In the first half of 2023, Uzbekistan experienced a significant influx of foreign investment and loans, totaling UZS 59 tn (around $5 bn), into its economy. These investments played a crucial role in the country's ongoing economic development, Statistical Agency of Uzbekistan reported on September 3.
Overview of foreign investment and loans
The statistics agency reported that capital investments in Uzbekistan for the first half of 2023 reached an impressive UZS 139.1 tn (over $11.4 bn). Out of this, UZS 59 tn (around $5 bn), approximately 42.4% of the total capital investments, were foreign investments and loans that directly contributed to the expansion of the country's main capital.
Leading countries in foreign investments and loans
The following countries were the major contributors to Uzbekistan's foreign investments and loans during the first half of 2023, each playing a significant role:
China (20.5%): China emerged as the largest investor in Uzbekistan during this period, with a substantial 20.5% share of foreign investments and loans. This underscores the growing economic partnership between the two nations, driven by initiatives such as the Belt and Road Initiative.
Russia (18.8%): Russia closely followed China as the second-largest contributor, providing 18.8% of the foreign investments and loans. The historical ties between Uzbekistan and Russia have resulted in ongoing economic cooperation.
Turkey (6.2%): Turkey's presence in the Uzbek market remained strong, contributing 6.2% of the total investments. This reflects the robust trade and investment ties between the two countries, driven by cultural and historical connections.
Saudi Arabia (8.5%): Saudi Arabia's investments and loans accounted for 8.5% of the total, signifying the increasing economic interest from the Middle East in Uzbekistan. This could be attributed to efforts to diversify the Saudi economy and explore opportunities abroad.
Cyprus (4.3%): Cyprus played a notable role, providing 4.3% of the foreign investments and loans. This suggests that the country may serve as a key financial intermediary for international investors entering Uzbekistan.
Germany (2.7%): Germany's 2.7% share highlights the presence of European countries in Uzbekistan's investment landscape, potentially due to its strategic location and growing market potential.
Switzerland (2.5%): Switzerland's 2.5% contribution indicates the interest of Swiss investors in Uzbekistan, possibly driven by the country's renowned financial services industry.
Great Britain (2%): The United Kingdom invested 2% of the total foreign investments and loans, demonstrating its commitment to strengthening economic ties with Uzbekistan post-Brexit.
USA (1.9%): The United States made a 1.9% contribution, indicating its interest in the Uzbek market and potential future opportunities for bilateral trade and investment.
Italy (0.5%): Italy's modest 0.5% share suggests some presence in Uzbekistan's investment landscape, with room for growth and increased collaboration.
Uzbekistan's remarkable economic growth in the first half of 2023 was significantly bolstered by foreign investments and loans, totaling UZS 59 tn (around $5 bn). China and Russia emerged as the leading contributors, followed by other countries such as Turkey, Saudi Arabia, and Cyprus.
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