Accumulated mutual direct investments among Eurasian region countries are continuously growing, with an increasing share of processing industries, making Central Asia more attractive to external and regional investors, according to the Eurasian Development Bank's report "Investment Monitor - 2023" (IM EDB), Sputnuk reports.
The monitoring analysts note that the total volume of accumulated mutual direct investments among Eurasian region countries reached $48.8 billion by the end of the first half of 2023, growing by 5.4% in 2022. In 2023, the trend of growth continued.
According to the report, Uzbekistan has experienced a significant increase from 2016 to 2023, with the share of imported foreign direct investments (FDI) from the Eurasian region rising from 12.1% to 20%.
The CIS, in general, reflects a global trend, with the most significant impact on reducing FDI seen in Russia, where the net FDI inflow decreased from $39 billion to minus $19 billion in 2022. This occurred due to the departure of international corporations from the Russian market and the sale of subsidiary companies to local management.
Central Asia, as a target for concentration of investment flows, increased net FDI inflows by 39%, totaling $10 billion.
"Uzbekistan attracted a record amount of foreign investments, importing $2.5 billion in net FDI by the end of 2022. By 2023, among countries with accumulated investments, Uzbekistan holds the second position with a share of 19.8%, following Kazakhstan with a share of 27.2%," the document notes.
Currently, there are 597 projects in the database between the 12 countries of the Eurasian region (with accumulated FDI exceeding $1 million), as stated in the EDB report.
The researchers of the report highlight that the volume of FDI projects, fully or partially implemented since the beginning of 2023, currently amounts to $2 billion. A significant portion of these projects comes from Russian oil-producing companies.
In Uzbekistan, the Russian company "TATNEFT" is a new investor in the petrochemical industry with a project involving the acquisition and subsequent modernization of the Angren tire manufacturing plant ("First Rubber Technical Plant") in 2022. In addition to $80 million in investments, the company committed to settle the plant's debt of $153 million.
CentralasianLIGHT.org
December 25, 2023