Uzbekistan expands support for light industry integration into global supply chains
A new presidential decree sets ambitious targets for Uzbekistan’s textile, garment and leather industries for 2026 to 2027, including USD 4 billion in exports, USD 2.2 billion in foreign investment and 80,000 new jobs.
What has changed and why it matters
Uzbekistan's light industry sector, particularly textiles, garments and leather goods, has been a central pillar of the country's export diversification strategy for several years. Presidential Decree No. 4, signed on 12 January 2026, represents the most comprehensive package of support measures to date, combining production targets, financial restructuring tools, export promotion infrastructure and tax incentives into a single framework covering 2026 to 2027.
Key production and export targets
- Production output to grow 9% in 2026 and 10% in 2027
- Foreign investment of USD 2.2 billion in 2026 and USD 2.5 billion in 2027
- Exports of USD 4 billion in 2026 (including USD 700 million via e-commerce) and USD 4.5 billion in 2027
- 80,000 new jobs across 2026 to 2027
- Partnerships with 40 international brands and sourcing companies
Financial restructuring and enterprise support
The decree introduces a traffic light classification system for textile enterprises based on economic and financial indicators, with targeted support for each. Measures include credits of up to USD 2 million per enterprise, extension of existing loan terms up to 7 years and refinancing of existing loans where interest rates exceed 7% in foreign currency or 16% in national currency.
Tax incentives and customs exemptions
From 1 January 2026 to 1 January 2028, cotton ginning facilities benefit from a 50% reduction in property and land tax rates. Additional VAT exemptions and property tax reductions apply for investors who acquire and restore textile enterprise assets. Existing exemptions for leather, footwear and fur sectors are extended.
Overseas representation and export promotion
Trade offices are established in the US, China, Russia, Turkey, Germany, Poland, the UAE and Saudi Arabia. Uzbekistan's diplomatic missions will also receive export promotion targets by country, with quarterly reviews.
International trade fair programme
The decree approves participation in 40 international trade fairs across 2026, covering 25 textile events and 15 leather and footwear events.
What this means for your business
For international brands, sourcing companies and investors in textiles, garments, leather and footwear, this decree opens a structured entry point into Uzbekistan's light industry sector. The explicit target of 40 new partnerships with foreign brands, combined with overseas trade representation and trade fair participation, signals active government outreach. Companies should assess the financial incentives, customs exemptions and restructured enterprise assets for viable sourcing, investment or joint venture opportunities.
Get in touch to discuss what these changes mean for your operations.