A country’s investment image is shaped not only by macroeconomic indicators, but also by perceptions of stability, predictability, and openness of economic policy. Throughout 2024-2025, Uzbekistan consistently strengthened its position on the international investment map, demonstrating growth in capital inflows even amid a global decline in investment activity.

Over the past year, the country has moved from a phase of recovery following external shocks to consolidating its reputation as one of the most dynamic markets in Central Asia.

Among the key factors behind the shift in the investment image was the growth of foreign direct investment (FDI). By the end of 2024, FDI volumes had increased by more than 50 percent compared to the previous year, according to data from the Central Bank. This trend signaled to international markets that the country’s structural reforms were beginning to deliver tangible results. In early 2025, the positive momentum continued: in the first quarter alone, Uzbekistan’s economy attracted approximately $8.7 billion in foreign investment, about 20% higher than in the same period of the previous year. A significant share of these funds was allocated to the energy, industry, transport infrastructure, and agriculture sectors, which shape the country’s long-term economic potential.

The structure of foreign investment also influenced perceptions of the investment climate. China remained the largest source of investment in Uzbekistan over the year, accounting for around 40 percent of total foreign inflows. Investors from Russia, Türkiye, the Middle East, and the European Union also actively expanded their presence. This diversification of partners enabled Uzbekistan to reduce its dependence on a single source of capital and strengthened its image as an open, multilateral economy.

State-level institutional activity played an important role in shaping the investment image. In 2025, Tashkent hosted the International Investment Forum, attended by more than 8,000 delegates from nearly 100 countries. The forum led to the signing of investment and trade agreements totaling over $30 billion, marking a record for such events in the country. The forum’s format and level of representation enhanced Uzbekistan’s position as a regional investment hub capable not only of attracting capital but also of offering large-scale, long-term projects.

International credit rating agencies also reflected changes in the country’s investment image. Moody’s affirmed Uzbekistan’s sovereign credit rating at Ba3 with a positive outlook, noting improvements in governance quality, progress in privatization, and the development of the corporate sector. For investors, this served as an essential indicator of reduced risks and increased resilience of the financial system. Against this backdrop, the country’s leadership announced a strategic goal of achieving an investment-grade credit rating in the medium term, further strengthening confidence in external markets.

Over the year, the focus was not only on national investment policy but also on regional investment policy. The authorities announced the introduction of a system for rating the investment attractiveness of regions, which is expected to become operational in the near future. This step became an important signal of a shift from declarative investor support to more measurable and transparent mechanisms for assessing the business climate at the local level. For international companies, this means greater predictability of business conditions in specific regions of the country, rather than solely at the level of central policy.

Changes in Uzbekistan’s investment image took place against a challenging global backdrop. According to data from international organizations, global foreign direct investment declined by approximately 3 percent in 2025 due to geopolitical tensions, high interest rates, and a global economic slowdown.

In this context, the sustained growth of investment activity became a significant competitive advantage, enabling the country to stand out among developing economies facing capital outflows.

At the same time, the investment image was not without vulnerabilities. Throughout the year, experts and the business community continued to highlight the need to strengthen investor legal protections, improve judicial efficiency, and reduce regulatory burdens. Issues related to foreign exchange regulation and administrative procedures also remained a focus for foreign companies, especially those pursuing long-term projects. These factors still constrain the transition from quantitative investment growth to a qualitative expansion of international capital.

Overall, over the year, Uzbekistan’s investment image evolved significantly: from a country with strong but largely potential investor interest to a state demonstrating tangible results in capital attraction and institutional change. At the same time, the strengthening of this image will depend on the authorities’ ability to deepen reforms, ensure investment protection, and maintain the predictability of economic policy amid global instability.

Aziza Alimova, UzA