Tashkent, 14/06/2025
During TIIF2025, Uzbekistan showcased its commitment to economic modernization, investment attraction, and regional integration. Since the launch of its ambitious reform agenda in 2017, the country has made significant strides in liberalizing its economy, advancing sustainability initiatives, and strengthening global partnerships. In this exclusive interview, Ilhom Umrzakov, Deputy Minister of Economy and Finance of the Republic of Uzbekistan, discusses the nation’s key economic priorities, investment opportunities, and climate resilience strategies. He also highlights Uzbekistan’s growing role in Central Asia, particularly in trade and infrastructure development, and emphasizes the country’s efforts to create a dynamic, investor-friendly environment.
- Mr. Umrzakov, how would you describe Uzbekistan’s main economic priorities for 2025 and beyond? What sectors are receiving the most attention from the government?
Ilhom Umrzakov: Thank you for the question. Since the beginning of economic liberalization under President Mirziyoyev in 2017, Uzbekistan has embarked on ambitious reforms with a broad development agenda. As you know, we are following the 2030 development strategy.
By that time, we aim to become an upper-middle-income country. This is a set target, and we strongly believe in its feasibility. The President has emphasized that all measures should ultimately improve the well-being of the population.
Naturally, there are many questions about the process. However, the key metric we currently focus on is GDP per capita growth.
Since 2017, thanks to consistent and sometimes challenging reforms, the economy has doubled in size. In 2017, GDP per capita was approximately $1,700, whereas last year it reached about $3,200.
Despite facing several economic shocks, Uzbekistan’s economy has continued to grow and improve over the past seven years. Initially, the 2030 strategy aimed for GDP per capita to exceed $4,000, but last year, the target was raised to $5,000, officially placing Uzbekistan in the upper-middle-income category.
To achieve this, we must reduce the dominance of state-owned enterprises (SOEs) and empower small and medium-sized businesses, while fostering innovation, technology, and expertise. Attracting foreign direct investment (FDI) is a critical aspect of this strategy.
However, we recognize that infrastructure limitations pose a significant barrier to private sector growth and FDI inflows. The President’s approach is straightforward: provide reliable energy, water, and transportation, allowing businesses to thrive. This is a fundamental government responsibility, and substantial steps have been taken in this regard.
Among all sectors, energy generation has attracted the highest amount of FDI. Uzbekistan’s first renewable energy project, a solar power plant launched in 2019, initially faced skepticism from both domestic and international stakeholders. Today, the situation is completely different.
We have updated our Nationally Determined Contributions (NDC) twice, reinforcing our commitment to climate policies. Currently, Uzbekistan has signed $20-26 billion worth of agreements in the energy sector, with 80% allocated to renewable energy projects.
Looking ahead to 2030, our key focus remains enhancing the population’s well-being. To achieve this, we aim to decrease the role of the state by strengthening private enterprise and improving overall connectivity.
One major initiative is the “livable cities” concept, ensuring that every citizen has access to a high standard of living. Extensive urban development projects are underway, particularly outside of Tashkent.
Historically, Uzbekistan has relied on irrigation channels due to its dry climate. Unfortunately, these systems were neglected over time. Today, we are restoring them—ensuring clean waterways, better roads, and improved city infrastructure, thereby increasing urban attractiveness.
Another key priority is transport and logistics development. When we talk about connectivity, we mean digital infrastructure, roads, railways, and aviation. Several major projects have already been completed in these areas.
In terms of industrial expansion, Uzbekistan is investing heavily in tourism. We have introduced numerous incentives to promote this sector, leveraging our rich historical heritage.
And the results speak for themselves—tourism numbers are breaking records. April saw an all-time high, and May surpassed it. This sector still holds immense potential for further growth.
Agricultural efficiency is another focus area. Roughly half of Uzbekistan’s population lives in rural areas, with a significant percentage of young people. We are shifting from basic agricultural production to value-added food processing, promoting SMEs in this domain.
To enhance efficiency, we offer subsidies for modern irrigation technologies and incentives for cold storage facilities. We also encourage food manufacturing using locally grown produce.
Beyond agriculture, we are expanding our presence in critical industries, including mining and rare minerals, textiles and garments, and automotive manufacturing. These sectors continue to flourish and contribute significantly to economic momentum.
- Since the beginning of the reform process in 2017, what would you identify as the most significant achievements in liberalizing the Uzbek economy? And also, what about the critical raw materials? Because I’m from Brussels, and you know that for the European Union, the most important part of its relationship with Kazakhstan, Uzbekistan, and the EU is critical raw materials. In the media, this topic is not very popular, so maybe we have to describe it further—because for the European Union, these critical raw materials are essential for sustainability.
Ilhom Umrzakov : When reforms began in 2017, one of the most significant and widely recognized changes was the liberalization of the currency. Previously, Uzbekistan operated under a dual exchange rate system, making currency conversion complicated and discouraging foreign investment.
This was the first major step. Following this, several rounds of tax unification and tax decrees significantly improved the economic landscape. Privatization also played a key role, opening up new opportunities.
Overall, if I were to summarize, I believe the President has demonstrated that any reform can be implemented successfully, reinforcing principles of openness and transparency. This shift in mindset among both government officials and the general public has been pivotal in driving reform.
For instance, take energy sector reforms—their success was largely due to the government’s increased accountability and active engagement with the population. Recently, the IMF observed how remarkably well the Uzbek public accepted complex reforms, which would typically be met with resistance. Transparency and trust were key factors in this acceptance.
Now, turning to your question about critical minerals—this is not directly my field, but I’ll do my best to answer.
Historically, this sector was entirely dominated by state-owned enterprises (SOEs), operating in a relatively closed environment with limited public discussion. However, recent changes have allowed foreign companies to participate in exploration and research activities.
For example, Uzbekistan has now established an auction system enabling companies to bid for exploration rights. They can purchase land, conduct explorations, and—if they make significant discoveries—proceed to production.
3. Which sectors do you consider the most promising for foreign direct investment (FDI) ?
Ilhom Umrzakov: As I already mentioned, renewable energy is one of the strongest sectors. The energy industry alone has already attracted $27 billion, and last year, FDI reached a record $34 billion.
There is strong interest across multiple fields, especially with the introduction of public-private partnerships (PPP). These collaborations have significantly expanded investment opportunities across various industries.
If we look at agriculture, textiles, pharmaceuticals, and infrastructure, all of these sectors are thriving. However, one area where we still see untapped potential is high-tech industries. Moving forward, Uzbekistan aims to invest more heavily in advanced technology and innovation, fostering a competitive high-tech sector.
4. What kind of support mechanisms or incentives is your Ministry offering to international investors who wish to set up operations in Uzbekistan?
Ilhom Umrzakov: We offer law-based incentives to ensure a level playing field for both local and foreign investors. Initially, during the tax reform period, several incentives were introduced. Now, these benefits have been unified and standardized across all businesses.
One key example is our special economic zones (SEZs). While I don’t have the exact number, Uzbekistan has established multiple SEZs that offer tax breaks, customs exemptions, and full infrastructure support.
For investments exceeding $200,000, the government provides all necessary infrastructure, including tax incentives and import/customs benefits. Additionally, we guarantee business security, allowing investors to freely operate and repatriate profits.
Beyond financial incentives, we emphasize direct government cooperation with investors. Every major investment initiative has a designated focal point, ensuring hands-on support from government officials.
For example, in PPP projects, investors engage directly with the Ministry of Economy and Finance, and I personally meet with many of them. We don’t just say, “Come and invest.” Instead, we say, “Come—we’ll help you succeed.”
We streamline procedures, fast-track approvals, and offer direct assistance in overcoming challenges. This active collaboration, along with infrastructure support, ensures a smooth investment process.
5. Uzbekistan plays a growing role in regional economic integration. How do you see the country’s position within Central Asia evolving, particularly in terms of trade and infrastructure development?
Ilhom Umrzakov: Looking ahead, it is clear that regional cooperation is essential for economic success. Every country in the region understands that working alone is not an option.
Uzbekistan is a double landlocked country, meaning that all of Central Asia faces logistical challenges in reaching international markets. To access global trade routes, we must collaborate with neighboring nations.
Connectivity is no longer about individual countries—it is now from sea to sea. Without deep regional cooperation, it is difficult to achieve global competitiveness, as landlocked nations struggle with higher production and transport costs compared to coastal economies.
Countries across Central Asia increasingly recognize the need for stronger economic integration. The President of Uzbekistan has been actively promoting regional development, encouraging joint projects that enhance trade and infrastructure.
While I may not be an expert in this area, several major connectivity projects are already in progress:
- The China-Kyrgyzstan-Uzbekistan Railway, a critical transportation link.
- The regional electricity market, developed with support from the World Bank.
We understand that closer cooperation leads to greater economic benefits. Most major economic projects become feasible only through regional partnerships, maximizing growth and efficiency.
Additionally, Uzbekistan shares deep historical and cultural ties with its neighbors, fostering natural economic and diplomatic relationships. Since 2017, the country has undergone significant transformations, particularly in customs procedures and border controls, making trade easier and more accessible.
Even in the past three years, Uzbekistan has seen remarkable improvements in streamlining trade processes and boosting regional integration.
Derya Soysal : When you speak about connectivity and broader relationships in Central Asia, I think that for Europe, the Middle Corridor is crucial. I’ve noticed that Azerbaijan is closely aligned with Uzbekistan and Kazakhstan. Türkiye also maintains strong ties, which could help connect Central Asia to the sea and Europe through these nations. When discussing broader integration, Uzbekistan extends beyond the Caspian Sea, particularly to its western part.
Ilhom Umrzakov: Thank you very much for emphasizing this point. When I initially spoke about the region, I may have been thinking solely about Central Asia, but you’re absolutely right—we must expand our perspective.
The focus shouldn’t be just Uzbekistan—or even just Central Asia. We need to think bigger and acknowledge our strong cooperation among Turkic nations. Expanding this deep regional collaboration could drive greater economic growth, improving connectivity, trade, and investment opportunities. You made an excellent point—there is still considerable potential to strengthen these ties further.
6. How is the Ministry integrating climate resilience and environmental sustainability into national economic planning?
Ilhom Umrzakov: I realize now that, in my response about economic priorities, I missed a key point—climate resilience, sustainability, and efficiency.
If we look at Uzbekistan’s economy, we consume more energy per dollar of GDP than most countries. It’s a highly energy-intensive economy, yet efficiency remains low.
Today, green transformation, energy transition, and sustainability are top priorities across all sectors. From an economic perspective, adopting green practices allows us to use resources more efficiently while creating new industries, generating jobs, and accelerating economic growth.
We are fully committed to the green agenda, not only supporting it but actively leading numerous initiatives. We continue to increase our sustainability goals, updating our targets over time.
For example:
- Initially, our commitment was one unit of responsibility by 2030.
- After two years, we doubled our goal.
- Now, we aim for four units by 2030.
- By 2030, 50% of our energy consumption will come from renewables.
- By 2050, Uzbekistan is set to achieve its direct carbon neutrality goals—possibly even earlier.
Beyond energy efficiency, water management is another urgent challenge. As a water-scarce nation, Uzbekistan must improve its water usage and sustainability. Advanced irrigation technologies like drip irrigation, rainwater harvesting, and hydroponics are gaining traction, even in rural areas.
Additionally, green industrial standards are now in place. This spring, four presidential decrees were introduced to enforce energy efficiency requirements across major SOEs:
- By the end of this year, all industries must reduce their energy consumption per unit of output by 5%.
- This target will continue increasing each year.
- The goal is not just sustainability—it’s about competitiveness. If an industry fails to meet energy efficiency goals, it risks losing its competitive edge.
These efforts help businesses cut costs, enhance efficiency, and drive innovation while achieving environmental sustainability.
7. What message would you like to convey to international investors attending TIIF 2025? Why should they choose Uzbekistan as their next investment destination?
Ilhom Umrzakov: The message is simple: Come to Uzbekistan—it’s the right time and the right opportunity.
Early investors always gain the advantage, so we invite businesses to explore Uzbekistan now. We aren’t just promising opportunities—we’re delivering results. That’s why FDI continues to grow year after year.
Why do investors keep coming? Because Uzbekistan guarantees success—not through empty promises, but through law-based protections.
We offer tremendous untapped potential in several industries, including:
- High-tech sectors, particularly digital data and cloud computing.
- Agriculture, where modern technologies can significantly improve productivity.
This is the perfect time to launch projects in Uzbekistan, maximize returns, and benefit from rapid economic growth.
Beyond investment, we encourage visitors to experience Uzbekistan’s rich historical cities—which remain largely undiscovered—and enjoy some of the best food in the world (in my opinion!).
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CONCLUSION:
As TIIF2025 brought together global investors and policymakers, Uzbekistan reaffirmed its position as a rising investment destination in Central Asia. With progressive reforms, legal protections for businesses, and a focus on sustainability and infrastructure, the country offers a wealth of opportunities for foreign direct investment. Strengthening ties with neighboring nations and expanding connectivity beyond the Caspian Sea, Uzbekistan is paving the way for economic growth and regional cooperation. As Mr. Umrzakov aptly states, “The time is right to invest, explore, and be part of Uzbekistan’s growth story.”
