Revamping Investment Atmosphere: Foreign Capital’s Gateway to Uzbekistan
In 2016, Shavkat Mirziyoyev’s leadership ushered Uzbekistan into an era of economic revitalization. A targeted effort towards luring foreign investments ensued, with policies tailored to attract investors, hosting investment forums, and implementing state asset privatization programs. The primary aim was to stimulate economic growth through increased foreign capital infusion.
President Shavkat Mirziyoyev‘s recent establishment of the Foreign Investors Council highlights Uzbekistan’s dedication to fostering an investor-friendly environment. This council, charged with devising measures to enhance the nation’s investment climate, uniquely incorporates direct feedback from investors, ensuring their perspectives shape future policies.
President Mirziyoyev’s invitation to foreign investors for active participation within the Council underscores Uzbekistan’s aspiration to forge a collaborative model where foreign investors actively influence the nation’s economic trajectory.
The international business community, especially those with interests in Central Asia, has responded positively to Uzbekistan’s economic reforms. Foreign business leaders commend the liberalization of monetary policies and streamlined visa protocols, recognizing these changes as catalysts for robust collaboration between Uzbekistan and foreign investors, cultivating mutually beneficial relationships.
Investments in Uzbekistan’s primary capital have exhibited consistent growth, recording a 7.9% surge in the second quarter of 2023, following a 3.1% increase in the preceding quarter, as per data from the State Statistics Committee.
Under Mirziyoyev’s leadership, the relationship between Uzbekistan and the European Union has experienced a significant upswing, expanding across diverse domains from politics and trade to culture and humanitarian efforts.
In 2022, the European Bank for Reconstruction and Development (EBRD) pledged nearly $900 million to support 26 diverse projects in Uzbekistan. These initiatives span renewable energy ventures to pivotal banking operations, surpassing the EBRD’s prior investment benchmarks in the country.
The escalation in EBRD’s commitments signifies a burgeoning partnership with Uzbekistan and reflects the nation’s alignment with international developmental goals. It also underscores Uzbekistan’s attractiveness for foreign investment, drawing attention with proactive reforms.
Collaborating with leading European entities and financial institutions, Uzbekistan’s joint projects exceed €20 billion. President Mirziyoyev anticipates these initiatives to reshape the industrial landscape across Eurasia.
European engagement in Uzbekistan’s markets has amplified significantly in recent years, following Mirziyoyev’s leadership. Entities like the European Investment Bank (EIB), Volkswagen, Peugeot Citroën, and Carrefour have made notable forays into Uzbekistan’s automotive and retail sectors.
European conglomerates, including EDF, Siemens, Veolia, and Total Eren, have embarked on substantial investments in Uzbekistan’s renewable energy sector. These ventures, as emphasized by Mirziyoyev, play a pivotal role in modernizing the nation’s infrastructure.
Privatization remains a crucial element for attracting investors to Uzbekistan. Notably, the sale of a state stake in Coca-Cola Bottlers Uzbekistan, Ltd LLC to CCI International Holland BV for $252.28 million in 2021 signifies its importance.
The robust Partnership and Cooperation Agreement between the EU and Uzbekistan, established in 1999, spans various realms from political dialogue to economic cooperation, emphasizing their shared commitment to progress.
European companies’ involvement in Uzbekistan’s renewable energy sector illustrates the depth of this burgeoning partnership, contributing not only to cleaner energy sources but also to infrastructure modernization.
In conclusion, under President Mirziyoyev’s astute leadership, Uzbekistan continues to evolve economically. The country’s proactive stance in attracting foreign investments, particularly from European entities, propels its path toward modernization and signifies a commitment to sustainable growth. The growing alliance between the EU and Uzbekistan epitomizes the positive transformations witnessed, promising mutual advancements and prosperity.”
