From raw materials to value-added exports: A structural trade transformation
From Raw Materials to Value-Added Exports: A Structural Trade Transformation
From raw materials to value added – Uzbekistan is reshaping its economic landscape through a major shift in its export strategy, moving away from primary resources toward higher-value manufactured goods. This transformation signals a broader trend in industrial development, enhanced global market participation, and the rising prominence of service sectors like technology and information. According to the Central Bank of Uzbekistan, total exports reached €28.37 billion in 2024, with trade with European nations increasing by 23% to €1.93 billion. The data underscores a significant evolution in the country’s trade dynamics.
Government Initiatives and Market Expansion
Key government strategies, including financial support for trade fairs, export incentives, and international marketing efforts, are fueling this transition. These programs enable businesses to access new markets, enhance production capabilities, and solidify supply chains. The Central Bank also noted that the variety of exported goods has expanded dramatically, doubling from 2,245 in 2017 to 4,359 in 2024. This diversification has led to a marked shift in export composition, with finished and semi-finished products now contributing €11.28 billion—nearly half of all exports—compared to raw materials, which make up just 7% or €1.62 billion.
Industrial Capacity and Product Range
The nation’s manufacturing sector is demonstrating remarkable growth. Uzbekistan now produces over 300 finished textile items, processes all domestically grown cotton, and creates more than 780 types of machinery and equipment, including household appliances. In the food and chemical industries, the country offers more than 300 food products, around 400 chemical items, and over 180 metal goods. These advancements highlight the country’s focus on value creation and its efforts to move beyond raw material exports.
Case Study: Sam-Ferre’s Export Journey
One notable example of this shift is Sam-Ferre, a leading home appliance producer. Production director Atajan Nazhmetdinov described the company’s international reach: “We export to seven neighboring countries, including Kazakhstan, Turkmenistan, Tajikistan, Azerbaijan, Kyrgyzstan, Georgia, and Afghanistan.” In 2025, the firm shipped 42,000 units abroad, generating €6.98 million in revenue. For 2026, the target is 60,000 units, projected to bring in €11.16 million. Nazhmetdinov emphasized the benefits of localisation: “A localisation rate of 60–80% creates jobs, strengthens supply chains, and promotes sustainability through energy-efficient production.”
Global Trade Network and Strategic Partnerships
Uzbekistan’s export geography has broadened substantially. Currency liberalisation and supportive policies have boosted the number of registered exporters to over 9,000. This has allowed the nation to trade with 165 countries and tap into 190 distinct markets. Notably, exports to Afghanistan surged from €920 million in 2024 to €1.66 billion in 2025, driven by trade exhibitions and business-to-business initiatives. Yorkin Malikov, Chairman of the Uzbekistan Exporters Association, highlighted the impact: “These measures have allowed companies to enter new markets such as Iraq, Syria, and other developing regions, diversifying revenue streams and increasing export resilience.”
Trade Exhibitions and International Exposure
Recent efforts to connect Uzbek businesses with global buyers have been particularly impactful. At the start of 2025, 200 entrepreneurs participated in a six-day trade exhibition in Iraq, showcasing products across more than 1,000 square metres. Malikov mentioned that a charter flight was arranged for these participants, and attendance was free of charge. Such events have become vital in strengthening international relationships. The Uzbekistan Trade House in New York serves as another example, promoting the country’s handicrafts—like trays, teapots, traditional floor mats, and cradles—to a global audience.
Value-Added Exports and Sectoral Contributions
Yunusbek Yusupov, Head of Division at the Ministry of Investment, Industry and Trade, observed that the export structure increasingly reflects higher-value production. He stated: “Textiles now include ready-made garments instead of raw cotton, and electronics exports cover cables and transformers rather than just copper.” Additionally, the IT sector has emerged as a critical growth area. By the third quarter of 2024, 936 IT companies were providing services overseas—a 170% rise compared to the previous year. Yusupov noted that these firms are adopting AI, digital marketing, and innovation strategies to expand their presence in Europe, the Americas, and Asia.
Textiles and Metals: A Shift in Industrial Focus
Uzbekistan’s industrial transformation is also evident in its textile and metals industries. Yusupov explained: “In the past, Uzbekistan exported raw copper. Today, we export finished cables, wiring components, transformers, and other electrical products.” The textile sector now fully processes domestic cotton, with additional support from imports from Kazakhstan, Tajikistan, and the U.S. under the “Made with U.S. Cotton” programme. This collaboration enables Uzbek manufacturers to export ready-made garments to the U.S. market and engage directly with international buyers.
Economic Impacts and Future Outlook
The expansion of export activities is not only boosting the GDP but also creating employment opportunities and fostering industrial diversification. By tapping into new markets and attracting foreign investment, Uzbekistan is reducing production costs and enhancing its economic resilience. Yusupov concluded: “This shift strengthens our industrial base, reduces reliance on raw material exports, and ensures long-term competitiveness in global trade.” As the country continues to refine its export model, the focus remains on increasing value-added output, leveraging technology, and building sustainable supply chains. These efforts are positioning Uzbekistan as a key player in the evolving global economy, with a growing emphasis on innovation and strategic market expansion.
