World Bank Sees Billions in Investment Potential for Uzbekistan

The study says strengthening these sectors would help the country build a more competitive economy while expanding opportunities for businesses and workers.

Uzbekistan could attract billions of dollars in private investment and create more than 300,000 jobs by introducing targeted reforms in logistics, tourism, and pharmaceuticals, according to a new World Bank Group report. The study says strengthening these sectors would help the country build a more competitive economy while expanding opportunities for businesses and workers.

Report highlights three sectors with strong growth potential

The World Bank Group's Country Private Sector Diagnostic (CPSD) identifies logistics, tourism, and pharmaceuticals as the sectors with the greatest potential to draw private capital and generate employment over the medium term. If the recommended reforms are implemented, the report estimates Uzbekistan could attract between US$5.2 billion and US$6.4 billion in private investment while creating more than 300,000 direct and indirect jobs.

The findings build on the country's economic reforms that began in 2017, when Uzbekistan launched a series of market-oriented changes to improve the business environment, encourage investment, and raise living standards. The report says maintaining that momentum will require tackling sector-specific challenges, including barriers to competition, shortages of skilled workers, and infrastructure and regulatory issues that continue to discourage private investment.

IFC Division Director for Türkiye, Kazakhstan and Uzbekistan Lisa Kaestner said creating better conditions for businesses to grow, compete, and innovate would unlock significant private investment while expanding opportunities for local enterprises and supporting job creation.

Logistics and tourism offer the biggest investment opportunities

Among the three sectors, tourism offers the largest investment potential. The report estimates that reforms to land leasing rules, workforce development, and professional management of tourism sites could attract between US$3.1 billion and US$4.2 billion in private investment.

The recommended measures could also support around 180,000 jobs, while helping Uzbekistan expand beyond its traditional tourist destinations by developing cultural attractions and nature-based tourism with greater value for visitors and local communities.

In the logistics sector, the report highlights road freight transport and warehousing as areas with strong commercial potential. Simplifying land acquisition procedures, speeding up construction approvals, and introducing more transparent digital systems for international freight permits could attract between US$950 million and US$1.05 billion in private investment.

These changes could create up to 108,000 direct and indirect jobs while strengthening Uzbekistan's position as an important regional trade and transit hub, including along the Trans-Caspian Transport Corridor, also known as the Middle Corridor.

Pharmaceutical reforms could strengthen regional competitiveness

The report also identifies promising opportunities in the pharmaceutical industry, particularly in the production of generic medicines and dietary supplements, where demand is growing both within Uzbekistan and across neighbouring markets.

To strengthen the sector, the World Bank recommends establishing accredited bioequivalence laboratories, bringing Good Manufacturing Practice (GMP) standards closer to international benchmarks, strengthening documentation requirements for active pharmaceutical ingredients (API), and making drug registration and approval processes more efficient.

According to the report, these reforms could attract up to US$188 million in additional private investment and create up to 20,000 jobs, helping position Uzbekistan as a stronger regional supplier of pharmaceutical products.

World Bank Regional Director for Central Asia Najy Benhassine said the next phase of Uzbekistan's economic transformation will depend on continuing market reforms that encourage competition, remove unnecessary barriers for businesses, improve productivity, and develop the skilled workforce needed for sustained long-term growth.