The President of Uzbekistan visited the BYD Uzbekistan Factory in the Jizzakh region and signed the first cars that rolled off the assembly line.
This is the first stage of a $160 million project. The plant currently produces two models of the brand’s cars. Theannual production capacity of the first stage is50 thousand units.
Thesecond stage of the $300 million project is expected to increase production to 200 thousand electric vehicles per year (in 2027-2028), 350 thousand in 2028-2029, and the third stage of the $500 million project will increase productionto500 thousand electric vehicles (starting in 2030).
For reference: In January-May 2024, Uzbekistan produced a total of 162,608 units of cars. Source – UzAUTO.
The joint venture has been provided with modern industrial infrastructure and nearly 2 km of railway tracks have been laid. The plant has modern equipment and robotic systems from China. The production process is automated. A laboratory for high-precision inspection of the geometric dimensions of electric vehicles has been set up.
As the number of electric vehicles increases, the level of localization is expected to gradually increase. First of all, the production of bumpers, glass, lacquered and plastic parts will be launched. In the future, it is planned to produce batteries, electric motors, aluminum parts, tires and seats.
In the future, the plant plans to export electric vehicles to Kazakhstan, Kyrgyzstan, Turkmenistan, Afghanistan, and Azerbaijan.
BYD, CARS, PLANT, UZBEKISTAN
Uzbekistan is discussing a possible decrease in the flow of labor migrants to Russia due to the growing demand for labor within the country. This was stated by Alisher Ruziyev, head of the Department of the Agency for External Labor Migration under the Ministry of Employment and Poverty Reduction.
In recent years, the number of labor migrants from Uzbekistan to Russia has decreased from 4-6 million to one million. According to the press secretary of the President of Uzbekistan, Sherzod Asadov, this negative trend is due to the success of the reforms being implemented in the country.
He noted that Uzbekistan is currently experiencing a construction boom, so workers’ salaries have already approached the level of some facilities in Russia. This leads to a situation where many citizens may not see the point in labor migration to Russia because salaries in the country are becoming more competitive, AN Prime reports.
In addition, it is noted that in recent years, the Agency for External Labor Migration has expanded the geography of employment of Uzbek citizens abroad, which has helped to meet the demand for labor in Europe. This is part of the agency’s strategy to adapt to changing labor market conditions.
According to official data, about two million Uzbek citizens are working outside the country, including about one million in Russia, which is about 20% of the economically active population.
According to the Statistics Agency of Uzbekistan, as of June 15, 2024, the country’s resident population reached almost 37.1 million people.
For comparison, as of April 1, the number of residents of the republic was less than 37 million, indicating a population increase of almost 133 thousand people over the past 2.5 months.
Statistics also show that the number of men in Uzbekistan exceeds the number of women. In particular, there are 18.6 million men in the country, while there are 18.4 million women.
Active Group and Experts Club have conducted a joint study on the attitudes of Ukrainians towards the countries of East Asia and the Middle East. The study was presented at the Interfax-Ukraine news agency in June 2024. The research was presented by Maksym Urakin and Oleksandr Poznyi. The results of the study are as follows:
The results of the survey are as follows:
Completely positive – 7.7
Mostly positive – 32.1 %.
Mostly negative – 17.9
Completely negative – 3.8%.
Difficult to answer – 38.5%.
Positive – Negative – 17.9
Diplomatic relations between Ukraine and the Republic of Uzbekistan were established on August 14, 1992. The Embassy of Uzbekistan in Ukraine has been operating in Kyiv since April 1995.
The joint research by Active Group and Experts Club on the attitudes of Ukrainians towards the countries of East Asia and the Middle East was conducted in April-May 2024. It covers such countries as Turkey, Iran, Israel, Egypt, Jordan, Saudi Arabia, UAE, Afghanistan, Pakistan, Azerbaijan, Uzbekistan, Turkmenistan, Kyrgyzstan, Tajikistan, Kazakhstan, Georgia, Armenia, India, China, Republic of Korea, DPRK, Japan, Vietnam, Indonesia, Syria, and Iraq. Full information on the research is available on the website of the Club of Experts at
International rating agency S&P Global Ratings has affirmed Uzbekistan’s long-term sovereign credit rating at “BB-” with “stable” outlook, the agency said in a statement.
The short-term credit rating was affirmed at “B”.
According to the agency, at the next stage of reforms implemented in Uzbekistan, the new tariff policy aimed at ensuring energy security and efficiency, and the reduction of budget subsidies deserve special attention.
S&P notes that the “Uzbekistan – 2030” strategy attracts investments in transport, telecommunications, agriculture, tourism and other sectors, reforms the energy sector, privatization and improvement of fiscal policy.
Thanks to investments in electricity and gas production, green energy and mining, as well as reforms aimed at creating a market economy, S&P forecasts Uzbekistan’s GDP growth to average above 5% per year in 2024-2027.
According to S&P estimates, gradual reduction of the budget deficit will be achieved starting from 2024 by increasing the targeting of subsidies and social spending and abolishing some tax exemptions.
The report also notes that the law “On State Debt” sets the upper limit of state debt and there are annual limits on newly attracted foreign debt.
According to the agency’s report, Uzbekistan’s sovereign credit rating may be upgraded and the outlook may be improved if reforms lead to higher-than-expected economic growth in the medium term and have a positive impact on the sector’s fiscal and external indicators.
Factors downgrading the country’s credit rating are the rapid growth of the country’s total external debt, increased fiscal and balance of payments risks due to failure to achieve the expected results of projects financed by external loans.
The III International Investment Forum (IIIF) successfully completed its work in Uzbekistan. The event gathered more than 2.5 thousand participants from 93 countries, providing a platform for global dialog and exchange of best practices in the investment sphere.
One of the key events of the forum was the presentation of regional energy projects (construction of Kambarata HPP-1 and Javan HPP) to foreign investors. The presentation was held with the participation of the Prime Ministers of the Republic of Uzbekistan and the Kyrgyz Republic, which emphasized the importance of these projects for the entire region.
The forum attracted the attention of international media and was covered by more than 110 foreign publications from 30 countries, including the world’s leading media: “CNN”, “Euronews”, “London Post” and “Associated Press”.
As a result of TMIF, agreements totaling $26.6 billion were signed, which is evidence of Uzbekistan’s high investment attractiveness and the success of the forum. For comparison, 167 documents worth $11 billion were signed at TMIF in 2022, which demonstrates a significant increase in investment interest in the country.
In particular, agreements were reached on the realization of the following major investment projects:
– “Data Volt” from Saudi Arabia will be engaged in the construction of urban infrastructure in “New Tashkent” for the amount of $1 billion, as well as create a “data center” based on green technologies for the amount of $3 billion.
– Saudi Arabia’s Acwa Power is implementing projects to build a 5 GW wind farm in the Republic of Karakalpakstan and create 2 GW of electricity storage capacity for a total of $6.2 billion.
– UAE-based Amea Power will implement a $1.1 billion project to build a 1,000 MW wind farm in the Republic of Karakalpakstan.
– Saudi Tabrid will start modernization of the heat supply system in Nukus, Fergana and Kuvasai at a cost of $750 million.
– Egypt’s Nil Shugar will grow sugar beets and produce sugar in Jizzak oblast at a cost of $500 million.
– The Chinese company Shanghai Knud International is implementing a $205 million project to produce textile and garment products in Namangan region.
– The company “Wilmar International” (Singapore) will produce food products and confectionery in Tashkent region to the amount of $200 million dollars.
In addition, the forum reached agreements with a number of the world’s largest companies, such as “Orascom Investment” (Egypt), “Bonafarm Grup” (Hungary), “Sayar” (USA), “Goldwind”, “Sinoma” (China), “Sam Yapi” (Turkey), “Pasha Development” (Azerbaijan), “Lasselsberger” (Austria), “Petrosat Chexelsoton” (Iran) on realization of new investment projects worth $6.6 billion.
The event included a rich program of panel sessions, discussions, business breakfasts and round tables where the most important aspects of economic development were discussed. The central topic was the role of the government, investors and entrepreneurs in supporting small and medium-sized businesses.
At the session devoted to anti-corruption, experts emphasized that the effective fight against corruption and crime in the economy is a key factor for improving the investment climate. They noted that creating a safe and transparent business environment plays an important role in this process.
“A successful fight against corruption requires a comprehensive approach that includes strengthening legislation and increasing transparency of government actions,” said Akmal Burkhanov, director of the Agency for Countering Corruption of the Republic of Uzbekistan.
The session devoted to retail trade outlined the main challenges and opportunities for the industry. The participants expressed their opinion on the need to improve tax legislation and simplify import procedures. They also noted that it is important to create conditions for successful adaptation of new brands on the market.
“Thanks to the decree on the reduction of customs duties, we managed to set fair prices like in the UK and Kazakhstan,” shared Ilya Lyapustin, Sales and Marketing Director of Tashkent City Mall.
The business breakfast dedicated to women’s entrepreneurship emphasized the significant impact of businesswomen on society. Speakers presented inspiring examples and strategies for striking a balance between profitability and social responsibility.
The focus was on attracting foreign investment through residence permit programs.
“Over the past few years, Uzbekistan has established itself as an attractive destination for global investors due to its openness to cooperation and prospects in the real estate sector,” said Akram Mukhamatkulov of Henley&Partners.
The roundtable “Supply Chains and Sustainability: finding a balance in the face of uncertainty” discussed the challenges and strategies to ensure the sustainability of global supply chains.
“Turkey and Uzbekistan have a strategic partnership, and we can significantly strengthen cooperation by working together,” said Turkish Deputy Trade Minister Sezay Ucarmak.
The experts also emphasized the importance of integrating digital technologies into investment strategies. They noted that digitalization is not the future, but already today, and plays a key role in accelerating investment processes and increasing transparency.
At the pitch session “IT-PARK Uzbekistan: New Development Prospects”, plans to turn Uzbekistan into a regional center of information technologies by 2030 were presented.
Sherzod Shermatov, Minister of Digital Technologies of Uzbekistan, spoke about the significance of recent investments. “Yesterday we witnessed an important event – the start of construction of the $5 billion Data Volt green data center, which is a major foreign direct investment project. We are creating a favorable environment for IT companies and launching a Zero Risk program to cover all risks associated with opening and running offices in Uzbekistan,” he said.
At the round table “Connections: Revival of the Great Silk Road”, international experts and representatives of state bodies explored opportunities to expand ties, economic cooperation and cultural exchange along the ancient routes of the Silk Road.
At the roundtable “Integrated Urban Planning: Quality Investments, Comfort for Environment and People”, leading urbanists, architects and representatives of the business community discussed approaches to the development of the city of Tashkent. In particular, BCG Managing Director and Senior Partner Vladislav Butenko emphasized the importance of integrating innovative solutions into urban planning to achieve sustainable urban development. He emphasized that both economic and social aspects should be taken into account in integrated planning, ensuring a balance between them.
The Forum has played an important role in attracting investments for various ministries and regions of Uzbekistan. The agreements signed demonstrate the development of key sectors such as industry, energy, pharmaceuticals and automobile manufacturing.
One of the main achievements of the forum was the agreement between the Ministry of Digital Technologies, the Ministry of Energy and IT company Data Volt on the construction of a data center based on “green” technologies. Experts noted the importance of such projects for Uzbekistan. Minister of Investment, Industry and Trade Laziz Kudratov and Data Volt director Rajit Nanda took part in the signing ceremony.
The III International Investment Forum in Tashkent has come to an end, but the planned initiatives and signed agreements promise active work on attracting investments and ensuring sustainable development. Uzbekistan has reaffirmed its role as a strategic partner in the international arena, attracting the attention of global investors and contributing to the economic growth of the region.
The forum was also attended by representatives of Ukraine, including pharmaceutical business and agro-industrial complex.
