Khorezm region in north-western Uzbekistan is emerging as one of Central Asia's most dynamic investment corridors, where large-scale industrial and tourism projects backed by international partners are steadily reshaping the economy, infrastructure and urban landscape.
Investment momentum reshaping Khorezm region
Over the past nine years, Khorezm has attracted 7.5 billion dollars of investment and commissioned 9,700 new production capacities, while more than 33 trillion Uzbek sums in bank lending have been directed to small and medium-sized business projects. This financing has accelerated the shift from a predominantly agrarian profile towards a more diversified, industrial and service-based regional economy.
Real incomes of the population have doubled, the share of employment in industry and construction has reached 18 percent, and services now account for 55 percent of jobs. Poverty has fallen to 4.4 percent, unemployment has halved to 4.5 percent, and 72 local communities have been officially declared free from poverty and joblessness. For investors, this signals a growing consumer market, a more skilled workforce and a social environment that can sustain long-term projects.
The transformation strategy has been tightly linked to targeted programmes for Khorezm region. At a ceremony in the Farovon Khiva Hotel in Khiva, the President emphasised that job creation and modern production capacity were set as priorities from the very beginning of reforms in New Uzbekistan. "From the first days of reforms in New Uzbekistan, we identified the creation of new jobs and the launch of modern production capacities as one of the priorities. For these purposes, we adopted separate programmes and decisions for Khorezm region, clearly defined sources of financing and responsible persons, and organised the corresponding work," he said.
New infrastructure for transport and tourism
Tourism and hospitality have become key drivers of Khorezm's new growth model. In the last nine years, 280 hotels and guest houses have been built, the regional hotel stock has increased fourfold, and 11 new tourism sites have been commissioned. Over the past five years alone, the number of foreign visitors has grown tenfold, turning Khiva and surrounding areas into a fast-developing destination on the Central Asian tourism map.
The transport backbone supporting this tourism boom is also being upgraded. An electrified railway line now connects Urgench international airport with Khiva, improving access for international travelers and business delegations. In addition, a new toll road between Urgench and Khiva is being launched — the first toll highway in the country — cutting travel time from 45 to 20 minutes and creating a modern logistics corridor that links the historic city with regional hubs and airports.
On the outskirts of Khiva, a modern tourist complex "Sahro yulduzi" is planned on 26 hectares, with an investment volume of 120 million dollars. In Urgench city, a 250-room hotel and a retail and entertainment complex are being built in partnership with Japanese investors, with full commissioning targeted for 2027. These projects will further diversify the accommodation base, increase demand for high-quality furniture and interior solutions, and create new anchor sites for international tour operators and design firms.
Global partners anchor industrial and energy projects
Foreign capital is playing a central role in the region's industrial and energy transformation. If Khorezm attracted only 30 million dollars of foreign investment in 2016, the volume for 2026 is expected to exceed 2 billion dollars. Since the start of this year, cities Urgench and Khiva, as well as Tuproqqala and Urgench districts, have been prepared as platforms for new projects in chemical industry, machinery, construction materials and tourism.
Land-use and infrastructure decisions have been aligned with this investment wave. The category of 195 hectares of land has been changed for industrial needs, and 100 billion sums have been allocated to improve electricity and road infrastructure. At the Farovon Khiva Hotel ceremony, the President noted: "As part of this work, together with you today we will put into operation twelve projects worth 176 million dollars. In addition, we will launch the construction of fifteen new facilities worth 7 billion 424 million dollars, which will be built with the participation of foreign partners."
Among the flagship projects, a 6 billion dollar plant to produce environmentally friendly aviation fuel will be implemented in Tuproqqala district together with partners from the United Arab Emirates, with the participation of Chinese company Sinopec. Preparatory work on the land plot and project documentation is already underway. In cooperation with Slovak partners, 5,000 hectares of sandy land are being developed for a bioethanol production facility worth 170 million dollars, with practical work started on an initial 1,500 hectares.
In Urgench district, Korean investors will support the country's first closed-loop waste processing project, generating 71 megawatts of green energy with 100 million dollars of investment. The district will also host a copper industry cluster worth 26 million dollars and a plant for the production of fibre-optic cables worth 60 million dollars, strengthening Khorezm's position in metallurgical and electrical equipment value chains.
In the regional centre, a modern boiler plant will be built together with a partner from Saudi Arabia to provide heat and electricity to 183 apartment buildings and 37 social facilities. A new ophthalmology clinic based on public–private partnership with Turkish partners is planned, and these social infrastructure projects, while not industrial in nature, enhance the overall investment climate and quality of life for professionals relocating to the region.
Urban development and innovation ecosystem
Large-scale urban development is underway to support Khorezm's evolving role as an industrial, educational and tourism hub. In the new town of Al-Khorezmi, a modern university campus for 5,000 students will be constructed alongside a hotel, recreation areas and retail complexes. This will create a focal point for engineering, architecture and design education, feeding talent into regional construction and manufacturing projects.
In Urgench city, a dedicated "House of investors" will be built as a one-stop hub for project preparation, negotiations and aftercare. Paired with improved power and road networks, this institutional infrastructure is designed to reduce entry barriers, speed up project cycles and offer international companies a clearer, more predictable interface with regional authorities.
Across all projects currently launched or entering construction, around 6,600 new jobs are expected to be created. This employment growth, combined with transport upgrades and diversified industrial bases, reinforces Khorezm's status as a promising macroregional node for Central Asia's manufacturing, energy and tourism value chains.
Implications for international furniture and construction businesses
For international companies in furniture, construction, interior and exterior manufacturing, trade, design and architecture, Khorezm's current trajectory offers a broad pipeline of opportunities. The rapid expansion of hotels, guest houses, tourism complexes and university facilities will generate sustained demand for high-quality hotel furniture, fit-out solutions, bespoke interiors, outdoor furnishings and public-space design. Industrial plants, energy facilities and new urban buildings will require durable construction materials, engineering services and modern workplace design, creating room for partnerships across supply, joint manufacturing and technology transfer. Improvements in transport links, energy infrastructure and regulatory clarity — from land reclassification to toll road and PPP projects — indicate a more mature, investor-oriented environment, making Khorezm region a compelling entry point or expansion target for global players looking to build a long-term presence in Uzbekistan and the wider Central Asian market.
