Uzbekistan has risen to 69th place from 141st in the Doing Business ranking over six years, establishing itself as a new investment hub in Central Asia.

Economic Growth in Uzbekistan: Stability and Positive Outlooks

The economy of Uzbekistan is showing impressive growth. The average annual growth rate over the last 10 years has been 6%, with a forecasted growth rate of 5.6% for 2024. The country has achieved a reduction in inflation to 8.8% — the lowest figure in five years.

«We see significant progress. The global Doing Business ranking shows that in six years, Uzbekistan has moved up from 141st to 69th place. This reflects the considerable efforts made to improve the business climate», emphasized Javid Abdullaev, founder and director of Advizen Consulting.

The economic potential of Uzbekistan continues to attract the attention of global businesses. With tax incentives, support for small and medium enterprises, and financial sector reforms, the country is becoming an increasingly attractive destination for international investments, whose potential was unveiled at the first event of the Bosco Conference in Tashkent — InvestPro Uzbekistan Tashkent 2024.

The Bosco Conference brought together investors, professionals, and business leaders from around the world to explore current trends in the international market. At the conference, representatives from consulting, investment, and financial companies such as Passportivity, Quadrantis Capital, Apex Capital Partners, KDB Bank Uzbekistan, TAVANA Group, Hellenic Investment Fund, and others shared strategies for integrating global investments into local markets in both Uzbekistan and Central Asia, revealing the development prospects of key sectors in the country: finance, IT, and real estate.

Uzbekistan — A Cultural Center and Economic Gem of Central Asia

Uzbekistan, with its rich history and culture, draws the attention of international businesses. It is often referred to as the “Pearl of the East” due to its unique geographical location and cultural heritage.

«Uzbekistan is a country with a rich history and culture, located in the very heart of Central Asia. Today, the country is experiencing a period of dynamic development that opens up vast opportunities for investors from around the world», noted Javid.

A Young and Productive Population — A Key Resource for Uzbekistan

With a population of over 37 million people and a high percentage of youth (60% under the age of 30), Uzbekistan possesses significant human capital. 56% of the population is of working age, making the country attractive to investors.

«A young, ambitious, and motivated population is Uzbekistan's main asset. It plays a crucial role in economic development», added Abdullaev.

IT Industry: Growth Opportunities in Uzbekistan

The information technology sector in Uzbekistan is rapidly developing. The establishment of IT parks and the provision of incentives for IT companies are contributing to the growth of IT service exports. According to forecasts, by 2030, export volumes could reach 5 billion dollars.

«The volume of the Uzbek IT market currently accounts for only 0.03% of the global market, but this opens up huge prospects for international cooperation», noted Javid.

Tourism and Legalization of Gambling in Uzbekistan

Uzbekistan is actively developing its tourism sector, planning to legalize gambling starting from 2025. This step is aimed at attracting new investors and tourists.

«The gambling business already exists in a shadow format. Legalization will allow the government to regulate this sector, ensuring the protection of citizens», noted the expert.

Special Economic Zones: An Incentive for Investors

Uzbekistan has established special economic zones (SEZs) that offer unique conditions for residents. Benefits include exemptions from property taxes, land, and water resources for up to 10 years.

«SEZs provide companies with opportunities to operate in foreign currency and establish international business relations», noted Abdullaev.

Green Energy: A Path to Sustainable Development for Uzbekistan

The renewable energy sector is actively developing, with Uzbekistan planning to achieve 40% of total electricity production by 2030.

«The potential for solar and wind energy in the country exceeds current needs by 10-12 times. This is a promising direction for investment», noted the expert.

Privatization: New Opportunities for Business in Uzbekistan

Uzbekistan is selling 250 state enterprises and thousands of real estate properties, as well as conducting IPOs for 12 companies. This makes the market open and attractive for international investors.

«Privatization creates more opportunities for private business, simplifying the process of acquiring assets through auctions and offering favorable installment terms», emphasized Javid.

Challenges and Barriers for Investors in Uzbekistan

Despite the successes, Uzbekistan still faces legal and regulatory barriers. Challenges include data localization requirements, transfer pricing, and high initial investment thresholds.

«These challenges create additional costs, but addressing them will attract more foreign investors», noted the expert.

Uzbekistan is a country with immense investment potential, ready to offer attractive conditions across various sectors, as concluded by the speakers from consulting firms and investment funds. A young population, a dynamically developing economy, and government support for business position the country as a new investment hub in Central Asia.

«Now is the right time to invest in Uzbekistan, while the market has not yet become oversaturated and competition remains low», concluded Javid Abdullaev.