Opportunities and Risks of Investing in Uzbekistan

Uzbekistan has a sizeable workforce due to its young and expanding population. With a population of 32 million, over 19 million individuals are of working age. The country has 72 universities that enroll approximately 300,000 students annually. Additionally, Uzbekistan has the fourth largest economy among the CIS nations, with a 2017 GDP of USD 47.88 billion. The country's GDP per capita was USD 1,490 at current prices in 2017, and USD 6,930 based on PPP. Uzbekistan has made significant strides in the World Bank's Ease of Doing Business ranking, achieving the 74th spot in 2017, up from 87th in 2016. The Uzbek government has launched a comprehensive modernization program, introducing legal, economic, and social reforms, which makes the country an attractive destination for foreign direct investment.

Education: Uzbekistan has a young and growing population, with 72 universities welcoming 300,000 students annually. Investing in education and training can help meet the demand for skilled labor in the country.

Agriculture: Almost half of Uzbekistan's population lives in rural areas, and the country has a large amount of arable land. Investing in agriculture and food production can help meet the needs of the local population and potentially even for export.

Infrastructure: The government of Uzbekistan is currently undertaking a comprehensive modernization program, which includes major improvements in legal, economic, and social areas. Investing in infrastructure projects, such as transportation, energy, and telecommunications, can help support the country's economic growth.

Manufacturing: With a large working-age population, Uzbekistan has the potential to become a manufacturing hub in the region. Manufacturing sectors with the greatest potential include textiles, agro-processing, and electronics.

Tourism: Uzbekistan has a rich cultural heritage and history, which includes UNESCO World Heritage Sites and the Silk Road. Developing the tourism industry can help diversify the economy and generate foreign exchange.

Mining: Uzbekistan is rich in natural resources, including gold, uranium, and copper. Developing the mining industry can help generate revenue and create jobs.

Healthcare: As the population of Uzbekistan grows and ages, there is an increasing demand for healthcare services. Investing in healthcare can help improve access to quality medical care.

Like any other country, Uzbekistan has certain business risks and challenges that investors should be aware of before entering the market. Some potential business dangers in Uzbekistan include:

Bureaucracy: The process of setting up a business or obtaining permits can be slow and bureaucratic.

Corruption: Corruption can be an issue in Uzbekistan, and it's important for businesses to be aware of the risks and to take steps to protect themselves.

Lack of transparency: The business environment in Uzbekistan can be opaque, with limited access to information and a lack of transparency in some areas.

Currency risk: The Uzbekistan Som is not widely traded, and businesses may face currency risks when converting profits or paying expenses.

Infrastructure: While Uzbekistan is making strides to modernize its infrastructure, there are still areas where it lags behind other countries in the region.

Cultural differences: Doing business in Uzbekistan may require a certain level of cultural understanding and sensitivity, as there are different business customs and etiquette to navigate.

It is important to note that the business and investment environment in Uzbekistan is rapidly changing, Garantoui Sourcing can provide guidance and support for your comany before making any investment decisions.