Building new cities has become a defining trend across Central Asia, and Uzbekistan is taking this strategy to an unprecedented scale. Rather than concentrating all development in the capital, the country is pursuing an ambitious nationwide program to create modern urban centers in the regions. The approach aims to provide opportunities for people to work and live with dignity closer to home, while simultaneously driving infrastructure development and attracting foreign investment beyond the traditional economic hubs.
New Navoi takes shape as a model development project
Among the most visible manifestations of this strategy is New Navoi, an ambitious urban development initiative emerging in the Navoi Region. Launched in July 2024 on 1,100 hectares of specially allocated land (with 450 hectares in the initial construction phase), the project is now well underway by early 2026. As of May this year, workers are erecting 57 multistory residential buildings ranging from seven to 22 stories, designed to accommodate approximately 17,500 apartments in the first phase.
Beyond housing, the emerging city encompasses a carefully planned mix of commercial, cultural, and recreational facilities. Nine retail stores are being constructed, alongside medical infrastructure including a polyclinic and diagnostic center. A three story information library center with capacity for 230 simultaneous visitors and a collection of 171,000 titles is taking shape as a focal point of the development. Educational facilities include a campus for Navoi State University designed to accommodate 12,000 students. All of this sits within a framework emphasizing green space and public recreation, with parks, an artificial lake, and modern sports facilities including a full-size pool, stadium, and multiple sports courts.
Significant capital mobilization driving construction forward
The financial commitment underscores the seriousness of the initiative. Through early 2026, approximately 90.5 billion sums had been invested in the New Navoi project. A presidential decree from December 2024 allocated an additional 50 million dollars specifically for accelerating construction of business centers and parks. The local budget received another 100 billion sums for preparatory work on utility infrastructure. Construction contractors have responded with enthusiasm; 57 land parcels were offered at auction, divided into 30 lots, attracting significant interest from leading construction firms. As a result, 69 multistory buildings comprising nearly 6,000 apartments are currently under construction across the Navoi region.
The construction boom is generating tangible economic activity. In 2025, construction and contract work in Navoi Region totaled 16.2 trillion sums, up from 14.2 trillion in 2024 and 10.6 trillion in 2023. The sector created more than 6,000 jobs in the past year alone. Of 1,119 contracting organizations operating in the region, 61 percent improved their financial position during this period.
Building materials clusters strengthen local supply chains
A distinctive feature of the New Navoi development is its emphasis on local production of construction materials. More than ten construction clusters have been established in the region, collectively producing 60 to 70 percent of all building materials used in the projects. These clusters manufacture 74 different product categories, including concrete and expanded concrete, gas blocks, window frames, doors, and aggregate materials. This approach simultaneously supports the local economy, reduces supply chain vulnerabilities, and ensures alignment with green energy principles through the use of energy-efficient materials.
Infrastructure modernization addresses regional bottlenecks
Beyond new construction, the strategy includes comprehensive infrastructure renewal. A presidential decree issued in February 2026 mandates the complete modernization of aging utility networks across Navoi Region through 2028. This includes replacement of 124 kilometers of outdated water pipes and 204 kilometers of sewer lines, along with irrigation and heating networks that date back 50 to 60 years. The scope extends to major urban centers including the cities of Navoi and Zarafshan, Uchkuduk District, and the settlement of Zafarabad.
In the administrative center of Navoi Region, central streets bearing the names of Amir Timur and Alisher Navoi are undergoing reconstruction. The area surrounding the Fakhrad Palace of Culture — a landmark built in the 1970s and cherished by residents — is being comprehensively revitalized. The renovation preserves the existing green spaces while introducing modern landscaping, children’s playgrounds, sports zones, open air cinema, cafes, and retail pavilions. Special attention is being paid to universal accessibility, ensuring that people with disabilities can fully participate in public spaces.
Yoshliq Lake, a beloved recreational destination founded in 1972 but suffering from stagnant water since 2008 and decades without sediment removal, is being reconstructed as a modern recreation cluster. The renewed facility will feature designated sandy beach areas, comfortable lounging zones with cafes, retail points, and shaded walkways.
Broader program targets nationwide urban transformation
New Navoi represents one component of an even more expansive vision. In October 2024, Uzbekistan’s leadership approved a comprehensive program for creating 33 exemplary districts and cities across the country, each reflecting the aesthetic and functional principles of “New Uzbekistan.” The program allocates 100 billion sums per district or city (totaling 2.3 trillion sums), 5 billion sums per mahallah (neighborhood) for 340 selected communities (totaling 1.7 trillion sums), and 2 trillion sums for strategic projects designed to catalyze regional economic growth. International financial institutions are contributing substantially: the Islamic Development Bank and World Bank have committed 100 million dollars in partnership with the government.
The centerpiece of this strategy is New Tashkent, a megacity project on an even grander scale. Spanning 20,000 hectares east of the capital, between the Chirchik and Karasu rivers, New Tashkent is designed to eventually accommodate 2 to 2.5 million residents. More than 100 projects are currently at various stages of implementation, covering 3 million square meters of development as of end 2025. The first phase will create infrastructure for 600,000 residents across 6,000 hectares. This groundbreaking urban design envisions 50 percent of territory dedicated to built structures, 30 percent to green spaces and public areas, and includes 14 major transportation tunnels plus underground parking for 100,000 vehicles. The master plan incorporates extensive water features and canals drawing from northern mountain rivers, an approach international architects compare to Amsterdam’s integrated water infrastructure.
Construction efficiency gains with planned investment increases
For 2026, Navoi Region’s construction and contract work volume is projected to increase by 112.3 percent compared to 2025, reaching 18.1 trillion sums. This expansion will be funded through the National Investment Program, initiative budget allocations, local budget resources, the Islamic Development Bank, OPEC facilities, and strategic driver projects. The acceleration is targeting residential development across vulnerable neighborhoods in Kanimekh and Navbahor districts, implementing the broader “New Uzbekistan” housing initiative across 16 communities of general importance in eight regional districts.
Relevance for international business and investors
For international companies in construction, architecture, interior design, building materials, infrastructure development, and project management, these transformations represent significant market opportunities. Uzbekistan’s new cities initiative creates demand for advanced construction methodologies, high quality building materials, interior finishing solutions, landscape design, and specialized infrastructure systems. The emphasis on energy-efficient building materials and green design aligns with global sustainability trends and opens possibilities for technology transfer and specialized product sales. The scale of infrastructure modernization — replacing hundreds of kilometers of pipes and networks — requires engineering expertise and equipment. Additionally, the commercial components of these cities, including office buildings, retail centers, and hospitality facilities, create opportunities for designers, furniture manufacturers, and fit-out specialists. The construction cluster model itself demonstrates openness to international partnerships and knowledge exchange. For companies seeking entry into Central Asian markets, these publicly-funded megaprojects with transparent procurement processes represent accessible pathways to establish presence, build local expertise, and position themselves for broader regional expansion as neighboring countries pursue similar urban development strategies.
