PRIVATE HIGHER EDUCATION IN UZBEKISTAN: TOWARD A STRATEGIC FRAMEWORK FOR INVESTOR–BUSINESS ENGAGEMENT AMIDST ACCOUNTABILITY CRISES

INTERNATIONAL SYMPOSIUM “ADVANCED RESEARCH IN ECONOMICS AND BUSINESS MANAGEMENT”, SEPTEMBER 19, 2025 745 PRIVATE HIGHER EDUCATION IN UZBEKISTAN: TOWARD A STRATEGIC FRAMEWORK FOR INVESTOR– BUSINESS ENGAGEMENT AMIDST ACCOUNTABILITY CRISES Foziljon Rustamov University of Žilina, Researcher https://doi.org/10.5281/zenodo.17307456 Abstract. This paper examines Uzbekistan’s evolving landscape of private higher education (HE), characterized by increased investor interest, regulatory tightening, and ongoing licensing controversies. Drawing on recent incidents of suspended and revoked licenses, this study argues for the urgent development of a clear, strategic policy to foster accountability, transparency, and long-term investor and student confidence. It analyzes the regulatory environment, recent scandals, international comparisons, and proposes strategic directions for policy. Keywords: Uzbekistan, private higher education, licensing, investor engagement, regulatory strategy, accountability. 1. Introduction Uzbekistan has witnessed a rapid expansion in private and transnational higher education institutions beginning in 2018, contributing to sector diversification and investment interest. However, recent regulatory actions—including abrupt license suspensions, pervasive “technical malfunction” explanations, and moratoria on new licensing—have undermined investor confidence and disrupted private HE operations. This paper assesses the need for a national strategy to stabilize and guide investor–business engagement in private HE. 2. Regulatory and Strategic Context Several laws, president decrees, resoltions and other documents have been adopted on higher education past decade. These legislations and instruments aim to modernize HE, ensure quality, and set strategic direction. For instance, the latest and important legislation to improve the higher education system in the Republic of Uzbekistan include: A new version of the Law of the Republic of Uzbekistan “On Education” (2020); The President Decree of the Republic of Uzbekistan “On Approving the Concept of Development of Higher Education of the Republic of Uzbekistan until 2030” (2019); Resolution of the President of the Republic of Uzbekistan “On additional measures to improve the quality of education in higher educational institutions and ensure their active participation in the large-scale reforms carried out in the country” (2018); The President Resolution “On measures for the further development of the higher education system” (2017). National strategies such as the Development Strategy for 2022–26 envision increasing higher education participation by 250,000 students, doubling overseas study, and expanding nongovernmental HEIs, including establishing a large campus in Samarqand. Additionally, transnational education (TNE) expansion has been notable, making Uzbekistan one of the top countries globally in branch campuses by 2023. Support for private sector investment—via INTERNATIONAL SYMPOSIUM “ADVANCED RESEARCH IN ECONOMICS AND BUSINESS MANAGEMENT”, SEPTEMBER 19, 2025 746 autonomy, innovation grants, and public–private partnerships—has been part of modernization efforts. 3. Crisis: Licensing Scandals and Investor Disillusionment Since mid-2024, no new private HE licenses have been issued, with a singular exception—Acharya University—granted by government resolution. On August 29, 2025, several universities unexpectedly saw new program licenses—e.g., for distance learning or master’s programs—flagged as “inactive” by the licensing portal, allegedly due to a technical malfunction. The Ministry of Justice, however, denied any system failure, deepening confusion. Representatives from private institutions have publicly questioned recurring “technical errors,” describing them as arbitrary and inconsistent. One lawyer recounted multiple instances where licenses were issued—allegedly following a hacker-like system error—and subsequently revoked, with no transparent criteria for reversal. Another source reported that license deactivations occurred overnight without inspections, reports, or legal grounds, causing substantial reputational, financial, and enrollment damage—affecting thousands of students and millions in investments. In legal proceedings, courts in Tashkent have recently dismissed the Ministry’s attempts to revoke private university licenses. New regulations effective October 4, 2025, mandate extensive licensing criteria: a $2 million minimum charter capital, physical facilities ≥ 5,000 m², a five-year strategic plan, significant reinvestment requirements (≥ 80% of profits for five years), and advanced quality systems. Also, licensed institutions must report every diploma to a centralized database— noncompliance risks revocation—compliance required by January 1, 2026. Development trends of higher education in Uzbekistan Years Number of higher education institutions (total) (Uzbekistan) including Number of students students in higher education organizations (total) including The number of foreign higher educational institutions Non-state higher educational organizations Number of students in non-state higher educational organizations 2000 61 0 183576 2001 61 0 207162 2002 62 2 232254 2003 62 2 254363 2004 63 2 263576 2005 62 2 278674 2006 62 3 286341 2007 62 4 296563 2008 62 5 297915 2009 63 6 286222 2010 65 6 274520 2011 64 6 253026 2013 66 6 258343 2012 64 6 259290 2014 68 7 261332 INTERNATIONAL SYMPOSIUM “ADVANCED RESEARCH IN ECONOMICS AND BUSINESS MANAGEMENT”, SEPTEMBER 19, 2025 747 2015 69 7 264291 2016 70 7 268281 2017 72 7 297689 2018 98 10 1 360204 1300 2019 119 16 4 440991 4700 2020 127 18 5 571512 9400 2021 154 25 17 808439 37900 2022 191 26 42 1042100 97500 2023 219 30 90 1314542 343600 2024 222 30 90 1432810 343600 4. Strategic Framework Needed: Recommendations Current licence-related issues happening in Uzbekistan between Ministry and private universities shows that (National) Strategy for Private HEIs/Universities should be developed and adopted to make accountability, clear message to private sectors, with possible two paths: Option A: Re-publicize public dominance, akin to Germany’s model—strict oversight, limited private role. Option B: Allow private market mechanisms, demand-driven, with strict but transparent standards. The latter would require clearly defined, consistent policies that support investor planning and prevent arbitrary actions. Regulations and implementation must be codified and public. For example, clear timelines for review and appeals; standardized notification systems and legal pathways if issues arise—no more “technical error” justifications; reinvestment rules aligned with growth phases. Private universities internationally often hire placement officers, build employer networks, and emphasize graduate employability—key to sustainable reputation and student outcomes. Examples include UK universities like Glasgow and Birmingham, which assign dedicated roles to support graduates in their home countries—but Uzbekistan has yet to embrace such models. Emphasis on employability metrics alongside academic excellence (e.g., QS Graduate Employability Rankings) could bolster quality and investor appeal. Private HE can foster innovation, research, and diversified funding. Strategic frameworks may include: wuality assurance aligned with international standards; incentives for partnerships with foreign universities or institutions; competitive innovation funding (e.g., Academic Innovation Fund model) to promote research and relevance. 5. Conclusion Uzbekistan stands at a crossroads in its higher education reforms. The surge of private and transnational institutions offers opportunities for educational growth and economic dynamism. However, recent licensing crises—rooted in opacity, regulatory contradictions, and ad hoc reversals—have imperiled investor trust. Moving forward, the government must articulate a coherent, transparent, and accountable strategy to guide private HE and investor–business engagement. This entails codified regulations, predictable enforcement, institutional capacitybuilding, and integration of employability and accountability. Failure to act may reverse the gains slow reforms have achieved. Although the following legislations have been adopted, current scandals happening in Uzbekistan between Ministry and private universities shows that (National) Strategy for Private INTERNATIONAL SYMPOSIUM “ADVANCED RESEARCH IN ECONOMICS AND BUSINESS MANAGEMENT”, SEPTEMBER 19, 2025 748 HEIs/Universities should be developed and adopted to make accountability, clear message to private sectors REFERENCES 1. Ministry of Higher Education denies reports on issuing new licenses due to technical malfunction and subsequent investigations. UzDaily.com (Aug 29, 2025). UzDaily.uz 2. Some private universities mistakenly issued licenses; Ministry of Justice denies malfunction. NOVA24 (Aug 2025). NOVA24.UZ 3. Inside Uzbekistan's private university boom, concerns over quality and licensing suspension. The Diplomat (May 2025). The Diplomat 4. Government tightens rules on private university licensing: resolution June 30, 2025. Kun.uz (July 2025). Kun.uz 5. 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