The International Finance Corporation (IFC) is partnering with the Uzbek government to make the country more attractive to foreign investors. The goal is to update laws and rules to meet global standards, thereby fueling economic growth.
The plan involves crafting a new investment law for Uzbekistan with the help of the Japanese government. This law will clarify how foreign companies can enter the market and ensure they are treated fairly. It will also streamline the dispute resolution process and focus on attracting private and foreign investments.
In addition, the partnership aims to encourage private companies to participate in Special Economic Zones (SEZs). This will include conducting thorough site assessments to consider environmental and sustainability factors. The move aims to replace the current state-controlled model, which has been less effective in drawing foreign investment.
Deputy Minister Oybek Khamraev said, "Our aim is to attract investors who can introduce new technologies and create skilled jobs."
Wim Douw of IFC added, "Uzbekistan has huge potential for foreign investment. Updating its laws and regulations will go a long way in realizing that potential."
As of this month, IFC has already committed $500 mn in investments in Uzbekistan. The country, the most populous in Central Asia, is currently going through an economic transformation.
About IFC
The IFC, part of the World Bank Group, is the leading global institution focused on developing the private sector in emerging markets. It operates in over 100 countries, using its financial resources and expertise to create opportunities. In the 2023 fiscal year, the IFC committed a record $43.7 bn to projects in developing countries.
