Uzbekistan Plans AI-Based Lending Platform to Expand Financing for Small Businesses

Uzbekistan’s president Shavkat Mirziyoyev has reviewed proposals aimed at expanding financial support for small and medium-sized businesses, including the launch of a digital lending platform that would use artificial intelligence to assess borrowers and improve access to credit, according to Uzbekistan’s presidential press service. The proposals are part of a wider effort to increase the role of small businesses in the economy and reduce barriers to financial services. Despite years of reforms, officials said many entrepreneurs in Uzbekistan still face difficulties obtaining loans, particularly those without a credit history. According to figures presented during the meeting, the total loan portfolio allocated to small and medium-sized businesses has reached 218 trillion UZS, or about $17.3 billion, equivalent to around 12% of the country’s GDP. However, unsecured online microloans remain limited, and obtaining such financing currently takes up to seven days on average. The government plans to address these challenges through a new digital financial platform where entrepreneurs will be able to submit loan applications, receive offers from several banks simultaneously, compare terms, and choose the most suitable option. The platform is expected to be integrated with Uzbekistan’s e-government databases, allowing banks to automatically access information on businesses. Officials said this would reduce paperwork, shorten processing times, and limit human influence in lending decisions. One of the most significant proposed changes is the introduction of an alternative credit scoring system using elements of AI, scheduled for implementation from December 1, 2026. Unlike traditional scoring models that rely mainly on previous borrowing history, the new approach would consider factors such as business activity, utility payments, turnover, tax records, and other digital indicators. The aim is to enable banks to assess entrepreneurs who have never taken out loans before, potentially widening access to financing for startups and small enterprises operating outside conventional banking criteria. The government also plans to use AI tools to generate recommendations for improving creditworthiness, evaluating business risks, and supporting business development. Commercial banks may also introduce an “AI consultant” program designed to help entrepreneurs develop business ideas and identify financing opportunities based on local economic specialization and growth potential within neighborhoods, known as mahallas. Other measures under consideration include increasing the unsecured portion of microloans for borrowers with positive repayment records from 100 million to 200 million UZS. Interest expenses on loans or leasing arrangements of up to 5 billion UZS would also be partially compensated regardless of the total loan or lease size. Officials also proposed annual grants of up to 300 million UZS for 100 high-performing businesses to support digitalization, the adoption of international standards, and green technologies.

Are Kazakhstan’s Small Businesses Really Leaving Over Taxes?

As Kazakhstan prepares for tax reforms set to take effect in 2026, a new wave of panic has surfaced in the national discourse, one suggesting that small businesses are facing a stark choice: shut down or relocate to neighboring countries promising more favorable tax environments. This narrative has gained traction twice in the second half of 2025. The first wave came in mid-autumn, triggered by reports suggesting that Kazakhstani entrepreneurs were looking to move operations to Kyrgyzstan or Uzbekistan. These claims quickly spread across Kazakh social networks, particularly Threads. However, early signs indicated that the alarm was not being sounded by small businesses themselves, but by representatives of the B2B services sector, especially consultants and accountants. Media outlets amplified comments that stirred fear, reinforcing what increasingly appeared to be media-driven panic. One such moment came in late September when the Kazakhstan Association of Tax Consultants hosted a presentation by its chairman, Saken Karin, titled “Tax Reality 2026: Opportunities and Risks.” Karin warned that the proposed reforms would “tear apart the B2B and B2C sectors,” criticizing state approaches to tax administration. Even then, experts argued that large-scale relocation of Kazakhstani businesses made little practical sense. “Which Kazakhstani businesses can realistically relocate to Kyrgyzstan? Probably only IT companies, which are location-independent. Most SMEs in Almaty rely on the quasi-public sector or the domestic market, which is considerably larger and wealthier than that of our neighbors,” said financier Rassul Rysmambetov. The numbers back this up: in 2024, the economy of Almaty alone reached $60 billion, compared to Kyrgyzstan’s national GDP of approximately $17.5 billion. Despite this, a second wave of panic is now gaining momentum, this time shifting focus to Uzbekistan as a destination for potential business migration. Once again, social networks, particularly Threads, are amplifying the noise, citing interviews such as one with tax expert Maxim Baryshev, who praised the tax systems of Uzbekistan and Kyrgyzstan. Baryshev represents the professional accounting organization Uchet.kz. His colleague, Uchet.kz manager Timur Abiev, has previously spoken out against what he views as unfounded panic surrounding tax reform. Despite growing anxiety on social media, government officials have yet to launch a strong counter-narrative. This lack of response reinforces the idea that panic is being stoked by peripheral sectors rather than the business community itself. When Finance Minister Madi Takiev was asked about claims of a mass relocation of small businesses to neighboring countries, he dismissed them as unfounded. He argued that tax thresholds and turnover requirements in those countries are broadly comparable to Kazakhstan’s and noted that businesses relocating abroad would still be subject to domestic taxation if their economic center of interest remained in Kazakhstan, making such moves economically unviable. As for the accounting industry, its vocal opposition to reform may be tied to structural weaknesses. Kazakhstan’s accounting sector has been slow to adapt to changing demands and is struggling to train enough professionals to meet market needs. The number of established training institutions remains small. A recent government meeting focused on SME support included plans...