Weaknesses in the framework conditions for private sector development and foreign direct investment have contributed to over-reliance of Central Asian economies on a narrow range of often volatile drivers for growth, principally the export of commodities and labour. Despite recent reforms by governments across the region – such as streamlining legislation or introducing new digitalisation programmes – the business environment in Central Asia remains challenging. Even where formal settings have improved considerably, uneven implementation and enforcement, as well as frequent policy changes, create a significant gap between de jure protections and the de facto operational environment for firms. The COVID-19 pandemic has exacerbated this problem and reinforced the need to address long-standing barriers to business development that could help the region transition to a more dynamic, private sector-driven growth model. This report, part of an ongoing project co-financed by the European Union, focusses on one set of such barriers: the legal and regulatory frameworks for business and investment in Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. It presents the findings of an assessment of ten dimensions of the legal environment that are crucial for a healthy business climate: legal and regulatory frameworks for investment; tax regulations; land legislation; registration procedures; contract enforcement and dispute settlement; the operational environment for business; trade facilitation; expropriation regimes; exit mechanisms; and public-private dialogue. The report identifies priority areas for reform identified for each country from among the ten dimensions, most often pertaining to investment, trade and the local operational environment being recurrent themes. It offers specific policy recommendations on these priorities for each of the five countries.