Investment Opportunities in Karakalpakstan — Legal Guide for Foreign Investors

The Republic of Karakalpakstan is the largest region of Uzbekistan by territory and, for most foreign investors, the least familiar. In September 2026 the Ministry of Investment, Industry and Trade of Karakalpakstan hosted an International Business Forum in Nukus, bringing together government representatives, international investors and industry experts. Enlawyer Law Firm attended at the Ministry’s invitation, and the forum gave a clear view of where the region’s investment agenda now stands.

Where the opportunities are

Salt and chemicals

The Barsakelmes salt deposit and the Kungrad Soda Ash Plant form the basis of a chemical cluster built around salt processing, supported by the "Kungrad Salt Free Zone" free economic zone. Downstream chemical production is the region’s most developed investment proposition.

Construction and building materials

Karakalpak Basalt Wool (basalt mineral wool) and Osten Technologies (windows, doors, radiators) illustrate a growing local manufacturing base supplying Uzbekistan’s construction market.

Textiles

The Nukus SSP Technopark produces synthetic textile products and operates within a sector that remains one of Uzbekistan’s principal export industries.

Logistics

The international logistics centre in the Kungrad district positions the region on transport routes towards Kazakhstan, Russia and, further, the Caspian corridor.

IT, AI and data centres

The Chamber of Commerce and Industry of Karakalpakstan presented investment opportunities in IT, artificial intelligence and data centre construction — a newer direction where the regulatory and incentive framework is still being formed.

Trade with China

A dedicated forum session addressed trade and investment cooperation between Karakalpakstan and the regions of China, reflecting the direction of much of the region’s inbound interest.

The legal framework

Karakalpakstan is a sovereign republic within the Republic of Uzbekistan, with its own Constitution and legislature (the Jokargy Kenes). Investment activity is nevertheless governed principally by national legislation, including:

• the Law "On Investments and Investment Activity" No. ZRU-598 of 25 December 2019 — investor guarantees, protection against nationalisation, and the status of investment agreements;
• the Law "On Special Economic Zones" No. ZRU-604 of 17 February 2020 — the regime applicable to participants of free economic zones, including the customs and tax preferences available;
• the Law "On Public-Private Partnership" No. ZRU-537 of 10 May 2019 — the framework for infrastructure and utility projects;
• sector legislation on subsoil use, land, licensing and permits, currency regulation and employment of foreign nationals.

In practice, the key questions for an investor entering the region are the choice of investment vehicle, eligibility for and retention of free economic zone status, security of land and subsoil rights, the scope of any individual investment agreement with the state, and the mechanics of currency conversion and profit repatriation.

How Enlawyer can help

Enlawyer advises foreign investors, funds and industrial groups on entry into Uzbekistan and its regions: entity establishment and corporate structuring, investment and FEZ incentive regimes, land and subsoil rights, licensing and permits, construction and EPC contracts, financing and security, tax and currency regulation, employment of foreign personnel, sanctions compliance, and dispute resolution.