For more than two years we’ve been telling the story of Uzbekistan – the country whose rapidly growing (and diversifying) economy is driving a regional transformation. With an annual GDP growth rate near 6%, a young and STEM-literate population, and a strategic location on the revived “Silk Road” linking China to Europe via the Caspian Sea, Uzbekistan’s profile to international investors grows with each passing day.
These tantalising economic possibilities and compelling fundamentals have been made all the more striking by the news that one of the world’s leading asset managers has entered the market, and in a big way.
Our teams in both Tashkent and London have been working to support Franklin Templeton as the investment heavyweight launches an historic collaboration with Uzbekistan to further the appeal of the country for international investors. The Investment Management Agreement signed by Franklin Templeton the Ministry of Economy and Finance in early February marks a pivotal moment in the country’s economic reform journey.
The agreement appoints Franklin Templeton – a global leader in asset management with AUM of US $1.53 trillion – as trustee and manager of the National Investment Fund of Uzbekistan (UzNIF). The fund will comprise minority stakes in 18 state-owned enterprises (SOEs) – collectively valued at approximately US $1.5 billion by Franklin Templeton.
From a sector perspective, UzNIF represents a broad cross-section of Uzbekistan’s economy: from Banking and Insurance to Energy – both generation and distribution infrastructure – telecoms and transport, as well as chemicals production.
Alongside Uzbek stakeholders, Franklin Templeton will help transform the portfolio by increasing the companies’ efficiency, modernising their operations and re-orienting their strategies to align with global market trends.
The announcement marks the latest in a series of economic triumphs for the country, which is targeting a doubling of its annual FDI inflows by 2026.
Franklin Templeton’s partnership with Uzbek stakeholders will help the ongoing transformation of the companies in the fund and offer international investors access to a rapidly modernising economy.
The UzNIF agreement will come to rank among the major milestones in Uzbekistan’s economic reform programme, and Hudson Sandler is honoured to have played a role. For us, this agreement represents real progress in Central Asia, building on a record of advising private and public sector organisations across Uzbekistan, Kyrgyzstan, Kazakhstan and Azerbaijan.
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