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Analysis and Studies - Country Analysis

Uzbekistan: a look at the market

By SkyMinder Sales Enablement Team September 20th 2024

Historically, Uzbekistan was a key hub on the Silk Road, connecting trade between China and the Mediterranean. Over the centuries, it fell under the control of various empires, including those of Alexander the Great, the Islamic Caliphates, and the Timurid Empire under Timur, whose influence is still evident in cities like Samarkand. In the 19th century, it became part of the Russian Empire and later the Soviet Union, gaining independence in 1991: since then, Uzbekistan has been a sovereign republic, with Shavkat Mirziyoyev as its president since 2016.

The population of Uzbekistan is predominantly Uzbek, with significant Russian, Tajik, and other minority communities, and Uzbek is the national language, while Islam is the primary religion. The country is known for its rich culinary traditions, and its historical contributions to art, music, and architecture, especially in cities like Samarkand, Bukhara, and Khiva, which are filled with stunning Islamic architecture from its Silk Road heritage.

Uzbekistan has a high level of specialization in Non-Retail Pure Cotton Yarn ($1.39B), Silk Fabrics ($52.7M), Molybdenum ($49.7M), Wheat Flours ($269M), and Vehicle Bodies (including cabs) for the motor vehicles ($247M).

 

In 2022, Uzbekistan was the 83rd in total exports, with a trade of $16.9B, and the 74th in total imports, with a trade of $29.9B.

In 2022 the most exported product was Gold, with a trade of $5.18B, ahead of Non-Retail Pure Cotton Yarn ($1.39B), Petroleum Gas ($934M), Refined Copper ($596M), and Silver ($339M), exporting mostly to Switzerland (25.4%), Russia (15.4%), China (11.7%), Turkey (9.39%), and Kazakhstan (7.43%).

 

 We can observe that exports economy is largely driven by gold, with Switzerland as the dominant buyer. Other important exports include cotton yarn, petroleum gas, refined copper, and silver, with significant trade links to China, Turkey, and Russia.

 

While gold and petroleum gas exports are heavily reliant on a few key markets, especially Switzerland and China, there is more diversity in exports like cotton yarn and silver. The country remains dependent on natural resources, leaving it exposed to changes in global demand and economic conditions in its primary trade partners: efforts to diversify export destinations are evident, but the country still faces challenges in reducing its dependence on raw material exports and expanding its presence in value-added sectors.

  1. Gold (30.7%): 82.5% Switzerland, 12% United Kingdom, 2.61% United Arab Emirates, 2.18% China
  2. Non-Retail Pure Cotton Yarn (8.26%): 36.1% Turkey, 28% Russia, 17.6% China, 5.24% Iran. 3.8% Poland, 1.46% Egypt. 1.36% Belarus
  3. Petroleum Gas (5.53%): 90.8% China, 3.94% Tajikistan, 2.5% Afghanistan, 1.93% Russia
  4. Refined Copper (3.53%): 55.9% China, 41.1% Turkey, 1.83% Russia
  5. Silver (2.01%): 30.1% United Kingdom, 16.5% Canada, 16.2% India, 15.9% Turkey, 10.6% United States, 8.05% Italy, 2.51% Germany

Whereas the most imported product was Motor vehicles; parts and accessories, with a trade of $1.28B, followed by Packaged Medicaments ($1.16B), Cars ($1.12B), Wheat ($831M), and Refined Petroleum ($775M), importing mostly from China (24.3%), Russia (18.8%), Kazakhstan (12.3%), South Korea (7.58%), and Turkey (6.34%).

We can observe that the majority of the most imported product, motor vehicles and parts, is supplied by South Korea, while packaged medicaments have a more diverse range of sources, including India, Russia, and Turkey. Similarly, car imports are dominated by South Korea, followed by China and Kazakhstan.

Wheat imports are almost entirely reliant on Kazakhstan, while refined petroleum primarily came from Russia. This reliance on a few countries, particularly South Korea, Russia, and Kazakhstan, for essential imports like cars and fuel underscores potential economic risks. In contrast, the pharmaceutical sector shows more diversity in suppliers, indicating an effort to create a more balanced import strategy.

  1. Motor vehicles; parts and accessories (4.3%): 73.4% South Korea, 7.89% China, 3.51% Brazil, 3.3% Mexico, 2.03% Russia, 1.8% Japan, 0.94% Turkey, 0.61% Poland, 0.61% Belarus
  2. Packaged Medicaments (3.87%): 19.1% India, 13.4% Russia, 7.94% Turkey, 7.26% Slovenia, 5.94% Germany, 5.04% Georgia, 4.37% China, 4.09% Ukraine
  3. Cars (3.76%): 36.1% South Korea, 27.8% China, 19.5% Kazakhstan, 6.94% Germany, 3.07% United States, 2.05% Russia
  4. Wheat (2.78%): 98.3% Kazakhstan, 1.74% Russia
  5. Refined Petroleum (2.6%): 65.8% Russia, 13.4% Turkmenistan, 6.15% Kazakhstan, 2.4% South Korea, 2.32% Belarus, 1.99% Turkey, 1.21% China, 0.58% Germany

Between 2021 and 2022 the fastest growing exporter was Switzerland, with an increase of $1.88B, followed by Russia ($890M) and Kazakhstan ($227M).

 

 

  1. Switzerland: from $2.4B to $4.29B
  2. Russia: from $1.71B to $2.6B
  3. Kazakhstan: from $1.03B to $1.25B

Whereas the country with a fastest growth in imports was China, with an increase of $1.68B, ahead of Kazakhstan ($910M) and Germany ($661M).

 

 

  1. China: from $5.58B to $7.26B
  2. Kazakhstan: from $2.77B to $3.68B
  3. Germany: from $701M to $1.36B

Sources: 

https://oec.world/en

https://www.cia.gov/the-world-factbook/countries/