MIFT announces how much foreign investment Uzbekistan mastered in 2019

In 2019, thanks to all sources of financing, the volume of investment development amounted to 220.7 trillion soums, exceeding the approved annual forecast indicators by 2 times. The volume of investments in fixed assets amounted to 189.9 trillion soums, with a growth rate of 1.3 times compared to the same period in 2018, the Ministry of Investment and Foreign Trade reports. 

A significant increase in investment performance is due to an increase in the inflow and development of foreign investment and loans in the amount of $13.3 billion, of which:

- foreign direct investment – $9.3 billion (including $6.6 billion in fixed assets).

- funds of international financial institutions – $4 billion (including $3.2 billion in fixed assets).

At the same time, the share of utilized foreign direct investment in the total investment volume increased to 37% (for comparison, in 2018 this indicator amounted to 10.5%).

According to the report of the United Nations Conference on Trade and Development (UNCTAD), the world foreign direct investment volume has been declining for the third year in a row, reaching the lowest level that was observed immediately after the global financial crisis. At the end of 2018, this indicator decreased by 19% (in 2017 – 16%).

At the same time, according to the UNCTAD report, positive trends were observed in developing countries, especially in Asia, where the volume of foreign investment grew by 5%. Moreover, while in the countries of Central Asia the growth of foreign investment amounted to an average of 8-10%, then in Uzbekistan this indicator compared to the indicators of 2018 ($2.9 billion, of which $1.6 billion in fixed assets) grew by 3.2 times ($9.3 billion, of which $6.6 billion in fixed assets), which provided the Republic with leadership in terms of growth rate among the countries of the region.

The main foreign partners in attracting foreign investment to the Republic were China, Russia and Germany, while the total number of investing countries in the economy of Uzbekistan exceeded 50, due to which the share of the largest investing countries fell to 34% of the total volume of direct foreign investments and loans.

Active growth in attracting foreign direct investment compared with the forecast indicators of 2018 was observed in the electrical industry (growth – 7.5 times), metallurgy (growth – 4.6 times), textile industry (growth – 2.5 times), leather footwear (growth – 2.1 times), oil and gas (growth – 2 times) industries.

According to the Investment Program, approved by presidential decree, in 2020, from all sources of financing, the development of investments in fixed assets is forecasted in the amount of 233.2 trillion soums, of which foreign direct – $7.1 billion, foreign investment and loans under a state guarantee – $2.7 billion.