World Bank: Uzbekistan could attract up to $6.4 billion in private investment through sector reforms

A new Country Private Sector Diagnostic (CPSD) for Uzbekistan, released by the World Bank Group, identifies the three industries as having the greatest potential to attract private capital, generate employment and drive structural reforms.

The World Bank noted that Uzbekistan has undergone significant economic transformation since 2017, improving the business environment and raising household incomes. At the same time, it said the country must continue removing barriers to competition, address shortages of skilled labor, and strengthen infrastructure and the regulatory framework to achieve the goals set out in the Uzbekistan – 2030 strategy.

In the logistics sector, the report highlights road freight transport and warehousing infrastructure as the most promising areas for private investment. Developing these segments would strengthen Uzbekistan's position as a regional trade hub, including along the Middle Corridor international transport route.

According to the World Bank, reforms aimed at simplifying land-use and construction procedures, as well as digitalizing the issuance of international road freight transport permits, could attract between $950 million and $1.05 billion in private investment and create up to 108,000 jobs.

The report also points to substantial untapped potential in cultural and ecotourism. Improving land leasing mechanisms, developing the tourism workforce and increasing the efficiency of destination management could attract between $3.1 billion and $4.2 billion in private investment.

These reforms could create between 120,000 and 180,000 jobs while helping diversify tourist flows and increase the sector's economic contribution.

In the pharmaceutical industry, the World Bank identifies the production of generic medicines and dietary supplements as the most promising areas, citing steadily growing demand for both products.

To unlock the sector's potential, the organization recommends establishing bioequivalence testing laboratories, aligning manufacturing processes with international standards, improving documentation for active pharmaceutical ingredients and streamlining drug registration procedures.

According to the report, implementing these measures could attract between $44 million and $188 million in private investment while creating up to 20,000 new jobs.