OREANDA-NEWS. April 23, 2008. Companies from the United Arab Emirates intend to participate in 2008-2012 in the implementation of joint projects worth more than USD 3,5 billion in Uzbekistan, reported the Official website www.investuzbekistan.uz.

President Islam Karimov’s resolution approved the list of 21 investment projects recommended for implementation within the framework of direct foreign investment of UAE companies and financial cooperation.

This list was set as a result of Uzbek President’s official visit to Abu Dhabi in March 17-18 this year. The document states that the most of the capital (USD 1,38 billion) is to be invested in fuel and energy projects.

Particularly, the International Petroleum Investment Co (IPIC) aims to invest during 2009-2012 USD 1.1 billion in the production of synthetic fuel (GTL technologies) in the designed Ustyurt Gas Chemical Complex for processing 3,4 billion cubic meters of gas and producing 1.7 million tons of synthetic diesel fuel and gasoline a year.

The Mubadala Development Co, an investment company of Abu Dhabi government, signed a memorandum with the “Uzbekneftegas” National Holding Company to conduct in 2008-2012 geological survey in two investment oil-and-gas bearing units, attracting the investment of USD 200 million.

The MAZDAR investment company, intends to invest in two years USD 80 million in a project on reducing gas loss in gas distribution networks of low and mid pressure in regions of Ferghana valley under the Clean Development Mechanism.

In chemical industry, the IPIC plans to invest USD 760 million in the modernization of production of the OSC “Navoiazot”, Uzbekistan’s largest chemical enterprise. Particularly, the IPIC aims to launch in 2008-2012 in the “Navoiazot” a new production of 450 thousand tons of carbamide and 550 thousand tons of ammonia a year, worth USD 600 million. The company also invests USD 160 million in the construction of a complex for producing 34 thousand tons caustic and 50 thousand tons of polyvinylchloride per year.

In infrastructural project implementation the Dubai Properties intends to invest during five years USD 500 million in the construction of a business center in Tashkent and participate in establishment of international logistics center in the Navoi airport with USD 100 million of investments.

The Dubai Investments Industries intends to invest USD 262 million in three construction material production projects. Particularly, the UAE company invests in the Republic of Karakalpakstan USD 174 million in the construction of a cement plant with 1 million tons of annual capacity, a new glass plant with capacity of 10 million square meters of architectural glass per year in Navoi region, and a plant worth USD 18 million for producing 3 million sqm of ceramic tile.

Within financial cooperation the credit organization of the UAE are to offer Uzbekistan USD 288 million of credits for the implementation of 5 educational projects.

Particularly, the Abu Dhabi Fund for Development plans to offer a USD 150 million of credit for rehabilitation of drain collectors of Khorezm region, loan of USD 70 million for improvement of water management of Surkhandarya region and USD 58 million of credit for the modernization of a pumping station in Bukhara region. 

Recently, Uzbekistan has activated its financial cooperation with credit organizations and investment companies of the Arab World. In mid 2007 the Uzbek government expressed intention of attracting nearly USD 1 billion to implement 17 investment projects at the expense of the Arab Coordination Group (ACG).

The Arab Coordination Group includes the Islamic Development Bank and Arab finance funds: Saudi Fund for Development, Abu Dhabi Fund for Development, OPEC Fund for International Development and Kuwait Fund for Arab Economic Development.

Official statistics shows that the Arab financing institutions have invested in Uzbekistan nearly USD 200 million to implement fourteen projects in power engineering, public service, infrastructure and private entrepreneurship.