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INVESTMENTS ARE THE MAIN DRIVER OF ECONOMIC DEVELOPMENT
E.Kh. Botirov
TDIU "Regional Economy"
professor of the department, DSc
A.B. Nazhmiddinov
TDIU, independent researcher
Abstract:
This article provides an analysis of the concept of investment and theoretical-scientific-
practical approaches. At the same time, the study object is the analysis of regional trends in
economic development and their significance in solving social problems.
Key words:
Investment, investment activity, investment forum, fixed capital, capital flows,
foreign investors, investment deals, investment environment, investment activity, investment
project.
Investments are one of the main financial levers for the implementation of financial and economic
activities of economic entities in the context of the comprehensive development of the national
economy. If we talk about the role of investments in the economy, then, on the one hand, targeted
investments (investment of funds) solve a number of economic problems at the macro and
microeconomic levels, create favorable conditions for solving and implementing strategic tasks of
the economy, and its further development in all socio-economic spheres. On the other hand,
investments are one of the main elements ensuring the effective functioning of the financial and
credit system of the national economy.
In the modern world, investments have firmly entered the lives of many people and are becoming
an integral part of financial literacy. It is known that everyone, regardless of age, profession and
source and level of income, can increase their capital by investing in promising assets.
In recent years, large-scale reforms have been implemented in all sectors of our country, radically
improving conditions for entrepreneurship and foreign investors. shows the need to fully mobilize
domestic capabilities and increase the pace of economic development.
Therefore, the fact that more than $90 billion in foreign investment has been attracted to our
country in a relatively short period of time is a significant indicator even in the region. Last year,
our economy grew by 6 percent, which confirms the correctness of the chosen direction.
The "Uzbekistan-2030" strategy has developed a draft plan to increase the country's gross domestic
product to $200 billion, and this process is supported by a roadmap that places a key emphasis on
foreign investment.
Since 2017, 188 billion dollars have been invested in the country's economy from all sources. Of
this, 87 billion dollars were attracted from abroad. As a result, the share of investments in the
gross domestic product exceeds 30 percent, which is the basis for stable economic growth.
In 2024, the volume of investments in the economy increased by 1.3 times, exceeding $36 billion.
Due to this, 560 large and medium-sized projects worth an additional 70 trillion soums have been
launched since the beginning of the year. This creates an opportunity to increase exports by
another $1 billion this year.
These results can be further enhanced with the opportunities available in the sectors and regions
of our country.
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From 2022 since signed investment transactions i amount from 44 billion dollars increased
Projects most of to do increased or construction stage . The most active investors - Saudi Arabia
Arabia , China , Russia and each other complementary various experience and to technologies
owner countries is considered .
This fiscal year, it is planned to absorb $43 billion in investments, which will allow for the
implementation of more than 300 major projects and the production of 662 new import-
substituting products.
At a meeting on investment held on December 19, 2024, the Head of State emphasized the need
to work with foreign investors in a targeted manner, create more opportunities, and implement all
agreements reached at a high level.
Today, Uzbekistan is opening its doors to the world, inviting investors to be part of major projects
in the fields of mechanical engineering, automotive, power engineering, financial technology, and
even artificial intelligence.
The difficult situation in the world, the increasing complexity of export logistics chains, and the
decline in the availability of finished products in our main export markets, create the need to
ensure socio-economic development by fully utilizing existing opportunities in the regions.
The goal is to double the country's annual export volume to $45 billion by 2030, which requires
timely implementation of investment projects in this regard, an increase in the number of high-
value products and services, and an expansion of the geography of exports.
The Tashkent International Investment Forum, which is being held in the capital these days, is of
great importance not only for large investors, but also for the population. Because investment is the
economic development of our regions, the creation of new jobs in the regions, the improvement of
the quality of services at the required level, and the steady increase in the standard of living of the
population.
Within the framework of the forum, about 3,000 participants from about 100 countries of the world
and more than 1,000 companies had the opportunity to get acquainted with the investment
environment in Tashkent and negotiate investment projects.
The unemployment rate and the employment of the population in productive sectors and industries
are among the pressing problems in Uzbekistan. The large industrial, agricultural, logistics and
infrastructure projects announced at the forum will create thousands of new jobs. This opens up
great opportunities, especially for young people and professionals.
Attracting large investments in sectors such as agribusiness, IT, chemistry, construction, tourism,
and energy will create both economic benefits and new job opportunities for the population.
At the same time, increased investment means not only an increase in the number of economic
entities, but also an increase in the quality of services, the production of competitive products, and
the introduction of modern technologies. In particular, foreign investments in areas such as
logistics systems, digital services, education, and healthcare serve to improve the quality of life for
ordinary citizens.
Dozens of innovative ideas were presented at the forum in the fields of digital transformation,
"green economy", energy, tourism, and education. In turn, the implementation of these innovative
ideas into practice will be a key factor in creating popular and high-quality services,
environmentally friendly products, and new infrastructure for the population of our country.
The International Investment Forum being held in our country is a decisive step towards a new
stage of development, demonstrating the results of the reforms being carried out in our country. It
is a stage of investment development for practical measures against unemployment, quality
services and competitive products, world confidence in Uzbekistan, and most importantly, the
well-being of the people.
Most importantly, the creation of a healthy investment environment in our country, that is, an open
and transparent environment for investors, and the provision of convenience in doing business, are
at the heart of today's state policy, and the guarantees, legal protection mechanisms, and active
reforms in this regard are attracting international investors.
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In addition, as the head of our state noted, in the conditions of global geopolitical instability,
financial shortage and slowdown in world GDP growth, investments are a factor not only of
economic growth, but also of peace and stability.
At the IV International Investment Forum in Tashkent, President Shavkat Mirziyoyev outlined
Uzbekistan's investment policy and outlined the main strategic directions of economic
transformation with international partners.
In addition, the development of a draft law on alternative investment funds, the increase in venture
and other alternative investments to a billion dollars in the last 5 years, the dramatic changes in the
financial system and technologies, the rapid development of alternative financial instruments for
startups - ventures, the creation of a financial stability council, the launch of cybersecurity and
financial technology platforms under the Central Bank, as well as deep reforms in the banking
sector, finance, insurance, and capital markets, indicate that a modern financing mechanism for
investment projects is being formed.
Indeed, in order to further develop the venture market in our country, three new venture funds with
a total capital of $50 million have been established.
Uzbekistan, which has become an important international platform for discussing investment
prospects and economic cooperation, is a rapidly developing country in Central Asia and, as a
"country of great opportunities for investors," fully and reliably supports all foreign investors.
In addition, Uzbekistan has signed numerous investment agreements aimed at developing
industry, energy, pharmaceuticals, agriculture, and other sectors. The implementation of these
projects in the coming years will directly contribute to the country's development, ensure
employment and increase the well-being of the population, and pave the way for the broad
development of infrastructure and economic sectors in the regions.
List of used literature:
1. Law of the Republic of Uzbekistan "On Investments and Investment Activities", adopted on
December 25, 2019. http://www.lex.uz (system of regulatory legal acts).
2. IV Tashkent international investment forum. https://gov.uz/ru/news/view/
3 . Dolan E.Dj. and Dr. Dengi, banking and credit policy. /Per. English V.Lukashevich and dr .
Pod obshch. Ed. V Lukashevich. -L., 1991. P.15-16.
4 . Sharp W., Alexander G., Bailey DJ. Investment: Per. s ang . - M.: INFRA-M, 2003. - XII, p.1.
5 . Vakhrin P.I., Neshitoy A.S. Investitsii: Uchebnik. - 3-e izd., pererab . I dop. - M.: Izdatelsko-
torgovaya corporation "Dashkov i K", 2005. P.13.
6 . Igoshin N.V. Investment. Organization management and financing: Uchebnik dlya vuzov. 2-e
izd., pererab . i dop. -M.: YUNITI-DANA, 2001.S.81
