Business

Uzbekistan Accelerates Multi-Billion-Dollar Drive to Boost Value-Added Exports

Published

1 hour ago

July 8, 2026

Uzbekistan is intensifying efforts to strengthen its export economy by expanding domestic processing industries, with multi-billion-dollar investments aimed at increasing the value of agricultural products, metals and minerals before they reach international markets.

The strategy forms a key part of the country’s long-term economic plans and includes a $10 billion food-processing target by 2030, a $4.2 billion pipeline of technological metals projects and new steel manufacturing facilities designed to reduce imports while increasing exports.

The initiative comes as Uzbekistan’s economic outlook continues to improve. In June, Moody’s Ratings upgraded the country’s sovereign credit rating from Ba3 to Ba2, citing stronger economic performance, improved fiscal conditions and progress in institutional reforms.

As a landlocked nation, Uzbekistan is seeking to maximize export earnings by processing more goods domestically rather than relying on raw commodity exports.

Agriculture remains one of the country’s largest sectors. Agriculture Minister Ibrokhim Abdurakhmonov said Uzbekistan produces around 24 million tonnes of fruit and vegetables each year but stressed that production alone is no longer enough to support long-term economic growth.

He said processed food exports are expected to reach $4.5 billion this year, placing the country on track toward its 2030 target. According to the minister, greater investment in packaging, canning, bottling and food-processing technologies will allow Uzbek products to compete in higher-value international markets.

Uzbekistan currently exports agricultural products to 92 countries and is also expanding internationally recognized certification systems, including halal, organic, ISO, GLOBALG.A.P. and Better Cotton Initiative standards, to improve market access.

Officials believe maintaining strict quality controls and laboratory testing will help prevent export rejections and strengthen the country’s reputation among overseas buyers.

Infrastructure and investment are also central to the government’s plans. Kanokpan Lao-Araya, the Asian Development Bank’s Country Director for Uzbekistan, said long-term investment depends on reliable transport networks, energy systems, skilled workers and a stable legal environment that gives investors confidence.

The Asian Development Bank is supporting the country’s agricultural sector through the ANORA investment platform, which aims to attract additional private capital into agribusiness and export-oriented projects.

International manufacturers are also increasing their presence. Italian engineering company Gamma Meccanica is working with Uzbek partners on stone-wool insulation production and hydroponic farming technologies to support industrial growth.

The government is pursuing similar ambitions in mining and manufacturing. Uzbekistan Technological Metals Complex, established in 2024, is overseeing more than 100 projects worth an estimated $4.2 billion to expand exploration, refining and processing of critical minerals.

Steel producer Uzmetkombinat plans to localize production of 880,000 tonnes of sheet steel annually, with more than 200,000 tonnes intended for export. Company officials said higher-value steel products command significantly better prices than standard construction steel.

At Almalyk Mining and Metallurgical Complex, executives expect new copper-processing projects and advanced manufacturing agreements to potentially double or triple company profits.

Industry experts have also stressed the importance of transparency. Mark Robinson, Executive Director of the Extractive Industries Transparency Initiative, said countries rich in natural resources must maintain strong governance, fair contracting practices and transparent permitting systems to ensure mining revenues generate lasting economic benefits while attracting responsible investment.

Business

Oxford Economics Warns US-Iran Peace Deal Will Shape Global Economy in Second Half of Year

Published

1 hour ago

July 8, 2026

Web Reporter

The outlook for the global economy during the remainder of the year will depend largely on whether the fragile peace agreement between the United States and Iran survives, according to a new analysis by Oxford Economics, which says the deal could determine the direction of inflation, energy prices and financial markets.

After a first half marked by conflict in the Middle East, volatile oil prices and rapid growth in artificial intelligence investments, the consultancy believes the next six months will be influenced by a series of interconnected risks, with the US-Iran truce standing at the center.

Chief Global Economist Ryan Sweet said the durability of the agreement would determine whether the global economy benefits from lower energy costs or faces another oil-price shock.

Oxford Economics forecasts global annualized economic growth of 3.1 percent during the second half of the year, compared with an estimated 1.6 percent in the first six months. The projection assumes oil prices remain relatively stable, supporting consumer spending and easing inflationary pressures. However, Sweet described the chances of the peace agreement holding as no better than “a coin flip.”

The report expects Brent crude to average in the low $70s per barrel if the agreement remains intact. A breakdown, however, could trigger higher inflation, tighter financial conditions and renewed pressure on global supply chains.

Those concerns intensified after fresh military exchanges on Wednesday. The United States launched strikes against Iran following allegations that Tehran had attacked three commercial vessels in the Strait of Hormuz. Iran responded with strikes targeting Bahrain and Kuwait, raising fears that the ceasefire could unravel.

Oil markets reacted quickly, with Brent crude climbing above $78 a barrel after rising more than six percent during trading.

Oxford Economics said any disruption would extend well beyond energy markets. Higher oil prices could increase production costs for technology companies, disrupt semiconductor supply chains across Asia, complicate central bank policy decisions and influence political developments, including upcoming elections in the United States and Israel.

The consultancy’s outlook differs from several other major forecasts. Morgan Stanley expects crude prices to approach $90 a barrel by year-end, while the World Bank projects Brent crude to average around $94 this year and anticipates global economic growth slowing to 2.5 percent in 2026.

Oxford Economics identified shipping activity through the Strait of Hormuz as one of the clearest indicators of whether the peace agreement is holding. The report said a sustained recovery in vessel traffic by mid-July would strengthen confidence in the deal.

Beyond geopolitics, the report highlighted growing risks surrounding the artificial intelligence sector. The Bank for International Settlements recently warned that rapid expansion in AI investment has become increasingly dependent on private credit and complex financing arrangements outside the traditional banking system.

Oxford Economics also modeled a scenario in which US technology stocks fall by 25 percent over one year. According to Sweet, such a correction would bring US economic growth close to a standstill and reduce global growth by more than one percentage point.

Despite these risks, the consultancy said stronger AI-driven productivity and resilient economic activity in Europe could provide support if geopolitical tensions ease and energy markets stabilize during the second half of the year.

Business

OPEC+ Approves Modest August Oil Output Increase as Crude Prices Retreat

Published

2 days ago

July 6, 2026

Web Reporter

Seven members of the OPEC+ alliance have agreed to increase their combined oil production by 188,000 barrels per day in August, adopting a cautious approach as global crude prices continue to fall back to levels seen before the conflict involving Iran disrupted energy markets.

The producers announced the decision on Sunday, saying the output adjustment reflects current market conditions while reaffirming their commitment to maintaining stability in global oil markets.

“The countries will continue to monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach,” the group said in a statement.

The increase comes after oil prices retreated sharply following months of heightened volatility linked to the conflict in the Middle East. Brent crude, the international benchmark, was trading below $72 per barrel as markets opened on Sunday evening, returning to levels recorded before military action involving Iran earlier this year. US benchmark West Texas Intermediate (WTI) was trading at around $68 per barrel.

Oil prices had surged during the height of the conflict, with Brent approaching $120 per barrel amid concerns over disruptions to supplies from the Gulf region. Prices have eased in recent weeks as tensions cooled and shipping activity gradually resumed.

Market sentiment has improved after Iran agreed under an interim understanding to allow commercial vessels to pass through the Strait of Hormuz, while the United States eased restrictions affecting Iranian ports. Even so, negotiations aimed at reaching a broader settlement remain ongoing, and authorities in Tehran have warned that vessels departing from approved routes could face military action.

The Strait of Hormuz is one of the world’s most important energy shipping routes, carrying roughly one-fifth of global oil supplies before the conflict. Although commercial traffic has resumed, shipping volumes have yet to return to normal levels.

During the conflict, many OPEC+ production increases existed largely on paper rather than in actual exports. Limited access through the Strait of Hormuz forced several Gulf producers to reduce physical shipments as storage facilities filled with unsold crude, leaving actual production below official quotas.

As maritime routes gradually reopen, stored oil is returning to international markets, adding to supply and contributing to downward pressure on prices beyond the announced production increase.

Despite improving conditions, analysts believe a full recovery in Gulf oil production will take time. S&P Global Energy has projected that output may not return completely to pre-conflict levels until at least the first quarter of 2027. Industry observers also expect the effects of the disruption on fuel prices and broader inflation to continue even after any permanent political settlement is reached.

The seven OPEC+ producers said they remain prepared to suspend or reverse future output increases if market conditions deteriorate. The alliance is scheduled to meet again on August 2 to review supply levels and assess developments in the global energy market before deciding on production plans for the following month.

Business

Uzbekistan Accelerates Energy Expansion With Renewables, Grid Upgrades and First Nuclear Plant

Published

5 days ago

July 3, 2026

Web Reporter

Uzbekistan is embarking on a major expansion of its electricity sector, aiming to increase annual power generation from 82 billion kilowatt-hours to more than 120 billion kilowatt-hours over the next five years as the country responds to rising demand from industry, population growth and emerging digital industries.

The ambitious target highlights the government’s drive to strengthen energy security while gradually reducing dependence on fossil fuels. Officials see the power sector as a key area for investment, with renewable energy, electricity transmission and nuclear power expected to play central roles in the country’s long-term strategy.

Speaking at the Tashkent International Investment Forum, President Shavkat Mirziyoyev said renewable sources are expected to generate 54% of Uzbekistan’s electricity by 2030. He noted that the country has already attracted nearly $6 billion in foreign investment for green energy projects and plans to invest another $4 billion in modernising electricity transmission networks.

Mirziyoyev also encouraged investment in solar and wind farms, battery energy storage systems, upgraded power grids and green-powered data centres, linking energy development with Uzbekistan’s industrial and digital transformation goals.

International financial institutions are already backing several major projects. In 2025, the European Bank for Reconstruction and Development (EBRD) invested nearly $2 billion across 120 projects in Central Asia and Mongolia, with more than $1 billion directed toward Uzbekistan. More than half of the bank’s regional investments were classified as green initiatives, while about one-third supported sustainable infrastructure.

Among its projects in Uzbekistan is a $142 million financing package for a combined one-gigawatt solar photovoltaic plant and a battery storage system with a capacity of 1,336 megawatt-hours, developed alongside ACWA Power. The EBRD has also arranged financing of up to $195.5 million for a 300-megawatt solar facility and a 75-megawatt-hour battery storage project being developed by Masdar in the Kashkadarya region.

EBRD Managing Director for Central Asia and Mongolia Huseyin Ozhan said expanding energy capacity requires both financial investment and policy reforms. He said governments across the region have adopted long-term decarbonisation plans, with international institutions helping develop roadmaps to reduce reliance on fossil fuels.

Ozhan said renewable energy remains the primary pathway for lowering carbon emissions while meeting growing electricity demand. He added that modern energy systems require not only new power plants but also battery storage, stronger grid connections and supportive regulations to attract private investment.

Alongside renewable energy, Uzbekistan has begun developing its first nuclear power project. Construction started in June in the Jizzakh region, where the planned facility will feature two large reactors with capacities of about 1,000 megawatts each, along with two small modular reactors of around 55 megawatts.

World Nuclear Association Director General Sama Bilbao y León said the project reflects a broader trend among rapidly growing economies seeking dependable low-carbon electricity. She noted that about 75% of Uzbekistan’s electricity currently comes from natural gas and said nuclear power will help diversify the country’s energy mix while allowing greater use of natural gas in other sectors of the economy.