Uzbekistan has set an ambitious development agenda for Andijan region, combining faster economic growth with a major investment drive, industrial upgrading and new transport links. Regional authorities have been tasked with achieving economic growth of at least 10% next year, attracting $5 billion in investment and raising exports to $1.5 billion.
Investment model shifts toward higher-value industries
At a meeting on the region’s socio-economic development, Uzbekistan’s president noted that Andijan’s economy grew by 8.8% in the first half of 2026, with positive momentum in industry, services and investment. A total of $7 billion has already been attracted to business projects planned on approximately 1,000 hectares of land. These initiatives are expected to create at least 70,000 high-income jobs.
At the same time, the region still faces an uneven distribution of investment across countries and industries. Financial investment in information technology and scientific research remains limited, creating a need to move beyond traditional industrial development and build stronger local technological capabilities.
Regional officials have been instructed to develop domestic technologies for automotive manufacturing, drawing on the experience of the UzAuto Motors plant in Asaka. The plans also include establishing an Asaka Engineering Valley and building industrial chains in software development, electromechanics and engineering services.
Andijan’s textile industry is expected to move further toward finished, higher-value products. To support that transition, the region will seek to attract foreign designers and clothing brands rather than focus primarily on lower-value production.
Project management and energy infrastructure
Following a model introduced in Karakalpakstan, Andijan administration will create a project manager position responsible for implementing the region’s new investment model. Artificial intelligence will be used to assess the prospects of industrial enterprises and smaller companies, after which investment plans will prioritize the most efficient projects.
The region also intends to make broader use of its natural resources. Andijan has an estimated hydropower potential of 200 megawatts, while local entrepreneurs are showing increased interest in small and micro-hydropower plants. Under a two-year programme, such facilities are expected to be developed on a turnkey basis and then transferred to businesses through leasing arrangements.
New logistics capacity follows rail corridor development
Transport and logistics projects are another central element of the regional strategy. As freight traffic increases along the China–Kyrgyzstan–Uzbekistan railway currently under construction, logistics complexes worth $600 million will be established in Kurgantepa and Khanabad.
A new Kaskaner border crossing with Kyrgyzstan is also planned to increase cargo volumes and shorten delivery times. Inside the region, design work is due to begin on a toll road linking Khanabad with Andijan. From September, a high-speed train service between Tashkent and Andijan is expected to reduce the journey from six hours to four. A toll highway connecting the regional administrative centre with Uzbekistan’s capital is also planned for the near future.
For international companies in furniture, construction, interiors, architecture, design and related manufacturing, the Andijan programme points to a market where opportunities are emerging across industrial parks, logistics, energy infrastructure and higher-value textile production. Improved freight connections, leasing-based access to small power facilities and a more structured investment-selection process could make the region more attractive to manufacturers and foreign brands, although the scale of the targets will depend on how effectively local authorities diversify investment and convert infrastructure plans into operational projects.
