By Dr.Beruniy Alimov (Tashkent)
The economy is the basis for the prosperity of any country. It determines the standard of living of citizens, business opportunities, employment levels and the sustainability of the state system. A good economy means a high GDP, a stable financial system, a fair distribution of resources, low unemployment and a favorable investment climate. When a country’s economy develops in a balanced way, people get access to quality education, medical care, and social guarantees.
Uzbekistan has demonstrated steady economic growth in recent years, driven by large-scale reforms and economic liberalization.
It is worth noting that in 2023, Uzbekistan adopted the National Development Strategy until 2030, “Uzbekistan-2030”. Among its goals is to achieve the status of an upper–middle-income country by the end of this decade. The country’s priorities include expanding opportunities for the development of citizens, ensuring the well—being of the population through sustainable economic growth, protecting the environment and natural resources, as well as developing public services with a focus on people’s needs.
Let’s look at the main indicators of economic growth over the past years.
For example, since 2017, the average annual growth in gross domestic product (GDP) has been 5.3%, which has allowed the country to take a leading position in the world in terms of socioeconomic transformation. In 2018, GDP growth amounted to 5.4%, which indicated a positive trend in the country’s economy. In 2019, the economy grew by 5.6%, continuing the trend of sustainable development. Despite the global economic difficulties associated with the COVID-19 pandemic, Uzbekistan maintained a positive GDP growth of 0.7% in 2020. Already in 2021, the economy recovered, demonstrating GDP growth of 7.4%. The following year, GDP growth was 5.8%, confirming the stability of economic development. In 2023, Uzbekistan’s gross domestic product exceeded $100 billion for the first time, reaching $115 billion. In 2024, this figure increased to $130 billion, which indicates the dynamic growth of the country’s economy. Such indicators reflect the success of ongoing reforms and efforts to integrate Uzbekistan into the global economy, creating favorable conditions for further sustainable development of the country.
In the period from 2023 to 2025, Uzbekistan is actively implementing investment projects aimed at accelerating economic growth and attracting foreign investment.
Special attention is paid to the development of special economic zones (SEZs) and cooperation with international partners.
As of April 2024, there are 20 special economic zones in Uzbekistan, in which 771 enterprises operate as residents. The total volume of industrial production in these zones accounts for a significant share of the country’s economy.
Let’s figure out why countries should create special economic zones at all and what is it?
Special/Free economic zones (FEZs) are defined territories within a country where special economic and legal conditions apply, aimed at attracting investment, developing industry, trade and innovation.
The main features of the FEZ are:
• Preferential taxation – reduced or zero income tax rates, customs duties and other charges;
• Simplified customs procedures – free import and export of goods without significant bureaucratic obstacles;
• Guarantees for investors – stable and transparent business rules;
• Infrastructure development – created conditions for business, including logistics, transport, and energy supply.
Speaking about the types of FEZs, they can be divided into five zones, such as: Industrial (production) zones that focus on the production of goods; Technological (innovation) zones that support scientific research and start-ups; Logistics zones aimed at simplified transit and warehousing; Tourist zones for the development of tourism and the hotel business and Financial zones, with special conditions for banks and investment companies.
So, special economic zones play an important role in the economic policy of states, including Uzbekistan. They are created to attract investment, develop industry, increase exports and create new jobs.
As we noted earlier, there are 20 special/free economic zones (FEZs) in Uzbekistan. Since the establishment of the first FEZs in 2008 to 2022, 604 projects worth 3.2 billion US dollars have been implemented in their territories, of which foreign direct investment amounted to about 896.9 million US dollars. These projects have contributed to the creation of about 55,000 new jobs.
To name a few of them: Navoi Free Economic Zone is focused on the development of high–tech and innovative industries, including electronics, mechanical engineering, chemical industry and logistics; Angren Free Economic Zone specializes in the production of building materials, chemical products and mechanical engineering processing of raw materials; Jizzakh Free Economic Zone focuses on mechanical engineering, electrical engineering and manufacturing It is also aimed at the development of the textile and food industries. Yashnabad Special Scientific and Technological Zone focuses on the development of innovative technologies and scientific research.
There are such tourist and recreational zones as Charvak, Beldirsoy, and Amirsoy, which are focused on the development of tourism and recreation.
The free economic and trade zones “Urgut”, “Kokand”, “Namangan”, “Termez” and others aimed at the development of production, trade and logistics.
It is necessary to mention the special industrial zone “Khazarasp”, which specializes in the agro-industrial complex and processing of agricultural products. While SEZs “Nukus-pharm”, “Zomin-pharm”, “Boysun-pharm”, “Andijan-pharm”, “Parkent-pharm” and others specialize in the pharmaceutical industry, the manufacture of medicines, medical products.
Having once again emphasized the importance of Uzbekistan’s economic zones, it should be specifically stated that, first of all, it is the development of the regions. Many economic zones are located outside major cities, which helps to develop infrastructure and create jobs. Thus, logistics and transport accessibility are being improved, and the construction of roads, warehouses, and industrial facilities is being stimulated. Secondly, export growth and import substitution. Enterprises focused on the production of competitive goods for export are being created in the FEZ. This reduces the country’s dependence on imports and increases foreign exchange earnings. Next, it is the attraction of foreign investments. FEZs provide tax and customs privileges, which makes them attractive to foreign companies, which promotes the introduction of advanced technologies and increases the competitiveness of the economy.
In Uzbekistan, steps are being taken within the framework of special economic zones to support environmentally friendly industries and initiatives aimed at sustainable development. Projects related to the “green” policy are being implemented. The following initiatives can be noted, such as the production of environmentally friendly food. For example, BIO-SUT Company, which has been operating in the Uzbek market for more than 20 years, is engaged in the production of environmentally friendly dairy products. Their factories and farms are located in ecologically clean areas of the country, which helps preserve the natural environment and ensure high-quality products.
Potential areas of “green” projects in the FEZ of Uzbekistan are: Renewable energy: i.e., the creation of production facilities for the production of equipment for solar and wind power plants; Energy-efficient technologies, which implies the introduction of innovative solutions to reduce energy consumption in industry and the domestic sector; Sustainable agriculture: aimed at developing projects to reduce the use of chemical fertilizers and pesticides, as well as for the conservation of water resources; Ecological tourism: the development of tourist facilities with minimal impact on the environment, especially in tourist and recreational areas.
As mentioned above, Uzbekistan is actively attracting foreign partners to implement major projects. For example, waste-to-energy conversion projects worth about $1.3 billion were announced in 2024. Companies from China (CAMC Engineering and Shanghai SU Environment), the United Arab Emirates (Tadweer Group) and South Korea (Sejin) are involved in their implementation. It is planned that these enterprises will process 4.7 million tons of solid waste per year, producing 2.1 billion kilowatt-hours of electricity by 2027.
Cooperation between Uzbekistan and France has also significantly strengthened in recent years, which has led to the implementation and planning of a number of joint projects in various fields. For example, in 2023, a new Program of strategic cooperation until 2025 was signed between the Government of Uzbekistan and the French Development Agency.
The total budget of the program exceeded 1 billion euros and covered the following areas: Agriculture, Energy, Green economy, Urban development, Water supply, Banking and financial sector, Transport. The program was aimed at implementing specific projects in these areas, which contributed to strengthening bilateral cooperation and sustainable development of Uzbekistan.
The French company Veolia is still active in the country. Veolia is a French multinational company specializing in the management of water resources, waste and energy services. In 2023, the company had about 218,000 employees in 57 countries.
Veolia is represented in Uzbekistan by Veolia Energy Tashkent, a subsidiary company. Since July 1, 2022, this company has become the operator of the central heating system in Tashkent. The main areas of activity include the operation, maintenance and management of the capital’s heating networks.
The company focuses on infrastructure modernization, such as the reconstruction and modernization of heating networks to improve their reliability and efficiency; Energy conservation: the introduction of technologies and practices aimed at reducing consumption of natural gas, electricity and drinking water; Environmental sustainability: Reducing emissions of CO₂ and other pollutants, contributing to improving the environmental situation in the region.
The project plans to save 9.2 billion м³ of natural gas, 3.1 billion kWh of electricity and 1.1 billion м³ of drinking water, which together will save about 13.6 trillion soums.
In addition, the French company Alstom expressed its willingness to invest in the development of tram lines in Uzbekistan. French Minister of Foreign Trade Olivier Becht reported on negotiations with the Uzbek side, during which plans for the development of tram infrastructure with the participation of French investments were discussed.
The French company Montagne et Neige Développement is planning to implement a project to build an all-season resort in the mountains of Chimgan. This project is aimed at developing the tourism potential of the region and attracting both local and foreign tourists.
The opening of the branch of the French Alliance in Samarkand was a major event in the field of science and education for French language lovers.
The first branch of the Alliance in our country was opened in Tashkent in 2015. In order to further develop bilateral cooperation in the field of cultural and language exchange, a second branch has been established in Samarkand. The opening of the branch helps to strengthen cultural ties and promote the French language and culture in the region.
The grand opening of the French Alliance in Samarkand took place in November 2023, during the visit of French President Emmanuel Macron to Uzbekistan.
During the visit of the head of state, the ribbon was solemnly cut and the Center was opened. The Presidents got acquainted with the possibilities of the modernly equipped center, which will organize French language and literature courses and is able to receive those who wish to join the culture of France. The Heads of State expressed confidence that the Alliance’s activities in Samarkand would contribute to further rapprochement and strengthening of friendship between the two states.
In conclusion, Uzbekistan is actively building its future through the integration of advanced technologies and international cooperation with foreign countries and companies. Special Economic Zones (SEZs) play a special role in this process, which are becoming important drivers of economic growth and development in the region. These zones create optimal conditions for attracting investments, implementing innovative solutions and developing new industries, including industry, agriculture, information technology and environmentally friendly technologies.
The FEZs of Uzbekistan provide tax and customs privileges, which contributes to the creation of a favorable business climate for domestic and foreign companies. In particular, they are focused on the development of industry, renewable energy sources and environmentally friendly technologies, and support the country’s transition to a green economy. Projects implemented in these zones contribute to infrastructure modernization, environmental improvement, and innovation in key industries such as energy and waste management.
Cooperation with international partners, including France, as well as the participation of major players in projects within the FEZ, contributes to the implementation of multilateral sustainable solutions, which corresponds to global trends. As a result, Uzbekistan is becoming an attractive country for investors and partners, and its economy continues to develop toward sustainable growth and technological progress.
