As Uzbekistan deepens its economic reforms and accelerates global integration, European businesses are exploring new sectors beyond traditional energy. In an interview, Oybek Shaykhov, Secretary General of the Europe-Uzbekistan Association for Economic Cooperation (EUROUZ), spoke with Daryo about growing European interest in the country’s transport connectivity, mining, and renewable energy.
Transport and Critical Raw Materials Gaining Attention
“Connectivity is important,” Shaykhov said, highlighting transport infrastructure as a foundational priority. “Transport connectivity is a critical thing for new investments.”
He added that Uzbekistan also holds promise in the underexplored field of critical raw materials, which may soon become a new focus of European-Uzbek collaboration.
While energy—particularly renewables—remains a top agenda item, Shaykhov emphasized that competition is intensifying.
“European companies are committed to investing in Uzbekistan’s energy sector, but they’re not the only ones. Chinese, Middle Eastern, and regional players are also getting involved.”
Still, he sees growing co-investment opportunities, pointing to partnerships like Suez collaborating with Middle Eastern firms in water management and EDF working with Nebras and Siemens in energy generation projects.
“Joint initiatives are becoming more common. European companies are showing flexibility, and I believe we’ll see this replicated in mining and transport as well.”
European Approach: Cautious but Committed
Shaykhov acknowledged a cultural distinction in investment behavior. “Europeans are generally slower to enter new markets. They tend to prefer traditional investment destinations.”
But this is changing, he noted, as companies see success stories from early entrants like Total and EDF.
“Now, many are realizing that if they don’t act, they’ll miss out,” he said. “Once European businesses invest in a market, they stay. Look at the EBRD. Eight years ago, they weren’t even present in Uzbekistan. Now it’s their largest portfolio market.”
This, according to Shaykhov, is a key differentiator: long-term commitment.
“European investors may take time, but when they do invest, they build deep roots. That’s good for Uzbekistan’s long-term development.”
Tackling Monopolies and Embracing Competition
When asked about monopolization in Uzbekistan’s economy, Shaykhov was candid.
“Competition is always a positive force, no matter how you look at it. Traditionally, Uzbekistan hasn't had much of it—just think about how most people used to drive locally made cars, back when the market was far less liberalized. But the landscape is changing.”
He recalled a pivotal moment during President Mirziyoyev’s meeting with entrepreneurs last August.
“A company asked for protection from international competition. The president replied, ‘If we want to be part of the world economy, we must compete globally.’”
Shaykhov believes Uzbekistan’s WTO accession by 2026 is a milestone that will accelerate liberalization and reduce artificial monopolies.
“This will create new momentum in the country’s development,” he said.
Oybek Shaykhov expressed cautious optimism about Uzbekistan’s investment future. While the country has outlined a promising reform path, strong monopolistic influence remains a major challenge. The key test in the coming years will be whether the government can successfully implement its reform agenda.
“We must be realistic,” Shaykhov cautioned. “The road ahead will be difficult. The lobbying power of monopolies is still strong. Whether the government can push forward with reforms remains to be seen. We’ve charted a promising path. Now the challenge is whether we can follow it. That’s the biggest test Uzbekistan will face in the next five years.”
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