Saudi Arabia to renew $3 billion deposits for Pakistan this week: Bloomberg

Riyadh: Mutual trade between Saudi Arabia and the Republic of Uzbekistan reached $95 million in the first half of 2022, a substantial increase considering that bilateral trade barely exceeded $17 million last year.

The value is expected to grow rapidly by the end of 2022, according to a joint press statement. These numbers are significant in the wake of the pandemic.

In fact, over the past five years, the number of Uzbek companies operating using Saudi funds has increased from about nine to 38. Of the 38, 19 are sole proprietorships and the rest are joint ventures.

The two countries will further strengthen ties by signing 12 new agreements on Wednesday and Thursday when Uzbek President Shavkat Mirziyoyev visits Saudi Arabia.

High-level talks will take place in Jeddah, where the two countries will discuss opportunities to further strengthen multilateral cooperation, according to Uzbekistan’s state agency.

Discussions will focus on the green economy, technology and digitalisation, innovation, small business and entrepreneurship.

Following the meeting, new agreements are expected to be signed in the energy, telecommunications, agriculture, chemical and petrochemical industries, while encouraging connections in the fields of culture, sports and education.

Uzbekistan has become one of the largest foreign investors in energy infrastructure and one of the most important developers of green energy projects in Uzbekistan.

ACWA Power’s interests in Uzbekistan

Recently, the Ministry of Energy of Uzbekistan and the Saudi energy company ACWA Power signed several investment agreements worth about $3 billion.

ACWA Power will develop and operate a 1,500 MW wind energy project in the Karakalpakstan region of Uzbekistan.

When commissioned, the plant will be the largest of its kind in Central Asia and one of the largest wind farms in the world.

ACWA Power also signed an agreement to build the 100MW Nokus wind farm project, the first renewable energy project implemented in partnership with the public and private sectors of Uzbekistan.

The power generation company also won a $108 million wind power contract after proposing an electricity price of 2.56 cents per kilowatt-hour, the lowest in Uzbekistan.

In addition, the Ministry of Energy of Uzbekistan signed a 25-year power purchase agreement with ACWA Power for the establishment of a combined cycle gas turbine power plant in Shirin on the Syr Darya River in Uzbekistan. The total value of the deal is $1.2 billion.

According to the statement, the projects will contribute to Uzbekistan’s national goal of increasing total electricity generation from renewable energy to 30 percent by 2030.

Saudi Development Fund

In addition, the Saudi Development Fund has contributed to the implementation of many projects in Uzbekistan, including the financing of the Samarkand-Gozar road project with a total value of $30 million.

The fund has also financed 20 projects in the republic, including the construction of pumping stations and other projects involving sewage, chemicals, mining, construction materials, water and agriculture.

According to the Uzbekistan Ministry of Agriculture, the Saudi and Uzbek delegations discussed agricultural cooperation, including the prospect of enhancing mutual trade in agricultural products.

The two sides may sign a memorandum on cooperation in the development of agriculture, veterinary medicine and animal husbandry at the meeting.

The two sides also agreed to deepen cooperation in the field of agriculture and promote trade in agricultural, animal husbandry and other products between the two countries.

Following the signing of the memorandum, an action plan will be drawn up, including specific measures and areas for cooperation and joint projects.

The Saudi side invited the Uzbek delegation to the most important agro-industrial complex exhibition to be held in Riyadh at the end of October.