New law grants special economic zone directorates greater decision-making powers, cuts bureaucracy

The amendments to the Law on Special Economic Zones, passed by the Legislative Chamber of the Oliy Majlis in July-August and approved by the Senate in September, aim to streamline decision-making and expedite investment processes.

Under the new law, SEZ directorates will assume the responsibilities previously held by administrative councils, including:

•  Coordinating executive authorities' activities concerning SEZ operations, adherence to special legal regimes, and supporting SEZ participants.
•  Evaluating and approving investment project proposals for implementation within SEZs.
•  Allocating land to SEZ participants for investment projects.
•  Overseeing the construction of engineering, communication, and transportation infrastructure.

A key feature of the reform is the removal of the requirement for expert evaluations of business plans or feasibility studies. SEZ directorates now have the authority to independently assess whether an investment project meets the required criteria.

The amendments also reduce decision-making timelines for approving investment projects in SEZs. During parliamentary debates, lawmakers highlighted that these changes would simplify investment attraction and accelerate project implementation.

The Strategic Reforms Agency, which proposed a set of recommendations for the updated law in June, suggested further expanding the range of permissible activities within SEZs and allowing private and foreign companies to act as zone operators.