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Uzbekistan has undergone a remarkable economic transformation since 2017, shifting toward a more open and market-oriented model. The World Bank Group's Country Private Sector Diagnostic (CPSD), published in July 2026, examines this trajectory through the lens of an investor or entrepreneur — taking stock of the reforms achieved, spotlighting areas where private investment remains unrealized, and diagnosing the obstacles that hold it back. The report translates this analysis into a concrete set of policy recommendations aimed at attracting private capital and generating jobs.
Despite significant reforms, the state footprint remains a central challenge. State-owned enterprises account for over 30% of GDP and continue to dominate enabling sectors such as energy, transport, and metallurgy, creating an uneven playing field for private firms. Surveys of businesses consistently point to high tax rates, limited access to finance, and skills gaps as the top barriers to growth. Addressing these structural constraints — including deepening capital markets and aligning education and vocational training with private sector needs — is identified as essential to sustaining momentum.
The report focuses on three sectors with high potential for private investment. In logistics, Uzbekistan's position along the Eurasian Middle Corridor and an 88% gap in modern warehousing could attract up to US$1.05 billion in private investment and 41,000 jobs with the right regulatory reforms. In tourism, the country's world-class Silk Road heritage and growing visitor numbers (11.7 million in 2025) could catalyze US$3.1–$4.2 billion in investment and up to 180,000 jobs if land tenure rules are clarified, skills shortages are addressed and site management is professionalized. In pharmaceuticals, targeted reforms to streamline drug registration and establish domestic bioequivalence laboratories could unlock up to US$188 million in investment and over 20,000 skilled jobs.
Across all three sectors, the CPSD offers concrete policy recommendations tied to specific constraints to unlock opportunities, making it a practical roadmap for both the government and investors. The report also highlights that WTO accession could be a powerful reform anchor for Uzbekistan, fostering regulatory alignment and sending a credibility signal that should incentivize private investment.
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