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Uzbekistan Launches US$7.6 Billion Projects in Karakalpakstan

Uzbekistan Launches US$7.6 Billion Projects in Karakalpakstan
Uzbekistan Launches US$7.6 Billion Projects in Karakalpakstan / Photo: Press Service of the President of Uzbekistan..

Tashkent, Uzbekistan (UzDaily.uz) — Eleven projects worth US$592 million have been launched in Karakalpakstan, while construction has begun on another 47 projects worth US$7 billion.

The implementation of initiatives involving foreign partners will create 8,000 high-income jobs, the press service of the President of Uzbekistan reported.

The projects cover energy, the digital economy, industry, transport, healthcare and services.

President Shavkat Mirziyoyev took part in a ceremony marking the launch of facilities and the start of construction work during his visit to the region.

In recent years, conditions for entrepreneurship and investment attraction have improved in Karakalpakstan. The republic’s gross regional product increased from 8.5 trillion soums in 2016 to more than 54 trillion soums by the beginning of 2026. The private sector’s share in production reached 66%, while the number of operating business entities increased 2.5 times to 26,500.

More than US$5 billion in investment has been attracted to the region over the past nine years to create high-income jobs. Foreign investment is expected to reach US$2.5 billion in 2026. The number of foreign and joint ventures has increased 2.2 times compared with 2018, reaching 271.

Two wind power plants with a combined capacity of 300 MW and a 100 MW electricity storage system have been commissioned in Karauzyak district. In Kungrad district, active construction has begun on a 1.5 GW wind power plant worth US$2.6 billion. The project is being implemented jointly with Saudi company Acwa. It includes the construction of 1,500 km of high-voltage power lines, three 500 kV substations and the modernization of two others.

The Sheikh Khalifa Hospital, built in cooperation with the UAE, has started operating in Nukus. The facility cost US$27 million, has 100 beds and created 80 jobs. The Karakalpakstan Scientific and Practical Medical Academy will also be used to improve the quality of healthcare and provide professional training for specialists.

The first stage of a modular intelligent computing center operated by Linkwise, worth US$150 million, has been launched in Takhiyatas district. Projects to produce digital currency and establish artificial intelligence data centers with Chinese partners are being implemented in Kungrad and Takhiyatas districts, with a combined value of US$2.281 billion. Another data center will be established in Takhtakupyr district.

To develop public transport, the US$20 million SAPSAN TRANS NO‘KIS project has been launched in Nukus. Twenty-five buses and electric buses have already been delivered, with another 75 electric buses expected by the end of the year. The project will create 200 jobs.

In the transport sector, construction has begun on a 92-km section of the A-380 Guzar-Bukhara-Nukus-Beyneu highway in cooperation with the Asian Development Bank. The project is worth US$233 million. In addition, with the participation of the European Bank for Reconstruction and Development, 112 electric buses are planned to be purchased for Nukus and a depot will be built.

In Chimbay district, a project to produce 3 million cubic meters of biogas annually by processing licorice root has been launched jointly with Korean investors. A US$20 million gold mining enterprise will be established at the Zengibobo deposit in Karauzyak district, while a US$15 million shopping center will be built in Amudarya district.

In the social sector, a university of medical sciences and a hospital for providing high-tech medical care are being established jointly with Indian partners on the basis of a public-private partnership. In Nukus, a US$103 million shopping and entertainment center with recreational areas will be built on the banks of the Dustlik Canal with the participation of Turkish partners.

The concept of the New Uzbekistan residential area in Nukus was also presented separately at the ceremony. A 270-hectare site has been designated for its construction, and preparations for project documentation have begun. The development is planned to include multi-storey residential buildings for 30,000 residents, as well as business centers, retail, service and entertainment facilities.

Shavkat Mirziyoyev called on representatives of the older generation, scientists and the public to monitor the implementation of each project.

According to him, this approach should contribute to improving family welfare, creating opportunities for young people and building a sustainable economic foundation for the Aral Sea region.

Anvar Umarov
Anvar Umarov

Anvar Umarov is the founder and editor-in-chief of UzDaily, a leading business and news publication covering Uzbekistan and Central Asia. With over 20 years of experience in journalism, he has also worked as a PR manager for both state and private organizations, bringing a broad perspective on media, communications, and public affairs to his editorial leadership.