Uzbekistan emphasizing FDI diversity

Wary of becoming overly dependent on Chinese and Russian investment, Uzbekistan is working with firms from Saudi Arabia and South Korea to develop infrastructure projects promoting efficient water management and the expansion of trade.

In early October, Uzbek officials inked a deal with the Saudi-based entity Miahona to take over the management of five wastewater treatment plants in the Ferghana and Jizzakh regions, along with an option to build up to four more plants in other areas. 

The Miahona agreement is just the latest in a series of investments by Saudi companies in Uzbekistan’s “green” agenda. In May, the Trade & Investment Ministry announced three deals with Saudi firms worth almost $10 billion, including the construction of a wind power plant in Karakalpakstan projected to generate 5 Gigawatts of power, the establishment of a data center in Tashkent based on “green technologies” and the modernization of heating infrastructure in various cities, including Nukus, Ferghana and Quvasoy.

Meanwhile, Tashkent is turning to South Korea to develop two “dry ports” designed to speed trade along the Middle Corridor route connecting China and Europe. The new trade hubs are planned to take shape in the Syrdarya and Jizzakh regions. Feasibility studies are expected to take about a year to complete, according to officials at the Uzbek Transport Ministry.

“Implementation is expected to significantly improve the logistics infrastructure of Uzbekistan, strengthening its role as a key transport hub in Central Asia, and attract new investments to the region,” the semi-official news outlet UzDaily reported.

During the first quarter of 2024, China and Russia ranked one and two in Uzbekistan’s foreign-direct-investment standings, accounting for almost 37 percent of total FDI during the reporting period. Since then, Uzbekistan has sought to diversify its FDI investors. Saudi Arabia’s overall investment portfolio in Uzbekistan has reached $30 billion, according to the official website of Uzbek President Shavkat Mirziyoyev. Meanwhile, Uzbekistan signed a series of preliminary agreements in June with South Korea worth potentially $9.6 billion, on top of existing investments worth an estimated $7.5 billion.

Source:Eurasianet