Saudi Arabia tops energy investments in Uzbekistan

Saudi Arabia tops energy investments in Uzbekistan
Partners sign "road map" for energy cooperation. / Ministry of Energy of Uzbekistan
By Mokhi Sultanova in Tashkent May 12, 2024

Saudi Arabia has solidified its position as the largest investor in Uzbekistan's energy sector since 2020, with the Central Asian nation undergoing a transition towards green energy, according to the Uzbek energy ministry.

Energy Minister of Saudi Arabia, Prince Abdulaziz bin Salman Al Saud, and Uzbek counterpart Jurabek Mirzamakhmudov lately met to explore potential areas of further collaboration. Following their discussions, they issued a joint statement emphasising the importance of the energy sector in their countries’ long-range plans.

The ongoing trade, economic and investment collaboration between Uzbekistan and Saudi Arabia has yielded a portfolio of joint projects surpassing $30bn. 

Saudi companies showcased strong cooperation with Uzbekistan at the recent Tashkent International Investment Forum (TIIF-2024), pledging significant investments, including $4bn for urban infrastructure and a green technology-centred data centre, $6.2bn for a wind farm project, and $750mn for modernising heat supply systems.

Central to the discussions of the ministers was the recognition of the critical importance of stabilising global energy markets. Uzbekistan commended Saudi Arabia for its contribution to market stability, acknowledging the benefits to both producing and consuming nations and the overarching objective of sustainable economic growth.

A comprehensive "road map" detailing cooperation efforts in the energy sector was signed, building upon a previous agreement inked in Jeddah on August 17, 2022, during Uzbek President Shavkat Mirziyoyev's visit to Saudi Arabia.

The ministers confirmed their dedication to furthering collaboration in electric power and renewable energy, facilitating the exchange of knowledge, backing the activities of Saudi companies in Uzbekistan, and investigating investment prospects in both countries.

Both nations aim to strengthen collaboration to meet Uzbekistan's energy sector demands, including in oil, petrochemicals and agricultural fertilizers, while exchanging technical expertise in these domains. They envision establishing a sustainable energy network, incorporating oil, gas, electricity generation, renewables, clean hydrogen and carbon processing technologies.

The partnership prioritises cooperation with the circular carbon economy (CCE) and carbon capture, utilisation and storage (CCUS), while also expanding joint efforts in producing, transporting, storing, and developing technology for clean hydrogen and green energy.

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