Uzbekistan Becomes the Largest Recipient of FDI in the Eurasian Region

Tashkent, Uzbekistan (UzDaily.com) — The Republic of Uzbekistan has established itself as a key recipient of foreign direct investment (FDI) in the Eurasian region, reaching a cumulative inflow of US$10.8 billion as of the first half of 2025. This is reported in the Eurasian Development Bank (EDB) report within the framework of its flagship project, Mutual Investment Monitoring.

This figure positions Uzbekistan as the largest beneficiary of mutual investments among the region’s countries. However, the structure of this capital reflects both successes in diversification and a slowdown in activity from the key investor—Russia.

Inward FDI: Structure and Key Investors

According to the EDB, the cumulative inbound FDI in Uzbekistan totals US$10.8 billion, distributed across 56 projects.

By comparison, the country surpasses Kazakhstan, which attracted US$9.4 billion, and Azerbaijan with US$5.4 billion.

Russia is the leading investor, with a cumulative FDI of US$9.7 billion across 28 projects. Despite its dominance, this figure has declined by US$183 million compared to 2022, likely due to partial capital withdrawals or a slowdown in new large-scale projects.

The average capital intensity of a Russian project in Uzbekistan is US$346 million, indicating a predominance of large-scale investments, likely in raw materials or infrastructure sectors.

Other notable investors include Kazakhstan with US$673 million (15 projects), Belarus with US$367 million (10 projects), and Azerbaijan with US$43 million (2 projects).

Sectoral Priorities of Attracted Capital

The inbound mutual investments are concentrated in several key sectors. The manufacturing sector remains the main driver of growth, reflecting the government’s industrialization and import-substitution policies.

Growing electricity demand from new industrial facilities stimulates investments in the energy sector, especially in renewable energy.

Investments in transport and logistics aim to enhance connectivity with South Asia and the Middle East, as well as develop the Trans-Caspian International Transport Route (TITR) and the North-South Corridor (NSC).

Additionally, construction remains the largest sector in terms of FDI within intraregional cooperation in Central Asia.

Outward FDI: Expanding Regional Presence

Uzbekistan is gradually moving from a role solely as a recipient to an active regional investor.

The cumulative outward FDI (OFDI) from Uzbekistan to Eurasian countries reached US$354 million as of the first half of 2025.

These Uzbek investments are primarily aimed at supporting trade and logistics links with neighboring Central Asian countries, as well as developing industrial cooperation, allowing Uzbek companies to expand markets and optimize supply chains.

Although the current OFDI volume is modest compared to inbound capital, EDB analysts view it as an indicator of the early stage of national companies’ regional expansion, expecting significant growth in the medium term.

Intraregional Dynamics in Central Asia

Uzbekistan actively participates in the growing trend of intra-Central Asian investments, where the total cumulative FDI reached US$1.3 billion, marking a 42% increase compared to 2023.

The increase in market capacity and strong government incentives for industrial cooperation are key factors driving this trend.

EDB experts emphasize that sustainable investment growth in Uzbekistan is critical for long-term development, but further diversification of capital sources and active development of new projects—especially in the manufacturing sector—are necessary for long-term stability.