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CURRENT STATE OF INDUSTRIAL ENTERPRISE LOCATION IN
UZBEKISTAN
Kudratov Muhammad Rustamovich
Phd student of Bukhara State Technical University,
Lecturer at the Department of Economics, Bukhara State University
https://doi.org/10.5281/zenodo.15125702
The Republic of Uzbekistan has implemented comprehensive reforms to
fundamentally transform its economy since independence, including extensive
initiatives for industrial development. In recent years, significant changes have
occurred in the location and territorial distribution of industrial enterprises in
the country. Favorable investment climate, tax incentives, infrastructure
improvements, and the establishment of free economic zones provided by the
state are stimulating more efficient location of industrial enterprises [1].
Industrial sector improvement, diversification, and modernization issues
were identified as priority tasks in the Action Strategy for the five priority areas
of development of the Republic of Uzbekistan for 2017-2021 and in the
subsequent "New Uzbekistan" Development Strategy for 2022-2026 [2]. The
industrial sector is one of the leading sectors in Uzbekistan's economy, and its
development directly affects the country's economic stability and public welfare.
Table 1
Number of industrial enterprises by regions of Uzbekistan, as of January 1,
2024
1
Region
Number of enterprises Share, %
Tashkent city
11,783
17.0
Fergana region
7,803
11.2
Tashkent region
7,284
10.5
Samarkand region
6,151
8.9
Andijan region
5,511
7.9
Namangan region
4,952
7.1
Kashkadarya region
3,776
5.4
Bukhara region
4,201
6.0
Khorezm region
4,039
5.8
Surkhandarya region
3,097
4.5
Navoi region
3,094
4.5
Jizzakh region
2,571
3.7
Syrdarya region
1,539
2.2
Republic of Karakalpakstan 3,666
5.3
Total
69,467
100.0
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In recent years, the number of industrial enterprises operating in
Uzbekistan has increased significantly. As of January 1, 2024, more than 69.4
thousand industrial enterprises are operating in the country. Industrial
enterprises in Uzbekistan are distributed relatively unevenly. A large proportion
of enterprises are concentrated in Tashkent city, Tashkent region, Fergana
Valley, and Samarkand region.
Although Tashkent city leads in terms of number of industrial enterprises
(17%), Fergana region (11.2%) and Tashkent region (10.5%) also have high
indicators in terms of industrial production volume.
The territorial distribution of the number of industrial enterprises may
not always correspond to the volume of industrial production. For example, in
Navoi region, despite a relatively small number of enterprises, the volume of
industrial production is high due to large metallurgical and chemical industry
enterprises.
Table 2
Volume of industrial production by regions in 2024
2
Region
Volume (trillion soums) Share, %
Tashkent region
139.1
16.0
Tashkent city
170.8
19.7
Navoi region
145.1
16.7
Andijan region
90.6
10.4
Kashkadarya region
39.5
4.6
Fergana region
48.1
5.5
Samarkand region
46.2
5.3
Bukhara region
42.3
4.9
Namangan region
32.1
3.7
Khorezm region
29.1
3.4
Surkhandarya region
14.8
1.7
Republic of Karakalpakstan 24.6
2.8
Jizzakh region
25.8
3.0
Syrdarya region
19.9
2.3
Total
867.4
100.0
The following factors influence the location of industrial enterprises in
Uzbekistan:
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1.
Proximity to raw material base
: Many industrial sectors in Uzbekistan
are located close to raw material sources. For example, metallurgical enterprises
are located near mining areas (Navoi, Almalyk, Bekabad), while light industry
enterprises are located in cotton-growing regions (Fergana Valley, Bukhara,
Khorezm) [3].
2.
Transport infrastructure
: Industrial enterprises are more commonly
located in areas with well-developed railways and highways. Tashkent,
Samarkand, Bukhara, and Fergana Valley are considered transport-friendly
regions.
3.
Labor resources
: Labor-intensive sectors (light industry, food
industry) are more concentrated in large cities and densely populated areas.
4.
State policy and incentives
: Free economic zones, small industrial
zones, and incentives provided under special programs have a significant impact
on enterprise location.
5.
Energy resources
: Energy-intensive production enterprises (such as
metallurgy, chemistry) are located in areas with sufficient electricity.
6.
Proximity to market
: Proximity to the consumer market is an
important factor, especially for the food and construction materials industries.
The location of industrial enterprises has a significant impact on the state
of the environment. Environmentally unfavorable enterprises should be located
away from large population centers. However, in practice, this requirement is
not always observed.
Table 3
Location of industrial sectors with the highest environmental impact
3
Industrial sector Location regions
Main environmental
problems
Metallurgy
Navoi, Almalyk,
Bekabad
Waste gases to the air, soil
contamination with heavy
metals
Oil and gas
chemistry
Kashkadarya, Bukhara
Release of harmful substances
into the atmosphere
Cement
production
Navoi, Kashkadarya,
Fergana
Dust, carbon dioxide gas
Electric power
industry
Syrdarya, Navoi,
Tashkent
Atmospheric pollution, changes
in heat and water balance
In recent years, the government of Uzbekistan has adopted a number of
regulatory documents on the placement of environmentally safe industrial
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State Committee of the Republic of Uzbekistan for Ecology and Environmental Protection, 2023
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enterprises. Environmental expertise is mandatory for the construction of new
enterprises.
The uneven distribution of industrial enterprises leads to regional
economic inequality. The government of Uzbekistan is paying special attention
to the construction and development of industrial enterprises in relatively less
economically developed regions to address this problem.
Table 4
Volume of industrial production per capita in the regions of
Uzbekistan (2024, million soums)
4
Region
Industrial production
per capita
Relative to the national
average, %
Navoi region
133.7
472.4
Tashkent region
45.2
159.7
Tashkent city
55.5
196.1
Bukhara region
20.5
72.4
Kashkadarya region
11.0
38.9
Andijan region
26.4
74.3
Fergana region
11.7
93.3
Syrdarya region
21.6
76.3
Khorezm region
14.4
50.9
Republic of
Karakalpakstan
12.2
43.1
Samarkand region
10.9
38.5
Jizzakh region
17.0
60.1
Surkhandarya region
5.1
18.0
Namangan region
10.3
36.4
National average
28.3
100.0
As can be seen from the table, the volume of industrial production per
capita in Navoi region is 4.2 times higher than the national average, while in
Namangan region this indicator is 2.4 times lower than the national average.
This situation demonstrates regional inequality, and the government is
implementing a number of programs to reduce this difference.
The current state of industrial enterprise location in Uzbekistan has been
shaped, on the one hand, by natural resources and traditional factors, and on the
other hand, is changing under the influence of state policy and modern economic
trends.
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References:
1.
Decree of the President of the Republic of Uzbekistan "On measures to
fundamentally improve the investment climate and develop the activities of free
economic zones." May 1, 2018, No. PF-5495.
2.
Decree of the President of the Republic of Uzbekistan "On the
Development Strategy of New Uzbekistan for 2022-2026." January 28, 2022, No.
PF-60.
3.
Salikhov T.P., Kodirov M.K. "Analysis of factors affecting the location of
industrial enterprises in Uzbekistan." Journal of Economics and Finance. 2022.
№3. pp. 78-89.
4.
State Committee of the Republic of Uzbekistan for Ecology and
Environmental Protection. "Monitoring of the impact of industrial enterprises on
the environment." Annual report. Tashkent, 2023.
5.
Ergashev B.B. "Regional industrial policy in Uzbekistan: theory and
practice." Monograph. Tashkent: "Fan" Publishing House, 2023.
6.
Isakov M.Yu., Alimov R.Kh. "Processes of modernization and diversification
of Uzbekistan's industry." Textbook. Tashkent: TSEU, 2022.
7.
Rakhimova D., Olimjonov O. "Impact of free economic zones on the
regional economy." Business Expert Journal. 2023. №2. pp. 34-41.
8.
Agency for Macroeconomic Analysis and Forecasting of the Republic of
Uzbekistan. "Development trends of Uzbekistan's industry until 2030."
Analytical report. Tashkent, 2023.
