The fastest-growing economy in Central Asia, Uzbekistan, is a country undergoing a transformation. With all the energy and optimism of a young country, only independent since 1991, Uzbekistan is radically revitalising and reorienting its economy. Indeed, President Shavkat Mirziyoyev’s ambitious reform programme, launched in 2017, is unprecedented in its scale and scope.

Privatising Uzbekistan’s major state-owned assets, attracting dramatically increased foreign investment, and capitalising on the country’s young, STEM-literate workforce to establish a thriving tech market – this is a roadmap for real change.

But all of these exciting developments, and the impressive economic metrics they are producing (Uzbekistan recorded GDP growth of 6.5% in 2024, with its nominal GDP reaching $115 billion) are underpinned by one crucial, indispensable sector: energy.

No sophisticated modern economy can afford to neglect its energy base. From the expansion of traditional industrial capacity to powering the new digital and services economy, development in the 21st century is more energy-dependent than ever.

Our government recognises this fact. More than this, we’re committed to pursuing a twin-strategy to capitalise on Uzbekistan’s natural energy wealth: expanding the country’s green energy generation capacity whilst at the same time modernising existing energy assets with the support of global expertise and finance.

This latter plank of government strategy has only this month won a significant, historic victory. The announcement early in February that the National Investment Fund of Uzbekistan (UzNIF) would be managed by the global asset management heavyweight Franklin Templeton is a demonstration of the government’s determination that the best and most contemporary of corporate and operational standards are integrated into the heart of Uzbekistan’s economy. The fund – UzNIF – comprises 18 state-owned enterprises whose collective value Franklin Templeton assesses at US $1.5 billion. Of particular interest are the energy assets featured in UzNIF, which compose almost 30% of the portfolio.

Preparing these ultimately for global investors, Franklin Templeton will implement transformation strategies and, in so doing, will dramatically upgrade the country’s existing power and distribution infrastructure.

But it’s in green energy that Uzbekistan’s regional leadership is most striking. Here again, ambitious government goals have galvanised action: we are aiming to see our national energy mix comprise 40% renewables by 2030. What’s more, it’s our partnership with businesses in the Middle East which are helping us realise this goal.

ACWA Power, for example, has been a strong supporter of our pivot to renewables, and we’ve seen our partnership flourish in ways few could have predicted only years ago. Uzbekistan now represents ACWA’s biggest market after its domestic Saudi one, and the company’s total investments of $13.9 billion are distributed across 15 projects it is developing across the country. From the largest battery energy storage system in Central Asia to a pioneering green hydrogen project – not to mention a wind farm and solar plant – our partnership with ACWA Power is elevating our renewable energy profile to historic highs. Masdar, meanwhile, was another early investor in Uzbekistan and now boasts Central Asia’s largest wind farm in the country, as well as the region’s largest solar development projects. That’s before we consider the company’s three utility-scale solar power plants across Uzbekistan.

As if this wasn’t enough, at the Tashkent International Investment Forum (TIIF) in 2022, Nebras Power formalised its decision to construct and ultimately operate the Syrdarya II Combined Cycle Gas Thermal (CCGT) power plant in Uzbekistan’s central region. We also expect further deals to be completed at TIIF 2025, taking place June 10-12, which will convene investors from across the globe to showcase the significant investment opportunities that Uzbekistan offers.

This is by no means a comprehensive survey of the renewables projects which are currently advancing in Uzbekistan, but it demonstrates a clear trend: investment from the Middle East has been indispensable in my country’s pursuit not only of green energy resources, but also in our campaign to modernise and diversify our economy.

Our partnerships with governments and businesses in the Middle East are founded on more than geographic proximity. Some of Islam’s great intellectual and artistic achievements emanated from Uzbekistan: from the splendour of Samarkand’s many historic mosques to the great mathematician Al-Khawarizmi (780-850 CE), who invented algebra and was a son of Khiva.

Let us commit to forging a future in which trade and investment, as well as learning and technical knowledge, flow between Uzbekistan and the great nations of the Middle East, as they have done for centuries before us.

Source: Utilities Middle East