Investments in fixed capital are a key indicator of economic development as they directly impact job creation, infrastructure modernization, and the country’s competitiveness.

In 2024, the Republic of Uzbekistan achieved significant success in attracting capital, reflected in an increase in investments by 127.6% compared to the previous year.

The total volume of utilized funds amounted to 493.7 trillion UZS, equivalent to 39.03 billion USD at an average exchange rate of 12,651.54 UZS/USD.

Below is a detailed analysis of investments, considering their sources, structure, and regional distribution.

Overall Dynamics of Investments

Over the past five years, the volume of investments in fixed capital has increased almost 2.3 times, reflecting significant changes in economic policy and efforts to improve the investment climate. While in 2020 the volume of investments was 210.2 trillion UZS, this figure grew to 493.7 trillion UZS in 2024. Growth rates showed stable acceleration: from 102.9% in 2021 to 127.6% in 2024.

Key factors influencing this dynamic include:

• Active attraction of foreign investments;
• Implementation of large-scale infrastructure projects;
• Modernization and digitalization programs in industry;
• Improved conditions for private entrepreneurship.

Sources of Financing

Attracted funds (75.9%) amounted to 374.7 trillion UZS (29.63 billion USD), including:

• Unsecured foreign investments and loans — 159.6 trillion UZS (12.62 billion USD);
• Foreign direct investments — 150.5 trillion UZS (11.90 billion USD);
• Foreign loans guaranteed by the Republic — 23.6 trillion UZS (1.87 billion USD).

Own funds (24.1%) amounted to 119.0 trillion UZS (9.40 billion USD), including:

• Corporate funds — 87.0 trillion UZS (6.88 billion USD);
• Household funds — 32.0 trillion UZS (2.53 billion USD).

It is worth noting that foreign investments accounted for a significant share — approximately 333.8 trillion UZS (26.39 billion USD), underscoring the growing interest of international investors in the Uzbek market.

Foreign Investments and Loans by Year

The volume of foreign investments and loans in fixed capital, their growth rates, and the USD equivalent by year are presented below:

The data indicate rapid growth in foreign investment volumes, particularly in 2023 and 2024. The USD equivalent is calculated based on the average exchange rate for each respective year.

Technological Structure of Investments

• Machinery, equipment, and inventory: 4 trillion UZS (18.29 billion USD), or 46.9% of the total investment volume. This highlights the focus on modernizing production capacities.
• Construction and installation works: 8 trillion UZS (16.82 billion USD), or 43.1%, linked to the active development of infrastructure facilities.
• Other expenses: 5 trillion UZS (3.91 billion USD), or 10.0%, include investments in preparatory work, training, and consulting.

Reproductive Structure of Investments

• New construction: 0 trillion UZS (24.43 billion USD), or 62.6% of the total volume. Key directions:
• • Creation of new production facilities;
  • Construction of transport and energy infrastructure.
• Reconstruction and modernization: 1 trillion UZS (9.10 billion USD), or 23.3%. A significant portion is aimed at upgrading industrial enterprises.
• Other directions: 6 trillion UZS (5.50 billion USD), or 14.1%.

Regional Distribution

The largest investment volumes were recorded in:

• Tashkent city — 40.2 trillion UZS (3.18 billion USD);
• Samarkand region — 30.5 trillion UZS (2.41 billion USD);
• Fergana region — 18.1 trillion UZS (1.43 billion USD).

The most active utilization of foreign investments was observed in Namangan, Bukhara, and Andijan regions.

Foreign Investments

Foreign investments amounted to 333.8 trillion UZS (26.39 billion USD), which is 152.1% higher than in 2023.

The main industries receiving these investments were:

• Manufacturing — 119.2 trillion UZS (9.42 billion USD), or 35.7% of the total foreign investments.
• Electricity and gas supply — 65.0 trillion UZS (5.14 billion USD), or 19.5%.
• Mining — 57.0 trillion UZS (4.51 billion USD), or 17.1%.

Major investing countries:

• China — 92.9 trillion UZS (7.34 billion USD), or 27.9%;
• Russia — 44.1 trillion UZS (3.49 billion USD), or 13.2%;
• Turkey — 22.7 trillion UZS (1.79 billion USD), or 6.8%;
• Germany — 17.4 trillion UZS (1.37 billion USD), or 5.2%;
• Saudi Arabia — 16.7 trillion UZS (1.32 billion USD), or 5.0%;
• Netherlands — 13.4 trillion UZS (1.06 billion USD), or 4.0%;
• United Arab Emirates — 13.0 trillion UZS (1.03 billion USD), or 3.9%;
• United Kingdom — 12.4 trillion UZS (0.98 billion USD), or 3.7%.

Social Infrastructure

• 14,844.2 thousand m² of housing constructed (growth of 0.6% compared to 2023);
• 1,418.8 km of water supply networks commissioned, 70.8% of which in rural areas;
• 25.3 km of gas networks built, including 9 km in rural areas.

Conclusion

2024 marked a significant milestone for Uzbekistan’s economy. The successful attraction of substantial investment volumes and their allocation across key economic sectors lay the foundation for further growth. However, to sustain the momentum, continuous efforts to improve the investment climate and increase the share of high-tech industries are necessary.

Source: Statistics Agency under the President of the Republic of Uzbekistan