News

The Central Bank of Uzbekistan has released a report on the financial stability of the country and the banking sector for the first half of 2024. Kursiv Uzbekistan has analysed the main points of the document.

Stability of the banking system

From January to June 2024, the financial stability of Uzbekistan’s banking system was reported to be stable. The Total and Tier 1 capital adequacy ratios exceeded the minimum requirements, standing at 17.3% and 14.2%, respectively. The share of highly liquid assets in banks’ assets increased, and the level of unstable funding decreased.

Debts and loans

While the...

At the Retail Week Central Asia 2024 forum in Tashkent on 16 October, Data Insights partner Fyodor Virin advocated for active investment in the construction of class A and B warehouses in Uzbekistan during the analytical session Consumer Trends and Portrait of the Modern Consumer.

Virin emphasised that investments in class A and B warehouses would yield significant returns within the next four months, making it a highly effective investment. He also stressed the importance of infrastructure development for online retailing in Uzbekistan over the next three to four years.

Noting the disparity between Uzbekistan and Russia regarding online shops...

According to the Kyrgyz Chamber of Commerce and Industry, the Turkic Investment Fund is set to begin financing large joint projects in January 2025.

The fund was established in March 2023 at the summit of the Organisation of Turkic States (OTS) and includes capital from Turkey, Azerbaijan, Uzbekistan, Kyrgyzstan and Kazakhstan. Turkish President Recep Tayyip Erdogan was the initiator of the financial institution.

The main focus of the investment fund will be on providing preferential financing for joint infrastructure and industrial projects, supporting small businesses, developing renewable energy, and granting funds for social projects.

Initially, the authorised capital of...

The Ambassador of the United States of America (USA), Jonathan Henick, visited Khojeyli town in Karakalpakstan to inspect the renovated structure of Khalif Yerezhep‘s mausoleum, as reported by the country’s diplomatic mission in Uzbekistan.

The US embassy had previously allocated $80,000 to preserve the site, and the funds were channelled through the International Institute for Central Asian Studies (IICAS).

Henik stated, “The preservation of the Khalifa Yerezhep Mausoleum is a testament to the strong partnership between the United States and Uzbekistan. We are honoured to support Uzbekistan’s efforts to preserve its rich history for future generations.”

The embassy also...

Kazakhstan has decided not to pursue BRICS membership in the near future, according to President Kassym-Jomart Tokayev’s spokesperson, Berik Uali.

Nevertheless, Astana aligns with the stance of BRICS founding countries, advocating for a democratic world order that avoids the dominance of any superpower.

Uali highlighted that President Tokayev consistently views the United Nations as the essential platform for addressing global issues. He acknowledged the organisation’s shortcomings but stressed the need for continued support from the international community.

Earlier, Kursiv Uzbekistan reported that Turkey submitted an application to join BRICS at the beginning of September.

The Cyber Security Centre CERT-CBU of the Uzbekistan Central Bank has recently joined the OIC-CERT organisation, as reported by the regulator’s press service.

OIC-CERT, founded in 2006, plays a key role in helping its members defend against cyber attacks and fostering the advancement of cyber security solutions.

Comprising 65 organisations from 31 countries, OIC-CERT offers an opportunity for the Central Bank of Uzbekistan to explore cutting-edge cybersecurity technologies and exchange valuable expertise and knowledge.

Kursiv Uzbekistan also reported that the FinTech Association of Uzbekistan and Loialte are set to provide training for cybersecurity professionals.

The production of mineral water in Uzbekistan has exceeded 257.6 million litres, with an annual growth rate of 48.5%, as the Statistic Agency’s press service reported.

In August, the country’s large enterprises produced 49.4 million litres of mineral water.

Over the past eight months, our country exported beverages worth $34.6 million, while imports accounted for $115.6 million.

Kursiv Uzbekistan also reports that Uzbekistan will launch the production of mineral water bottles.

Uzbekistan is gearing up to launch a digital startup support programme, with President Shavkat Mirziyoyev recently signing a decree to make it official.

This forward-thinking initiative aims to support startups that have attracted over $50 million from foreign investors. Eligible startups can look forward to receiving up to $100,000 from the government and access to a favourable loan of 300 million soums and compensation for their participation in international accelerators.

To qualify for this program, startups should boast annual revenues of 10 billion soums and have been active in the market for a period ranging from six months...

The marketing company NielsenIQ recently surveyed the population of Uzbekistan to find out where residents are reducing their expenses (the document is available to Kursiv Uzbekistan).

In the third quarter of 2024, 64% of Uzbek residents reported cutting back on spending at restaurants and cafes. The same percentage of respondents indicated they are spending less on clothing.

Additionally, 59% of those surveyed have decreased their expenses on entertainment outside the home, while 55% are actively trying to reduce their spending on gas and electricity.

However, residents appear less willing to cut costs on home leisure activities, annual holidays, and consumer...

Uzbekistan sold 4,200 passenger electric vehicles in September, marking a 2.4-fold increase compared to August’s figures, the Centre for Economic Research and Reforms (CERR) of Uzbekistan reports.

This rise in monthly electric vehicle sales represents a 17% increase compared to September 2023, setting a new record since May.

The expanding market for passenger electric vehicles occurs alongside a decline in sales of internal combustion engine vehicles. By the end of September, electric vehicles accounted for 3.9% of all monthly sales of new and used cars.

Since the beginning of the year, imports of electric vehicles into Uzbekistan surged by a remarkable...

Uzbekistan has established itself as the only country in Central Asia with the lowest level of hunger, ranking 22nd out of 127 countries in the Global Hunger Index (GHI).

The GHI is based on four key indicators: the prevalence of undernourishment, child mortality rates for children under five, the proportion of children experiencing wasting, and the prevalence of stunting. A higher score indicates more serious hunger issues within a country.

Since 2000, Uzbekistan made significant progress in improving its score on the index. Twenty-four years ago, the country scored 24.3 points, categorising it among nations with serious hunger levels. This year...

As part of a joint educational project between the national ecosystem and the United Nations Development Programme (UNDP), Uzbekistan hosted a series of master classes for women who were either planning to start their own business or were already developing one in the Uzum Market. Over 200 women in Tashkent participated in the training during the two months of the project, and masterclasses will soon be held in all regions of the country.

“It is important for us to ensure that women across the country have access to the knowledge they need in today’s world, from financial and digital...

 
The Korean Environmental Corporation, K-eco, plans to build a waste recycling facility in the Jizzakh region of Uzbekistan, as reported by the Ministry of Ecology, Environmental Protection, and Climate Change of Uzbekistan.
 
The ministry has signed a $6.2 million grant agreement with K-eco for a project scheduled for four years.
 
The project will involve the restoration of a landfill, including collecting 300,000 cubic meters of waste and landfill gas, capping the site with soil and installing energy facilities.
 
During a visit to Seoul, the ministerial delegation reached an agreement and met with representatives from the Export-Import Bank of Korea and recycling companies.
 
Kursiv...

On Tuesday, October 15, 2024, JSC Freedom Bank Kazakhstan obtained a license for banking operations in Tajikistan, as announced by Timur Turlov, CEO of Freedom Holding Corp.

“Today, the subsidiary Freedom Bank Kazakhstan received a banking license in Tajikistan!” Timur Turlov congratulated @aidos_zhumagulov_b (Aidos Zhumagulov, a member of Freedom Bank’s board of directors) and his entire team on this achievement in a post on his Instagram page.”

In January 2024, it was announced that Freedom Bank plans to open a subsidiary in Tajikistan. On April 12, the Agency for Regulation and Development of the...

At the 5th Congress of Architects ARCHICA 2024 in Tashkent, Uzbekistan, Architect Maxim Oltyan unveiled an ambitious $100 billion initiative to transform the Aral Sea into a City of Revival.

This visionary project seeks to restore the sea, develop sustainable infrastructure, promote tourism and foster innovative industries in the region.

The initiative, which has been in development since 2010, is designed to combat the severe ecological crisis in the area and revitalise the local economy. Oltyan emphasised that the project goes beyond environmental restoration, aiming to reshape societal mindsets and promote sustainable development.

The initiative also addresses Uzbekistan’s water management...

Uzbekistan has identified 14 potential sites for the construction of nuclear power plants, according to Azim Akhmedkhadhadzhayev, director of the Uzatom Agency, during a round table discussion on the development of atomic energy in Uzbekistan.

Russia’s Rosatom will act as the main contractor for the construction of a power plant in the Jizzak region. The head of Uzatom noted that Rosatom was selected due to its experience and possession of exceptional technologies.

In 2024, Uzbekistan and Russia signed a protocol for the construction of a nuclear power plant in the Jizzak region with a total capacity of 330 MW...

Uzbek President Shavkat Mirziyoyev has launched the development of nine new projects totalling $2 billion.

The Great Silk Road Industrial Technopark in Almalyk is a significant project that aims to accommodate around 100 enterprises with a total investment of $1 billion. This initiative is expected to create 3,000 job opportunities and produce goods worth 5 trillion soums annually, facilitating exports of products worth $300 million.

Furthermore, the Yukorichirchik Region will soon be home to a textile park with a $350 million investment, providing space for over 20 textile and clothing companies.

By 2030, the construction of electricity storage systems with...

The government of Uzbekistan will implement the use of Geomonitoring and Space Gov Monitoring systems to oversee subsoil activities, as per a decree issued by President Shavkat Mirziyoyev aimed at integrating aerospace technologies into the economy.

The monitoring process is set to commence in early March of next year. The Ministry of Mining and Geology will allocate funds for the development and technical support of Geomonitoring.

The ministry and Uzbekcosmos will collaborate to produce a digital topographic map by the end of 2024. Furthermore, a Space Industry Development Fund will be established in the country, with additional funding being...

Renderings of the Alisher Navoi International Research Centre project in New Tashkent by Zaha Hadid Architects have been released by the online magazine Designboom.

The centre will include a literary museum, Uzbek language, literature and music school and a 400-seat hall. The total area of the building will be 23,000 square meters.

The building will feature interconnected spaces for collaboration and dialogue between students, researchers and artists. The design draws inspiration from Uzbekistan’s architectural history. Locally produced bricks will be used in the construction, and there are plans to create courtyards characteristic of regional inner yard design.

The building...

Between 2024 and 2026, 125 projects with a combined value of $26 billion are set to be executed in the Tashkent region. This update was presented to Uzbek President Shavkat Mirziyoyev during a recent briefing.

The ongoing projects in Uzbekistan are diverse and promising. There are 125 projects, comprising 21 strategic, 52 sectoral, and 52 regional initiatives, which are anticipated to generate approximately 42,000 job opportunities.

Notably, the President was presented with 11 significant projects valued at $3.4 billion, featuring investments from various countries such as China, South Korea, Turkey, Saudi Arabia, Russia, Azerbaijan and local entrepreneurs. These projects...

Ambassador of Uzbekistan to the UAE, Abdulaziz Akkulov, and Director of Emirati MBS Global Investments, Ajmal Sharafuddi, explored the potential for obtaining rare medicines from India and the prospect of establishing their production in Uzbekistan, as reported by Dunyo News.

They also discussed the potential involvement of MBS Global Investments in the construction of the Tashkent-Andijan toll road. Representatives from MBS Global Investments are scheduled to visit Uzbekistan in November to further deliberate on potential collaboration.

MBS Global Investments, headquartered in Dubai, is the investment arm of Sheikh Nayef bin Eid Al Thani and is actively engaged in investments...

Dutch authorities are working with Uzbekistan to establish a process for returning Afghan asylum seekers who have been unsuccessful in their asylum applications in the Netherlands, as reported by the NL Times.

Dutch Migration Minister Marjolein Faber has expressed the government’s interest in exploring potential agreements with Uzbekistan. This collaborative effort aims to address the situation while respecting the rights and well-being of all individuals involved.

Kursiv Uzbekistan also reports that Germany was also considering a similar arrangement with Uzbekistan to facilitate the return of Afghan refugees through this cooperative approach.

Uzbekistan has recently made a significant step by signing the international treaty on the exploration and use of outer space. Uzbek President Shavkat Mirziyoyev has signed the treaty.

Established in 1967, this treaty serves as the foundation of space law and emphasises the principle that outer space is accessible to all nations, regardless of their technological advancements.

The treaty also prohibits the deployment of weapons of mass destruction in space, the establishment of military bases, and the testing of weapons on celestial bodies.

Furthermore, it obliges signatory states to assist astronauts who land on their territory and promotes...

Navoi Mining and Metallurgical Company (NMMC) has successfully priced its inaugural US $1 billion dual-tranche Eurobond offering, receiving an overwhelming response from investors, with the order book peaking at US $5.5 billion, as it has been known from rather informed source.

The offering marks several significant achievements for the company and the region.

NMMC intends to use the net proceeds for general corporate purposes, including financing its capital expenditure program and refinancing existing debt at more attractive rates.

This marks a pivotal moment for NMMC and underscores the strong investor confidence in the company’s future.

Kursiv Uzbekistan also reported