RIYADH: Mutual trade between Saudi Arabia and the Republic of Uzbekistan reached $95 million in the first half of 2022, a substantial increase considering that bilateral trade barely exceeded $17 million a year last.
According to a joint press release, the value is expected to rise rapidly by the end of 2022. The numbers are gaining momentum in the aftermath of the pandemic.
In fact, the number of Uzbek businesses operating with Saudi funds has grown from about nine to 38 over the past five years. Of the 38, 19 are sole proprietors and the rest are joint ventures.
The two nations will further strengthen their ties by signing 12 new agreements on Wednesday and Thursday during Uzbek President Shavkat Mirziyoyev’s visit to the Kingdom.
According to an Uzbek state agency, high-level talks will take place in Jeddah, where the two nations will discuss possibilities for further strengthening multilateral cooperation.
The discussion will focus on the green economy, technology and digitalisation, innovations, small businesses and entrepreneurship.
Following the meeting, new agreements are expected to be signed in the energy, telecommunications, agriculture, chemical and petrochemical sectors, in addition to encouraging ties in culture, sport and culture. ‘education.
The Kingdom has become one of the largest foreign investors in energy infrastructure and one of the largest developers of green energy projects in Uzbekistan.
ACWA Power’s Uzbek interests
Recently, the Ministry of Energy of Uzbekistan and the Saudi energy company ACWA Power signed several investment agreements for around 3 billion dollars.
ACWA Power will develop and operate a wind project with a generating capacity of 1,500 MW in the Karakalpakstan region of Uzbekistan.
Once commissioned, the plant will become the largest of its kind in Central Asia and one of the largest wind power plants in the world.
FAST FACTS
• The number of Uzbek businesses operating with Saudi funds has increased from about nine to 38 over the past five years.
• Recently, the Ministry of Energy of Uzbekistan and the Saudi energy company ACWA Power signed several investment agreements for around 3 billion dollars.
• The Saudi Fund for Development has contributed to the implementation of many projects in Uzbekistan, including financing the Samarkand-Gozar road project, worth a total of $30 million.
ACWA Power also signed an agreement to establish the 100 MW Nokus Wind Farm Project, the first renewable energy project to be implemented in partnership with the public and private sectors in Uzbekistan.
The power generation company also won a $108 million wind power contract after offering a tariff of 2.56 cents per kilowatt hour, the lowest in Uzbekistan.
Additionally, the Ministry of Energy of Uzbekistan has signed a 25-year power purchase agreement with ACWA Power to establish a combined cycle gas turbine power plant at Shirin, located in Syrdarya, Uzbekistan. The deal is worth $1.2 billion.
According to the statement, these projects will help achieve Uzbekistan’s national goal of increasing total renewable energy generation capacity to 30 percent by 2030.
Saudi Fund for Development
In addition, the Saudi Fund for Development has contributed to the implementation of many projects in Uzbekistan, including financing the Samarkand-Gozar road project, worth a total of $30 million.
The fund has also contributed to 20 projects in the republic, including the construction of pumping stations and other projects relating to sewage, chemicals, mining, building materials, water and energy. agriculture.
According to Uzbekistan’s Ministry of Agriculture, the Saudi and Uzbek delegations discussed issues of cooperation in agriculture, including prospects for improving mutual trade in agricultural products.
The two sides are likely to sign cooperation memoranda in agriculture, veterinary medicine and livestock development at the meeting.
They also agreed to deepen cooperation in the agricultural sector to enhance trade in agriculture, livestock and other products between the countries.
After the signing of the memoranda, action plans will be prepared, including specific measures and areas to develop cooperation and joint projects.
The Saudi side has invited the Uzbek delegation to attend its most important exhibition of the agro-industrial complex, which will be held at the end of October in Riyadh.