum under the coordination of the Ministry of Investments and Foreign Trade, the press service of the Ministry reports.

At the event, it was noted that Uzbekistan has adopted a new investment law and is implementing comprehensive measures aimed at improving mechanisms for protecting the rights of international investors. This law also provides for effective protection of investors through international arbitration and the country’s judicial system.

In the session moderated by international law expert Diana Bayzakova, participants discussed the introduction of a new law by the Uzbek government and the systems it plans to establish to protect investors’ interests through this legislation. The role of the Tashkent International Arbitration Centre and Uzbekistan’s domestic judicial system in safeguarding investors was also highlighted.

Speakers at the event:

– David Gottlieb, Partner at Cleary Gottlieb Steen & Hamilton

– Lucy M. Winnington-Ingram, Partner at ReedSmith

– Tarik Sahovich, Head of the Advisory Program for Turkey and Central Asia, IFC

– Kazumasa Mukae, Head of Coca-Cola Uzbekistan

– William Thompson, Head of the Eurasia Division at the OECD

Kazumasa Mukae explained how beneficial the privatization of state assets could be using the example of Coca-Cola Uzbekistan:

“Coca-Cola has been operating in Uzbekistan for more than 30 years. However, in 2021, under the leadership of current President Shavkat Mirziyoyev, the first privatization was implemented. Since then, the business has developed significantly. Not only we, but also our partners, suppliers, and customers have achieved growth, and more jobs have been created.”

The head of Coca-Cola Uzbekistan emphasized that openness and transparency are among the key aspects for investors when considering investing in any country. In his opinion, there should be economic and scientific reasons behind any new government regulations.

During the session, the speakers highlighted the favorable conditions being created for investors in Uzbekistan and noted that the government is ready at any time to address investors’ problems and provide assistance.

Tarik Sahovich, a representative of the International Finance Corporation who has worked on more than 30 projects in over 20 countries, emphasized that the newly adopted law for investors fully complies with international standards.

“The new law is aimed at protecting both direct and indirect rights of investors. Additionally, this law allows for engaging in independent personal investment activities. In this case, there will be no need to sign any investment agreement. Foreign investors can freely utilize the opportunities established by law without signing a contract,” says Tarik Sakhovich.

Experts emphasized the importance of ensuring the independence of the judicial and legal system and being able to demonstrate this to foreign investors. It was noted that positive work in this direction is clearly visible in Uzbekistan.

Lucy Winnington-Ingram, a partner at ReedSmith, also commented on how the new law will enhance the country’s attractiveness to international investors:

“It is crucial to have a law concerning foreign investors, but it must be effective in practice and meet contemporary requirements. Long-term and predictable laws give investors confidence that they are protected”.

This panel session marked an important step towards further improving the investor protection system in Uzbekistan. The event provided detailed information on the development of effective mechanisms for safeguarding investors’ rights through systems established under the new investment law, including international arbitration and domestic judicial systems.

The participants reaffirmed that Uzbekistan’s ongoing reforms aim to create an open and reliable economic environment for investors.