New Uzbekistan is a Country that is Trusted

The large-scale changes that have occurred in the country in recent years are a clear result of the policy of the republic’s leadership aimed at achieving economic stability, improving the well-being of the population, and implementing numerous projects that are of particular importance for the further and accelerated socio-economic development of Uzbekistan.

Everyone knows that to start any business you need finance. Even if a business idea or project plan has been verified and calculated at least three times, without material support everything will remain on paper.

The same rules apply to renewal processes initiated by President Shavkat Mirziyoyev. Capital investments allow us to rapidly modernize the economy and infrastructure, which are so necessary to achieve our goals. That is why the head of state pays special attention to investments – the most important source of resources for building a New Uzbekistan.

It is no coincidence that many experts call investments the blood vessels of the economy. Continuing this thought, we can figuratively compare the recently held third Tashkent International Investment Forum with a wide and full beating heart. Guests from almost a hundred countries came to the event. More than 2.5 thousand participants and concluded contracts worth $26.6 billion confirmed the growing interest of representatives of foreign business circles in the dynamically developing economy of Uzbekistan.

Clear priorities, concrete proposals

Forums similar to TMIF are held in many countries. But the top officials of the state are not present at them everywhere, much less speak. Therefore, Shavkat Mirziyoyev’s speech is important for foreign investors. They perceive this as a special sign of respect and hospitality. Knowing the value of time, representatives of the business community are grateful when senior managers, taking time away from important matters, pay attention to them. Investors prefer to receive the necessary information first-hand, and even more so from the speech of the President of the country, which is the most important guarantor of trust for them.

Firstly , paying tribute to the fact that the format of the Tashkent International Investment Forum is becoming a good tradition and annually brings together new reliable partners from all continents in our country, the President of Uzbekistan noted that against the backdrop of worsening global geopolitical and economic problems, threats and challenges on the way to sustainable development. In particular, the President drew attention to the fact that the instability of the situation is clearly evidenced by disruptions in the supply chain of goods and services, a decline in international trade, a reduction in the flow of investments, and increased climate change. Therefore, no country can cope with such acute problems of our time alone. And here the influx of foreign investment is of particular importance for any state. The trend is that total investment in developing countries fell by 9 percent last year.

However, as the head of state emphasized, over seven years of large-scale and systemic reforms, including liberalizing the economy, creating a favorable investment climate, and comprehensively expanding opportunities for entrepreneurs, Uzbekistan was able to achieve some success in socio-economic development.

In support, the President cited a number of figures and facts. For example, in recent years of reforms, the country’s economy has almost doubled; last year’s growth was 6 percent. The inflation rate dropped to 9 percent. Trade turnover indicators are steadily growing. The stability of the foreign exchange market and gold and foreign exchange reserves remains.

This was largely achieved thanks to the development of more than 60 billion dollars of foreign investment in recent years. More than $14 billion of funds from international financial institutions have been attracted to the social sphere and infrastructure. Last year alone, the volume of foreign investment almost doubled, over 300 investment and industrial projects were launched together with leading companies and major brands in the world.

Secondly , the President’s words were spoken sincerely, with full responsibility. They became a clear signal to potential investors: despite the problems that have arisen recently in the national economies of many countries, Uzbekistan is demonstrating sustainable economic growth and remains attractive for investment. This means that it is possible and necessary to cooperate with our country and invest your capital in its economy if the investor wants his money to work and generate income.

In addition, the conditions for such investments are constantly being improved and improved. For example, as the head of state said, now foreign investors will be exempt from taxes on dividends received from shares for three years.

The President emphasized that the main goal is for Uzbekistan to become a reliable and long-term partner for foreign investors. To this end, the state guarantees the development of market relations, reliable protection of rights and interests, further improvement of a favorable investment and business environment, creation of greater opportunities and conditions for fair competition, ensuring the inviolability of private property and the independence of the judicial system. And these principles are enshrined in the updated Constitution of the country.

TMIF participants were presented with a number of specific proposals aimed at strengthening the protection of investor rights. This includes the upcoming adoption of the new edition of the Investment Law, developed in accordance with the provisions, rules and standards of the World Trade Organization, and the creation of the International Commercial Court, which will be created at the International Center for Digital Technologies, and the introduction of new approaches to the system of industrial zones, restrictions on the period of activity of which will be abolished and private operators, including experienced foreign companies, will be actively involved in the management of which, and the period for leasing land to foreign investors will be doubled – from 25 to 49 years, with full preservation of existing benefits and preferences guaranteed by law . All these and other proposals were discussed in detail at the regular meeting of the Council of Foreign Investors, which took place the day after the opening of TMIF. Their subsequent implementation will certainly serve as an incentive for investors to cooperate with Uzbekistan.

Thirdly , many forum participants noted that the speech of the President of Uzbekistan clearly outlined the country’s development priorities in accordance with the “Uzbekistan-2030” Strategy and the points for applying the efforts and resources of investors.

The head of state focused on five priority areas that are extremely important for the further development of the country and, judging by the interest shown by investors, are attractive from the point of view of their investments.

The first direction is green energy. Foreign investors are already actively working in this area. Just last year, exclusively through foreign direct investment on the basis of public-private partnership, in cooperation with strategic partners – Masdar, Gezhouba, China Energy, large wind and solar power plants with a capacity of 1.4 gigawatts were put into operation, together The implementation of a project for the production of green hydrogen has begun with ACWA Power. About three dozen more projects are at various stages of implementation. Many investors joined in their implementation. Nevertheless, others also have the opportunity to invest and receive income from investments, because by 2030, Uzbekistan plans to create more than 20 gigawatts of renewable energy capacity and increase its share in the energy balance to 40 percent.

The second area attractive to foreign investors is the banking and financial sector. And here, despite the fact that we have recently opened many private banking institutions, foreign branches, as well as a number of digital banks, there is a wide field for investors in this area. In particular, after the agreement signed within the framework of the forum with the European Bank for Reconstruction and Development (EBRD) on the privatization of one of the large banks of Uzbekistan – Asakabank, processes of transformation and privatization of other large banks in our country are actively underway with the International Finance Corporation and the Asian Development Bank , in which foreign investors can take part.

Third direction: many foreign investors are showing increased interest in the minerals that Uzbekistan is rich in. The country has colossal resources of gold, copper, tungsten, silver, and uranium. The President drew attention to the fact that, along with rare and unique minerals, the republic has deposits of more than 30 rare earth metals, such as lithium, magnesium, molybdenum, germanium, vanadium, and indium. Strategic cooperation has recently been established with the European Union in the area of ​​critical raw materials. Similar agreements are being worked out with the USA and Great Britain. The head of state invited investors who are interested in investing in this area to implement projects for deep processing of strategic raw materials and creating an added value chain.

Fourth direction: foreign investors can also contribute to the digital transformation of Uzbekistan. Some work is already underway here. In particular, exports of IT services and software products doubled over the year. But in the future it is planned to increase it to five billion dollars. Therefore, to attract foreign companies, an International Center for Digital Technologies is being created on the basis of the IT park. Together with the Saudi Arabian company DataVolt, a data center powered by green energy is being created. This should serve as a powerful impetus for Uzbekistan’s transition to a digital economy and the introduction of artificial intelligence technologies.

And finally, the fifth direction in the President’s speech was the development of transport infrastructure. The planned improvement of railway transport, joint projects for the construction of toll roads and high-speed railways, the development of existing international airports in Tashkent, Bukhara and Urgench and the construction of air harbors, projects for the creation of steel highways China – Kyrgyzstan – Uzbekistan and Uzbekistan – Afghanistan – Pakistan require huge investments . Therefore, participation in strategic projects that will turn Central Asia into a global transit center connecting North and South, East and West should be a profitable investment.

In conclusion, Shavkat Mirziyoyev once again emphasized that investments are the locomotive of transformation of our country and a strong driver of economic development, and assured investors that the President’s team will directly provide all necessary assistance in the implementation of each initiative and each project.

“When you see large corporations and international organizations coming to Uzbekistan to invest, you understand: this country is doing something right,” Omar Al-Midani, president of the investment company Vision Invest from Saudi Arabia, shared his impressions. — Having arrived here, I, who had never visited Uzbekistan before, was surprised: I did not expect to find such a beautiful country and very hospitable people. Walking around the city, you begin to perceive and appreciate the local culture.

You will also see that the country is being run with foresight. Directions to targets are accurate. When you talk to management and ministers, you come to the conclusion that these are the partners who have given you confidence. They know all the intricacies and understand what they want to do in their country,” he noted.

Billions for good causes

Many forum participants, in addition to what they heard in the speech of the President of Uzbekistan, were able to become more familiar with the specifics during meetings with Shavkat Mirziyoyev himself. Such meetings are also of great importance in the work of attracting foreign investors, who perceive dialogue with the top official of any state both as a manifestation of special attention to their activities, and as a kind of guarantee of the implementation and support of the agreements reached.

On the eve of and during the investment forum, the head of state held numerous meetings with representatives of international organizations and financial institutions.

They examined and discussed a wide range of issues related to investment cooperation and specific projects.

For example, at the meeting of Shavkat Mirziyoyev with the EBRD delegation, it was noted that today the bank’s project portfolio in our country exceeds 4.4 billion euros, the share of the private sector in them is close to 70 percent. A new Partnership Strategy between Uzbekistan and the European Bank for Reconstruction and Development has been adopted to expand the areas and scope of cooperation, primarily in such areas as small and medium-sized businesses, women’s entrepreneurship, alternative energy, digital technologies, and others. With the active support and direct participation of the EBRD, measures are being taken to prepare for the privatization of state-owned enterprises in Uzbekistan, major transactions have been implemented in the banking and financial sector, and the regulatory framework in the field of green energy, transport infrastructure, ecology and other priority areas is being improved. At the same time, the President of Uzbekistan noted the importance of the speedy preparation and implementation of new projects in the field of water supply, energy, road infrastructure, and the development of green cities.

Issues of further deepening cooperation between the two countries, expanding interaction in the field of trade, industrial cooperation, energy, transport and logistics, as well as intensifying interregional contacts and cultural and humanitarian exchange were discussed with the Chairman of the Cabinet of Ministers – Head of the Administration of the President of Kyrgyzstan Akylbek Japarov. Particular attention is paid to the practical aspects of the implementation of projects for the construction of Kambarata HPP-1 and the China-Kyrgyzstan-Uzbekistan railway.

During the meeting of the President of Uzbekistan with the delegation of Azerbaijan led by Minister of Economy Mikail Jabbarov, it was noted that last year trade turnover between the two countries increased by 27 percent, and from the beginning of this year by another 15 percent. Cooperation projects are being implemented in the automotive industry, energy, agriculture, electrical engineering, textiles, tourism and other industries. Nevertheless, the importance of further increasing the portfolio of projects was emphasized, including by attracting funds from a joint investment company.

The delegation of Saudi Arabia led by the Minister of Energy Prince Abdulaziz bin Salman Al Saud emphasized that currently the portfolio of joint projects has exceeded $30 billion, and the ACWA Power company is the largest investor in the development of the energy sector of Uzbekistan. During the meeting, the need to promote new projects in the field of information and communication technologies, agriculture and other areas was noted.

Our country’s cooperation in priority sectors of the economy with the UAE is developing dynamically. During the meeting of the head of our state with the delegation of the United Arab Emirates led by Minister of Economy Abdullah bin Al Marri, the increase in trade turnover, the number of joint ventures and the frequency of direct flights was noted with satisfaction. The portfolio of projects involving leading companies of the two countries has reached four billion dollars. Particular attention is paid to accelerating the implementation of large projects in the fields of energy, transport, logistics, agriculture, and water supply.

At the meeting of the President of Uzbekistan with the Minister of Trade, Industry and Investment Promotion of the Sultanate of Oman Qais bin Muhammad al-Yusuf, the existing potential for the implementation of projects in the fields of energy, transport, healthcare, tourism, geology, food, textile, chemical industries, including with the support of Uzbek-Oman Investment Company. An exchange of views also took place on the construction of the Trans-Afghan railway and the promotion of the Uzbekistan-Turkmenistan-Iran-Oman transport corridor.

The dialogues of the President of Uzbekistan with the heads of companies participating in TMIF were filled with constructive, specific content. Thus, at the meeting of the head of state with Naguib Sawiris, head of the Egyptian company Orascom Investment Holding, special attention was paid to the issues of attracting direct investment to implement projects in various sectors of the economy of Uzbekistan, including the mining industry, food production, tourism, construction , infrastructure development. In turn, Naguib Sawiris expressed his readiness to make every effort to increase Egyptian investment in the economy of our country.

During the meeting of Shavkat Mirziyoyev with the heads of leading European companies “Suez”, “Arsenale Group”, “Airbus”, “Linde”, the prospects for investment and innovation partnerships, the implementation of specific projects in the fields of water supply, civil aviation, production of building materials, tourism and others were discussed . Representatives of European business expressed their readiness to continue to participate in the implementation of important projects and programs in priority sectors of the economy of Uzbekistan.

Promising projects were discussed at a meeting of the President of our country with the heads of companies from China. In particular, aspects of the construction of the Olympic village in Tashkent, as well as expanding the portfolio of current projects in the field of energy, industry and infrastructure, were discussed with the chairman of the CAMCE corporation. The prospects for its participation in the development of green energy in Uzbekistan were discussed with the president of the Goldwind company, an agreement was reached on localizing the production of wind power components and accelerating the implementation of current projects. Issues regarding the implementation of projects for the construction of wind power plants in the Bukhara region, pumped storage stations and high-voltage power lines throughout the country were considered with the China Southern Power Grid. The President of Uzbekistan discussed with the Holley Group company the possibilities for the production of electricity metering devices in our country. An agreement was reached on the construction of a technology park in the Tashkent region with the involvement of large Chinese companies.

The direct dialogues that the President held with TMIF participants touched on many aspects of the country’s further socio-economic development. Mutually beneficial proposals and invitations to representatives of business circles from many countries to take part in the construction of New Uzbekistan have certainly been heard. This means that many participants of the third Tashkent International Investment Forum, having returned from Uzbekistan, will not only know more about the opportunities for their business in our country, but also look for ways to use these opportunities. Those who decide to interact with partners from Uzbekistan for the first time may, at the initial stage, plan to limit themselves to financial investments or participation in promising projects. Others will think about entering our market on their own with their services, products, and technologies. And those who already have experience working in our country will decide to expand their business and take on new projects.

Everyone will benefit from strengthening cooperation: foreign investors, companies, specific industries, and the domestic economy, which ultimately will largely ensure the achievement of the goals outlined in the Development Strategy of our country.

To progress – with amazing speed

As you know, there are exactly one hundred such goals in the Development Strategy. They are clearly marked. Within the framework of the investment forum at the plenary session, in the speech of the President and his meetings with the participants of the event, more attention was still paid to the strategic tasks to achieve these goals. But tactical decisions were discussed more during numerous panel sessions and round tables, at which specific steps for the development of Uzbekistan were considered, ranging from improving legislation, transforming the banking sector, many sectors of the economy and ending, for example, with issues of preserving the environment, cultural heritage and application artificial intelligence.

At the same time, panel sessions and round tables are interesting because at them foreign participants of TMIF shared not only their assessments of the state of affairs in our country, but also their vision of the prospects for the development of Uzbekistan, not only proposed solutions, but also expressed their readiness to actively participate in achieving the goals.

On the sidelines of the forum, the issue of creating an international financial center in Tashkent with the aim of transforming the capital of Uzbekistan into the leading financial center of the region, a competitive investment financial center for international business and investors, was widely discussed. In particular, during a round table dedicated to this issue, its participants noted the advantages of Tashkent in attracting global investors, factors of Uzbekistan’s investment attractiveness and the necessary conditions for increasing it. For example, Alena Dolgova, director of the analytical department of the International Finance Corporation, said that there are three main pillars for Tashkent as an international financial center. Firstly, this is the administrative and legal infrastructure, which is very important for investors. A key aspect is to provide investors with broad access to traditional financial methods and products. It is also expected that the emergence of Islamic banks in the region will become a strategic direction for Tashkent. And thirdly, the competitiveness of the economy. According to IMF estimates, annual GDP growth in Uzbekistan will exceed five percent by 2030. The country is developing rapidly and the capital provides a favorable environment for global investors.

“The Algorithm for Change and Resilience: The Role of Artificial Intelligence in Transforming Regional and Global Economies” was the topic of another panel session, where participants discussed the impact of artificial intelligence (AI) on the economy. It was noted that AI is important for optimizing processes, automating tasks and extracting valuable information, which is key to sustainable development and innovation. Participants at the event emphasized the urgency of adapting to the changes that artificial intelligence will bring in the near future, and the need to prepare for these changes to ensure development. For example, the former technical director of the investment bank Citigroup, Antonio Benjamin, focused on the dangers associated with the development of AI, and expressed the opinion that it is very important for Uzbekistan and any other country to have a national sovereign strategy in the field of artificial intelligence, which should embody the values, history and national traditions of the country.

During TMIF, its participants were introduced to the investment potential of not only the country, but also its regions. For example, investors were asked to pay attention to the fact that in 2023, 4.5 million tourists visited Tashkent, and this figure is growing from year to year. Therefore, there is a need for projects to create modern tourism infrastructure, including hotels. Also, representatives of business circles from different countries should be interested in the work that has begun on the project of a huge special industrial technology park “Yangi Hayot” with the creation of industry clusters, as well as a logistics center on an area of ​​one hundred hectares. Representatives of the Jizzakh region invited foreign investors to use the opportunity to launch a project worth $30 million for the production of building slabs from rocks, as well as establishing the production of disposable medical products worth $20 million in the Zomin Farm SEZ. In the Bukhara region, where there are a large number of sources of non-metallic materials, foreign investors can establish the production of building materials. Interesting proposals were made by representatives of the Andijan region. In particular, it was noted that annually the region purchases 55 tons of chocolate worth tens of millions of dollars. And why, given the demand, don’t investors create chocolate production in the region itself? There is also a great need in the region for the production of ceramic tableware and auto parts from kaolin raw materials, which may also attract the attention of investors. Confidence was expressed that these and other mutually beneficial proposals will not go unnoticed.

Many interesting offers to foreign investors were received during the presentation of the investment potential of such regions of Uzbekistan as the Republic of Karakalpakstan, Kashkadarya, Samarkand, Tashkent, Syrdarya and Khorezm regions.

In addition to those growth points in which foreign investors can invest in the regions of Uzbekistan, TMIF participants were also offered projects across the Central Asian region. For example, the construction of hydroelectric power stations in neighboring Kyrgyzstan and Tajikistan. Or the construction of a railway from Uzbekistan through Afghanistan to Pakistan, which will allow the states of the Central Asian region to gain access to the Indian Ocean and sea communications. This steel line will reduce the delivery time of goods from 35 to 5 days, and the cost of transportation will decrease by at least 40 percent. Another large-scale regional project is the construction of the China-Kyrgyzstan-Uzbekistan railway, the implementation of which will also reduce the time and cost of cargo transportation.

According to Mehmet Arif Ozozan, General Director of UCC Holding, Uzbekistan is an open country, and a friendly atmosphere for investors has been created here. This is a huge achievement for the republic, and the movement towards progress at such speed never ceases to amaze.

“We should be proud that Uzbekistan has achieved such great results in a short time,” says a businessman from Qatar. “This will increase the country’s attractiveness for international investors and attract their attention.

We can confidently state: the representative event initiated by President Shavkat Mirziyoyev, which presented the investment potential of New Uzbekistan, was successful. Our country will take a worthy place in the geography of investments of many foreign investors, which will contribute to the economic growth of the republic, the development of the social sphere, and the improvement of the well-being and standard of living of Uzbek citizens.