Uzbekistan is set to overhaul the regulations governing agricultural land leases for foreign investors. This reform was discussed during a presentation to the president Shavkat Mirziyoyev Tuesday.

According to the presentation, foreign investors will now be limited to a "sub-lease" mechanism. These leases will be facilitated through specialized directorates under provincial governor offices and will specifically target projects with a minimum investment of $10 million. Additionally, such projects must focus on reclaiming unused, rain-fed, or pasture lands.

Minister of Justice Akbar Tashkulov confirmed that these approaches received the president's backing. Further instructions were issued to establish clear implementation mechanisms for the new policy.

Tashkulov emphasized that the domestic labor market will remain the priority when distributing agricultural land. "Given the scarcity of agricultural land, our priority must be ensuring employment for the citizens of Uzbekistan. This is why the sub-lease mechanism is being introduced for foreign investors," he noted.

At the same time, the government aims to enhance the investment climate for major players by offering long-term stability. "For large-scale investors, land rights guarantees are critical. In light of this, the president approved a proposal to extend the lease term for non-agricultural land from 25 to 49 years," the Minister reported.

Additionally, a proposal was made to standardize lease terms at 49 years across all land categories, including for foreign investors involved in industrial and construction projects.

During the presentation, it was noted that participation in agricultural land auctions will be restricted exclusively to local farmers and businesses. Furthermore, specific land categories—including defense, border zones, historical and cultural sites, and forest lands—will remain accessible only to Uzbek citizens.

Significant attention was also paid to the hurdles currently facing investors. Specifically, the processes for rezoning land and calculating compensation are still paper-based, causing delays and frustration within the business community.

To address this, the government has mandated the full digitalization of these procedures. A new system will also be introduced to evaluate land-use efficiency based on target designations, water consumption, and soil quality.

"Currently, converting agricultural land into non-agricultural categories requires decisions from the President and the Cabinet of Ministers, yet a clearly defined procedure for this process is lacking. Our new projects propose a transparent electronic system that eliminates human interference," stated the Minister of Justice.

In addition, there are plans to simplify lease renewals. For tenants with no outstanding debts or legal disputes, agricultural leases can be extended for up to 30 years and non-agricultural leases for up to 49 years via digital platforms and public service centers.

"Broadly speaking, we are identifying systemic issues through the practical application of our laws and drafting amendments to fix them. Simultaneously, we are strengthening guarantees for citizens and entrepreneurs: once purchased, the land becomes their property, and their rights are protected by the Constitution," emphasized Akbar Tashkulov.

Uzbekistan also plans to distribute an additional 100,000 hectares of agricultural land under a new system—offering 49-year leases with the freedom to choose which crops to grow. The plan also includes the sale of plots for industrial plantations and the expansion of land auctions.