Half of foreign investments in Uzbekistan go to oil & gas, energy sectors

TASHKENT (TCA) — Half of all foreign investments used in Uzbekistan in 2016 went to the country’s oil and gas industry and energy sector, Novosti Uzbekistana news agency reported with reference to the Ministry of Foreign Economic Relations, Investment and Trade of Uzbekistan.

Last year Uzbekistan utilized more than $3.5 billion in foreign investments and loans in 163 projects. Most of the investments went to the oil and gas industry (36 percent) and energy sector (13.9 percent).

Investments and loans in the transport infrastructure made up 9 percent of the total, in information and communication – 8.1 percent, financial sector – 5.9 percent, road infrastructure – 5.3 percent, agriculture and water – 4.5 percent, water supply – 4 percent, light industry – 3.7 percent, construction and building materials production – 3 percent.

According to the ministry, in 2016 foreign investments came from more than 20 countries, including China, Russia, Germany, Singapore, the Netherlands, and Great Britain. Most foreign (concessional) loans were provided by the Asian Development Bank, World Bank, Islamic Development Bank, China, and Japan.

At the January 14 meeting of the Cabinet of Ministers of Uzbekistan which summed up the country’s economic results in 2016, it was said that the gross domestic product of the country increased by 7.8% in 2016. Industrial production grew 6.6%, construction works – 12.5%, retail trade – 14.4%, and services – 12.5%. The state budget was executed with a surplus of 0.1% to GDP. The foreign trade turnover saw a surplus. Inflation did not exceed the planned parameter and was 5.7%.

The Government said at the meeting that more than 16.6 billion US dollars or 9.6% more than in 2015 was invested into the economy in 2016, and foreign investments and loans increased by 11.3% and exceeded 3.7 billion US dollars.

Sergey Kwan