World Bank identifies 3 sectors that could bring billions of dollars to Uzbekistan
According to a new analytical report by the World Bank, logistics, tourism, and pharmaceuticals are the sectors with the highest potential in Uzbekistan's economy. If targeted reforms are successfully implemented in these areas, it will be possible to create over 300,000 new jobs and attract billions of dollars in private investment.
Zamin.uz provides details on these three areas, which World Bank analysts have identified as the most essential for economic diversification.
World Bank conclusion: These three sectors are the best choice for attracting private capital and increasing employment. Developing these areas will serve to build a healthy, competitive economy led by the private sector rather than the state.
1. Logistics: A revolution in transport and warehousing
In the logistics sector, the development of road freight transport and modern warehouse infrastructure has been assessed as the top priority.
Expected result: $950 million to $1.05 billion in private investment.
Jobs: Up to 108,000 new jobs.
Reforms needed: Maximizing the simplification of land allocation and construction processes, and fully digitizing permits for international freight transport.
2. Tourism: Billions of dollars in cultural and ecological potential
In Uzbekistan, there is still vast untapped potential for developing cultural and ecological tourism.
Expected result: $3.1 billion to $4.2 billion in direct private investment.
Jobs: 120,000 to 180,000 new jobs.
Reforms needed: Improving land lease mechanisms, training qualified personnel at an international level for the industry, and introducing modern approaches to managing tourist facilities. This will help diversify tourist flows.
3. Pharmaceuticals: A strategic growth point
The report also highlights the pharmaceutical sector as a strategic area with high growth rates. The World Bank emphasized that attracting extensive private investment in this field and developing local drug production will play a key role in ensuring economic stability.
What are the obstacles on the path to the "Uzbekistan – 2030" strategy?
World Bank analysts acknowledge that market reforms implemented in Uzbekistan since 2017 have significantly improved the business environment and had a positive impact on increasing household incomes.
However, to achieve global goals and accelerate economic development, the country needs to address the following systemic problems:
Completely eliminating existing factors that limit healthy competition in the market;
Strengthening the system of training qualified personnel that meet labor market demand;
Consistently developing infrastructure (roads, energy, communications);
Improving the state regulatory system and reducing bureaucracy.
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