Relations between the Kingdom of Saudi Arabia and the Republic of Uzbekistan date back to 1991, when the Kingdom of one of the first countries recognized the independence of Uzbekistan, declaring its independence from the Soviet Union. signed an agreement on the exchange of diplomatic missions.
In the second year of independence of Uzbekistan, namely in April 1992, the Custodian of the Two Holy Mosques, King Fahd bin Abdel Aziz, may God have mercy on him, received the President of Uzbekistan Islam Karimov on his first official visit to Uzbekistan. The Kingdom of Saudi Arabia, which marked the beginning of bilateral relations.
This was followed by an exchange of visits between the officials of the two countries, including the visit of His Royal Highness Prince Saud al-Faisal, Minister of Foreign Affairs, may God have mercy on him, to Uzbekistan in February 1992, which helped strengthen cooperation between the two countries. During official visits, a number of bilateral documents were signed.
In May 1995, the Embassy of Uzbekistan was opened in the Kingdom of Saudi Arabia, and instead, in March 1997, the Embassy of the Kingdom of Saudi Arabia was opened in Uzbekistan.
The Republic of Uzbekistan, together with the Kingdom, is a member of a large group of regional and international organizations, and there is constant coordination between the two brotherly countries in international forums and in organizations such as the World Bank and the International Monetary Fund, as well as the Islamic Development Bank Group and the Kingdom took part in high-level delegations to the annual meetings of the Islamic Bank Group. Development carried out its work in the capital of the Republic of Uzbekistan in the city of Tashkent last year.
The Kingdom and the Republic of Uzbekistan signed several agreements, primarily an agreement on the framework of cooperation in the political, economic, commercial, investment, technological, cultural, youth and sports fields.
In November 2008, the Kingdom and the Republic of Uzbekistan signed an agreement in Riyadh for the avoidance of double taxation, in addition to the signing of an air transport agreement.
Saudi-Uzbek relations have seen a marked development since President Shavkat Mirziyoyev took office in 2016 when he visited the Kingdom as a participant in the Arab-Islamic-American summit in May 2017. This visit to the Kingdom is the first visit by the President of Uzbekistan since the visit of former President Islam Karimov in April 1992 and his meeting at that time with the Custodian of the Two Holy Mosques, King Fahd bin Abdulaziz – may Allah have mercy on him -.
And on the basis of the instructions of the Custodian of the Two Holy Mosques, King Salman ibn Abdulaziz Al Saud – God bless him – in January 2021, the events of the Saudi-Uzbek Investment Forum were held in the city of Bukhara, within the framework of which several agreements were signed, primarily an agreement on cooperation on creation of the Saudi-Uzbek Business Council to continue and strengthen the work. Joint agreement and providing the private sector with access to investment opportunities in both countries. for the purpose of operating direct flights between Saudi Arabia and Uzbekistan, as well as a memorandum of understanding between the King Faisal Center for Research and Islamic Studies and the Center for Islamic Civilization in Uzbekistan in order to strengthen and develop cooperation in the field of education, research, scientific research, typography, culture and manuscripts.
His Excellency Minister of Investment, engineer Khalid bin Abdulaziz Al-Falih, also sponsored the groundbreaking of the Syrdarya combined-cycle power plant with a production capacity of 1500 megawatts and the launch of Saudi Aquapower projects in the field of electricity generation from wind energy in the Bukhara region, with a production capacity of 1000 MW and the signing of contracts purchase and sale of electricity for it in the Republic of Uzbekistan.
ACWA Power is the only Saudi company investing in Uzbekistan and its investments amounted to (2.6) billion dollars, as it has implemented or participated in 4 power generation projects, both renewable and conventional, and the generating capacity of these projects is 20% of the country’s total production capacity.
ACWA Power has about two billion dollars worth of future cooperation with the Uzbek side and is working to establish a renewable and hydrogen energy research institute in cooperation with Air Products.
In May 2021, ACWA Power signed an agreement with the Ministries of Investment and Foreign Trade, Energy of the Republic of Uzbekistan.
According to which ACWA Power will undertake the implementation, development, construction and operation of a wind energy project with a production capacity of 1500 MW in the Karakalpakstan region of Uzbekistan. In December 2021, an agreement was signed on the Nukus wind energy project with a capacity of 100 MW in the Republic of Uzbekistan.
The Kingdom looks forward to strengthening future cooperation with Uzbekistan in the field of electricity generation and supporting it with newer and more efficient projects, and there are great opportunities for cooperation in the implementation of projects in the electricity sector, including generation projects (traditional and renewable energy), transmission and distribution, automation and reliability improvements, as well as improving the customer experience and electrical connections with other countries, in addition to experience sharing, training and capacity building.
The Saudi-Uzbek Joint Committee is working to realize the aspirations of the leadership and people of the two countries in the development and development of bilateral relations, pushing them to broader horizons and exploring bilateral investment opportunities in line with the Kingdom’s Vision 2030, especially in the field of innovation, technology and vital industries. In March 2022, the fifth meeting of the Committee was held in Tashkent.
Over the past two years, (6) forums have been held for business owners from Saudi Arabia and Uzbekistan, and two virtual forums have been held in the month of Ramadan in 2020.
There are many investment opportunities in Uzbekistan in sectors such as trade, investment, industry, agriculture, tourism, etc. The Uzbek side hopes that Saudi businessmen will be able to take advantage of the free economic zone in Uzbekistan and its privileged location near major markets such as: Russian and Chinese market. In addition to the largest Uzbek market in the Central Asian region.
The volume of trade exchange between the Kingdom and Uzbekistan in 2021 amounted to $16.6 million, of which Saudi Arabia’s exports amounted to $1.6 million compared to imports of $15 million, which shifted the trade balance in favor of Uzbekistan by $13 million.
The most important national commodities to which it was exported were fertilizers, aluminum and its products, fruits and tannins; Paints and paints, machinery and mechanical tools and their parts, and the most important imported goods were fruits, zinc and zinc products, carpets, goods with special seals and ready-made clothing.
The volume of non-oil exports of the Kingdom to Uzbekistan in 2021 amounted to about 6 million rials, and non-oil imports – 55 million rials.
Petrochemical products are among the Kingdom’s most important exports to Uzbekistan, while food is the main import to the Saudi Arabian market.
The Uzbek side presented to the Saudi side its proposals on the development of bilateral relations between the two countries during 2022. The proposals concerned the economic aspect, increasing the volume of trade to $100 million this year and up to $400 million in 2024.
The industrial city of Riyadh hosts one plant with joint Saudi-Uzbek investment in the production of electrical appliances and air conditioning ducts.
The Saudi Development Fund supported the government of Uzbekistan by providing several development loans. in the amount of 85.1076 million rials, of which 5 projects have been completed, 4 projects are under implementation. Currently, preparations are underway for the implementation of two more projects.
In the field of aid and humanitarian aid; The Kingdom provided Uzbekistan – according to the Saudi Aid Platform – $333 million 547 thousand in aid from 2008 to last year for 18 projects in the sectors of infrastructure, water supply and environmental sanitation, agriculture, forestry, fisheries, transport and storage, education and health , and the largest support was in 2018 in the amount of 93 million 306 thousand dollars.
According to the Ministry of Human Resources and Social Development, there are currently 442 Uzbeks working in the Kingdom, and the Ministry continues to negotiate with the Uzbek side, conclude bilateral agreements in the field of employment of domestic workers and workers in the general category, and this is consistent with the desire of the Government of Uzbekistan to create opportunities employment of young citizens of its citizens in the Kingdom.
The Ministry of Education of the Kingdom of Saudi Arabia allows Uzbek students to enter universities, and there are currently 91 Uzbek students studying in many academic disciplines at Saudi universities.
In the field of transport and logistics, the Ministry of Transport and Logistics, together with the Ministry of Investment, is working to sign a memorandum of understanding between the Kingdom and Uzbekistan, which provides for strengthening cooperation between the two countries in the field of transportation of passengers, cargo, baggage, mail and flights between the two countries.
The Republic of Uzbekistan is located in the center of the Asian continent on a geographical area of 447,400 square kilometers, with a population of 33 million, of which 88% are Muslims.