Uzbekistan - The Times Of Central Asia

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Central Asia-EU Summit

Uzbekistan Prepares to Host Historic Central Asia-EU Summit in Samarkand

Samarkand is set to host the first-ever Central Asia-European Union (EU) summit on April 3-4, marking a pivotal moment in relations between the two regions. In the lead-up to the event, Uzbek President Shavkat Mirziyoyev spoke with Euronews about the growing cooperation between Central Asia and the EU. Deepening Economic Ties President Mirziyoyev emphasized the historical and strategic depth of Central Asia’s relationship with the EU. “Over the past 30 years, our partnership has grown steadily in trade, investment, security, and digital transformation. Today, we are entering a new phase of cooperation that will benefit both regions,” he said. In recent years, economic ties between the regions have strengthened significantly. Trade turnover has quadrupled over the past seven years, reaching €54 billion. European companies are increasingly investing in Uzbekistan and across Central Asia. Mirziyoyev noted that Central Asia has become a model for constructive dialogue and cooperation. “We have proven that through dialogue and mutual respect, we can resolve even the most complex issues. The recent agreement between Kyrgyzstan and Tajikistan on border demarcation is a testament to this approach.” As chair of the Central Asian Five, Uzbekistan is prioritizing regional security, economic integration, and environmental sustainability. Key infrastructure projects, such as the Trans-Caspian and Trans-Afghan transport corridors, are central to improving connectivity with international markets. To attract further European investment, Uzbekistan has introduced reforms to improve the business climate. In 2024, trade with EU member states reached $6.4 billion, and more than 1,000 European companies now operate in the country. The anticipated signing of the Enhanced Partnership and Cooperation Agreement (EPCA) is expected to deepen economic relations. Mirziyoyev also proposed aligning the EU’s Global Gateway strategy with regional transport initiatives. “We must work together to simplify trade procedures and ensure that Central Asian products gain greater access to European markets. Only through joint efforts can we build a strong and resilient economic partnership,” he stated. He added that enhanced financial assistance from European institutions could further bolster the region’s economic resilience. Energy and Security: Shared Priorities Central Asia is emerging as an important player in global energy markets, particularly in renewable energy. Uzbekistan is implementing over 50 solar and wind projects, aiming to raise the share of renewables to 54% within five years. “Green energy is the future, and Uzbekistan is ready to lead this transformation in our region. A Central Asia-EU Clean Energy Partnership will help us achieve this goal,” Mirziyoyev said. On security, he emphasized the need for coordinated efforts to combat terrorism, extremism, and cyber threats. “We must strengthen our cooperation in security matters, because stability in Central Asia means stability in Europe as well.” Uzbekistan also continues its active engagement with Afghanistan, stressing the importance of inclusive dialogue and regional support. “Afghanistan should not be left in isolation. We must continue dialogue and provide support to help the Afghan people rebuild their country,” the president concluded.

Economy

Uzbekistan’s Foreign Debt Climbs to $64.1 Billion in 2024

Uzbekistan’s total external debt rose to $64.1 billion in 2024, accounting for 55.7% of the country’s gross domestic product (GDP), according to a new report from the Central Bank on the balance of payments, international investment position, and external debt. This marks an increase from 51.9% at the end of 2023. The country’s external debt includes both public and private liabilities, though many private-sector entities, particularly in banking and industry, are partially or wholly state-owned. The government controls approximately 65% of the banking sector and holds stakes in major enterprises such as UzAuto Motors and Uzbekneftegaz. These companies, along with state-owned banks like the National Bank of Uzbekistan (NBU) and Uzpromstroybank, have collectively issued billions in debt over recent years. Corporate (or private sector) external debt rose by $6.6 billion to $30.2 billion, equivalent to 26.2% of GDP. Government debt increased by $4.2 billion, reaching $33.9 billion, or 29.5% of GDP. Since 2016, Uzbekistan’s external debt has expanded 4.4 times, from $14.7 billion to $64.1 billion. Corporate debt has nearly quadrupled during that period, while government debt has grown by a factor of 5.2. Although the growth rate of public external debt has decelerated in recent years, corporate debt, primarily borrowed by state-owned banks and companies, continues to rise sharply. According to projections from the Ministry of Economy and Finance, Uzbekistan’s public debt is expected to reach $45.1 billion by the end of 2025, representing 36.7% of projected GDP. By the end of 2024, public debt is estimated to total $39.7 billion.

Business

U.S. Tech Giant Honeywell Expands Operations in Uzbekistan

Honeywell, a global leader in integrated technology solutions, has expanded its footprint in Uzbekistan by establishing a new legal entity, Honeywell Industrial Automation LLC. The initiative aims to support the digital transformation and automation of key industrial sectors in Uzbekistan and reflects a broader commitment to strengthening U.S.-Uzbek commercial ties. The official launch was celebrated on March 25 at a reception hosted by U.S. Ambassador to Uzbekistan Jonathan Henick at his residence in Tashkent. The event was attended by Uzbekistan’s Minister of Energy, Jurabek Mirzamakhmudov. Ambassador Henick reiterated the U.S. Embassy’s strong support for Honeywell’s initiatives, stating he looked forward to "the continued growth and success of American businesses in Uzbekistan." Honeywell emphasized its dedication to advancing Uzbekistan’s digital and energy strategies. The company has long-standing partnerships with both government and private sectors, especially in oil and gas, petrochemicals, mining, and metallurgy. As part of its expansion, Honeywell announced plans to establish a Global Engineering Center (GEC) in Tashkent. The new center will serve as a regional hub for advanced engineering solutions, while also fostering local talent and innovation. Earlier, Honeywell representatives held talks with the leadership of Uzbekneftegaz JSC to discuss the integration of cutting-edge technologies into Uzbekistan’s oil and gas sector.

Healthcare

Uzbekistan Tops Central Asia in 2024 Healthcare Ranking

Uzbekistan has been ranked as having the best healthcare system in Central Asia, according to the 2024 Health Care Index published by CEOWORLD magazine. The country placed 64th globally with a score of 36.26. Kazakhstan followed in 78th place with 34.28 points, while Turkmenistan ranked 95th with 27.3 points. The index evaluates 110 countries based on the quality of healthcare services, including infrastructure, the competency of medical professionals, and access to care. Taiwan topped the global list with a score of 78.72, while El Salvador came in last with 18.6 points. Other countries ranking in the top 10 include South Korea (2nd), Sweden (5th), and Germany (8th). Healthcare and Tourism Growth The report coincides with a notable increase in foreign tourism to Uzbekistan. In January–February 2025, the country welcomed 1.3 million international visitors, a 37.1% increase compared to the same period in 2024. Officials suggest that improved healthcare services could further enhance the country's appeal as a travel destination, potentially boosting medical and wellness tourism. Uzbeks Rank High in Global Happiness Index In another recent international ranking, Uzbekistan also stood out for overall wellbeing. The Centre for the Study of Wellbeing at the University of Oxford and the Gallup Institute placed Uzbekistan 53rd in its global happiness index, above Kyrgyzstan and Tajikistan. The study includes two key components. The first is based on respondents' self-assessment of life satisfaction on a scale from 0 to 10; in Uzbekistan, the average score was 6.2. The second examines responses related to charitable giving, lawfulness, helping strangers, and reactions to emotional experiences, both positive and negative.

Gas

Uzbekistan Aims to Save 1.1 Billion Cubic Meters of Gas in 2025

Uzbekistan’s Statistics Committee has released data on industrial production for January and February 2025, revealing a continued decline in natural gas output. During this period, the country produced 7.37 billion cubic meters of gas, down 329 million cubic meters (4.2%) from the same period in 2024 and 781 million cubic meters compared to 2023. Depleting Reserves and Rising Demand Azim Ahmadkhadjayev, head of the state nuclear agency Uzatom, attributed the decline to the depletion of existing gas fields and delays in developing new ones. Simultaneously, Uzbekistan’s industrial production is accelerating, driving up energy demand. “The existing fields are running out. Discovering and developing new reserves requires substantial investment. Work is underway, but the transition takes time,” Ahmadkhadjayev told the Alter Ego project. He also emphasized that the future expansion of nuclear energy would reduce reliance on gas. Amid these challenges, the government is prioritizing energy conservation. At a March 26 meeting, President Shavkat Mirziyoyev outlined ambitious goals: saving 1.1 billion cubic meters of natural gas and 2.6 billion kilowatt hours of electricity in 2025. Outdated Infrastructure and Industrial Modernization Many of Uzbekistan’s industrial facilities date back several decades and were not designed with energy efficiency in mind. This outdated infrastructure consumes disproportionate amounts of electricity and gas, leading to regional shortages during peak demand. To address this, the government is modernizing key industries and implementing a dedicated energy-efficiency program for large enterprises. With the population projected to reach 41 million by 2030 and, energy demand expected to grow by 1.5 times, long-term planning is critical. Researchers in Samarkand, Syrdarya, and Jizzakh have identified potential energy savings of 870 million kilowatt hours of electricity and 420 million cubic meters of gas. One proposed measure is replacing 35,000 outdated machines in small and medium-sized factories. Local Energy Initiatives Energy savings are also being pursued at the community level. The government plans to install small solar power plants in 300 neighborhoods, aiming to save 45 million cubic meters of gas in 2025. Additionally, over 1,000 micro hydropower stations are planned on canals and streams to generate supplemental electricity. Street lighting is another major energy consumer, using 200 million kilowatt hours annually. Transitioning to solar-powered lights could halve this consumption. President Mirziyoyev stressed the need for factories to adopt energy-efficient technologies and reduce waste. A new monitoring system will ensure the proper implementation of these energy-saving measures. Focus on Renewables and Public Awareness The government is also promoting energy-conscious behavior among citizens. Simple actions, like turning off unused lights or installing solar panels, can collectively contribute to national energy goals. Particular attention is being paid to the densely populated Fergana Valley. A tailored energy plan is being developed for the region, with successful strategies to be expanded nationwide.

Mining

Opportunities and Challenges in Uzbekistan’s Mining Industry

Uzbekistan is well-positioned to become a key global supplier of critical minerals, but the stakes are high. If not managed prudently, the country risks falling victim to the very challenges that have historically plagued resource-rich nations. According to Nodir Ruzmatov, founder of One Nexus Group and a Master’s candidate in Public Policy at UC Berkeley, Uzbekistan faces a pivotal moment. In his article, “Striking Gold or Courting Disaster in Uzbekistan’s Mining Boom,” Ruzmatov writes: “Uzbekistan stands at a crossroads. Global demand for critical minerals, key to clean energy and high-tech manufacturing, is growing at an unprecedented rate. With gold, copper, lithium, and rare earth elements in abundance, Uzbekistan has an opportunity to become a major global supplier. But as history has shown, such riches can be a double-edged sword.” Rising Demand, Rising Stakes Global demand for critical minerals has surged due to the rapid expansion of electric vehicles, renewable energy systems, and digital infrastructure. Uzbekistan, already a top gold producer and an emerging copper exporter, holds significant reserves of the minerals needed to power the global energy transition. Properly harnessed, this sector could attract billions in investment, create thousands of jobs, and elevate Uzbekistan’s standing in the global economy. Yet, the path forward is fraught with risks. Ruzmatov warns of the “resource curse”, a paradox where natural wealth leads to economic mismanagement, environmental degradation, and political instability. The Syr Darya River serves as a cautionary example: already burdened by industrial waste from neighboring Kazakhstan, it now faces growing contamination from heavy metals, arsenic, and other toxins. These pollutants threaten agriculture, food security, and public health across the region. Learning from Global Experience Ruzmatov draws parallels between Uzbekistan’s situation and water management conflicts in other parts of the world. Disputes over the Colorado River between the United States and Mexico, and environmental challenges in Southeast Asia’s Mekong River basin, show that resource tensions can be addressed through strong legal frameworks and cross-border cooperation. For Uzbekistan, this means not only protecting its rivers but also developing a governance model that prioritizes environmental integrity, transparency, and regional collaboration. A Sustainable Path Forward To avoid repeating past mistakes, Ruzmatov advocates for: Strict environmental regulations to guide mining operations Investment in cleaner, more efficient technologies Enhanced regional partnerships to manage shared natural resources equitably Greater public involvement and scientific research to inform decision-making As he concludes, “The question is no longer whether Uzbekistan should develop its critical minerals sector but rather how it will do so. The Syr Darya crisis and the Aral Sea disaster serve as stark warnings. If Uzbekistan fails to address its water pollution issues now, the consequences will be irreversible.” Uzbekistan has the potential to lead Central Asia in responsible, sustainable mining. Realizing this potential will depend on careful planning, international engagement, and a long-term commitment to environmental and social resilience.