World Bank Group: Three Sector Reforms Could Attract Up to $6.4 Billion in Private Investment to Uzbekistan

Tashkent, Uzbekistan (UzDaily.uz) — The World Bank Group estimates that Uzbekistan can attract between $5.2 billion and $6.4 billion in private investment and generate more than 300,000 direct and indirect jobs over the medium term by advancing structural reforms in its logistics, tourism, and pharmaceutical sectors. These findings were published in the new analytical report titled "Uzbekistan Country Private Sector Diagnostic" (CPSD).

The report indicates that these specific industries possess high potential for mobilizing private capital, driving job creation, and implementing rapid reforms. According to experts, the strategic development of these sectors will accelerate the country’s transition to a more competitive, private sector-led economy.

The authors of the study emphasize that since launching major market-oriented reforms in 2017, Uzbekistan has substantially improved its business environment and raised household income levels. However, achieving the goals outlined in the "Uzbekistan – 2030" Development Strategy requires deeper transformations. These include lowering barriers to competition, bridging the workforce skills gap, and addressing the infrastructure and regulatory constraints that currently restrict investment inflows.

Lisa Kaestner, the International Finance Corporation (IFC) Country Manager for Turkey, Kazakhstan, and Uzbekistan, noted that creating an environment where local companies can grow, compete, and innovate will significantly boost private investment volumes. She pointed out that targeted reforms in high-growth industries expand commercial opportunities for businesses while generating quality jobs.

In the logistics sector, the strongest commercial prospects lie within road freight transport and warehousing. The World Bank estimates that simplifying land allocation, accelerating construction permits for infrastructure objects, and digitizing access to international transport permits could attract $950 million to $1.05 billion in private investment while creating up to 108,000 jobs. Furthermore, modernizing this sector will solidify Uzbekistan’s position as a regional trade and transit hub, particularly along the Trans-Caspian Transport Corridor (the Middle Corridor).

Experts also see massive untapped potential in the tourism industry. Refining land-leasing frameworks, investing in human capital, and introducing professional management systems for tourist sites could secure an additional $3.1 billion to $4.2 billion in private capital and create approximately 180,000 jobs. These interventions would also help diversify tourist traffic by expanding cultural and nature-based ecological tourism.

In the pharmaceutical sector, generic drug manufacturing and dietary supplements were identified as highly promising niches. To unlock further growth, the World Bank recommends establishing accredited bioequivalence testing laboratories, aligning domestic manufacturing with international Good Manufacturing Practice (GMP) standards, enforcing documentation compliance for active pharmaceutical ingredients (APIs), and streamlining drug registration processes.

The report's authors project that executing these pharmaceutical reforms could attract up to $188 million in additional private investment and generate up to 20,000 jobs, strengthening Uzbekistan’s stance as a competitive regional supplier.

Najy Benhassine, World Bank Regional Director for Central Asia, concluded that the next stage of the country's economic transformation hinges heavily on continued market reforms. Fostering healthy market competition and eliminating structural barriers for enterprises will naturally stimulate investments, boost productivity, and build the highly skilled workforce needed for a modern economy.