Uzbekistan Forecasts Over 60% Rise in Foreign Investment for 2024

Uzbekistan's Investment Landscape in 2024

Uzbekistan is making headlines with its remarkable forecast for foreign investment growth, expected to exceed 60% in 2024. This impressive uptrend, disclosed by the Ministry of Investment, Industry and Trade (MIIT), indicates a total of $34.9 billion in foreign investments for the year. As the nation progresses, projections estimate these investments could rally further to $42 billion in 2025. This marks a significant shift towards international economic engagement for Uzbekistan, showcasing its commitment to fostering a robust business environment.

The report titled "New Uzbekistan: The Big Country with Big Opportunities" unveiled at the recent Tashkent International Investment Forum, emphasizes the extensive reforms undertaken by the Uzbek government. These reforms focus on making the nation an attractive destination for foreign direct investments (FDI). By revising tax systems, streamlining regulations, and modernizing legal frameworks, Uzbekistan aims to create a more favorable climate for business operations. These strategic efforts are a part of Uzbekistan’s broader vision, highlighted in their "Uzbekistan 2030" roadmap, aiming to transform various aspects of the national economy.

Noteworthy accomplishments include the alignment of 18 companies with initial public offerings (IPOs), underlining an increasing interest from private capital. Here are some key highlights from the investment report:

- Green Energy Sector: Uzbekistan is making strides in renewable energy, targeting a 26% share of renewable energy production by the end of 2025. This shows a clear commitment to sustainable development and energy diversification.

- Sovereign Bonds: Between 2019 and 2025, the issuance of sovereign bonds reached $12 billion through listings on the London Stock Exchange, with an additional $2.84 billion anticipated in 2025. This reflects growing confidence among international investors.

- Sustainable Data Center: A notable investment of $3 billion is earmarked for a sustainable AI-based data center with a capacity of 250 MGW, further positioning Uzbekistan as a tech-friendly economy.

- Economic Zones: As of April 2025, Uzbekistan has established 28 special economic zones (SEZ), along with 389 small industrial zones and 23 technology parks. Collectively, these zones host 6,997 companies, including pivotal enterprises working within these special frameworks.

- Mineral Projects: The report underscores 76 strategic projects valued over $2.6 billion set to enhance the extraction and processing of 28 essential minerals, solidifying Uzbekistan's status as a significant player in the global mining sector.

- Stock Market Developments: The launch of Uzbekistan’s National Investment Fund (UzNIF) aims to strengthen market stability and promote investment opportunities within the country. Franklin Templeton is appointed as the fund's trustee and manager, signaling enhanced professional management in the investment realm.

- Young Population: With approximately 40% of its population under 25, Uzbekistan boasts a young and dynamic workforce that is expected to drive future innovation and economic growth.

- E-commerce Growth: Forecasts suggest that e-commerce could account for 9-11% of total retail sales by 2027, reflecting a significant shift in consumer behavior and market dynamics.

The Tashkent International Investment Forum, aligning with this insightful report, aims to gather over 3,000 international participants from 95 countries, exploring the vast potential of the 'New Uzbekistan.' This event stands as a crucial platform for investors, policymakers, and business leaders to converge and discuss the future of investment in Uzbekistan.

The full report, prepared by Hudson Sandler with PricewaterhouseCoopers' support, showcases input from notable sponsors such as ACWA Power, Coca-Cola, and the European Investment Bank. The collective insights aim to catalyze further dialogue and development in one of Central Asia's most promising markets.

For more detailed insights, you can access the complete report on the MIIT's official website: MIIT Uzbekistan.