EDB opens office in Tashkent and plans to invest billions

The Eurasian Development Bank (EDB) opened a representative office in the Uzbek capital Tashkent on May 18 and announced investments of up to 1.5 billion US dollars by 2031. The opening coincides with the bank's 20th anniversary. At the same time, the EDB announced an investment of USD 70 million in Uzum, the largest digital platform in Uzbekistan. The opening marks the bank's formal entry into the Uzbek market. Uzbekistan was the seventh member country to join the development bank in 2025 and is also the most populous country in Central Asia. Representatives of the Uzbek government and the EDB explained that the cooperation is intended to strengthen the financing of transport, energy, mining and digitalization projects in the country. "From a regional initiative to a respected international financial institution that makes a significant contribution to the economic development of its member states - this is a remarkable anniversary," said Uzbekistan's Deputy Prime Minister Jamshid Khodjaev at the opening ceremony in Tashkent. "It is symbolic that the bank is opening its representative office in Uzbekistan in this anniversary year. We see this step as an important contribution to deepening the partnership between Uzbekistan and the EDB," he added. Focus on infrastructure and digitalization Uzbek government representatives emphasized that the EDB's expertise in infrastructure financing, export promotion and digital systems is closely aligned with the country's economic policy priorities. Khodjaev explained that a permanent office in Tashkent would "increase the intensity of cooperation and shorten the time between idea and implementation". The opening of the EDB comes at a time when Uzbekistan is looking to secure its high economic growth and attract more foreign capital. The government is promoting free trade zones, technology parks and the expansion of transport infrastructure as part of its reform program to open up the economy and strengthen regional trade links. The Chairman of the EDB Board of Directors, Nikolai Podguzov, said that the bank wants to develop into one of the country's most important investment financiers. "In the year of our 20th anniversary, we are launching our activities in one of the fastest growing economies in the region - Uzbekistan," Podguzov said. "Over the past 20 years, the bank has gained unique experience. Our total portfolio reached 19.6 billion US dollars and we have implemented 326 projects. Now we are ready to bring this know-how to Uzbekistan." The EDB plans to provide investments of up to 1.5 billion US dollars in Uzbekistan by 2031. Of this, almost 800 million US dollars are to flow into projects with regional integration potential. Podguzov also announced a long-term target of at least 2 billion US dollars in total investments, with an annual financing volume of over 500 million US dollars. "Our investments will focus primarily on transportation, logistics, energy and industry," he said. "We have already identified several projects and plan to sign the first contracts worth tens of millions of dollars today." 70 million dollars for Uzum The announced investment of 70 million US dollars in Uzum is EDB's first IT investment in Uzbekistan. The financing is intended to support the expansion of consumer credit, digital banking infrastructure and fintech services. Uzbekistan is currently experiencing strong growth in cashless payments and digital financial services. "Digital platforms have become a central part of modern economic infrastructure," said Podguzov. "By partnering with Uzum, the EDB is expanding access to financial services, promoting entrepreneurship and investing in a regional technology platform that can strengthen economic ties across Eurasia - including China and the Middle East." Uzum claims to have more than 20 million users in the e-commerce, banking and fintech sectors. The company's loan volume reached around 1.2 billion US dollars in 2025, almost tripling within a year. The payment volume exceeded 11 billion US dollars. "We are building a fintech infrastructure on a national scale that is deeply integrated into everyday economic life," said Uzum founder and CEO Djasur Djumaev. "This investment is an important recognition of Uzum's role in the development of Uzbekistan's digital infrastructure." EDB expects strong growth in Uzbekistan As part of the opening ceremony, the EDB Academy organized several workshops for representatives from politics, business and the media. EDB Vice-Chairman and Chief Economist Evgeny Vinokurov presented a new macroeconomic forecast for Uzbekistan. The bank expects economic growth of 7.9 percent for 2026. "Uzbekistan will continue to be one of the fastest growing economies in the world," said Vinokurov. "Growth of 7.9 percent could put the country in the global top ten this year." Inflation is expected to remain below seven percent until the end of 2026 despite external pressures, including higher global energy prices as a result of the crisis in the Gulf region. Vinokurov also explained that the Uzbek som will continue to be supported by strong inflows of foreign investment and rising remittances. In the long term, the EDB expects Uzbekistan's economic output to rise to USD 200 billion by 2030 and to USD 300 billion by 2035. The biggest risks for the economy are external rather than internal. "If the global economy weakens, demand for Uzbek exports will fall in almost all commodity segments," warned Vinokurov. "The biggest threat to the Uzbek economy currently comes from outside and needs to be monitored closely." The latest EDB forecast assumes that Uzbekistan's key interest rate will be around 13.5 percent by the end of 2026. In its December forecast for the period 2026 to 2028, the bank had still expected an average key interest rate of 13.7 percent for 2026, which is expected to fall to 11.6 percent by 2028. In terms of inflation, the EDB expects a gradual decline from 7.4 percent in 2025 to 6.7 percent in 2026 and 6.3 percent by 2028. The post EDB opens office in Tashkent and plans to invest billions appeared first on ostwirtschaft.de.