What makes Uzbekistan attractive to foreign investors?

Chief Specialist at the Ministry of Investments, Industry and Trade of Uzbekistan Mels Ochilov shared his views with Dunyo IA regarding the principal factors contributing to the country’s attractiveness to foreign investors:

– Located in the very heart of Central Asia, Uzbekistan is becoming an increasingly appealing destination for international investors. Over the past seven years, the country has attracted 120 billion US dollars in investments and established over 6,000 enterprises. In particular, in 2024 alone, the volume of investments reached 35 billion dollars, while exports totaled 27 billion dollars.

So, what exactly makes Uzbekistan attractive to investors? Let us take a closer look at the main factors.

Firstly, the country is undergoing large-scale reforms aimed at liberalizing the economy and improving the investment climate.

Since 2017, the government has been actively engaged in the privatization of state-owned enterprises, opening the door to private investment across various sectors – from energy to agriculture. In addition, the government has simplified business registration procedures, reducing the process to just 30 minutes from the time of application. The process of obtaining more than 150 types of permits has been digitized, significantly lowering bureaucratic barriers. These steps not only demonstrate the country’s commitment to market principles but also create a favorable environment for foreign companies.

Secondly, Uzbekistan has a well-developed infrastructure that supports entrepreneurial activity. The country is investing in the modernization of its transport networks, including road and rail systems, which facilitates logistics and trade.

The energy sector is also undergoing transformation – renewable energy sources are being actively introduced, ensuring a stable power supply. In particular, since the beginning of this year, solar, wind, and hydroelectric power stations have generated 8.7 billion kilowatt-hours of electricity, accounting for 20.3 percent of the country’s total power generation.

Telecommunication infrastructure, including broadband internet, is developing rapidly – a critical factor for modern business processes. As of today, mobile broadband internet covers 99 percent of Uzbekistan’s settlements, and 5G connectivity is available in all regional centers. Meanwhile, international internet bandwidth has increased to 4,200 Gbps, significantly improving the quality and speed of global connectivity.

The next factor is human capital.

The national education system ensures a continuous inflow of young, qualified professionals, especially in technical and engineering fields. To align the workforce with investor and labor market demands, the higher and vocational education ecosystem is being actively developed. Notably, in recent years, 71 private universities and 51 technical colleges have been established in Uzbekistan. Around 500,000 students are currently enrolled, and the higher education coverage rate has increased from 9 to 42 percent. This means investors today can find talented professionals locally for their projects.

Fourth, government support plays a crucial role. Systematic efforts are underway to improve the investment climate, including within the framework of the Foreign Investors Council under the President of Uzbekistan. The country offers a range of incentives to investors, including tax benefits, exemptions from customs duties, and guarantees for property rights protection.

Moreover, active work is being done to improve the legal system to ensure fair and transparent dispute resolution, thereby reducing business risks. Legislative drafts are being developed on investments (including alternative ones) and on special economic zones.

Finally, it is worth mentioning the successful examples of foreign investment. Major international companies such as ACWA Power, Masdar, Linde, DataVolt, Shanghai Renewable Energy, Total Energy, and many others are already operating in Uzbekistan and continuing to expand their activities – clear evidence of the country’s growing investment appeal.

Uzbekistan attracts investors through its strategic location, rich natural resources, ongoing economic reforms, developed infrastructure, skilled human capital, and strong government support.