President Islam Karimov signed Decree "On privatization of land plots under buildings belonging to organizations and individuals" on June 24, 2006.

Organizations and companies officially registered in Uzbekistan will be permitted as of January 1, 2007, to privatize land plots where they have objects and buildings along with the adjacent territories necessary for their economic activities.

Privatization is to be voluntary, on the basis of the market value of the land plot in question, with the ownership rights documented in accordance with the acting legislation.

What land plots are not privatized will have to be rented by organizations and companies for between 30 and 50 years before January 1, 2008.

The decree permits individuals to privatize land plots allocated for individual construction (they have until January 1, 2008 to do so). The land plots thus privatized may be sold, exchanged, donated, inherited, leased, and mortgaged afterwards.

All money obtained in the course of privatization is to be transacted to the state budget - 80% of it to the republican and 20% to the local ones - for development of infrastructure.