Uzbekistan Business & Economy - The Times Of Central Asia

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Nuclear Power Plant

Uzbekistan Nuclear Power Plant Targets More Local Production in $9.5 Billion Project

Construction is underway on Uzbekistan’s first nuclear power plant, a $9.5 billion project in the Jizzakh Region. The government wants Uzbek companies to take on a larger share of construction and equipment production, while work is also beginning on infrastructure and a new town alongside the plant. The project entered the construction phase on June 4. Excavation for the reactor building has now been completed, with more than 1 million cubic meters of soil removed. Uzbek-made products are currently expected to account for 21% of the project, or about $1.9 billion. Authorities want to raise that share to at least 30%, while local companies are expected to carry out 65% of construction and installation work. The government says up to 7,000 Uzbek workers and specialists could be involved at different stages of construction. For now, however, the project remains reliant on foreign expertise: the general contractor is Atomstroyexport, the engineering division of Russia’s state nuclear corporation Rosatom. As part of the push to increase local participation, authorities plan to create a 200-hectare industrial zone in the Forish District. It could host at least 100 joint ventures, with local production established in 15 areas, including through the transfer of foreign technology. The government is also preparing tax and customs incentives intended to encourage local production. The Jizzakh project has expanded significantly since it was first agreed. The original deal with Rosatom envisaged a small nuclear power plant consisting of six RITM-200N reactors. The concept was later revised: the integrated complex is now planned to combine two large VVER-1000 units with two RITM-200N small modular reactors. The plant will also require extensive supporting infrastructure, including new power lines, 120 kilometers of water pipelines, 40 kilometers of roads, and 11 kilometers of railway. Authorities want locally produced goods and services to account for 60%-70% of this infrastructure work. A separate town for plant employees and their families is planned next to the site. Around 10,000 homes and apartments for nearly 33,000 people are expected to be built on 200 hectares. Uzbekistan is also developing the technical and regulatory capacity needed to oversee a project of this scale. The government is considering a joint venture with foreign engineering companies to provide independent technical assessments during construction. In June, a mission from the UN’s International Atomic Energy Agency (IAEA) visited Uzbekistan to review the country’s progress in developing the national infrastructure needed for a nuclear power program. The reliance on foreign expertise has also prompted efforts to train a domestic nuclear workforce. Since 2023, 216 students have graduated from the Tashkent branch of Russia’s National Research Nuclear University MEPhI. Of these, 83 are continuing their master’s or postgraduate studies at institutions abroad. Around 100 more future nuclear industry specialists are studying at four higher education institutions in Uzbekistan. Uzbekistan’s nuclear plans are developing as electricity consumption grows rapidly. The country is simultaneously building solar and wind power plants, developing hydropower, and seeking to reduce the amount of natural gas burned to generate electricity. The nuclear plant is...

Uzbekistan Migration

Uzbekistan Labor Migration Looks to New Markets in Europe and Asia

Uzbekistan is looking for new destinations for labor migration at a time when aging populations are creating worker shortages from Germany to Japan. For a country whose migration model has for decades been closely tied primarily to Russia, labor shortages in developed economies offer an opportunity to diversify, but they also require workers to meet significantly higher standards. The Central Bank of Uzbekistan has analyzed the outlook for the global labor market through 2030. It expects demand for foreign workers to grow across sectors ranging from healthcare and construction to logistics and information technology. Europe is one of the largest potential markets. Aging populations and a shrinking working-age population are expected to intensify existing labor shortages. These shortages are expected to be particularly pronounced in engineering, construction, healthcare, and technology. Germany faces one of the most serious demographic challenges. The country’s Institute for Employment Research estimates that annual net immigration of around 400,000 people would be needed to keep its labor force potential broadly stable. Demand is expected to grow particularly rapidly in healthcare and elderly care. Germany already had nearly 5.7 million people officially classified as requiring care in 2023. In England, Skills England estimates that around 90,000 additional care workers and home carers could be needed between 2025 and 2030. Another growing labor market is linked to the energy transition. The construction and maintenance of solar and wind power facilities is increasing demand for installers, mechanics, engineers, and technical personnel. Major labor shortages are also expected in East Asia. Japan could face an overall shortage of around 6.4 million workers by 2030, according to a widely cited projection by Persol Research and Consulting. South Korea is also facing labor shortages in shipbuilding and other industrial sectors. Another potential destination is the Gulf. Saudi Arabia and the United Arab Emirates are investing heavily in construction, tourism, transport, healthcare, and services as they diversify their economies. One 2025 forecast estimated that the UAE alone could add more than 1 million jobs by 2030. For Uzbekistan, these changes coincide with a gradual expansion in the geography of its own labor migration. Russia remains the main foreign labor market for Uzbek citizens, but tighter Russian migration rules and rising costs for workers are increasing interest in other destinations. In the first half of 2026, work-purpose entries into Russia by citizens of Uzbekistan, Tajikistan, and Kyrgyzstan fell by 15% compared with the same period a year earlier. Uzbekistan already organizes employment opportunities for its citizens in South Korea, the United Kingdom, Germany, and other countries. In its labor market review for the first quarter of 2026, the Central Bank specifically noted the continuing diversification of migration and an increase in the number of Uzbek citizens in Turkey and South Korea. The shift is also visible in remittances. Uzbekistan received $9.3 billion in cross-border transfers in the first half of 2026, up 13% from a year earlier. Transfers from the United Kingdom increased by 62%, those from European Union countries by 27%, and those...

Logistics Dry Port

DP World to Begin Construction of $288 Million Tashkent Dry Port

DP World, one of the world’s largest port and logistics operators, plans to begin construction of a multimodal terminal in Tashkent worth more than $288 million in October 2026. The dry port will bring rail and road freight, warehousing, and customs infrastructure together at a single site and is intended to reduce cargo-handling costs in the landlocked country. The construction timetable was announced at an August 25 ceremony by Tashkent Mayor Shavkat Umurzakov. Dubai-based DP World and Tashkent Invest signed an agreement on the project in October 2025. DP World holds an 85% stake in the joint venture, while the remaining 15% belongs to Tashkent Invest, an investment company owned by the city administration. The terminal will occupy about 82 hectares in the Yangi Avlod Special Industrial Zone in southern Tashkent. It will include a rail-connected dry port, customs and warehouse facilities, vehicle storage areas, and its own freight railway station, with access to the national rail network, major highways, and Tashkent International Airport. The first of three construction phases will include a rail terminal with an annual capacity of 150,000 TEUs and 63,000 square meters of warehousing. A TEU is the standard unit used in container shipping and is equivalent to one 20-foot container. Another 163,000 square meters of warehouse space is planned in subsequent phases, depending on demand. Improving Uzbekistan's Logistics Uzbekistan is one of just two double-landlocked countries in the world, alongside Liechtenstein. Long distances, multiple borders, and the need to transfer cargo from one form of transport to another increase the cost of foreign trade. In the World Bank’s latest global Logistics Performance Index, Uzbekistan ranked 88th among 139 economies, up from 129th in 2014. Pressure on the transport system is increasing along with the economy and trade. According to the World Bank, transport accounts for nearly 8% of Uzbekistan’s GDP and around 1 million jobs. The Bank estimates that road capacity will need to increase by around 500% by 2030 to accommodate projected growth in freight volumes. In March 2026, the World Bank approved $200 million to modernize transport infrastructure and support sector reforms. Uzbekistan is also expanding its external freight routes. The China-Kyrgyzstan-Uzbekistan railway is under construction, while to the west the country is seeking more freight capacity through Kazakhstan’s Caspian ports, which connect it to the Middle Corridor toward the South Caucasus, Turkey, and Europe. Uzbek freight handled through the ports of Aktau and Kuryk increased by more than 60% in 2025. To the south, a new cargo terminal opened on the Hairatan-Mazar-i-Sharif railway in Afghanistan in May, while the proposed Trans-Afghan railway remains at the feasibility-study stage and is intended eventually to provide access to Pakistani seaports. The DP World terminal would give Tashkent a major inland hub for freight moving along these routes. The company says the facility is intended to connect Central Asia with its network in the Middle East and Europe and reduce logistics costs. Its impact will still depend on how efficiently cargo can move across Uzbekistan’s borders...

Uzbekistan's Economy

Mirziyoyev Sets Goal of Doubling Uzbekistan GDP by 2030

Uzbekistan plans to increase its GDP to $300 billion by 2030 – nearly double the level expected in 2026. President Shavkat Mirziyoyev announced the new target ahead of the country’s 35th anniversary of independence. For a country with a population of about 39 million, growth on this scale will require further investment inflows and the creation of millions of better-paying jobs. In his anniversary address, Mirziyoyev unveiled seven national development programs for the coming decade. In the economic program he set targets for investment, productivity, technology, and employment. Uzbekistan is already on a strong economic trajectory. According to the World Bank, nominal GDP stood at about $72 billion in 2017, when the current wave of reforms was getting underway. By 2025, it had reached approximately $147 billion. Growth has remained strong since then. The economy expanded by 7.7% in 2025, accelerating to 8.7% year-on-year in the first quarter of 2026. The IMF projects growth of 6.8% for this year and 6% in 2027. Just three years ago, the authorities were targeting GDP of $160 billion by 2030. Now, Mirziyoyev said the country would surpass that level as early as this year. The new target is $300 billion by the end of the decade, while GDP per capita is expected to exceed $10,000 within the next ten years. The government also aims to create 2 million high-income jobs in industry by 2030. Rising Foreign Investment Government figures also point to a sharp rise in investment. According to the Ministry of Investment, Industry and Trade, Uzbekistan recorded $43.1 billion in utilized foreign investment in 2025, up 24% from the previous year. The ministry classified $38.2 billion of that amount as foreign direct investment, with another $4.9 billion coming from international financial institutions. The government aims to increase foreign investment to $53 billion in 2026. The government’s figures measure foreign investment put to use in projects during the year, which is broader than the standard measure of FDI used in international statistics. Mirziyoyev has also set a target of attracting $450 billion in foreign investment over the next decade. The government has not specified whether that target will be measured using the same methodology as its annual investment figures. Challenges to Sustaining Growth The IMF regards further private-sector development, stronger competition, and reform of state-owned enterprises and banks as important conditions for raising productivity. After nearly a decade of economic liberalization, sustaining rapid growth will increasingly depend on productivity gains and more efficient private investment rather than the initial effects of reform. Demographics are adding pressure to the labor market. Uzbekistan’s population is approaching 39 million and remains the largest in Central Asia. The IMF estimates GDP per capita at about $4,528 in 2026. Over the past decade, the country’s population has grown by around 8 million. The government sees the technology sector as one source of more productive employment. Mirziyoyev has set a goal of involving 10 million young people in information technology, artificial intelligence, the creative economy, and other emerging professions....

Renewable Energy

Acwa and KOWEPO Explore Renewable Energy Projects in Uzbekistan

South Korea’s KOWEPO, which is wholly owned by state-controlled Korea Electric Power Corporation (KEPCO), is moving into Uzbekistan’s rapidly expanding green energy market alongside Saudi Arabia’s Acwa, one of the market’s largest players. No specific projects have been announced yet, but the companies will explore opportunities in renewable generation and energy storage while considering the possibility of attracting South Korean financing. The memorandum was signed in Tashkent on August 25. For KOWEPO, the agreement offers an opportunity to bring to Central Asia the experience it has gained through projects in the Middle East totaling 3.5 GW of renewable capacity and 877 MW of gas-fired generation. For Acwa, Uzbekistan has already become its second-largest market after Saudi Arabia. The company has operated there since 2019 and is developing 19 projects with a combined capacity of more than 10 GW and potential investment estimated at $15 billion. Abid Malik, Acwa’s president for Central Asia, said the companies would also seek to “facilitate engagement with Korean financial institutions” as they assess potential projects. Acwa’s portfolio in Uzbekistan includes solar and wind power, conventional generation, green hydrogen, and energy storage. Storage is becoming increasingly important as the share of solar and wind grows because utility-scale batteries can store surplus electricity and return it to the grid when renewable generation falls. Uzbekistan aims to expand renewable energy capacity to around 25 GW by 2030, with renewables targeted to account for 54% of electricity generation. The rapid construction of solar and wind farms comes as electricity demand rises and Uzbekistan seeks to modernize a power system that has historically relied heavily on gas-fired generation. Acwa has already secured contractual priority to develop up to 2 GWh of new battery energy storage capacity in the country. KOWEPO could therefore provide additional expertise and capital. Uzbekistan’s energy transition has already attracted major investors from Saudi Arabia, the United Arab Emirates, China, and elsewhere. For now, the agreement with KOWEPO remains a framework arrangement, with the capacity, cost, locations, and timelines of any joint projects yet to be announced. Its practical significance will become clearer if the companies move from exploring opportunities to concrete investment decisions.

Nuclear Energy

Uzbekistan Plans Second Nuclear Power Plant Before First Is Ready

Uzbekistan will soon begin preparations for the construction of a second nuclear power plant (NPP), President Shavkat Mirziyoyev announced during an August 17 visit to Khorezm region. The announcement came a little more than two months after construction officially began on the country’s first NPP. The authorities have not yet disclosed where the new plant will be located or how much capacity it will have. They have also not named a technology partner. Discussing energy in connection with new industrial projects, Mirziyoyev said investors need an acceptable electricity price and a guarantee of uninterrupted supply. Uzbekistan is building its first NPP with the participation of Russia’s state nuclear corporation Rosatom. On June 4, first concrete was poured for the foundation of the first unit of the integrated NPP in Farish district, Jizzakh region, officially marking the start of construction. Mirziyoyev and Russian President Vladimir Putin launched the project by video link. International Atomic Energy Agency (IAEA) Director General Rafael Grossi also participated in the ceremony. The project itself has changed considerably over the past two years. In 2024, Uzbekistan and Russia agreed to build a small nuclear power plant with six RITM-200N reactors, each with a capacity of 55 MW. Tashkent later decided to combine small modular and large-scale nuclear generation at a single site. Under the current configuration, the Jizzakh project will have two large VVER-1000 units and two small RITM-200N units. The complex will have a total capacity of 2.11 GW and is expected to generate about 15.4 billion kWh of electricity annually. The first small reactor is expected to come online in 2029. The first large unit could begin operating in 2033, with the entire complex expected to be commissioned by 2035. Plans for a second NPP come as electricity demand is rising rapidly. Uzbekistan’s 2020–2030 electricity plan aimed to raise annual generation from 63.6 billion kWh to 120.8 billion kWh by 2030. A more recent government forecast puts electricity consumption at 121 billion kWh by 2035. Some of the growing demand is expected to be met by solar and wind power. Nuclear energy is intended to provide baseload generation, including for industry. Mirziyoyev specifically linked preparations for the second plant to investors’ need for a stable electricity supply. Uzbekistan is therefore expanding its nuclear program before its first reactor has entered operation. The country is continuing to develop the infrastructure and expertise needed for the new industry. Following a June review, the IAEA said Uzbekistan had made significant progress but needed to complete work on its nuclear regulatory body and finalize feasibility studies. So far, Mirziyoyev has said only that preparations for the second NPP will begin. Its cost, timetable, capacity, and technology have not been announced, nor has a potential contractor been named. The first NPP involves long-term cooperation with Russia’s nuclear industry. Rosatom is participating in the project, which will use its reactor technology. Mirziyoyev said in June that Uzbekistan planned further nuclear power projects with Russia, but whether the same model will be used for the second plant or Tashkent will consider...