Development Trends and Prospects of the Investment Climate in Uzbekistan’s Economy

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.