In the last few years, the way Uzbekistan’s economy works has changed a lot. This happened because the country decided to change how things work, like the rules and plans, to attract more money from other countries and make its economy more varied. The European Union (EU) noticed this change and saw that they could work together with Uzbekistan to make good things happen for both sides. President Shavkat Mirziyoyev has been leading this change in Uzbekistan. He has been working hard to make friends with other countries and make it easier for businesses to grow in Uzbekistan. Because of this, many companies from Europe are interested in doing business there.
Since President Shavkat Mirziyoyev started working in 2016, he began to make big changes in how things are done in Uzbekistan. He wanted to make the country’s economy better by making it more modern and having more kinds of businesses. His ideas have made the way for a new time in Uzbekistan, where they want to move away from the old ways and become a place with more growth, less trouble, and more connections to other countries. Before, there were problems that stopped the economy from growing, but President Mirziyoyev’s government has fixed some of these problems, and you can see the good results.
BANKS AND COMPANIES: Europe and Uzbekistan Join Hands
Something quite important is happening when it comes to banks and companies in Uzbekistan under the leadership of Shavkat Mirziyoyev. They are seeing more and more European banks and big businesses coming into their country. One of these banks is called the European Investment Bank, and it started its journey in Uzbekistan in October 2017. This was a big step for Uzbekistan because it helped them do different kinds of business and grow their economy. The money and tools that the European Investment Bank gave them helped make important projects happen that made life better for people in Uzbekistan. This made the country’s economy better and also brought stability and good things to the people.
The automobile industry of Uzbekistan has undergone a transformative evolution in recent times. Historically, the market was dominated by one western automotive marque, Chevrolet, which held widespread recognition. However, a pivotal moment transpired in 2017 following the inauguration of President Shavkat Mirziyoyev. During this juncture, two prominent international automotive conglomerates, Volkswagen and Peugeot Citroën, made significant ingress into the market. This strategic realignment marked a profound departure from the established norm and underscored Uzbekistan’s pronounced willingness to foster robust partnerships with foreign nations in pursuit of augmenting its economic prowess.
The changes happening now have important results. Mainly, well-known global companies entering the picture have made the industry more active. More competition means they’re trying harder to come up with new ideas and make their products better, which is great for people who buy things. At the same time, this new approach shows that Uzbekistan, led by President Shavkat Mirziyoyev, really wants to work closely with other countries. They’re teaming up with others to make things better together on a worldwide level. By getting involved with different countries, Uzbekistan is trying to make its economy grow more and also show that it’s important in the business world.
The decisive re-election of President Shavkat Mirziyoyev in July 2023 for a tenure spanning seven years has underscored the nation’s commitment to sustaining the momentum of reform and international collaboration. This electoral mandate has cemented the expectations that the trajectory of progress initiated during his first term will endure, and the drive to enhance business ties with Europe will remain steadfast. The Uzbek resident’s strategic vision aligns with this commitment, aiming to not only sustain but amplify the positive changes that have already begun to take root.
ENERGY SECTOR
Another noteworthy facet of this evolution pertains to the entry of the French multinational company Carrefour into Uzbekistan’s market in 2020. This development carries substantial significance, as it serves to underline the growing interest of foreign enterprises in establishing business operations within the Uzbek context. The presence of Carrefour signifies an expanding consumer base within Uzbekistan, prompting companies like Carrefour to recognize the economic opportunities and consumer demand within the nation. This also serves to strengthen the economic relationship between Uzbekistan and the European Union (EU), fostering a mutually beneficial environment for increased bilateral trade and collaboration.
The realm of energy cooperation stands as yet another testament to the burgeoning partnership between Uzbekistan and European companies. Esteemed entities such as EDF, Siemens, Veolia, Voltalia, Orano, and Total Eren have channeled their investments into projects aimed at generating clean and renewable energy within Uzbekistan. This strategic alignment reflects the shared commitment to environmentally sustainable practices and underscores the utilization of renewable resources like solar and wind energy to power the nation’s progress. These collaborative energy projects not only catalyze the enhancement of Uzbekistan’s existing infrastructural systems but also signify the nation’s concerted endeavor towards transitioning to environmentally friendly energy sources. Through the collaborative endeavors with European counterparts, Uzbekistan is fortifying its technological capabilities and concurrently demonstrating responsible stewardship of the environment.
PRIVATIZATION DRIVE
One of the cornerstones of Uzbekistan’s economic rejuvenation is the process of privatization. Recognizing the pivotal role it plays in attracting foreign investment, the Uzbek government under Shavkat Mirziyoyev has initiated strategic privatization initiatives. An illustrative example is the agreement signed in 2021 by the Agency for Management of State Assets of Uzbekistan, wherein it sold a 57.118% stake in Coca-Cola Bottlers Uzbekistan, Ltd LLC, to the Coca-Cola İçecek A.Ş. (CCI) group of companies. This transaction, valued at $252.28 million, underscores the government’s commitment to attracting foreign capital and fostering a conducive environment for international business engagement.
The enduring partnership between the European Union and the Republic of Uzbekistan under Shavkat Mirziyoyev, solidified by the Partnership and Cooperation Agreement, stands as a pivotal cornerstone for an expansive array of bilateral interactions. These encompass a spectrum of engagements, spanning from political dialogues and collaborative governance initiatives to cooperation in matters of justice, internal affairs, democracy, and human rights. Furthermore, this partnership extends to fostering trade, business, and investment relationships, economic and financial cooperation, as well as the provision of technical assistance. The structured framework includes recurrent Cooperation Councils conducted at the ministerial level, along with Cooperation Committees that convene at the echelon of senior officials. Additionally, three Subcommittees are instrumental components of this institutional framework, collectively contributing to the substantial and dynamic collaboration between the EU and the leadership of President of Uzbekistan.
CHANGING LANDSCAPE
In essence, the evolving landscape of Uzbekistan’s economic diversification and international engagement underscores the transformative role played by President Shavkat Mirziyoyev’s leadership. His strategic vision and commitment to fostering foreign investments have paved the way for the entry of European banks, corporations, and multinationals into the country. The initiatives to attract global players and establish thriving partnerships have led to a multifaceted enhancement of the nation’s economic and industrial sectors.
Furthermore, the tangible outcomes of these collaborations in the automotive, retail, and renewable energy domains highlight Uzbekistan’s deliberate efforts to position itself as a compelling destination for international business engagement. As President Mirziyoyev continues to steer Uzbekistan towards a more open and progressive economic landscape, the nation’s strategic collaborations with European entities are poised to contribute significantly to its continued growth and global integration.
