Investments from the United Arab Emirates into Uzbekistan have reached $1.3 billion in 2024 alone, with more than half flowing into the Central Asian nation’s burgeoning energy sector, Uzbekistan’s Minister of Investment, Industry, and Trade, Laziz Kudratov told Arabian Business in an exclusive interview.
The investment surge underscores growing economic ties between the two countries as Uzbekistan positions itself as an emerging investment destination following sweeping economic reforms in recent years.
“In 2024 alone, the volume of investments originating from the UAE reached an impressive $1.3 billion, underscoring the strong confidence Emirati investors place in Uzbekistan’s economic policy and long-term growth potential,” Kudratov said.
Energy investments alone accounted for over $700 million — a clear signal of the UAE’s strategic push into Central Asia’s renewable energy market.
The number of UAE-funded enterprises operating in Uzbekistan has grown to 337, including 114 joint ventures and 223 foreign enterprises, more than double the 150 companies reported in early 2021.
This rapid expansion follows a broader trend of increasing economic cooperation between the two nations. Non-oil trade between the UAE and Uzbekistan grew 104 per cent to $993 million in 2022 compared to $487 million the previous year, with UAE re-exports to Uzbekistan surging 102 per cent to nearly $720 million.
“The energy sector attracted the lion’s share of these funds — over $700 million — reflecting the UAE’s global expertise in sustainable energy and large-scale infrastructure development,” Kudratov said.
Masdar, Abu Dhabi’s renewable energy company, has been a key player in Uzbekistan’s green transition, developing what the minister described as Central Asia’s largest wind farm and three utility-scale solar power plants across the country.
The investments align with Uzbekistan’s ambitious renewable energy targets, which aim to generate 54 per cent of the country’s electricity from renewable sources by 2030.
“Uzbekistan is fully committed to shifting towards renewable energy sources. With our solar potential, we are actively developing solar and wind energy projects, making this a prime sector for investment,” the minister added.
Strategic partnership formalised with $200mn fund
The investment momentum has been further institutionalised through the January 2025 elevation of bilateral relations to a strategic level during President Shavkat Mirziyoyev’s official visit to the UAE.
A key outcome was the establishment of the Uzbekistan-Emirates Investment Company, with an investment portfolio currently valued at $200 million, focusing specifically on medicine, geology, agriculture, and tourism.
“Collectively, we have ambitious goals to enhance our strategic partnership, and we anticipate that the UAE’s investment footprint in our country will continue to grow,” Kudratov said, noting that nine projects under development are valued at $140 million.
The strategic partnership was underpinned by significant legal frameworks, including a bilateral investment treaty agreement that was signed during Mirziyoyev’s visit, complementing an existing agreement on the avoidance of double taxation.
“A major milestone was the elevation of bilateral cooperation to a strategic level during the official visit of the President of Uzbekistan to the United Arab Emirates in January 2025,” Kudratov said.
Agriculture as key investment sector
Beyond energy, Kudratov highlighted agriculture as offering significant opportunities for UAE investors, citing Uzbekistan’s vast agricultural potential.
“Agriculture provides investors with a real opportunity. We have around 60 million acres of arable land, and a significant part of our population is engaged in this sector meaning we have a high-skilled workforce,” he said.
“Our natural conditions also create the perfect environment for high-quality crop production. This makes Uzbekistan an ideal destination for investment in agribusiness, food processing, and agricultural exports.”
UAE investors have also targeted the construction materials and chemical industries, while nearly $100 million has flowed into digital technologies as Uzbekistan seeks to establish itself as a regional IT hub.
“Digital technologies emerged as another strategic focus, receiving nearly $100 million in UAE investment. This aligns with the UAE’s broader commitment to fostering innovation and digital transformation,” the minister added.
Government reforms support investment climate
Kudratov credited Uzbekistan’s improved investment climate to sweeping reforms implemented over the past five years.
“Over the last five years, our reform program has liberalised the national economy and ignited a period of strong growth. We have established an independent energy regulator, created major privatisation projects in strategic sectors from chemicals to banking and put Uzbekistan in a position to attract investors from around the world,” he said.
The government has made “significant strides in creating a business-friendly environment through infrastructural improvements and changes in governance,” he said, including financial incentives and strengthened legal rights for investors.
“It is also worth noting that all necessary conditions for doing business have been created for investors from the United Arab Emirates, including strong institutional and political support,” Kudratov added.
Joint UAE-Uzbekistan investment projects, valued at nearly $4 billion, have been implemented with the participation of major UAE companies including Masdar, Mubadala, DP World, and the Abu Dhabi Development Fund.
Relations between the two countries have steadily strengthened since Uzbekistan began liberalising its economy five years ago. Investment cooperation now spans traditional and alternative energy, infrastructure, chemical industry, agriculture, transport, and logistics sectors.
“The progress of the projects is under personal supervision of the leaders of two countries that confirms the strategic nature of bilateral relations,” Kudratov said.
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