<\/p>\n\n\n\n
The\ndevelopment of relations with the Kingdom of Saudi Arabia (KSA) is one of the\npriorities of the updated foreign policy of the Republic of Uzbekistan. <\/p>\n\n\n\n
Saudi\nArabia is an important partner of Uzbekistan, which has great authority and\nfinancial and economic potential not only in Arab-Muslim countries, but also\naround the world.<\/p>\n\n\n\n
KSA\nis the center of Islam, where the main shrines of the religion of Islam are\nlocated \u2013 the Al-Haram Mosque in Mecca and the Mosque of the Prophet Al-Masjid\nan-Nabawi in Medina. In this regard, the Kingdom plays a leading role in the\nlives of Muslims around the world, including Uzbekistan, who perform Hajj and\nUmrah. At the same time, Saudi Arabia\nconsiders Uzbekistan as one of the \u201ccradles\u201d of Islamic civilization. <\/p>\n\n\n\n
In\nSaudi Arabia, which is also home to more than 34 million people, the policy is\ncharacterized by the participation of the state in the main sectors of the\neconomy. A course is being pursued to simultaneously expand the activity of\nnational private capital. <\/p>\n\n\n\n
In\nthis context, the experience of the KSA in implementing its \u201cVision 2030\u201d\nprogram, which is aimed at maximizing the liberation of the country’s economy\nfrom raw materials (oil) dependence, is attractive.<\/p>\n\n\n\n
The\nsocial policy of the KSA includes the provision of social guarantees to the\npopulation, support and subsidization of youth and families. <\/p>\n\n\n\n
At\nthe current stage, this is combined with stimulating the training and\nretraining of national personnel to work in industry and the private sector of\nthe economy. <\/p>\n\n\n\n
Uzbekistan\nand Saudi Arabia are connected by close historical, cultural and spiritual\nvalues. <\/p>\n\n\n\n
This\nsimilarity, as well as the presence of powerful financial and economic\nresources, Saudi Arabia is very attractive for the Republic of Uzbekistan.<\/p>\n\n\n\n
The\nKingdom of Saudi Arabia was among the first to recognize the state independence\nof the Republic of Uzbekistan (December 30, 1991). In February of this year,\nUzbekistan and Saudi Arabia celebrated the 30th anniversary of the\nestablishment of diplomatic relations.<\/p>\n\n\n\n
The\nlegal framework of bilateral cooperation consists of 13 documents. The parties\nare developing bilateral cooperation based on the framework agreement \u201cOn\nCooperation in Political, Economic, Trade, Investment and Technological\nSpheres, Youth Affairs and Sports\u201d, as well as on the agreements \u201cOn Protection\nand Promotion of Investments\u201d and \u201cOn Avoidance of Double Taxation\u201d. <\/p>\n\n\n\n
An\nimportant stage in the history of bilateral relations, which gave an additional\nimpetus to the development of bilateral relations, was the visit of President\nShavkat Mirziyoyev to the Kingdom of Saudi Arabia at the invitation of King\nSalman bin Abdulaziz Al Saud on May 20-21, 2017, during which our President\nparticipated in the Summit of Arab-Muslim Countries and the United States.<\/p>\n\n\n\n
Since\nthen, bilateral political, economic and cultural and humanitarian ties are\nshowing positive dynamics, being filled with practical content. Regular\ncontacts and exchanges at the highest and highest levels have raised\ncooperation to a qualitatively new level. Thanks to the efforts of the\nLeadership of Uzbekistan, the coordinated actions of the relevant ministries\nand departments of the two countries, coordinated on the IPC platform, have\nsignificantly increased the pace of development of Uzbek-Saudi cooperation.<\/p>\n\n\n\n
Over\nthe past five years, trade between Uzbekistan and Saudi Arabia has increased\n1.2 times.<\/p>\n\n\n\n
In\nJanuary-June 2022, mutual trade increased in almost 12.8 times compared to the\nsame period in 2021 and amounted to $95.5 million. This indicates great\nopportunities for further increase of Uzbek-Saudi trade turnover in the near\nfuture.<\/p>\n\n\n\n
(For\ninformation: in 2020, the trade turnover amounted to $27.4 million, exports \u2013\n$0.7 million, imports \u2013 $26.8 million. In 2021, the trade turnover amounted to\n$17.2 million (-40%) (exports \u2013 $4.8 million, imports \u2013 $12.4 million).<\/p>\n\n\n\n
Over\nthe past five years, the number of enterprises operating in the Republic of\nUzbekistan with Saudi capital, increased 4.1 times and reached 38 (19 sole\nproprietors and 19 joint ventures). <\/p>\n\n\n\n
According\nto the estimates of the Center for Economic Research and Reforms under the\nAdministration of the President of the Republic of Uzbekistan (CERR),\nindustrial cooperation and expansion of production of demanded products will\ngive a powerful impetus to the further development of bilateral relations in\nthe economic sphere in order to increase joint production of products with high\nadded value. For example, the involvement of \u201cSaudi Aramco\u201d in the exploration,\nproduction and processing of oil and gas in Uzbekistan.<\/p>\n\n\n\n
The\nparticipation of Saudi companies in the implementation of major investment\nprojects in our country is of great importance. <\/p>\n\n\n\n
By\nthe end of 2021, the volume of investments in the economy of Uzbekistan\namounted to more than $1.5 billion ($88 thousand in 2017).<\/p>\n\n\n\n
At\nthe moment, projects with such leading Saudi companies as \u201cAl-Habib Medical\nGroup\u201d and \u201cACWA Power\u201d have been successfully implemented and are being\nimplemented.<\/p>\n\n\n\n
With\nthe assistance of \u201cAl-Habib Medical Group\u201d, modern technologies of digitization\nand centralization of all medical information and processes of interaction with\npatients are being introduced into the healthcare management system of\nUzbekistan. Medical Academy by \u201cAl-Habib Medical Group\u201d is to be established in\nUzbekistan for training and advanced training of medical workers. It is also\nplanned to improve their skills in hospitals in the KSA. In addition, work is\nunderway on the implementation of an investment project to create a modern\nmultidisciplinary medical complex in Tashkent in accordance with the standards\nof KSA clinics and hospitals equipped with advanced and modern technologies.<\/p>\n\n\n\n
Saudi\nArabia has become one of the largest foreign investors in projects to modernize\nenergy infrastructure and develop \u201cgreen\u201d energy in the regions of Uzbekistan.\nThe volume of KSA investments through \u201cACWA Power\u201d in this industry will exceed\n$2.5 billion (the current investment portfolio includes 4 projects). <\/p>\n\n\n\n
As\nknown, the Republic of Uzbekistan in 2018 ratified the Paris Agreement with the\naim of developing environmentally friendly energy sources, having undertaken a\nquantitative commitment to reduce specific greenhouse gas emissions per unit of\nGDP to 10% by 2030 compared to the level of 2010. <\/p>\n\n\n\n
In\nthis regard, the Ministry of Energy of Uzbekistan, \u201cACWA Power\u201d and \u201cAir\nProducts\u201d (USA) signed an Open Agreement on the development of renewable and\nhydrogen energy in the Republic of Uzbekistan. As part of the implementation of\nthis project, together with Saudi Arabia, it is planned to build a pilot power\nplant with a capacity of 40-50 kW and attract five specialists from the KSA to\nstudy the application of new innovative technologies in the production of\nhydrogen energy.<\/p>\n\n\n\n
In\naddition, together with the KSA, work has begun on the construction of wind\npower plants (WPP) in the Republic of Karakalpakstan (with a combined capacity\nof 1,500 MW), Bukhara and Navoi regions (1,000 MW). According to experts, the\nstart of the operation of the WPP in the Republic of Karakalpakstan will cover\nthe electricity demand of 4 million households and it compensates for 2.5\nmillion tons of carbon dioxide per year. In February of this year, the\nconstruction of one WPP with a capacity of 100 MW was launched in the Republic\nof Karakalpakstan.<\/p>\n\n\n\n
According\nto CERR experts, the application of the KSA’s experience in the transition to a\nlow-carbon economy will make a great contribution to the development of\nenvironmentally friendly technologies and will make it possible to produce 25%\nof electricity from renewable energy sources by 2030. This, in turn, will be\nanother step in the implementation of tasks to achieve the Sustainable\nDevelopment Goals of fast-growing Uzbekistan.<\/p>\n\n\n\n
A\nproject for the construction of a 1,500 MW thermal power plant in the Syrdarya\nregion is under implementation.<\/p>\n\n\n\n
Uzbekistan\nand the Saudi company \u201cSABIC\u201d are establishing practical cooperation, i.e., the\nimplementation of investment projects in our country using MTO (methanol to\nolefins) and MTP (methanol to propylene) technologies, as well as projects to\ncreate new production facilities producing chemical fertilizers.<\/p>\n\n\n\n
Special\nattention is paid to projects aimed at ensuring food security. Taking into\naccount the rich experience of Saudi Arabia, the parties are working on the\nformation of a separate investment portfolio in the field of agriculture of\nUzbekistan and processing of agricultural products, providing for the\nintroduction of advanced innovative and water-saving technologies. <\/p>\n\n\n\n
An\nagreement has been reached with large Saudi companies such as \u201cSavola Group\u201d,\n\u201cSALIC\u201d, \u201cAlmarai\u201d, \u201cTamimi Group\u201d on the joint creation of high-tech\ngreenhouses and fruit and vegetable processing plants in Uzbekistan with the\nprospect of exporting to markets with high demand. <\/p>\n\n\n\n
In\nUzbekistan, a Fund for the Empowerment of Microenterprises has been established\njointly with the financial support of the Islamic Development Bank to support\nsmall and medium-sized businesses.<\/p>\n\n\n\n
An\nimportant mechanism for the further expansion of the Uzbek-Saudi investment\npartnership is also the agreements between the Fund for the Expansion of\nEconomic Opportunities, established in Uzbekistan in 2021 jointly with the\nIslamic Development Bank, and the Saudi Development Fund, which has already\nallocated about $200 million for the implementation of social and\ninfrastructure projects in our country. In addition, the State Investment Fund\nof Saudi Arabia (one of the largest sovereign wealth funds in the world with\ntotal assets of $390 billion) believes that investing in the economy of our\ncountry is a promising area of cooperation in the light of large-scale\nsocio-economic reforms and measures to improve the investment climate\nimplemented under the leadership of the President of Uzbekistan. Significant\nfinancial support in the implementation of socio-economic reforms in Uzbekistan\nis provided by the Saudi Development Fund.<\/p>\n\n\n\n
The\nparties cooperate in the implementation of the proposals and initiatives of\nPresident Shavkat Mirziyoyev, in particular, on the construction of the\nMazar-I-Sharif\u2013Herat railway and Surkhan\u2013Puli-Khumri power transmission lines.\nSaudi Arabia participated in financing the construction of part of the\nSamarkand\u2013Guzar highway.<\/p>\n\n\n\n
KSA\nand the Republic of Uzbekistan interact within the framework of the\ninternational transport corridor\n“Uzbekistan\u2013Turkmenistan\u2013Iran\u2013Oman\u2013Qatar”, which allows to intensify\neconomic cooperation between the two countries, and also contributes to the\naccess of Central Asian countries to world markets and strengthen cooperation\nwith the Gulf states, including the KSA.<\/p>\n\n\n\n
In\nthis context, according to the CERR staff, it is important to take into account\nthat the KSA has a huge consumer market and provides a good opportunity for\nUzbek exporters of food, textile (clothing, carpets, home textiles) and\nagricultural products (fruits, vegetables, legumes, etc.).<\/p>\n\n\n\n
A\nnumber of Saudi travel companies are interested in sending tourists from the\nKSA to Uzbekistan. In particular, the travel agency \u201cZahid Travel Group\u201d plans\nto organize trips to Uzbekistan of tourists from government agencies or the\nprivate sector. This will also be facilitated by a Memorandum of Understanding\nbetween \u201cUzbekistan Airways\u201d JSC and \u201cFlynas\u201d airline on the development of\ntourism. A joint program of cooperation between the tourism departments of the\ntwo countries is also being developed with an emphasis on the development of\npilgrimage tourism. <\/p>\n\n\n\n
According\nto CERR experts, in order to attract tourists from the KSA to Uzbekistan, it\nwould be possible to consider establishing a joint venture in Uzbekistan with\nlarge Saudi Arabian travel companies such as \u201cMasarat Adventure Club\u201d to\nprovide high-quality international services, as well as adopt a Roadmap for\ncooperation in achieving the goals of tourism development programs, including\nthe exchange of best practices (including in the cancers of the KSA \u201cVision\n2030\u201d program), mutual internships for travel companies, attraction of grants\nand financial resources for the development of tourist facilities and\nlandscaping.<\/p>\n\n\n\n
Cooperation\nbetween the countries in the field of labor relations has prospects. To this\nend, the parties are interested in signing an intergovernmental agreement on\ncooperation in the field of external labor migration, which defines priority\nareas of practical cooperation on labor issues, based on the needs for\nqualified labor resources in the context of the sectors of the economies of the\ntwo countries.<\/p>\n\n\n\n
There\nare opportunities for expanding bilateral cooperation in the field of science\nand technology as a key factor in improving the competitiveness of the\neconomies of the two countries. This will be facilitated by the establishment\nof direct links between the Tashkent Technopark and the King Abdulaziz City for\nScience and Technology.<\/p>\n\n\n\n
The\nupcoming Uzbek-Saudi talks during the visit of President Shavkat Mirziyoyev to\nthe Kingdom of Saudi Arabia are aimed at strengthening bilateral cooperation in\nthe fields of trade and investment, information technology, electronics,\nbiotechnology, energy, oil and gas, gas chemical and chemical industries, light\nand food industries, the production of building materials, agriculture,\nhealthcare and pharmaceuticals, including when implementing the principles of\npublic-private partnership.<\/p>\n\n\n\n
The\nfavorable conditions created for closer rapprochement of the business circles\nof the two countries and direct ties between the leading Uzbek and Saudi\nmanufacturers are the basis for further deepening business cooperation and the\ndevelopment of industrial cooperation. This will increase the joint production\nof products with high added value, which is formed due to the high volume of\ndomestic consumption as well as access to regional and foreign markets. <\/p>\n\n\n\n
The\nagreements reached following the visit will raise the Uzbek-Saudi multifaceted\nrelations to a new level of development, including the development of financial\nsupport tools for joint programs and projects, including the creation of\ninvestment companies and microfinance organizations in Uzbekistan.<\/p>\n","protected":false},"excerpt":{"rendered":"
The development of relations with the Kingdom of Saudi Arabia (KSA) is one of the priorities of the updated foreign policy of the Republic of Uzbekistan. Saudi Arabia is an important partner of Uzbekistan, which has great authority and financial and economic potential not only in Arab-Muslim countries, but also around the world. KSA is …<\/p>\n","protected":false},"author":2,"featured_media":55142,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[439],"tags":[],"class_list":["post-55141","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-english-news"],"yoast_head":"\n