Azerbaijan’s ABB bank secures majority stake in Uzbekistan’s Davr Bank
Azerbaijan’s state oil company SOCAR and the country’s largest state-owned bank ABB have begun major expansions into Uzbekistan, the press service of Azerbaijan’s president reports.
The developments were presented on 23 August during an online ceremony attended by Uzbek President Shavkat Mirziyoyev and Azerbaijani President Ilham Aliyev, who oversaw the launch and groundbreaking of several Azerbaijani-backed projects in Uzbekistan.
For SOCAR, the event marked the start of construction of five new filling stations in Uzbekistan. For ABB, it confirmed the completion of its acquisition of a controlling stake in Uzbek lender Davr Bank, giving the Azerbaijani banking group a direct presence in the local market.
ABB completes Davr Bank takeover
ABB, the International Bank of Azerbaijan, has completed the acquisition of a controlling stake in Davr Bank. Azerbaijani President Ilham Aliyev described the transaction as the entry of a leading Azerbaijani bank into the Uzbek market.
The deal gives ABB 51% of Davr Bank, with the transaction previously reported at around $100 million. The possibility of ABB later acquiring another 23% stake had also been under discussion.
The Central Bank of Uzbekistan had discussed the planned acquisition with ABB executives earlier this year. At that meeting, ABB said it intended to use its experience in financing small and medium-sized businesses, microfinance, digital banking and artificial intelligence to develop Davr Bank. The Azerbaijani lender also said it wanted to turn the Uzbek bank into one of the country’s leading financial institutions.
Davr Bank was established in 2001. Before the transaction, it was a privately owned Uzbek bank with about $1bn in assets, more than 1.4mn customers and 43 branches.
ABB is Azerbaijan’s largest state-owned bank. The Azerbaijani government owns 92.2% of its charter capital, according to the bank. Moody’s currently rates ABB’s long-term deposits at Ba1 with a stable outlook, and describes its market position, profitability, capital adequacy, and liquidity as key strengths.
The Davr Bank acquisition is substantial even by ABB’s own standards. Moody’s said in June that the Uzbek stake would be equivalent to approximately 12% of ABB’s assets.
SOCAR prepares to enter Uzbekistan’s retail fuel market
The company is developing five petrol stations as part of its new investment programme.
SOCAR is expanding beyond its existing role in Uzbekistan’s upstream energy sector with plans to establish a retail fuel network.
The Azerbaijani oil company is already involved in Uzbekistan’s energy industry. It is participating in the development of the Ustyurt gas field alongside Uzbekistan’s state-owned Uzbekneftegaz and British energy company BP.
The company is the national oil and gas company of Azerbaijan and has operations spanning exploration, production, refining, petrochemicals, natural gas and fuel retail.
SOCAR is one of Azerbaijan’s largest state-owned companies, producing 7.48mn tonnes of oil and 7.72bn cubic metres of natural gas in 2024. In Uzbekistan, its main upstream project is a six-block, 1,000-square-kilometre North Ustyurt development, where SOCAR holds a 30% stake alongside Uzbekneftegaz and BP.
The blocks are estimated to contain potential resources of around 100 million tonnes of oil and 35 billion cubic metres of gas, with more than 80% of planned 3D seismic work completed and drilling proposed for the end of 2027.
Further developments
The 23 August deal ceremony also marked the launch of a gypsum plant by Matanat-A and two STEAM schools operated by Landau Education Group. The schools will focus on science, technology, engineering, arts and mathematics education. Ceremonies were also held for the Sea Breeze Uzbekistan residential and resort project, the Baku City residential complex, a silver ore processing facility, fruit orchards and the five SOCAR filling stations.
The projects come as Tashkent and Baku seek to deepen economic relations, with the two countries aiming for bilateral trade of $1bn a year by 2030.
