Uzbekistan has joined hands with the International Finance Corporation (IFC) to attract more foreign direct investment (FDI).
The collaboration aims to revamp existing investment laws. The World Investment Report 2023 showed FDI increased from $1.73 billion in 2017 to $2.53 billion in 2022.
Still, challenges such as implementation and transparency exist.
The IFC will help create new, straightforward laws to tackle these issues. These will focus solely on FDI and private investments.
The laws will also offer clear market entry rules. They will ensure equal treatment for overseas investors and dispute resolution through international courts.
Moreover, the IFC and the Japanese government will work together for global alignment.
Uzbekistan aims to secure $70 billion in foreign investment by 2026, writes Investment Monitor in its latest report.
The focus will be on sectors like healthcare, transport, and the green economy.
In addition, Special Economic Zones (SEZs) will also see changes. The IFC will guide Uzbekistan in giving control over these zones to the private sector.
This move includes detailed feasibility and sustainability checks for site selection.
Government officials are optimistic. Deputy Minister Oybek Khamraev emphasized the country’s high potential.
Wim Douw, an IFC Acting Manager, cited the need for regulatory reform.
However, challenges remain. Effective implementation is crucial for success. Additionally, the country must deal with external factors like trade reliance on Russia.
Recent geopolitical events, including Russia’s actions in Ukraine, could also impact investment.
Blueprint
Uzbekistan’s partnership with the IFC could offer a blueprint for other emerging economies.
It shows the way to remove legislative roadblocks. The high rate of administrative changes and external risks add extra hurdles.
Yet, the new laws can make Uzbekistan more appealing to the global investment community.
Hence, the success of this partnership could influence not just Uzbekistan but other nations looking to improve their economies.