At the TASHKENT INTERNATIONAL INVESTMENT FORUM (TIIF 2025), Farkhod Ermanov delivered a powerful message about Karakalpakstan’s growing role in regional and global commerce. Situated in the heart of Central Asia, this region of Uzbekistan is leveraging its natural wealth, strategic location, and progressive policies to attract investment and international cooperation. This trip was promoted by Saida Mirziyoyeva during TIIF 2025.
With a population of 2 million and a gross regional product of $3.5 billion, Karakalpakstan posted $1.6 billion in foreign direct investment in 2024 alone. Foreign trade turnover reached $681.6 million, reflecting dynamic growth and deepening global ties. Enterprises from China, Russia, Türkiye, Cyprus, and Saudi Arabia have already planted roots, drawn by favorable tax regimes and investor protections.
The region has made significant progress in industrial development. Over 1,400 investment projects were implemented in 2024, spanning light industry, mining, infrastructure, and tourism. Textile exports surged to $41.1 million, underlining Karakalpakstan’s push toward high-value manufacturing, while export growth overall soared by nearly 129% compared to the previous year.
Fueling this transformation is the Uzbekistan 2030 Strategy, a national roadmap focused on economic modernization, legal reform, and human capital development. Karakalpakstan is aligning closely with this vision, offering reduced tax rates, customs exemptions, and legal guarantees that protect investors for a decade, even amid policy shifts.
Natural resources remain a powerful draw. The region holds extensive deposits of hydrocarbons, minerals, and construction materials, and geological exploration continues apace. Investors interested in raw material processing and value-added manufacturing are finding ample opportunity, with streamlined access to land through the “E-AUKSION” electronic platform.
Karakalpakstan also benefits from strong logistics infrastructure. As a key junction along the Great Silk Road, the region offers fast, multimodal shipping to CIS and European countries. Nukus, the regional capital, is connected by road and rail to major trade hubs, strengthening its appeal as a logistical crossroads.
Participation in the EU’s GSP+ preferential trade system allows Uzbekistan to export thousands of goods duty-free. Since joining the scheme, trade with the EU has surged by 22%, signaling immense potential for European engagement.
With a clear commitment to rule of law, investor confidence, and economic inclusivity, Karakalpakstan is stepping confidently onto the world stage. As Ermanov concluded at TIIF 2025, “We are creating all the conditions for attracting investment and successful business development.” The region is not just open for business—it is charting a bold course toward prosperity.
