Tashkent’s Magic City: New owners or the same faces?

The National Park, which was sold eight years ago, is changing hands once more. A significant portion—86.2 percent—of the shares in "Stargate Systems" LLC, the company that leased nearly 21 hectares of the National Park for 49 years, will now be transferred to "Xonadon taomlar" LLC, which holds the main stake. This information has been confirmed by the Competition Committee.

"According to the results of the analysis conducted by the special commission of the committee, it was concluded that these transactions do not affect competition in the market, and a decision was made to satisfy the application and approve the transactions," the committee’s press service stated.

Eight years ago, former Tashkent mayor Jakhongir Artikhodjaev initiated the development of Magic City on the park’s territory before transferring ownership to his brother-in-law. Now, the primary shares in the company will go to “Xonadon taomlar” LLC, which is registered at the same address.

Stargate Systems, founded in 2005, is located at 183A, Almazar district, Chilonzor district. In 2017, the Cabinet of Ministers allowed the company to lease a large section of the National Park for 60 million USD. At that time, "Stargate Systems" was part of the AKFA Group and belonged to Artikhodjaev, who was then serving as the city’s mayor. In 2020, his J-United Group registered the "Magic City" trademark.

Economist Otabek Bakirov has argued that the former mayor leveraged his position to gain control of public property.

“The ownership of Magic City, which was established on public land, and the later sale of shares in the company were acknowledged publicly in early 2024. It was no surprise that a state official in Uzbekistan, while still in office, was involved in large-scale business using his considerable powers,” Bakirov commented.

Following public criticism, Artikhodjaev eventually transferred the rights to the Magic City trademark to "Stargate Systems." At the time, he stated that he had sold seven companies, including Magic City.

“The Turks have a saying: ‘Get yourself together.’ Every five years, my character pushes me to do just that. I sold seven companies,” Artikhodjaev said during a meeting in Surkhandarya.

The Competition Committee reports that in 2023, 99 percent of "Stargate Systems’" shares were transferred to "Tashkent Aquarium" LLC. The sole owner of "Tashkent Aquarium" is businessman Alisher Abduvohidov, the son of former presidential advisor Abdujabbor Abduvohidov and the brother-in-law of Artikhodjaev's son-in-law. He remains the current sole owner of Stargate Systems.

Abduvohidov also holds full ownership of "Artel Technical School" and "Qoshni" LLC, as well as stakes in "Carstone Amusement" LLC and Capital Dynamics. His companies, "Atlas Union" and "Comfortrent", are currently inactive. This means that both Abduvohidov and his "Tashkent Aquarium" LLC now control the National Park.

When the National Park was leased to "Stargate Systems" in 2017, the Cabinet of Ministers outlined several requirements. The plan was to transform the Alisher Navoi National Park into a world-class, high-tech cultural and recreational hub. It was meant to feature iconic architectural replicas, an amphitheater, a cartographic fountain, a family recreation area with bicycle paths, and various entertainment zones.

If you've visited Magic City, you would have noticed that many of these goals were met. However, several promised attractions—such as two “American Hills” roller coasters, a children’s autodrome, an interactive train labyrinth, a Ferris wheel, a wave pool for surfing, and a dolphinarium—never materialized.

Despite this, the government granted significant customs exemptions for the investor, covering the import of construction materials, equipment, attractions, audio-visual technology, dolphins, birds, fish, and plants.

Why didn’t Artikhodjaev or his brother-in-law fulfill these obligations? According to Artikhojayev, managing the park was too demanding.

“To be honest, there were too many challenges—tenants, thousands of visitors. They make a mess, throw soda, and use water cannons. Managing all of this required too much time. But I had other ideas. Since it was too difficult for me, I sold the park to my team members who had been with me from the start of construction. I told them, ‘I have this much debt from the bank. Will you pay it off? You’ll need five to ten years to settle it, and then the park will be yours.’ They agreed,” he explained.

During a visit to Doha, Artikhodjaev spoke about the impressive water parks there and claimed he could build an even better one in Tashkent. However, he blamed critical journalists and bloggers for preventing him from realizing this vision.

As the park continues to change hands, questions arise about why the promised attractions were never built and who will now bear the responsibility. Will "Xonadon taomlar" LLC take on the unfulfilled obligations? Economist Otabek Bakirov believes this issue requires deeper scrutiny.

“It is unclear whether the real beneficiaries of Magic City are truly changing or if this is simply a reshuffling of ownership. What is certain is that the original investor, who took nearly 21 hectares of public land and made various commitments, is no longer involved. First, one investor left, then another, and now possibly a third.

This raises the fundamental question: should beneficiaries or shareholders in state-related agreements be allowed to change ownership so freely? In Uzbekistan, even simple bank loans often include strict rules preventing changes in ownership without lender approval. Yet, when public assets worth billions are transferred, such safeguards are ignored.

At the very least, when ownership changes, previously agreed-upon privileges and obligations should be renegotiated. The Competition Committee, when reviewing such mergers and acquisitions, should take this protective logic into account,” Bakirov argued.

"Xonadon taomlar" LLC was registered on December 27, 2023, at the same address as "Stargate Systems" — 183A, Olmazor district, Chilonzor district. The company’s registered contact details are identical to those of Tashkent Aquarium, which is owned by Artikhodjaev's relative.

The company is officially listed as a restaurant and food delivery business, with an authorized capital of 50 million soums. Its head is Bekzod Muzaffarovich Abdumajidov, while the sole founder is Firdavs Fayzulloevich Muhammadiev.

Muhammadiev is also the 100 percent owner of another company, Magic Stop, which was registered on the same day as "Xonadon taomlar" LLC and operates in retail.

A closer look at these transactions suggests that both the buyer and seller remain connected. The question then arises: Why is there a need for these changes in ownership?

Ultimately, despite the official transfer of shares, the park seems to remain under the control of the same network of individuals. The larger issue remains unresolved—how public land, once designated for a world-class attraction, has turned into a commercial complex with a palace, but without many of the promised high-end attractions.