Uzbekistan to Restrict Foreign Access to Farmland as Land Reforms Advance
Uzbekistan plans to stop offering agricultural land lease rights to foreign investors through auctions as part of a broader effort to improve land use efficiency, according to the presidential press service. The measures were presented during a government briefing on land reform, where officials outlined changes to the current system. Over the past five years, Uzbekistan has shifted to an auction-based model for land allocation, removing the authority of local governors to distribute plots directly. During this period, more than 616,000 hectares of land were allocated through auctions, generating 1.4 trillion UZS ($115,940) in state revenue. Officials said the reforms have led to the emergence of private land users and increased productivity. Income per hectare has tripled to around 50-60 million UZS ($4,140-$4,970), while land allocated through auctions now produces goods worth an estimated 539 trillion UZS ($44,635,398,500) annually and generates $2.1 billion in exports. Despite these gains, authorities acknowledged ongoing challenges. Around 117,600 hectares of land remain unallocated, partly due to limited autonomy for tenants in how they use the land. To address this, the government plans to introduce a revised leasing system and auction an additional 100,000 hectares under new conditions this year, with stronger economic incentives for efficient use. A key change will affect foreign investors. Under the proposed rules, they will no longer be able to acquire land through auctions. Instead, access to agricultural land will be limited to secondary lease agreements arranged through regional authorities, and only for projects with a minimum investment of $10 million. These projects must also focus on developing underused land, including pasture and rain-fed areas. At the same time, participation in agricultural land auctions will be restricted to domestic farmers and entrepreneurs. Land designated for defense, border zones, forests, and cultural heritage sites will be allocated exclusively to Uzbek citizens. A unified lease term of up to 49 years is also proposed for all land categories. The presentation highlighted successful pilot projects in the Fergana Valley, as well as in Jizzakh and Tashkent regions, and Karakalpakstan, where entrepreneurs were allowed to independently choose crops. On 16,000 hectares, farmers planted high-yield and export-oriented crops, contributing to an estimated $150 million in exports in 2025. To support new projects, the government plans to offer financial incentives, including preferential loans of up to seven years with grace periods, subsidies for infrastructure costs, and compensation of up to 50% of packaging expenses. Authorities also intend to expand the use of modern agricultural technologies to increase land productivity. Officials also stressed the need to accelerate digitalization in the sector, noting that many processes, such as land reclassification and compensation calculations, are still handled on paper, causing delays and investor dissatisfaction. Plans include integrating cadastral, agricultural, and legal databases, as well as introducing transparent procedures for extending lease agreements.
