Uzbekistan: private sector growth & financing

  • Private sector is set to grow significantly in coming years due to economic liberalization and privatization
  • Private sector’s role in economy is rising
    • 57% now, from 55.8% five years ago
    • Agriculture, transport, construction, services are dominated by private companies
  • Investments into private sector have yet to catch up, only 39.1% of all funding
  • Banks are badly undercapitalized, therefore huge need for alternative sources, inc. international finance
  • Credit to the economy in Uzbekistan is the lowest in the CIS
  • At least $20bn needed for Uzbek banks to reach regional average in terms of credit-to-GDP ratio
  • Government will need privatize some of state-owned banks in order to inject badly needed capital
  • Banks from China, Korea, Turkey and the Gulf countries will enter Uzbekistan in coming years