Uzbekistan Weekly Digest: New Umrah rules, Space Treaty ratification, rising inflation, real estate price surge and more

This week, the Committee on Religious Affairs tightened Umrah regulations, Uzbekistan joined the Outer Space Treaty, UzAuto Motors dominated the market with 89.4% share, Uzbekistan ranked among countries with the lowest hunger levels, Arnest Packaging Solutions announced a $100 million investment in Navoi, Rahmatulla Nurimbetov was named Uzbekistan’s new Ambassador to Sweden, the World Bank ranked Uzbekistan as the third-fastest growing economy in Europe and Central Asia, perceived inflation in Uzbekistan reached 13.4%, real estate prices rose 28% above fundamental value, Uzbekistan labeled as “not free” for Internet Freedom, Uzbekistan’s World Cup qualification chances increased.

New Umrah Regulations

The Committee on Religious Affairs introduced stricter rules for Umrah tour operators to improve services. As of October 12, operators must reserve $1 million, provide qualified guides, and ensure direct visa processing. This move addresses past issues where over 13,000 Uzbek pilgrims faced difficulties abroad, with some being deported for violating local rules.

Uzbekistan Joins Space Treaty

On October 10, President Shavkat Mirziyoyev ratified Uzbekistan’s entry into the UN's Outer Space Treaty. Initially signed in 1967, this treaty promotes space exploration for the benefit of all humanity. Uzbekistan becomes the 115th country to join, opening doors for participation in international space projects and the development of local space law.

UzAuto Motors Dominates Car Market

UzAuto Motors continues its dominance in the domestic car market with an 89.4% share from January to September 2024. They sold over 271,000 vehicles, with the Cobalt being the best-selling model at nearly 100,000 units. Other players, ADM Jizzakh and BYD captured smaller shares of 6.5% and 3.8%, respectively.

Uzbekistan Reported to Have Lowest Levels of Hunger

Uzbekistan ranked among the 22 countries with the lowest hunger levels in the Global Hunger Index. Less than 2.5% of its population is undernourished, and child stunting is minimal at 6.5%. This reflects significant progress in combating food insecurity.

$100M Investment in Navoi

Arnest Packaging Solutions plans to invest $100 million to build an aluminum can factory in Navoi by autumn 2025. The plant will create over 200 jobs, produce 1.5 billion cans annually, and support both domestic and export markets across Central Asia and the Caucasus.

New Ambassador to Sweden

Rahmatulla Nurimbetov has been appointed Uzbekistan’s Ambassador to Sweden. With an extensive background in diplomacy, including roles in Germany, Spain, and the SCO, he brings valuable expertise to the post.

World Bank: Economic Growth

Uzbekistan ranks as the third-fastest growing economy in Europe and Central Asia in 2024, with a 6% GDP growth. Only Georgia and Tajikistan are growing faster. The World Bank forecasts Uzbekistan to lead the region’s growth by 2025, fueled by private consumption, wage growth, and remittances.

Perceived Inflation Hits 13.4%

A survey by the Central Bank revealed that residents felt inflation rose to 13.4%, with sharp increases in meat, dairy products, and fuel prices. Tashkent reported the highest perceived inflation at 15.4%, while the lowest was in Fergana at 12.1%. Official inflation stands at 10.46%, showing a 2.9% gap between perceived and actual rates.

Real Estate Prices Surge

Uzbekistan’s housing market saw prices rise by 28% above their fundamental value in 2024. Housing prices grew 1.8 times faster than wages, highlighting a growing affordability crisis. The Central Bank warns of potential market adjustments due to the imbalance between supply and demand.

Internet Freedom Levels

Uzbekistan was ranked “not free” in the latest Freedom on the Net report by Freedom House, scoring 27 out of 100. This places Uzbekistan alongside countries like Russia and China, highlighting growing restrictions on online expression and internet freedom.

Football World Cup Qualification

Uzbekistan’s national football team now has a 93.1% chance of qualifying for the 2026 FIFA World Cup. Their 1-0 victory over the UAE significantly boosted their position in the Asian qualifiers, putting them just behind Japan, Iran, and South Korea. Upcoming matches against Qatar and North Korea will be crucial in securing their spot.