Uzbekistan launches $17 billion chemical industry expansion, targeting innovation, import reduction, value-added production, exports, and skilled workforce growth.
Uzbekistan is embarking on an ambitious plan to revitalize and rapidly expand its chemical industry, with President Shavkat Mirziyoyev initiating a program to develop over 350 projects valued at $17 billion. This strategic push comes in response to the sector's underperformance and significant untapped potential, as highlighted during a meeting chaired by the President on June 2, 2026.
The need for this extensive development program stems from several key challenges within the Uzbek chemical industry. Over the past nine years, the chemical sector's annual growth has remained below 3%, significantly lagging behind the national industrial output, which has seen an average annual increase of 6.3%. This disparity has led to a substantial increase in chemical product imports, quadrupling to $4.5 billion per year. Furthermore, the industry faces issues with production efficiency and value addition; for instance, the country produces 1.5 million tonnes of ammonium nitrate annually, consuming 1.07 billion cubic meters of natural gas, at a time when developed nations are reducing their reliance on such methods. The government aims to address these inefficiencies by restructuring production, enhancing value-added output, and reducing energy consumption.
The planned initiatives are expected to have considerable economic and industry-specific impacts. Economically, the $17 billion investment is poised to stimulate growth, reduce the heavy reliance on imported chemical products, and potentially create new export opportunities. The focus on increasing value-added output suggests a shift towards more sophisticated and profitable chemical products.
From an industry perspective, the program will lead to the creation of a comprehensive ecosystem encompassing education, scientific research, advanced laboratories, and support for startups. Large-scale projects are slated for the production of crucial items such as water-soluble fertilizers, various polymers, household chemicals, and inorganic chemicals. This expansion will, in turn, drive demand for highly specialized professionals in cutting-edge fields like nanochemistry, green chemistry, supramolecular chemistry, and AI-based chemical modeling. President Mirziyoyev emphasized that achieving these ambitious objectives necessitates managing the industry through modern, science-based approaches, indicating a commitment to innovation and technological advancement. This overhaul is designed to transform Uzbekistan's chemical industry into a dynamic and competitive sector, capable of meeting domestic demand and expanding its presence in international markets.
