Uzbekistan Business & Economy - The Times Of Central Asia

Viewing results 1 - 6 of 456

Amid Sanctions, China’s Xinjiang Strengthens Ties with Central Asia

China’s Xinjiang region is deepening its engagement with Pakistan and Central Asia as part of efforts to counter Western sanctions and bolster its role in the Belt and Road Initiative (BRI). On November 26, officials from Xinjiang met with their counterparts from Kazakhstan’s Zhetysu region for the first meeting under a new cross-border coordination mechanism. The discussions focused on cross-border tourism, infrastructure, market regulation, quarantine measures, and joint crime prevention. The meeting culminated in the signing of a memorandum on cross-border tourism. The discussions took place near the port of Khorgos, a critical hub for the China Railway Express, which connects China with Europe. Khorgos is home to China’s first cross-border cooperation center, where residents of neighboring countries can engage in business and shop visa-free. The center allows duty-free purchases of up to 8,000 yuan ($1,104) per day. Xinjiang Governor Erkin Tunyoz stressed the importance of strengthening ties with Zhetysu in areas such as trade, tourism, security, and agriculture. This cooperation is becoming increasingly crucial for Beijing as Xinjiang grapples with sanctions from the United States and other Western countries over alleged human rights abuses—a claim that China denies. Sanctions include the U.S. Uyghur Forced Labor Prevention Act, which prohibits imports from Xinjiang suspected of being produced using forced labor. Similar measures have been implemented by Canada, the United Kingdom, and the European Union. In addition to its collaboration with Kazakhstan, China has established a dialogue mechanism with the five Central Asian countries—Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. Since 2020, foreign ministers from these nations have met annually to discuss logistics, trade, investment, agriculture, mining, and security. Li Lifan, a Central Asia scholar at the Shanghai Academy of Social Sciences, described Xinjiang as a “bridgehead” for the BRI. He highlighted the region’s rich natural resources and its role as a base for major industries, including automobile manufacturing. In 2023, trade between Xinjiang and Central Asian countries surged by 50%, reaching 283 billion yuan ($39 billion). Despite these successes, Li cautioned about future challenges. He noted uncertainties surrounding potential Western secondary sanctions, geopolitical tensions, and Russia's ongoing war in Ukraine. Additionally, U.S.-China relations remain fraught, with further unpredictability anticipated under the leadership of Donald Trump. “Full economic development may only be achievable once global tensions ease,” he said.

Central Asia Uzbekistan Uzbekistan Features International Affairs Uzbekistan Business & Economy Business & Economy Uzbekistan International Affairs

Uzbekistan Completes Key Step in WTO Accession with China Agreement

Uzbekistan has successfully concluded bilateral negotiations with China regarding its accession to the World Trade Organization (WTO). Azizbek Urunov, Special Representative of the President for the WTO, announced this milestone in a LinkedIn post. “[It was a] very short but productive visit to Beijing! Yesterday, we completed bilateral negotiations on Uzbekistan’s accession to the WTO with the People’s Republic of China,” Urunov wrote. He expressed gratitude to China’s Ministry of Commerce, Deputy Minister Li Fei, Director Li Defeng, and their teams for their cooperation. “[It is] very important at [the] year-end to finish negotiations with the two biggest global trade players – the United States and China. Twenty-two countries are there, a few left!” The Times of Central Asia reported that this achievement follows Uzbekistan’s recent finalization of WTO accession negotiations with the United States, Uzbekistan’s WTO accession is a cornerstone of the country’s ongoing economic reforms, which aim to integrate its economy into the global trade system. Johanna Hill, WTO Deputy Director-General, praised Uzbekistan’s progress: “Uzbekistan has been one of the most active acceding governments of late. It has pushed ahead with economic reform in the strategic region of Central Asia, with WTO accession very high on the government’s agenda.” Hill referenced a WTO report indicating that countries implementing market reforms during WTO accession experience growth rates 1.5% higher than those without such reforms. With negotiations with major economies like the United States and China now complete, Uzbekistan is edging closer to its goal of WTO membership, a move poised to boost its global trade prospects and economic development.

Central Asia Uzbekistan International Affairs Business & Economy Kazakhstan Uzbekistan Business & Economy Kazakhstan Business & Economy

Kazakhstan Limits Re-Export of Russian Grain to Uzbekistan and China

Kazakhstan has imposed restrictions on the re-export of Russian grain to Uzbekistan and China, Prime Minister Olzhas Bektenov announced. The move aligns with Kazakhstan’s ban on wheat imports from Eurasian Economic Union (EAEU) countries, which will remain in effect until the end of 2024. The restriction was outlined in Bektenov's response to a parliamentary inquiry. He explained that the decision aims to protect Kazakhstan’s domestic agricultural market, citing concerns about maintaining local production. During a meeting of the Kazakhstan-Russia intergovernmental commission, Rosselkhoznadzor, Russia’s federal agricultural oversight agency, raised issues related to the restrictions. The commission recommended that authorities expedite the removal of these measures, highlighting their impact on bilateral agricultural trade. Bektenov noted that these restrictions were critical to safeguarding Kazakhstan’s domestic market. “To protect the domestic market, Kazakhstan banned wheat imports from EAEU countries until the end of 2024. This ban limits the re-export of Russian grain to Uzbekistan and China,” he stated. In addition to the re-export ban, Kazakhstan has raised unified tariffs for the transit of goods across its territory for EAEU countries. Notably, the tariff for transporting Russian grain to Kyrgyzstan through Kazakhstan has doubled this year, further impacting regional trade dynamics.

Central Asia Uzbekistan International Affairs Business & Economy Uzbekistan Business & Economy Uzbekistan International Affairs Uzbekistan Local Politics

Uzbekistan Attracts $26 Billion in Foreign Investment in First Ten Months of 2024

On November 27, Uzbek President Shavkat Mirziyoyev chaired a meeting to assess the country's foreign investment performance and set priorities for the coming year. In the first ten months of 2024, Uzbekistan secured over $26 billion in foreign investment—an increase of 1.7 times compared to the previous year. Of this amount, direct investment accounted for $24 billion of the total. These funds enabled the launch of 6,300 enterprises, generated an additional 30 trillion Uzbekistani Sums (UZS) in value, and boosted exports by $305 million. Crucially, 163,000 high-income jobs were created. An additional $8.6 billion in investment is anticipated by the end of the year. Regional and Sectoral Challenges During the meeting, a detailed analysis of investment performance across Uzbek regions and industries revealed that eight districts and cities showed low activity. Furthermore, some sectors experienced declines compared to the previous year. Delays in document preparation and tender processes also hindered the progress of 17 projects funded by international financial institutions. Mirziyoyev emphasized the need for enhanced regional investment initiatives and innovative approaches. He pointed out untapped opportunities, such as funding from the European Bank for Reconstruction and Development (EBRD), which is keen to support private-sector projects amid Uzbekistan’s improved business environment and economic growth. Strategic Focus The president also called on regional leaders to leverage financing opportunities effectively and focus on attracting investments that deliver tangible results. Priority areas include accelerating industrial development, creating jobs, and expanding export potential. Mirziyoyev also instructed officials to evaluate the volume and strategies of international financial institution financing and foreign investment. Each region and sector was tasked with identifying specific projects for 2025, emphasizing public-private partnerships and private investment.

Central Asia Uzbekistan Uzbekistan Features Uzbekistan Business & Economy Business & Economy

Uzbekistan’s Financial Data Now Available on Bloomberg Terminal

Market data from the Uzbek Republican Currency Exchange (UZCE) is now accessible on the Bloomberg Terminal, marking a significant step toward integrating Uzbekistan’s financial market into the global economy. Bloomberg users can now analyze real-time pricing and indicators for Uzbekistan’s currency, money markets, state securities, and derivatives. Expanding Accessibility The UZCE, which includes 35 local commercial banks, six brokerage firms, and one foreign custodian bank, serves as Uzbekistan’s primary platform for liquidity. It offers trading in approximately 20 instruments across various market segments. In 2023, the UZCE reported a total trading volume of $81 billion. By making this data available on Bloomberg, Uzbekistan aims to attract foreign investors by providing them with the tools to understand its financial market and assess trends more effectively. This transparency simplifies risk assessment and enhances decision-making for global market participants. Strengthening Market Confidence Rashid Usmanov, Director General of the Central Bank of Uzbekistan, highlighted the impact of this partnership, stating: “This partnership with Bloomberg will help participants in global markets to get up-to-date and accurate information from the UZCE in different segments of the exchange, thereby more effectively managing their assets. Increasing transparency and openness of data will strengthen market confidence and ensure an increase in liquidity.” The Central Bank of Uzbekistan’s market data is available via Bloomberg’s data license and the “B-PIPE” channel, providing real-time market information. This collaboration enhances the global visibility of Uzbekistan’s financial sector, positioning the country as a more attractive destination for international investment.

Central Asia Uzbekistan Uzbekistan Features International Affairs Local Politics Uzbekistan Business & Economy Business & Economy Uzbekistan Local Politics

Uzbekistan Targets $200 Billion GDP by 2030 with Transport Reforms

On November 26, President Shavkat Mirziyoyev outlined transformative plans for Uzbekistan’s state-owned railway and aviation sectors, setting an ambitious goal to increase the country’s GDP to $200 billion by 2030. Significant changes are already being implemented to enhance efficiency and convenience. In the railway sector, six independent enterprises have been created under “Uzbekistan Railways.” The company added 1,200 new freight cars, halving domestic freight transportation times. The digitalization of operations has streamlined processes, cutting the ordering stage for freight cars from seven days to three and reducing processing time from 72 hours to just 12 hours. Around Tashkent, train traffic has increased by 30%, and for the first time, the previously unprofitable enterprise posted a profit of 30 billion UZS ($2.3 million) this year. In the aviation sector, Uzbekistan Airways has seen flights increase by 25%, with domestic flights surging 2.5 times. The airline now holds a 20% share of international transport in Central Asia, and annual passenger traffic is projected to exceed 6 million. “Uzbekistan Airports” has also expanded services for planes, cargo, and passengers. Greater private sector involvement in airport management has yielded notable results, with 44 airlines currently operating in Uzbekistan. Cargo transportation through airports is expected to grow by 22% this year. “The economy and trade relations in our country are developing year after year. The population’s income and the tourism potential of the regions are also increasing. By 2030, we have set a goal to increase the volume of our gross domestic product to $200 billion. Therefore, we should pay special attention to the transport arteries,” Mirziyoyev said. To support these developments, a new version of the Law “On Railway Transport” has been signed, replacing the 25-year-old legislation. The updated law aims to attract private companies and investments to further develop infrastructure and accelerate industry growth.