SCO Investment Projects in Uzbekistan: From Industry to Tourism

In recent years, Uzbekistan has established itself as one of the most dynamically developing economies within the Shanghai Cooperation Organization (SCO). The country is not only becoming an active participant in trade flows but also a key platform for implementing large-scale investment initiatives. Its strategic geographic location, political stability, wide-ranging reforms, and favorable investment climate ensure a steady inflow of capital from all SCO member states.

By the end of 2024, Uzbekistan’s foreign trade turnover with SCO countries reached USD 32.5 billion, an increase of 1.4% compared to the previous year. In January–July 2025 alone, this figure rose by 15%, amounting to USD 20.8 billion, including USD 5.7 billion in exports and USD 15.1 billion in imports. This growth reflects not only expanding trade volumes but also deeper integration with key partners.

Expanding Investment Presence

The dynamics of investment are no less significant. Since the beginning of 2025, more than 1,300 new enterprises with SCO member-state participation have been established in Uzbekistan, bringing the total to over 9,900 companies-a 15% increase since the start of the year. Particularly notable is the growth of enterprises with 100% foreign ownership, which has exceeded 18%. This demonstrates investors’ confidence in Uzbekistan’s jurisdiction and their willingness to develop business both independently and through joint ventures.

Russia and China remain the largest sources of investment. Moscow traditionally leads in industry, energy, metallurgy, and mechanical engineering, while also advancing digital technologies. Beijing serves as a key driver of innovation, investing actively in IT, green energy, and transport projects. The cumulative volume of Chinese investments has exceeded USD 60 billion, including automotive manufacturing and joint electric vehicle production. Russian businesses, in turn, are strengthening their positions in oil and gas, machinery, and education, creating a sustainable basis for long-term cooperation.

Kazakhstan holds a special position due to mutual investment flows: more than 1,100 Kazakh-owned enterprises operate in Uzbekistan, while Uzbek businesses are actively expanding in Kazakhstan. This reciprocal model is shaping a common economic space, particularly in logistics and digitalization. Belarus, Tajikistan, and Kyrgyzstan contribute smaller investment volumes, but their role in mechanical engineering, energy, trade, and services remains significant. Meanwhile, Iran and India are expanding their presence in industry, pharmaceuticals, and high-tech sectors, while Pakistan invests in textiles, agriculture, and trade. Together, these complementary areas form a diversified investment landscape.

A New Focus: Tourism

Beyond industry and energy, tourism has emerged as a new vector of cooperation. SCO countries are investing in hotels, tourism complexes, and transport infrastructure. Uzbekistan’s rich historical and cultural heritage is transforming tourism into a new driver of economic growth. The development of tourism clusters in Samarkand, Bukhara, and Khiva has the potential to attract millions of travelers and, in the long term, generate revenues comparable to those of the industrial sector.

Conclusion

Recent experience shows that SCO member-state investments encompass nearly every sector of Uzbekistan’s economy—from heavy industry and machinery to pharmaceuticals, digital technologies, and tourism. Russia provides a solid industrial foundation, China drives innovation, Kazakhstan strengthens logistics and digital projects, while other member states build their niches in energy, agriculture, and services.

The main conclusion is clear: Uzbekistan is emerging as an economic bridge between East and West, and partnership within the SCO is becoming a strategic guarantee of sustainable development, paving the way for sectoral diversification, the growth of enterprises, and the expansion of technological potential.