This work is licensed under a Creative Commons Attribution 4.0 International License.
Development Trends and Prospects of the Investment Climate in Uzbekistan’s Economy
Corresponding Author(s) : Amirov Nurislom Suyanovich
American Journal of Economics and Business Management,
Vol. 8 No. 7 (2025): July
Abstract
Introduction: In recent decades, Uzbekistan has embarked on a comprehensive transformation of its investment climate, transitioning from a centrally planned model to a more liberal, market-oriented system. However, limited empirical work has been conducted on the evolving structure of fixed capital investment and the implications of policy reforms on sustainable investment dynamics. This study utilizes a qualitative-descriptive approach combined with comparative analysis of investment trends from 2000 to 2023, drawing upon official statistics and international benchmarks. The results reveal a substantial decline in state-funded investment—from 29.2% in 2000 to 6.5% in 2023—alongside a sharp increase in foreign investment and credit-based financing, which reached 56.7% in 2023. This shift is closely associated with post-2017 reform measures aimed at liberalization, regulatory improvement, and investor protection. Nevertheless, the declining share of domestic private capital indicates persistent constraints within the national financial system and SME sector. The study highlights that while Uzbekistan’s investment climate is increasingly open and attractive to foreign investors, achieving long-term resilience will require stronger institutional consolidation, improved domestic investor confidence, and a better balance in regional and sectoral investment distribution.
Keywords
Download Citation
Endnote/Zotero/Mendeley (RIS)BibTeX
- Uzbekistan State Committee on Statistics, “Main Indicators of Investment in Fixed Capital by Sources of Financing (2000–2023),” [Online]. Available: https://stat.uz. [Accessed: Jun. 30, 2025].
- ADB, “Uzbekistan Country Partnership Strategy 2023–2027: Catalyzing Investment and Inclusive Growth,” Asian Development Bank, Manila, 2023. [Online]. Available: https://www.adb.org.
- International Finance Corporation, “Uzbekistan Investment Policy Review,” IFC Report, 2022. [Online]. Available: https://www.ifc.org.
- OECD, “FDI Qualities Indicators: Measuring the Sustainable Development Impacts of Investment,” OECD Publishing, Paris, 2022. doi: 10.1787/d77d8b30-en.
- S. Rakhimov, “Institutional Reforms and Investment Climate in Uzbekistan: An Empirical Review,” Central Asia Policy Review, vol. 12, no. 1, pp. 45–60, 2021.
- S. Abdullaeva, “The Role of Regulatory Simplification in Attracting Foreign Direct Investment: Uzbekistan’s Experience,” International Economics and Policy Studies, vol. 5, no. 3, pp. 122–138, 2022.
- The World Bank, “Doing Business Report 2020: Comparing Business Regulation in 190 Economies,” World Bank Group, Washington D.C., 2020.
- Moody’s Investors Service, “Uzbekistan – Sovereign Credit Rating Outlook,” Moody’s Credit Research, Dec. 2023. [Online]. Available: https://www.moodys.com.
- Fitch Ratings, “Uzbekistan: Investment Reforms and Credit Risk Outlook,” FitchRatings.com, Jan. 2024.
- E. Alfaro, A. Chanda, S. Kalemli-Ozcan, and S. Sayek, “FDI and Economic Growth: The Role of Local Financial Markets,” Journal of International Economics, vol. 64, no. 1, pp. 89–112, 2004. doi: 10.1016/S0022-1996(03)00081-3.
- J. Campos and Y. Kinoshita, “Foreign Direct Investment as Technology Transferred: Some Panel Evidence from the Transition Economies,” The Manchester School, vol. 71, no. 1, pp. 1–24, Jan. 2003.
- The EBRD, “Transition Report 2023: Structural Reforms for Long-term Growth,” European Bank for Reconstruction and Development, London, 2023.
- UNCTAD, “World Investment Report 2023: Investing in Sustainable Energy for All,” United Nations Conference on Trade and Development, Geneva, 2023. [Online]. Available: https://unctad.org.
- P. North, Institutions, Institutional Change and Economic Performance, Cambridge University Press, 1991.
- World Bank, “Uzbekistan Country Economic Update: Strengthening the Investment Climate,” World Bank Group, May 2023. [Online]. Available: https://www.worldbank.org.
References
Uzbekistan State Committee on Statistics, “Main Indicators of Investment in Fixed Capital by Sources of Financing (2000–2023),” [Online]. Available: https://stat.uz. [Accessed: Jun. 30, 2025].
ADB, “Uzbekistan Country Partnership Strategy 2023–2027: Catalyzing Investment and Inclusive Growth,” Asian Development Bank, Manila, 2023. [Online]. Available: https://www.adb.org.
International Finance Corporation, “Uzbekistan Investment Policy Review,” IFC Report, 2022. [Online]. Available: https://www.ifc.org.
OECD, “FDI Qualities Indicators: Measuring the Sustainable Development Impacts of Investment,” OECD Publishing, Paris, 2022. doi: 10.1787/d77d8b30-en.
S. Rakhimov, “Institutional Reforms and Investment Climate in Uzbekistan: An Empirical Review,” Central Asia Policy Review, vol. 12, no. 1, pp. 45–60, 2021.
S. Abdullaeva, “The Role of Regulatory Simplification in Attracting Foreign Direct Investment: Uzbekistan’s Experience,” International Economics and Policy Studies, vol. 5, no. 3, pp. 122–138, 2022.
The World Bank, “Doing Business Report 2020: Comparing Business Regulation in 190 Economies,” World Bank Group, Washington D.C., 2020.
Moody’s Investors Service, “Uzbekistan – Sovereign Credit Rating Outlook,” Moody’s Credit Research, Dec. 2023. [Online]. Available: https://www.moodys.com.
Fitch Ratings, “Uzbekistan: Investment Reforms and Credit Risk Outlook,” FitchRatings.com, Jan. 2024.
E. Alfaro, A. Chanda, S. Kalemli-Ozcan, and S. Sayek, “FDI and Economic Growth: The Role of Local Financial Markets,” Journal of International Economics, vol. 64, no. 1, pp. 89–112, 2004. doi: 10.1016/S0022-1996(03)00081-3.
J. Campos and Y. Kinoshita, “Foreign Direct Investment as Technology Transferred: Some Panel Evidence from the Transition Economies,” The Manchester School, vol. 71, no. 1, pp. 1–24, Jan. 2003.
The EBRD, “Transition Report 2023: Structural Reforms for Long-term Growth,” European Bank for Reconstruction and Development, London, 2023.
UNCTAD, “World Investment Report 2023: Investing in Sustainable Energy for All,” United Nations Conference on Trade and Development, Geneva, 2023. [Online]. Available: https://unctad.org.
P. North, Institutions, Institutional Change and Economic Performance, Cambridge University Press, 1991.
World Bank, “Uzbekistan Country Economic Update: Strengthening the Investment Climate,” World Bank Group, May 2023. [Online]. Available: https://www.worldbank.org.