Central Asia’s historical significance stems from its strategic location at the crossroads of East and West, nestled between empires and bordering areas of conflict and insecurity such as Afghanistan, China’s Xinjiang province, and Iran. While the region was largely ignored throughout the Cold War, its vitality and importance were quickly rediscovered.
Uzbekistan, a former republic of the Soviet Union, gained independence on August 31, 1991. The first president was Islam Karimov, but in 2016, Shavkat Mirzoyev came to power and assumed office as the new president. President Mirziyoyev has proactively initiated major economic reforms to modernize Uzbekistan’s economy and enhance its global engagement. Since his inauguration, Uzbekistan has achieved significant economic growth and attracted foreign investment, particularly in the energy sector.
The country seeks to develop its energy potential, particularly in the field of energy transition. Initiatives include the launch of projects for connecting a modern combined cycle power plant with a capacity of 1,500 megawatts to the power supply network and the start of construction of a pilot production of green hydrogen.
Furthermore, Uzbekistan has become an area that attracts foreign investors, with significant plans for the expansion and modernization of its power sector. As the country continues to strengthen its international partnerships, it has attracted over $26.6 billion in foreign investments, including direct investments of $17.5 billion. The government is prioritizing economic reforms to strengthen the private sector, facilitate job creation, and address unemployment issues.
The establishment of incubators for start-ups and mentoring programs has contributed to the growth of the new technology sector. As a further illustration of its commitment to economic progress, Uzbekistan has encouraged the development of academic partnerships with universities worldwide, aiming to enhance its educational infrastructure.
Additionally, Uzbekistan is striving to become a key player in developing the interconnection between Central and South Asia, especially in the context of regional cooperation and infrastructure projects. Notably, the country is working on the construction of a high-voltage power line that will serve Afghanistan, reflecting its vision for regional economic development and connectivity.
Amid its economic growth and international engagements, Uzbekistan has also been focusing on its tourism potential. The country is becoming a tourist paradise, attracting enthusiasts of history, Timurid heritage, and eco-tourism, with over 7,000 monuments of architecture and art of different epochs and civilizations.
In international relations, Uzbekistan seeks to play a significant role within various global organizations such as the United Nations, the Shanghai Cooperation Organization, the Commonwealth of Independent States, and the European Bank for Reconstruction and Development. Furthermore, the country is seeking to develop multidimensional cooperation between Uzbekistan and the European Union, further solidifying its presence on the international stage.
In a bid to realize its vision for the future, Uzbekistan is focused on creating efficient traffic corridors across Central Asia and developing direct junctions with seaports to facilitate access to international markets. The country’s strategic and central position on the ancient Silk Road and its commitment to regional cooperation underscore its emerging role in the global economy.
Uzbekistan is on a trajectory of growth and international significance, establishing itself as a key player between Europe and Asia, and its continued evolution will undoubtedly make a notable impact on the global stage.
Uzbekistan’s resilience, strategic positioning, and development across multiple sectors establish it as a growing and radiant power between Europe and Asia, positioned to shape the future of regional and global economic relations.
Market Capital Research 