ICIEC Backs €132.5m Financing to Boost Uzbekistan’s Steel Sector Expansion

Uzbekistan currently imports HRCs, making the new facility a major milestone toward greater self-sufficiency, improved supply chain resilience, and reduced production costs for local manufacturers.

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a Shariah-compliant multilateral insurer and member of the Islamic Development Bank (IsDB) Group, has announced its support for a landmark EUR 132.5 million financing facility arranged by Standard Chartered Bank for Uzbekistan’s largest steel producer, Uzmetkombinat.

This financing will accelerate the completion of the company's new Casting and Rolling Complex in Bekabad, located in southern Uzbekistan—an investment that is expected to transform the nation’s steel manufacturing capabilities.

Boosting Domestic Steel Production and Reducing Import Dependence

Once operational, the facility will produce hot-rolled coils (HRCs)—a crucial input for industries such as construction, automotive components, and pipe manufacturing. Uzbekistan currently imports HRCs, making the new facility a major milestone toward greater self-sufficiency, improved supply chain resilience, and reduced production costs for local manufacturers.

ICIEC’s sovereign-backed insurance coverage played a central role in enabling the financing package, reinforcing investor confidence while supporting a project with long-term developmental significance.

Economic and Social Impact in Bekabad

The project is expected to bring sweeping economic benefits to Bekabad, a city of approximately 100 000 people. Uzmetkombinat is already a major employer with over 8 000 workers, supporting thousands more through indirect jobs. The expansion of domestic steel production will further strengthen employment opportunities, industrial activity, and community development in the region.

ICIEC noted that the facility is poised to contribute to national industrialisation goals, supporting Uzbekistan’s ambition to build a competitive manufacturing sector capable of meeting both local and regional demand.

Deepening Partnerships for Economic Growth in Uzbekistan

This transaction marks the second major collaboration between ICIEC and Standard Chartered in Uzbekistan in 2025. Earlier this year, ICIEC supported a EUR 160.4 million Islamic financing facility for Agrobank, aimed at expanding SME access to capital and strengthening Uzbekistan’s financial inclusion landscape.

Dr. Khalid Khalafalla, CEO of ICIEC, hailed the new partnership as a reflection of the organisation’s broader mandate:

“This landmark transaction exemplifies ICIEC’s mission to de-risk trade and investment and catalyse sustainable economic growth across our Member States. By supporting Uzbekistan’s largest steel producer, we help foster critical industrial capacity, self-reliance, job creation, and long-term economic resilience.”

He added that ICIEC is proud to expand its partnership with Standard Chartered, enabling impactful development-oriented investments in Uzbekistan.

Standard Chartered: Supporting Growth in Emerging Markets

Commenting on the deal, Desislava Radeva, Executive Director for Development and Agency Finance at Standard Chartered, said:

“We are proud to partner once again with ICIEC to support Uzmetkombinat. Steel production is a strategic industry for Uzbekistan, and domestic sourcing of HRCs represents a major leap forward. This transaction demonstrates Standard Chartered’s commitment to supporting prosperity in some of the world’s most dynamic markets.”

A Significant Step for Uzbekistan’s Industrial Ambitions

The project is aligned with Uzbekistan’s long-term industrial development strategy, which focuses on increasing value-added production, strengthening local supply chains, and enhancing export competitiveness.

By enabling domestic HRC production, the new plant is expected to:

• Reduce reliance on expensive imports

• Improve pricing stability for local manufacturers

• Strengthen the competitiveness of Uzbekistan’s construction and metalworking industries

• Support job creation and regional economic growth

The ICIEC–Standard Chartered partnership underscores growing investor confidence in Uzbekistan’s economic transformation and its expanding role within regional manufacturing networks.