The International Business Review team arrived in Tashkent, Uzbekistan just a day before the 3rd Tashkent International Investment Forum, on a mission by the Embassy of Uzbekistan here in Malaysia. The mission was to capture the essence of what the President of Uzbekistan had to say to the global investors at the two-day Forum and ensure our readers understood more about Uzbekistan and all it had to offer to the world.
We were in Tashkent for 3 days and after that, took a two-hour bullet train to Samarkand. Throughout our trip, we met Ministers, Mayors and key stakeholders.
We were hosted to witness their wonderful culture, tasted their delectable cuisines and experienced their outstanding hospitality.
There is a certain kind of magic in Uzbekistan.
It’s an ancient land, rich with historic values and unbelievable beauty.
It has citizens who are descended from legendary warriors and leaders, as well as scientists and thinkers, and so there is an innate strength and stoic pride in the way they hold themselves, a certain confident grace with which they welcome foreigners and conduct business.
It is a blessed country, not just rich with commodities like gold, copper, uranium, oil & gas, but also rich with culture, traditions and sophisticated mannerisms that set them apart from the cities of other worlds.
The word that comes to my mind is … balance. This is a country balanced in a perfect state of equilibrium. The old and new. The modern and traditional. The calm outer resolve and the deep inner ambition. The old world charm and new world sophistication.
There is no hurry, but a steady increase in an end objective. To prosper the people and prosper the economy.
And that’s what brought us here to the Tashkent International Investment Forum 2024. To understand what the world can expect when it comes to business opportunities in Uzbekistan.
We will start with the Presidential address.
The Keynote Address
The story of Uzbekistan’s rich promise and potential… how it is gearing up to be a major force in Central Asia; connecting – as it did in the past – Asia and Europe, is one of the most exciting ones today. And it is being written thanks to one man – H.E Shavkat Mirziyoyev, the President of Uzbekistan, whose vision and dynamism is driving the country forward.
Under his leadership, Uzbekistan is embarking on the “Uzbekistan – 2030” strategy, which aims to “build a free and prosperous, strong New Uzbekistan”. To achieve that goal, partnerships need to be formed. And this was the crux of President Mirziyoyev’s speech at the opening of the 3rd Tashkent International Investment Forum.
As he said, “Today there is an unparalleled struggle for investors in the world. However, one immutable fact is becoming ever more clear: no country can solve such problems alone. The spirit of mutual trust and respect, and the principle of mutual support remain solid pillars of long-term cooperation.”
If there is one word to describe the President’s speech, it would be “eye-opening”. That was how we felt when we heard him talk about Uzbekistan’s development journey. Of how the country embarked on a journey, seven years ago, to revitalise the economy and create a favourable investment and business environment, which would spur investors and entrepreneurs in the country.
Minister of Agriculture of Uzbekistan
Hon. Ibrokhim Abdurakhmonov
A prize-winning scientist, the Hon. Ibrokhim Abdurakhmonov is utilising his experience in biotechnology and genomics to enhance Uzbekistan’s food security. This includes tackling the effects of climate change and water scarcity in Uzbekistan by developing plants that are resistant to heat and disease, and which do not need as much water.
Aside from increasing food production, the Minister also aims to increase Uzbekistan’s agriculture exports. Presently, the country produces around 24 million tonnes of fruits and vegetables, yet only exports 6 million tonnes.
As such, he urged Southeast Asian nations, which import under US$1 billion worth of produce from Uzbekistan each year, to further open up their markets and welcomed investors from the region to come partner with them in sharing innovations and knowledge.
“We invite investors, policy makers, agriculture sciences from Southeast Asia to Uzbekistan. This is a historic moment where we are opening up our country because of our President’s vision, and there are many opportunities here.”
There was no mistaking the pride in President Mirziyoyev’s voice, as he spoke of the progress that Uzbekistan has achieved since then. These include GDP growth of 6% and inflation of under 9% in 2023, which reflects the increasing stability of the economy and currency.
He also highlighted a number of wins for Uzbekistan, such as the influx of foreign investments of around US$60 billion, in addition to contributions of US$14 billion from multilateral financial institutions to social and infrastructure projects. These include investments and ventures in the field of energy, chemicals, construction, electrical engineering and automotive from major MNCs. These include Acwa Power from Saudi Arabia, China Energy from China, Masdar from the UAE, Indorama from Singapore, Orano from France, and KIA and Samsung from South Korea, to name a few.
“Together, we have initiated over 300 investment and industrial projects, and created hundreds of thousands of new jobs.”
H.E Shavkat Mirziyoyev, the President of Uzbekistan
As we listened to President Mirziyoyev’s speech, one thing was abundantly clear. Uzbekistan is on the rise. And it is doing so by opening its doors to investors, implementing policies that enhance privatisation initiatives, and creating a favourable climate for entrepreneurs as well as strengthening public-private partnerships.
It was inspirational to hear the vision from the man himself. To sit in the audience, along with 2,000 attendees from 93 countries, as President Mirziyoyev emphasised the areas which Uzbekistan aims to focus on.
Areas such as energy, particularly hydroelectricity. Such as banking, in particular digital banking and capital markets. Such as minerals, especially gold, copper, tungsten, silver, and uranium, as well as rare earths. Such as digitalisation, ICT, transport infrastructure, the last of which includes ambitious plans to have railway lines connecting Uzbekistan with China, Kyrgyzstan, Pakistan and Afghanistan.
We shall end this section by quoting from the President as he concluded his address.
“Investments are the engine of our country’s transformation and the strongest driver of our economic development. I am confident that today’s International Investment Forum and its fruitful discussions will lead our practical cooperation to a completely new, even higher level, in terms of quality and content.”
Highlights from Panel Discussions
Throughout the two-day event, various panel discussions were held, touching on a number of areas in which Uzbekistan is demonstrating great potential. International Business Review was present for some of them, and we showcase some of the choice quotes from these sessions.
Held on the first day of the Forum, the panel session “Why Invest in Uzbekistan?” brought together top executives from companies that have established themselves in the country, who highlighted the reasons why they decided to venture into the country.
“Uzbekistan has a very friendly and open atmosphere. A growing consumer market, the possibility of constant labour force renewal, strategic location in transport corridors between Asia and Europe, tariff-free access to the EU market for more than 6,000 products, rich natural resources create favourable conditions for business and investors.”
Mehmet Arif Ozozan, CEO of UCC Holding from Qatar
“This country is run with foresight. Talking to the leadership and ministers, you come to the conclusion that these are the partners who give me confidence. They know the ins and outs. They understand what they want to do in their country.” shared Omar N. Al Midani, President and CEO of Vision Invest from Saudi Arabia.
In another Panel Session “Fintech in Uzbekistan: Current Trends of Development”, panellists, comprising industry experts, discussed how Uzbekistan has the capability to become the fintech innovation hub of Central Asia, owing to strong government support and well-developed infrastructure.
“Uzbekistan enjoys a mobile penetration rate of 90% and internet penetration rate of 77%. The Digital Uzbekistan 2030 strategy, with its focus on financial inclusion and digital transformation, was also identified as a key factor in positioning Uzbekistan as a fintech hub, as it will create a favourable environment for technology companies to base themselves in the country.”
Nargis Dustmatova, Director of the Fintech Association of Uzbekistan
Uzbekistan’s plans for its energy sector were revealed during the session “Investments in Green Energy: Creating a Sustainable Future”.
“The country’s new vector of development has opened the door to green energy. Today we cooperate with leading players and by 2030 Uzbekistan will create 20 gigawatts of renewable energy capacity, bringing its share in the energy balance to 40%.” The Hon Umid Mamadaminov, Deputy Minister of Energy of Uzbekistan, revealed.
Deputy Minister of Energy of Uzbekistan
Hon. Umid Mamadaminov
As Uzbekistan’s Deputy Minister of Energy, the Hon. Umid Mamadaminov is responsible for overseeing the nation’s sustainable energy initiatives. In particular, Uzbekistan aims to have renewables account for at least 40% of the grid by 2030, which will come primarily from wind and solar power.
This will take generation capacity from 20GW to more than 40 GW. In addition, this will also enable Uzbekistan to export power to its neighbours, with the long-term goal of forming interconnections leading to Europe.
The Deputy Minister admitted that various challenges have to be overcome in order to achieve all that. As such, Uzbekistan is working with international partners such as Saudi Arabia’s ACWA Power and China’s Goldwind. He also expressed his wish for more collaborations with Southeast Asia, particularly in the exchange of talent and education, which he said is key to ensuring the realisation of plans.
The session “Investment Projects in Infrastructure” highlighted efforts to enhance road, rail and air infrastructure in Uzbekistan, as panellists discussed investments worth US$18 billion to build new roads and railways across the country as well as to upgrade Urgench International Airport.
“The Trans-Afghan railroad will help link three countries-Uzbekistan, Afghanistan and Pakistan, and plays an important role in creating a Eurasian transportation corridor. Central Asian countries will have access to the Indian Ocean port. Delivery time of goods will be reduced from 35 to 5 days and cost of goods delivery will be reduced by at least 40%.” – the Hon Jasurbek Choriev, Deputy Minister of Transport of Uzbekistan.
All in all, Uzbekistan is truly the land of confident reforms and stable growth with new opportunities and colossal prospects. Seven years of dynamic reforms, led by H.E President Shavkat Mirziyoyev, have revitalised the nation.
Through the discussions, partnerships and agreements forged during the 3rd Tashkent International Investment Forum, Uzbekistan is set to embark on the next stage of its journey. Not only in transforming itself but in leading the transformation of Central Asia as a whole.
International Business Review would like to thank the government of the Republic of Uzbekistan and the Embassy of Uzbekistan for inviting us to the Tashkent International Investment Forum. Follow us in the next edition of International Business Review for Uzbekistan! Part 2 – the natural beauty of Uzbekistan, the splendour of her architecture, her breath-taking mountains, waterfalls, beaches, forests and her mesmerizing culture and traditions that make this a touristic dream.
