The Senate of the Oliy Majlis at its July 9 session decided to reject the constitutional law on the International Digital Technology Center under the 'Enterprise Uzbekistan' brand. The document has been sent back to the Legislative Chamber for revision.
Senator Dilbar Suvonova noted that the digital economy has become a global development driver, and Uzbekistan has significant potential in this area. However, according to her, the lack of a separate legislative base hinders attracting major international IT companies, developing an innovative ecosystem, and protecting intellectual property and investments.
The law defines the status of the International Digital Technology Center and the special legal regime on its territory. It also regulates the activities of the center's bodies and participants, investment activities, the 'regulatory sandbox', public services, labor relations, tax, customs and currency regimes, protection of personal data and intellectual property, and dispute resolution procedures.
Suvonova noted that the constitutional law status, special legal regime, elements of English and Welsh common law, investor guarantees, and legal foundations for innovation support are assessed positively. 'These measures will help attract foreign investment, create a favorable legal and financial environment for international digital investors, and expand the digital technology market,' the senator said.
At the same time, according to her, to ensure the law's effective operation and prevent ambiguous interpretation, some of its norms need clarification. In particular, it is proposed to harmonize the provisions on the special legal regime with the approaches used in revising the law 'On the Tashkent International Financial Center'.
Senators proposed clarifying the boundaries of the special legal regime, the specifics of applying administrative and criminal legislation, and expanding the powers of the board of governors and the center's administration regarding economic and regulatory measures.
Investor guarantees were discussed separately. Suvonova emphasized the need to strengthen them considering international standards, as well as clarifying exceptional cases where restrictions on assets may be applied. According to her, this will allow, along with protecting investor rights, to take into account international obligations on combating money laundering, sanctions regulation, and insolvency issues.
Senator Jamila Kholmurodova noted that the center's special legal regime is designed until 2100. According to her, this law is important for attracting leading global investors, including IT companies, and creating opportunities for young specialists in mathematics, programming, artificial intelligence, and digital technologies.
She stressed that today many talented specialists are leaving for the US, Europe, South Korea, and other developed countries. The adoption of the law, in her opinion, will help create an international ecosystem in Uzbekistan where large IT companies, programmers, architects, and technology experts can work.
Senator Qobiljon Nazarov noted that legal protection and stability remain key factors for foreign capital and large transnational companies. According to him, introducing English law principles in the center's territory will be an important guarantee for investors. 'This will show investors not only the economic openness of our country but also its readiness to accept the strictest and most authoritative rules of international business,' he said.
According to the senator, English law allows protecting investors' property rights, intellectual property, and contractual obligations at the level of international standards. This could open the way for direct investment in Uzbekistan from the largest venture funds and IT companies.
Following the discussion, the Senate decided to send the constitutional law to the Legislative Chamber with proposals for revision. To this end, it is proposed to create a conciliation commission involving senators, deputies, and representatives of interested state bodies.
Artificial intelligence, digital transformation, R&D (research and development), startups, and data processing centers are to be the main areas of the center's activity. By 2030, it is planned to attract up to 1,000 companies, create over 300,000 jobs, and ensure service exports worth $5 billion.
The idea of creating a special legal regime for IT companies was discussed in December 2023 during the president's visit to the Ministry of Digital Technologies. In February 2024, Shavkat Mirziyoyev signed a decree on establishing the International Digital Technology Center — International Digital Technology Center or Enterprise Uzbekistan.
On Thursday, senators approved the revised constitutional law 'On the Tashkent International Financial Center'. The document provides for a special legal regime, the establishment of an international commercial court, as well as tax, visa, and other benefits for participants of the center.
Source: www.gazeta.uz