IN THE FIELD
Connecting people, business and culture along the Silk Road
OPEC Fund President leads delegation to Uzbekistan
T his year marks the 25 th anniversary of the partnership between the OPEC Fund and Uzbekistan. What started with a US$5 million loan to the National Bank of Uzbekistan in 1999 has become a thriving and ever-growing operation. A visit by OPEC Fund President Abdulhamid Alkhalifa in May to the Central Asian republic provided the opportunity to set another benchmark with the signing of a country partnership framework agreement for the period 2024–2029. The President signed the agreement with Uzbekistan’s Minister of Investment, Industry and Trade Laziz Kudratov and said: “We are very pleased with the successful development of our partnership and very happy to move to the next level with this agreement. The fact that we are earmarking US$500 million for new engagements in Uzbekistan is a clear demonstration of the importance we attach to supporting the country in its ambitious reform and growth agenda.” Since 1999, the OPEC Fund has provided financing for nearly 30 operations for a total amount of around US$760 million to Uzbekistan. Projects include, among others, support for small and medium-sized
improving water supply in rural areas and upgrades of road, rail and other transport infrastructure. Of special importance is the energy sector with several private sector projects speeding the energy transition towards renewables. Uzbekistan introduced market reforms since 2017, which led to the reduction of macroeconomic distortions, agricultural diversification and an opening up of the economy. Progress has been made in improving transparency of public procurement, strengthening of reporting and the management of state- owned enterprises as well as privatization. The government adopted the “Uzbekistan – 2030 Strategy” in September 2023 with two overarching goals: Achieving upper-middle- income status (US$4,000 per capita) by 2030 and reducing
poverty from 17 percent of the population in 2021 by half by 2026. Since the introduction of reforms, the OPEC Fund has seen a massive surge in cooperation as the creation of a conducive environment that supports a competitive, free and fair market economy directly boosts development. In addition to loans for public and private sector projects the OPEC Fund in April 2022 also signed a US$100 million policy based loan to bolster legislative and regulatory reforms. The British historian Peter Frankopan argues that Central Asia is “the true center of the earth” and Uzbekistan – placed along the ancient Silk Road connecting east and west – has huge potential. Since it declared independence in August 1991, the country of 35 million has seen its GDP grow more than five times from US$13.68 billion in 1991 to US$80.39 billion in 2022. Uzbekistan is one of the largest producers of cotton in the world and possesses substantial reserves of natural gas, oil and coal as well as numerous precious metallic ores. A special highlight for the OPEC Fund delegation, which included Public Sector Director Musab Alomar and Country Manager Olga Mikhailova, was a meeting with Uzbek President
We reiterate our firm commitment
to continue supporting Uzbekistan’s ambitious aspirations.
Abdulhamid Alkhalifa, President, OPEC Fund
enterprises through local financial intermediaries,
Abdulhamid Alkhalifa, President, OPEC Fund, signs the agreement with Laziz Kudratov, Uzbekistan’s Minister of Investment, Industry and Trade
Shavkat Mirziyoyev. The delegation also met with Deputy Prime Minister
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