Uzbekistan Becomes Asia’s Leading Investment Hub in Central Asia

Tashkent, Uzbekistan (UzDaily.com) — The Eurasian Development Bank (EDB) has published an analytical report on investment flows between Eurasian countries and key Asian partners, based on its Mutual Investment Monitoring project, which tracks more than 950 active investment projects valued at over US$1 million.

The report covers partner countries including China, India, Vietnam, Afghanistan, Indonesia, Iran, Türkiye, as well as Gulf states such as the UAE, Saudi Arabia, Qatar, Oman, Kuwait, and Bahrain.

Over the past one and a half years—from 2024 through the first half of 2025—total accumulated foreign direct investment from Asian countries into the Eurasian region increased by US$20 billion, reaching US$119.8 billion. More than 90% of this growth came from Central Asia, which has firmly established itself as the main investment hub of Eurasia.

Among all countries in the region, Uzbekistan has become the most dynamic recipient of foreign capital. From 2016 to mid-2025, accumulated FDI from Asian countries in Uzbekistan increased more than 45 times—from US$0.5 billion to US$22.6 billion. In the last 18 months alone, it doubled, accounting for around 62% of total investment growth across Central Asia. On this basis, Uzbekistan has overtaken traditional leaders Turkmenistan (US$20.6 billion) and Kazakhstan (US$19.3 billion), becoming the leading recipient of Asian capital not only in Central Asia but across the wider Eurasian region.

This growth is attributed to a combination of factors. Systemic institutional reforms launched in 2017 significantly improved the investment climate and opened the economy to international partners. Large-scale industrialization programs increased demand for industrial and infrastructure investments, while the ongoing energy transition has positioned Uzbekistan as one of the most attractive markets for renewable energy projects in the region.

The energy sector has emerged as the main investment priority. Gulf countries and China are actively developing solar and wind power projects in Uzbekistan. Around 40 projects involving Gulf capital are currently being implemented. Saudi Arabia’s ACWA Power is constructing 12 solar and wind facilities, including the Kungrad Wind Power Plant in Karakalpakstan, with a capacity of 1,500 MW and energy storage systems. Total investment in the project is estimated at US$1.55 billion, with construction starting in Q2 2025.

UAE-based Masdar is developing seven solar power plants, while Mubadala and TAQA are investing in thermal power stations. Tadweer Group has launched a waste-to-energy plant in Bukhara region with a planned capacity of 547,500 tons per year and investments of US$200 million.

Among completed projects, a major thermal power plant in Kashkadarya region involving Mubadala and TAQA has reached US$1 billion in accumulated investment. ACWA Power is building a 775 MW wind power plant in Karakalpakstan, while China’s Sany Renewable Energy is implementing a 720 MW project in the same region. The UAE’s Tepelen Group is constructing a 350 million US dollar solar power plant in Namangan region.

Chinese investment has shown record growth, rising from less than US$300 million in 2016 to US$10.7 billion by mid-2025. In the first half of 2025, Universal Energy began construction of two wind power plants in Samarkand and Jizzakh regions, with new Chinese projects exceeding US$600 million.

Turkish investment increased from minimal levels in 2016 to US$3.1 billion by mid-2025, making Uzbekistan the fastest-growing destination for Turkish capital in Eurasia. A major project includes a combined-cycle power plant in Jizzakh region worth around US$500 million. Coca-Cola Icecek has also invested US$512 million across three regions.

Indonesian capital is represented by Indorama Corp., which acquired a 99% stake in FerganaAzot, investing US$140 million for acquisition and US$100 million for modernization, totaling US$240 million.

Vietnam’s ROX Group has signed agreements to develop residential complexes in Tashkent and Bukhara and is exploring renewable energy projects. According to the report, Uzbekistan could become the largest recipient of Gulf investment in the near future if ongoing renewable energy projects are completed successfully.

Overall, mutual investment flows between Eurasia and Asia reached US$176.4 billion as of mid-2025, with US$119.8 billion directed into Eurasia. China accounts for 55% of total Asian investment, Gulf countries 20%, and Türkiye 15.5%, jointly forming about 90% of all Asian FDI in the region.

The energy sector has become the dominant structural shift, increasing its share from 2.6% in 2016 to 26% in 2025. Over half of recent investment growth—US$10.1 billion out of US$19.8 billion—has gone into power generation projects, while the raw materials sector has declined from 55% to 35% of total share.

Among newly analyzed partner countries, India shows the most developed investment ties with Eurasia, reaching US$13.4 billion in total FDI. Afghanistan remains a niche but strategic market, largely driven by the TAPI gas pipeline project. Vietnam continues to diversify its regional investment footprint, expanding into Kazakhstan, Kyrgyzstan, and Uzbekistan.