Uzbekistan Investment Enters a New Era: The Impact of Salman Mirziyoyev's Appointment

Salman Mirziyoyeva's Key Appointment: A Signal for a New Era of Investment in Uzbekistan?

November 12, 2025, saw a new focal point emerge in international financial markets. In Uzbekistan, a strategic hub in Central Asia, Salmana Mirziyoyeva, daughter of President Shavkat Mirziyoyev, was appointed Co-Chair of the American-Uzbek Chamber of Commerce and Investment (AUCC).

This appointment signifies more than a simple leadership change; it signals Uzbekistan's strong intent to further strengthen its economic ties with the international community, particularly the United States, and accelerate foreign direct investment (FDI).

The AUCC's Crucial Role

• The AUCC serves as a vital platform for U.S. companies to enter the Uzbek market and expand their business operations.
• It has already played a major role in promoting trade and investment between the two countries.

Ms. Mirziyoyeva's appointment as co-chair of this organization, combined with her current position as Presidential Advisor, demonstrates the Uzbek government's emphasis on dialogue with foreign investors.

Her Role as a Reform Advocate

Mirziyoyeva has long contributed to Uzbekistan's informatization and transparency, serving in the field of information and communications policy and as Vice Chair of the Board of Directors of the public fund supporting and developing state media. This experience holds potential for improving governance and information disclosure, which foreign investors seek. Her appointment is expected to contribute to further transparency, efficiency, and predictability in the investment environment.

Alignment with the "New Uzbekistan" Strategy

President Mirziyoyev's "New Uzbekistan" strategy is an ambitious reform program centered on economic liberalization, privatization, and digitalization. Salman Mirziyoyeva's appointment as AUCC Co-Chair is seen as part of this strategy, specifically aimed at attracting high-quality investment, particularly from the United States, to powerfully advance the diversification and modernization of Uzbekistan's economy.

This can be seen as a clear signal that Uzbekistan is seeking to further enhance its presence in the global economy. It should prompt international investors to reassess the Uzbek market. Economic reforms, advanced under political stability and strong leadership, are cultivating fertile ground for new business opportunities. Now may indeed be the time to turn one's attention to Uzbekistan.

Central Asia's Gem: Uzbekistan's Hidden Economic Appeal and Growth Potential

Located at the heart of Central Asia, Uzbekistan has long flourished as a key hub along the Silk Road. Its strategic importance as a land transport hub connecting China, Russia, Europe, and the Middle East remains undiminished today. This geographical advantage offers significant appeal to international companies, highlighting its potential as a logistics base and facilitating access to neighboring countries.

Abundant Resources and Diverse Industries

The country is blessed with abundant natural resources, including natural gas, gold, and uranium. However, its appeal extends beyond resources alone. It holds growth potential across diverse industrial sectors.

• Agriculture: It holds a leading global position in cotton production and is also prominent in fruit and vegetable cultivation. There is significant potential for modernizing the food processing industry and expanding exports.
• Manufacturing: Sectors like automotive, textiles, and chemicals are developing, with expectations for technology transfer and productivity gains through FDI. The textile industry, in particular, is building an integrated production system from cotton to finished products, showing a clear path toward higher value-added production.
• Energy: The country is actively pursuing renewable energy development, including solar and wind power, offering abundant investment opportunities for achieving a sustainable society.
• IT & Digitalization: With a large young population and a government committed to fostering the IT industry, growth is anticipated in digital infrastructure development, software development, and the BPO (Business Process Outsourcing) sector.

Demographic Dividend and Progress in Economic Liberalization

Uzbekistan's population exceeds 36 million (as of 2023), making it the most populous country in Central Asia. Furthermore, over half of its population is under 30, placing it in a "demographic dividend phase." This provides a plentiful, young, and motivated labor force. This not only enhances its appeal as a production base but also signifies its potential as a massive domestic market.

The Mirziyoyev administration has pursued bold economic reforms, including currency liberalization, removal of trade barriers, tax reforms, and privatization of state-owned enterprises. These reforms are improving the business environment and establishing a foundation where foreign investors can operate with greater confidence. Uzbekistan's ranking in the World Bank's "Ease of Doing Business" index has steadily improved, demonstrating that these efforts are bearing fruit.

Tourism Potential

Historic Silk Road cities like Samarkand, Bukhara, and Khiva attract tourists worldwide with their beautiful architecture and rich cultural heritage. The government is also investing heavily in tourism infrastructure, creating abundant investment opportunities in hotel and resort development, as well as related services.

Specific Opportunities and M&A Strategies for Investors

Uzbekistan is actively attracting foreign investment to maximize its economic potential. Let's take a closer look at specific opportunities and M&A strategies investors should consider.

Preferential Measures for Attracting FDI

The Uzbek government offers various incentives to actively attract foreign investment.

• Free Economic Zones (FEZ): Free Economic Zones established in regions such as Navoi, Andijan, and Jizzakh offer preferential tariffs and corporate taxes, simplified administrative procedures, and long-term land leases, promoting their use for manufacturing and logistics hubs.
• Tax Incentives: Depending on the investment amount and business sector, multiple taxes such as corporate income tax, property tax, and land tax may be exempted for a certain period.
• One-Stop Service: A "one-stop service" has been introduced, where government agencies collaborate to support licensing and approval procedures, enabling investors to smoothly commence business operations.

Attractiveness of M&A and Joint Ventures

M&A and joint ventures can be highly effective strategies for entering the Uzbekistan market or expanding operations.

• Privatization of State-Owned Enterprises: The government is actively privatizing numerous state-owned enterprises, presenting significant M&A opportunities. Particularly in key sectors like energy, finance, telecommunications, and transportation, acquisitions by foreign capital and joint ventures are likely to increase. This allows leveraging existing infrastructure and market share while advancing efficiency and technological innovation.
• Collaboration with Local Firms: Uzbekistan's local companies have built strong sales networks and relationships within local communities. Joint ventures with these firms are an effective strategy for rapid market entry and risk mitigation. Success stories are increasing, particularly in consumer products, agriculture-related sectors, and construction.
• Investment in Emerging Technologies: Sectors like IT, fintech, and e-commerce boast a large pool of young, talented individuals and are seeing the rise of startups. Investing in or partnering with these companies could provide a foothold in future growth markets.

Approaches for Market Entry

For successful market entry, consider the following points:

• Information Gathering and Due Diligence: Thorough information gathering and due diligence on target companies and markets are essential when considering investments. Deep understanding of local laws, accounting practices, culture, and political conditions is key to success.
• Selecting Local Partners: Finding reliable local law firms, consulting companies, and business partners is crucial for smooth business operations. Organizations like AUCC can also serve as valuable sources of information for identifying suitable partners.
• Long-Term Perspective: Investing in emerging markets requires a long-term perspective, not just short-term gains. Believing in Uzbekistan's growth potential and building sustainable relationships can lead to significant returns.

Potential Risks and Keys to Success: Avoiding Pitfalls in Uzbekistan Investment

Uzbekistan is actively pursuing economic reforms, and its investment environment has significantly improved. However, potential risks inherent to emerging markets still exist. Understanding these risks and addressing them appropriately is key to success.

Improvements in the Investment Environment and Remaining Challenges

Despite reform progress, attention is required in the following areas:

• Transparency of Legal Systems and Regulations: While the legal framework is being developed, challenges may persist regarding transparency and consistency in its application. Frequent legal amendments and regulations open to interpretation necessitate collaboration with experts.
• Administrative Procedures and Bureaucracy: While improved compared to the past, complex administrative procedures and bureaucratic barriers in specific sectors cannot be entirely ruled out. Patience and the presence of partners familiar with local customs are crucial.
• Corruption concerns: While the government is seriously committed to anti-corruption efforts, deep-rooted issues may persist in some areas. It is essential to rigorously enforce ethical business practices and strive for transparent business operations.
• Currency Risk and Inflation: In emerging markets, exchange rate fluctuations and inflation can impact business plans. Consideration of currency hedging strategies and inflation-resistant business models is necessary.

Strategic Approach for Success

Achieving success in the Uzbekistan market requires a strategic approach.

• Thorough Due Diligence: Conducting a comprehensive investigation into the financial status, legal aspects, market environment, and potential risk factors of the target investment company is essential. Engage local experts and evaluate from multiple perspectives.
• Strong Local Partnerships: Finding reliable local partners and building long-term relationships is one of the most critical factors for navigating market complexities and paving the way to success. Deepen cultural understanding and build mutual trust.
• Constructive Dialogue with the Government: Maintain open and constructive dialogue with government agencies and relevant ministries to understand policy change trends and demonstrate how your business contributes to the country's development. Organizations like AUCC can serve as a bridge.
• Long-Term Perspective and Commitment: While the Uzbekistan market holds high growth potential, reaping its rewards requires time and commitment. A mindset focused on sustainable growth, rather than short-term gains, ultimately leads to success.
• Cultural Understanding and Adaptability: Understanding Uzbekistan's rich history and culture, coupled with the flexibility to adapt to local business practices and values, contributes to smooth business operations on the ground.

The appointment of Salman Mirziyoyev to a key position sends a powerful message that Uzbekistan is seeking to enhance its presence in the global economy. By appropriately managing risks and adopting a strategic approach, new business opportunities can be seized in this growing market.