Uzbekistan attracted $2.8bn in foreign direct investment (FDI) in 2024, becoming Central Asia’s top recipient of foreign capital, according to the latest World Investment Report by the United Nations Conference on Trade and Development (UNCTAD).
This marks the first time in over three decades that Uzbekistan has surpassed Kazakhstan in FDI inflows. While Uzbekistan recorded a steady rise, Kazakhstan experienced a dramatic reversal, posting a negative net FDI flow of –$2.55bn — the lowest in the region. Turkmenistan followed Uzbekistan with $1.6bn, Kyrgyzstan with $705mn, and Tajikistan with $291mn.
Uzbekistan’s FDI surge was driven in part by robust growth in the digital economy. The country secured $900mn in investments in this sector alone, spurred by reforms in telecommunications and growing domestic demand for digital services.
Transport infrastructure was another key focus, attracting $1bn in new investments. Greenfield transport projects worth more than $1bn were launched, placing Uzbekistan among the leading landlocked developing countries (LLDCs) in this category — behind only Kazakhstan and Uganda.
Between 2020 and 2024, Uzbekistan attracted a total of $18bn across more than 40 energy projects — the highest figure among Central Asian states. This included substantial foreign commitments in renewables and natural gas infrastructure.
Regional and Global Context
The UNCTAD report noted that Central Asia recorded the steepest relative decline in overall investment across Europe and Central Asia. Despite Uzbekistan’s gains, total announced greenfield projects in the broader region fell from $2.5bn in 2023 to $1.1bn in 2024 — meeting less than 24% of estimated investment needs.
Globally, FDI fell by 11% to $1.5 trillion in 2024, marking the second consecutive year of decline. Though the headline figures suggested a 4% increase, this was largely attributed to financial conduit flows through Europe rather than actual new investment activity.
Kazakhstan, while reporting negative FDI flows, continued to attract large greenfield announcements, including a $5.5bn natural gas facility by Qatar’s UCC and a $1.8bn steel project by China’s Fujian Hengwang. These commitments, however, have not yet translated into net investment inflows.
The report warns that the 2025 outlook has turned sharply negative amid escalating trade tensions, geopolitical fragmentation, and economic volatility. Early 2025 indicators show record-low deal and project activity.
“Investment is more than just capital flows and project pipelines. It’s a signal of where we’re placing our bets as a society,” said UNCTAD Secretary-General Rebeca Grynspan.
She called for coordinated global efforts to redirect investment toward sustainable and inclusive development, particularly in digital infrastructure, green energy, and climate resilience.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)