Uzbekistan's positioning in global trade: challenges and opportunities.

Unique and distinctive Uzbekistan, with its rich history, natural diversity, and hospitable people, still remains insufficiently known to the world. This is reflected in the thoughts of Suvra Chakraborty — a world-class entrepreneur, international trade consultant, and founder of AMC Overseas (UAE).

It would not be an exaggeration to say that the world is yet to discover modern Uzbekistan in all its true beauty and significance.

So many people around the globe are unaware of the pristine beauty, green landscapes, and youthful energy that define this country. Millions have yet to be enchanted by the warmth and hospitality of the Uzbek people – a feeling that captivates me every time I visit this nation.

My aim is to determine Uzbekistan’s place in today’s context of global food trade.

Nature has blessed the country with shining sun and excellent climate, which help produce arguably the most delightful fruits and vegetables in the world, yet they are currently available only to the fans of post-Soviet states and neighboring countries. It is time for the whole world to savor the taste of Uzbekistan.

I live in Dubai, amidst vast deserts where the arid embrace of sands offers little in terms of food production. The UAE and the Middle East as a whole are net importers of almost everything that we, the residents, consume daily and serve to our guests.

Consider the figures for 2023: Dubai, with its 3 million residents, welcomed 16 million tourists. Thus, the country is a major buyer of all things good and competitive. The food security of the CIS countries is of paramount importance, with import food expenditures exceeding $53 billion. If we look at the MENA region, the numbers are even larger, reflecting a growing trend. Meanwhile, the demand from the African continent for imported food continues to soar, reaching staggering amounts of over $100 billion.

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If you visit the supermarkets in Dubai or Riyadh, you will find a plethora of fruits from distant countries like Chile, Ecuador, or South Africa. In comparison, Tashkent is just 3.5 hours flight away from Dubai. In an era where Covid emphasized the value of proximity, I wonder why Uzbek products appear sporadically in Dubai rather than being a staple in our local supermarkets?

My professional career began in Ukraine in 1991, where I was appointed by a trading company based in Singapore. Captivated by the opportunities in the newly independent country, I embarked on an entrepreneurial journey in 1996 by founding my own venture AMC OVERSEAS. Since then, my team and I have exported products from the Black Sea region to approximately 100 countries on all continents, visiting about 75 of them in the process.

As an experienced global entrepreneur and practitioner of international trade, I recognize that several strategic directions could propel Uzbekistan into the ranks of a true global player:

Diversification of Uzbekistan's Market

In a world where change is the only constant, this axiom holds particularly true for markets and marketing. While it is crucial for Uzbekistan to maintain its market share and recognition in historically developed markets in the neighboring region and the CIS, it is equally important to expand into new, unexplored markets.

Analyzing demographic trends, consumer strength, ease of doing business, and the inherent strengths of Uzbek products makes it clear that the markets of the Middle East and MENA regions are poised to become centers for Uzbekistan's commercial expansion. Based on my extensive experience traveling and developing business across different parts of the African continent, I feel that it is time to start connecting the dots with this young and dynamic region.

Country Recognition and Storytelling — the power of storytelling can captivate audiences of all ages when executed masterfully.

In the mid-nineties, I began promoting high-quality fine chemicals from the CIS countries. The company Zarya in Rubizhne (Luhansk region) produced a very high-quality product called PNT (para-nitrotoluene). This niche chemical had very few global producers, and the German giant BAYER long dominated the Asian markets of China, India, and Japan.

When we undertook the project of selling PNT in China, the biggest challenge we faced was not the typical issues of price or quality. Instead, it came from a different and intriguing angle. The country “Ukraine” had only existed for a few years, and its existence was practically unknown in the more isolated regions of China where most chemical plants are located. This ignorance led to considerable skepticism regarding Ukraine’s reliability as a sustainable alternative to a well-established German competitor. Moreover, our company was also a completely new player without significant global credentials to boast about.

I realized that without compelling arguments in favor of the producing country, our product had little chance on the market.

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Dmitri Mendeleev came to my aid. I shared with my Chinese clients that all modern chemistry begins with the Periodic Table of Mendeleev, and that the professor not only lived and worked in Kyiv, but also founded the chemical department at the famous Kyiv Polytechnic Institute (KPI). Visiting the institute, one can see a bust of this iconic chemist as a testament to his legacy. Since my audience was well-versed in chemistry, this reference resonated immediately, allowing them to perceive the country as one with a profound understanding of chemical sciences.

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Then I shared the story of another world-renowned figure, Igor Sikorsky, famous for his pioneering developments in helicopter technology. I photographed the building on Turgenev Street in Kyiv where he once lived, next to our office.

Such stories had a magical effect on the minds of my potential buyers, making them realize: while they might not know much about the country of origin, its deep knowledge in the fields of chemistry and engineering, crucial for producing excellent products, was indisputable. Over three years, we successfully expanded our market presence in China, India, and Japan, matching the entire monthly production capacity of the plant with demand.

The same flexible skills became instrumental again when we started selling sunflower oil in the Middle East and beyond to the countries of Central and East Africa. To effectively sell the product, it was necessary to first “sell” the country. This plays a crucial role when entering the global market with products from relatively lesser-known countries. We must acknowledge that the “new” Uzbekistan has only been on its path for 7 years, and it needs such compelling stories to attract attention and build trust in the global market.

Historically known cities like Samarkand and Bukhara, along with great scholars such as Ulugh Beg, Al-Khwarizmi, or Navoi, provide a rich fabric from which to weave captivating stories that resonate with the context of your product or service. Similarly, modern global personalities, such as famous FIFA referees or outstanding young chess grandmasters, can enrich the narrative when integrated correctly.

Culture can easily open doors that business cannot.

The Landlocked Mindset:

When going global, we cannot overlook the geographical position of the country.