Uzbekistan pushing for Variety in Foreign Direct Investment
Uzbekistan Kicks Off Green Agenda with Saudi Arabia and South Korea
In a bid to reduce dependency on Chinese and Russian investment, Uzbekistan is partnering with Saudi Arabia and South Korea for sustainable infrastructure projects. [1][2]
Recently, Uzbek officials signed a deal with Miahona, a Saudi-based firm, to manage five wastewater treatment plants in the Ferghana and Jizzakh regions, with an option to build additional plants elsewhere. This collaboration is part of Saudi Arabia's growing investments in Uzbekistan's eco-friendly agenda. In fact, the Trade & Investment Ministry announced three deals, worth nearly $10 billion, with Saudi firms in May, covering a wind power plant, a green-tech data center, and city heating system modernization. [1]
Uzbekistan's focus on South Korea extends to developing "dry ports" to streamline trade along the Middle Corridor connecting China and Europe. These hubs are planned for the Syrdarya and Jizzakh regions, with studies expected to complete in a year. These developments are expected to boost Uzbekistan's logistics infrastructure, reinforcing its status as a transport hub in Central Asia and attracting fresh investments. [1]
As per reports, during the first quarter of 2024, China and Russia were the top two investors in Uzbekistan by foreign-direct-investment (FDI). Since then, Uzbekistan has pursued diversifying its FDI investors, with Saudi Arabia's total investment portfolio in Uzbekistan reaching $30 billion.[3] Additionally, Uzbekistan signed preliminary agreements with South Korea in June, worth a potential $9.6 billion, adding to existing investments estimated to be around $7.5 billion.[3]
While Uzbekistan-Saudi Arabia talks have highlighted the potential for projects in energy, transport, and water management, specific projects pertaining to wastewater treatment plants, wind power, "dry ports," or regional logistics have not been publicly detailed as of yet. However, they appear to be areas under development, given the infrastructural focuses of the discussions between the countries.[1][2]
Meanwhile, Uzbekistan is spearheading urban renovations in Tashkent, investing over $25 billion in infrastructure upgrades, including revamping hydrological infrastructure and expanding green spaces for sustainable urban development. [5] Moreover, South Korean tech firm Kakao Mobility's smart infrastructure projects in Saudi Arabia showcase the potential for future cooperation between Uzbekistan and Korea in smart city and logistics sectors. [4]
In conclusion, Uzbekistan-Saudi Arabia discussions suggest an ongoing exploration of joint projects in energy, transport, and water management. Uzbekistan's collaboration with South Korea presents an opportunity for smart urban and regional growth through technological innovation and sustainable infrastructure development. [1][2][4][5]
The news of Uzbekistan's green agenda expansion includes partnerships in finance, as Saudi Arabia has a growing investment portfolio in eco-friendly projects within Uzbekistan. In the realm of technology and lifestyle, South Korean firms are contributing to smart infrastructure projects and urban renovations in Uzbekistan, particularly in Tashkent.
