Uzbekistan Business & Economy - The Times Of Central Asia

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Uzbekistan’s Banks Top List of Country’s Most Valuable Brands

British company Brand Finance has published a list of rankings of the most valuable domestic brands in Uzbekistan. Uztelecom took first place among 20 companies with a brand valuation of $241 million, followed by Sanoat Qurilish Bank ($122 million) and Trastbank ($95 million). Additionally, the list includes Aloqa Bank ($43 million), Uzum ($39 million), NBU ($36 million), Anor Bank ($16 million), Farg'onaazot ($7 million), Kafil Sug'urta ($6 million), Uzagrosugurta ($6 million). Uzum recently became Uzbekistan's first tech-company "unicorn" when it landed an investment of more than $100 million to fund its growth strategy, putting its overall valuation at $1 billion. Brand Finance's rating is compiled using information on 20 companies provided by the Uzbekistan Agency for Innovative Development, which is engaged in improving the country's position in the Global Innovation Index. The British company took into account the company's value, business efficiency, value of trademarks, as well as marketing investments and brand recognition when compiling the rating. According to international PR expert Natalia Ikonnikova, in 2024 "[amid] the endless streams of generated content, brands that retain a human face will stand out. This trend is not [in its] first year, but in Uzbekistan it is still gaining popularity." Retailer Korzinka, headed by its founder Zafar Hashimov, is a good example of such a brand. Hashimov is not just the official face of the brand, but a real person with his own values and views who does not shy away from personal communication with consumers and eagerly solves problems. According to Madina Ruzmatova, an independent consultant on corporate PR and personal branding, there are great prospects for the development of content-creators in Uzbekistan. At this early stage of the sector's maturity, using the right PR tools, it's possible to gain an audience and increase public awareness of any particular brand.

Central Asia Uzbekistan Uzbekistan Business & Economy Uzbekistan Local Politics

Uzbek Reforms Already Being Felt in Agriculture

The Uzbek news agency UzA reports that according to the Institute of Macroeconomic and Regional Studies, the ongoing reforms in Uzbekistan have had a positive effect on agriculture. Cotton yield has increased by 1.5 times in the last year, and wheat production has grown by 13%. Changes in legislation related to trade liberalization and export promotion have helped to increase exports of fruits and vegetables by 1.8 times in the last five years, to $1.2 billion. Uzbek authorities plan to introduce a program to subsidize 50% of farmers' insurance premiums. This program calls for all farm subsidies to be provided through a single platform called 'Agrosubsidiya', based on the "one-window" concept for digital municipal services.

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Uzbekistan’s Gold Mining Aims to Replace Labour Migration

Most of the country's gold, located in the regions of Navoi, Samarkand and Bukhara, cannot be extracted industrially due to low concentration and difficulties in accessing the mountainous terrain. Uzbekistan's gold reserves for artisanal mining exceed 3 tons per 590 hectares. Gold mining by artisanal miners began to gain momentum after 2019 when the authorities issued permits for excavation in specified areas and since then, year on year, the Ministry of Geology has added new sites which are available through electronic auctions. Any Uzbek resident acquiring a plot, can mine for a period of three years and sell the extracted gold to mining and metallurgical plants and licensed jewellery companies. Mining has existed in Uzbekistan for many years, but prior to 2019, much of it was illegal. The gold was often smuggled out of the country, and as a result of makeshift mines collapsing, fatalities and serious injuries were common. The legalisation of mining activity aims to help safeguard the miners and reduce the illegal export of gold from the country. Moreover, by providing jobs for residents, it will help curb labour migration. "My job consists of digging ore and taking it to the washing plant. On average, I earn $240-$315 a month; enough to feed myself," excavator driver Sardor Mardiyev told Agence France Press. Mardiyev currently works at a gold-mining site in the village of Soikechar, Nurata, in Uzbekistan's Navoi region and according to owner, Zakhid Khudaiberdiyev, the site produces an average of 12 to 15 grams of gold per day. However, while providing an economic lifeline for workers who might otherwise work abroad, independent mining is damaging the soil and holes dug by miners pose a serious risk to farmers' livestock. In addition, even small-scale mining consumes large amounts of fresh water, which is scarce in the region. Uzbekistan ranks 15th in the world in terms of gold reserves, which experts estimate to total 362 tons. Since the beginning of 2024, revenue from the gold trade has accounted for a third of Uzbekistan's total exports and in accordance to a call by President Shavkat Mirziyoyev, production is set to increase by 50 percent by 2030.

Central Asia Uzbekistan Kyrgyzstan Uzbekistan Business & Economy Kyrgyzstan Business & Economy

Railway or Another Way: Transportation Dilemma for China, Kyrgyzstan, Uzbekistan

The construction of a railroad along a route linking the three countries has been delayed due to an ongoing search for investors. Conceived last century, the 454-kilometer China-Kyrgyzstan-Uzbekistan railroad project is designed to connect the railroads of China and Uzbekistan through the territory of Kyrgyzstan, and provide links to the European railroad networks via Turkmenistan, Iran and Turkey as part of the New Silk Road transport system. Discussions continue concerning the potential profitability of the large-scale project and despite an announcement by Kyrgyz President Sadyr Zhaparov that construction would begin this year, no progress has been made to date. Landlocked Kyrgyzstan is understandably the most interested of the three countries in establishing the rail connection. The new highway would shorten the existing transport corridor by 900 km, improve transportation between Central Asian countries, and provide access to deep-water ocean ports. According to calculations by Chinese specialists, the cost of the railroad trunk line through Kyrgyzstan is estimated at $1.34 billion, while the total amount of the project is $4.7 billion. "The sum is very large and will take 35-40 years to be paid off", reported Zhaparov. "But rather than being a dead end, our country will become a transit state . The road will serve the Kyrgyz people and our country for a lifetime. We are (therefore) considering implementing this project in a different way to external borrowing." According to preliminary agreements, construction of the China-Kyrgyzstan-Uzbekistan railroad will be carried out by the Chinese company China National Machinery Import & Export Corporation. However, Chinese investors in Kyrgyzstan are viewed with caution -- especially if one takes into account that of $4.8 billion of Bishkek's total foreign debt, at least $1.8 billion is held by the Export-Import Bank of China. Many experts are sceptical about the feasibility of building such a large-scale railway. Material investment and labour inputs will be required to lay the track through inaccessible and inhospitable mountainous terrain -- not to mention the construction of bridges and tunnels; all of which have the potential to incur unforeseen costs and construction time. The ambitious transport corridor will also require coordination on many administrative levels, including tariffs and customs regulations and procedures, which could discourage logistics planners from choosing the new, unproven route in favour of those already established.

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Uzbek-born Billionaire Alisher Usmanov Takes On German Prosecutor

Uzbek-born Russian billionaire Alisher Usmanov has filed a complaint alleging a violation of his rights by officers of the General Prosecutor's Office in the German city of Frankfurt am Main. A criminal case has been opened against two prosecutors, according to the newspaper Bild. In 2022 Usmanov was accused of money laundering, prompting law enforcement to search a villa linked to him on Lake Tegernsee in Germany, an apartment near Frankfurt am Main, and a yacht, Dilbar, which was then moored at the port of Bremen. In 2023, a Frankfurt am Main court ruled that the authorities' actions were illegal. The court ordered the return of property confiscated during the search, but this has not been fulfilled. Currently, a preliminary investigation is underway as per Usmanov's complaint. According to Statista, Alisher Usmanov ranked eighth among Russian billionaires in 2023, with a net worth estimated at $14.4 billion. He has been under EU sanctions since 2022, and is suspected of money laundering and tax evasion. Usmanov appealed the EU sanctions, saying they will lead to the bankruptcy of major Russian companies in which he holds large stakes - MegaFon, Metalloinvest and Udokan Copper, noted The Wall Street Journal. The U.K. had until recently imposed restrictions on the billionaire's sisters, Saodat Narzieva and Gulbahor Ismailova, and his adopted son, Nathan (Anton) Wiener, before these were removed in 2022. It was reported that several accounts in the Swiss bank, Credit Suisse, with assets in excess of $2 billion, were at one point registered under Narzieva's name. According to Usmanov, in the near future he intends to step down from his positions in business, and engage further in philanthropy.

Central Asia Uzbekistan Kyrgyzstan Uzbekistan Business & Economy Kazakhstan Kyrgyzstan Business & Economy Kazakhstan Business & Economy

Central Asia’s Hospitality Market Showing Significant Growth

In 2023, the hospitality industry in the countries of Central Asia, Belarus and parts of the Caucasus seemed to rise to the challenge of the times following Russia's full-scale invasion of Ukraine, as they experienced a wave of change leading to astonishing growth. According to news portal infoline.spb.ru, all of the above countries' hospitality sectors recorded double-digit growth in their local currencies. For example, Kazakhstan (25%), Uzbekistan (12.6%), and Kyrgyzstan (24.9%), as well as Armenia (25.4%) and Azerbaijan (12%), showed steady growth both due to the natural evolution of the industry and the increasing share of legal business. Armenia and Kyrgyzstan, in particular, attributed their dynamics to a sheer increase in the number of customers -- the inflow was provided by both tourists and migrants from Russia. The hospitality industry in Central Asia is still in its formative stages, but the prospects for its development look extremely promising. This is due to several factors: --The demographic factor. The population of Kazakhstan, for example, has grown by 18% over the last 13 years, which is the main driver of demand for catering services; --New players in the market: the emergence of new chain restaurants from different countries provides an additional impetus; --Growth in tourism. Inbound tourism to Central Asia is growing strongly, with Uzbekistan and Kyrgyzstan attracting significant flows of foreign tourists, creating a huge demand for catering services; --Transformation of the Russian market. The Russian hospitality market -- due to the war in Ukraine and international sanctions -- is undergoing a period of significant transformation despite its size and maturity. Since the beginning of 2022, major international chains such as McDonald's, KFC and Starbucks have ceased operations in the country, creating ruptures and opportunities in the industry. In this context, Russian restaurant chains are showing increased interest in the Central Asian market, recognizing its potential for growth and development. Brands such as Shokoladnitsa, Yakitoria, Osteria Mario, Shvili and others have announced plans to expand into Kazakhstan, Uzbekistan, as well as Azerbaijan and Armenia. They are targeting increased revenue and profits due to low rent, material costs and the lower level of competition in these countries. The revolution in the world of hospitality that's sweeping Central Asian countries is opening new horizons for the industry. Rapid growth and transformation is creating unique opportunities for investors and entrepreneurs in the sector.