President Shavkat Mirziyoyev has ordered measures to strengthen Uzbekistan's construction materials industry, aiming to increase the use of locally produced materials in the country's expanding pipeline of housing, infrastructure and tourism projects.

Chairing a government videoconference on June 25, Mirziyoyev linked the sector's future directly to the implementation of agreements signed during the fifth Tashkent International Investment Forum (TIIF 2026), where Uzbekistan secured 177 investment agreements worth $43bn with foreign partners.

"Each agreement must be transformed into a concrete project, new jobs and high-value-added products," the president said, instructing officials to accelerate the implementation of investment commitments and improve the quality of projects across the country's regions.

Officials acknowledged that investment remains unevenly distributed, with four regions accounting for half of all investment attracted over the past five years, while returns on capital vary significantly across the country.

To improve planning, the government has assigned 14 think tanks and 37 research institutes and universities to study the economic potential of every district and develop investment proposals for 12 strategic sectors.

Over the past decade, the construction materials sector has attracted approximately $12bn in investment, leading to the launch of more than 4,000 manufacturing facilities. 

Domestic producers now supply 98% of the materials required for residential and industrial construction, compared with just 30-40% ten years ago when production was largely limited to cement, bricks, glass and basic aggregates.

Production has increased from UZS7 trillion to UZS53 trillion over the period, while exports reached $1.2bn last year. 

Officials noted that domestic capacity is now sufficient to fully meet national demand for more than 20 key construction products, including cement, glass, ceramics, basalt materials and aerated concrete blocks, alongside a growing range of higher-value insulation, composite and finishing materials.

Under Uzbekistan's long-term housing programme, annual residential construction is set to double by 2040 to 280,000 homes, while the number of "Yangi Uzbekistan" residential developments will almost double from 61 to 120.

Commercial construction is also expanding, with 20-25mn square metres completed annually, creating an estimated $10bn in yearly demand for construction materials.

That demand is expected to increase further as the government advances major infrastructure projects proposed during this month's investment forum. 

These include a nuclear power plant in Jizzakh region, a fourth copper processing plant in Tashkent region, New Tashkent Airport, a 55,000-seat stadium in New Tashkent and the 282km Tashkent-Samarkand highway.

One of the meeting's central policy discussions focused on competition between imported and locally manufactured construction materials.

Foreign investors involved in large infrastructure projects have requested value-added tax exemptions for imported construction materials, while domestic manufacturers argue they should receive identical treatment to compete on equal terms.

Mirziyoyev instructed officials to prepare a draft resolution establishing equal tax conditions for imported and locally produced materials supplied to major investment projects, signalling the government's intention to strengthen the role of domestic industry without discouraging foreign investment.

Regional authorities were also instructed to ensure that at least 95% of materials used in newly constructed hotels under a two-year tourism infrastructure programme are sourced domestically.

Energy efficiency featured prominently during the discussions as the government seeks to reduce both household energy consumption and industrial production costs.

Mirziyoyev stressed that that greater use of thermal insulation materials and energy-efficient windows could reduce heating and electricity consumption in residential buildings by as much as 30%.

Officials highlighted a pilot housing development in Kamashi district, designed with French and British engineering firms, where exclusively domestically produced energy-efficient materials have reduced construction costs by 20% and heating and cooling expenses by up to 30%. The government plans to replicate the design approach across 33 districts and cities this year.

The president also called for greater efforts to expand exports, noting that neighbouring countries import around $13bn worth of construction materials annually. Officials estimate Central Asian markets alone could absorb an additional $440mn of Uzbek exports.

Mirziyoyev instructed officials to construct demonstration energy-efficient housing projects and organise investment roadshows in Azerbaijan, Georgia, Russia, Kazakhstan and Kyrgyzstan to promote Uzbekistan's construction technologies and materials abroad.

While production capacity for cement, glass, basalt and ceramic tiles is expected to meet domestic demand until at least 2035, the government signalled that future investment should prioritise technological modernisation and higher-value manufacturing rather than expanding basic output.

Construction materials manufacturers investing in energy-efficient equipment will receive subsidies covering 7% of interest payments on loans denominated in Uzbek soums and 4% on foreign currency borrowing.

The government also plans to launch a digital platform containing domestic and international quality certifications for locally produced building materials, while supporting at least 50 companies in obtaining internationally recognised certification this year.