• Uzbekistan: The som has been stable so far but how long can it last?

    Kar Mun Lai, CFA    Firdavs Olimov, CFA, Kenneth Lai Kar Mun, CFA, Shawn Abdurakhimov , Hasan Khudoyorov
    18 Oct 2018

    Since one-off devaluation of the Uzbekistani som to 8,100 UZS/USD from 4,210 on 5 September 2017, the currency has been quite stable thanks to growing exports, increasing foreign investments, loans from international financial institutions (EBRD, ADB, etc.), decreasing use of US dollar within Uzbekistan, and a small intervention from Central Bank of Uzbekistan (CBU).
  • Overview of Uzbekistan Automotive Sector 

    Kar Mun Lai, CFA    Kenneth Lai, Veysal Usmanov, Shawn Abdurakhimov
    09 Sep 2018

    Including 85 member enterprises, UzAvroSanoat is the only producer of light and commercial vehicles in Uzbekistan. It has started 21 year ago since construction of the first automotive plant in Central Asia in Asaka, Andijan region. In 2004, "Uzavtosanoat" Association was transformed into Joint-Stock Company with the aim of production management efficiency growth.
  • Overview of Uzbek Cement Sector

    Kar Mun Lai, CFA    Kenneth Lai, Veysal Usmanov, Shawn Abdurakhimov
    21 Jul 2018

    Cement sector is concentrated with top 4 players producing 93% of the total cement (9.2 MT/year as of 2018) in Uzbekistan. Qizilqum Cement (3.6 mln MT/year as of 2017), Akhangarancement (owned by Russia's Eurocement; 2.2 mln MT/year as if 2017), Bekabad Cement (1.1 mln MT/year) and Almalyk (1.0 mln MT/year) are the top 4 cement companies in Uzbekistan. New entrants to the industry with smaller production capacity are Djizzakh Cement, Karakalpak (Titan) Cement and Turon Eco Cement. Very large portion of cement produced in the country serves the internal demand of Uzbekistan while small portion is exported to Central Asian countries and Afghanistan.
  • Privatization in Uzbekistan

    Kar Mun Lai, CFA    Kenneth Lai, , Veysal Usmanov, Shawn Abdurakhimov
    21 Jul 2018

    In Uzbekistan, the important purpose of privatization is the attraction of foreign investments. The privatization improves modernization within the country. Moreover, technological advancement and re-equipment of the enterprises could also be accomplished due to privatization. Over the period of independence of the country, over 30 thousand state objects, including 6,500 large and medium-sized enterprises, were privatized. Today, the non-state sector accounts for more than 81% of gross domestic product, 94% of industrial production and more than 82% of the total employed population.
  • Overview of Power Energy sector of Uzbekistan

    Kar Mun Lai, CFA    Kenneth Lai , Veysal Usmanov, Shawn Abdurakhimov
    21 Jul 2018

    Due to the growing demand for power energy driven by economic growth in the country, Uzbekistan is set to reform power energy sector. Uzbekistan is the largest electricity producer in Central Asia with total installed capacity of c.14.6GW, as of 2017. There are 45 power plants (16 by UzbekEnergo – state-owned power energy company). UzbekEnergo generates up to 90% of the power energy while the rest is produced by autonomous thermal power stations of the industrial enterprises and small hydroelectric power stations of the Ministry of Agriculture and Water Resources. The electricity is transmitted and distributed via power transmission lines (with 0.4 - 500 kV voltage ranges) whose total length currently exceeds 243,000 km.

    Power generation sources are largely focused on thermal power (natural gas, coal, etc.) while renewable energy makes a small portion of the capacity. Uzbek government plans to increase the share of renewable energy to 19% by 2025E from 13% currently. 

    Hydropower is the only main source among renewable energy sources while solar power contributes very small amount to the overall power generation. By 2025E, it is planned to achieve more power generation from solar and wind energy. Renewable energy has significant growth potential in Uzbekistan. According to Asian Development Bank (ADB), the country has 18 GW hydropower potential but only 1.8 GW has been developed so far. Solar power also has a great potential thanks to the favorable weather conditions in Uzbekistan. Uzbekistan gets between 2,410 and 3,090 hours of sunshine every year according to UN studies and the ADB estimates that about 3.8 million hectares of land in Uzbekistan meet the basic technical requirement for hosting solar energy facilities.