Opinion: How Sustainable Development Will Help Uzbekistan Appear on the Radar of International Investors — Denis Sokolov

Denis Sokolov, CEO of Commonwealth Partnership|Uzbekistan, visited the largest international real estate exhibition in Cannes and spoke in a column for Spot about the key topics discussed at the forum:

"Today, the annual MIPIM forum ended in Cannes. For the global real estate market, this is the most important event, where representatives of all major investment companies, developers, architects and consultants gather. Many cities and countries organize their own stands at the forum, where they talk about investment opportunities and the most striking projects.This year, along with the traditional stands of London and Paris, the pavilions of Poland and Egypt stood out. The business program included more than 100 conferences, round tables and workshops.

This year, Uzbekistan was not represented at the forum, but it was a unique opportunity to assess the attitude of investors and developers to the market of Uzbekistan and Central Asia. In general, investors are quite positive about Central Asia, as the global financial market is experiencing great difficulties today, and rising rates are having a negative impact on prices in traditional markets such as Western Europe and the USA. Business is looking at those regions that are relatively protected from negative processes in global markets. Plus, the geopolitical concept of the “global south” as the main driver of the world economy in the next 100 years also whets the appetite of international business.

However, almost no one is familiar with Uzbekistan: for most, it was a huge surprise that a country with a population of almost 40 million people has been showing economic growth rates above 5% for several years in a row, where the return on investment in real estate is 12-16% against the backdrop of a stable national currency. While Uzbekistan is successfully promoting its culture and tourism to the world, it is clear that not enough effort is being spent on promoting the country as a Central Asian powerhouse.

It is important to note that in recent years, the topic of sustainable development has been a recurring theme at international business forums. This is not just empty rhetoric, as some might think. During conferences, bankers stated that carbon neutrality would become a necessary condition for securing financing within the next five years. The question now is not about how much energy efficiency costs but how much it will cost asset owners if they fail to take action.

A dedicated session, featuring the mayors of Hanover and Porto (cities in Germany and Portugal, respectively—Spot’s note), focused on how cities can cope with warming and extreme heat. Today, European cities are experiencing an increase in temperature variability, with winters becoming colder and summer months hotter, despite moderate average warming. In fact, Tashkent is currently addressing the same challenges faced by developed European capitals. In many areas, there is much that Europeans can learn—for example, urban greening in conditions of abnormal heat.

Another key topic is inclusion, gender equality in the labor market, combating poverty, and access to education and healthcare. It is important to understand that modern large-scale business is not about profit at any cost but about stability and sustainable development. With a long-term plan in place, companies are willing to bear operational costs.

Therefore, if a country adheres to sustainable development goals, it sends a green signal to investors, indicating that the market has potential. While achieving European levels of social orientation instantly is impossible, the economy and businesses operate based on future achievements and revenues, making the development trajectory itself as important as the end result.

For Uzbekistan, the time has come to promote the country not only as a tourist destination but also as a center of economic activity. In the minds of major businesses, the position of Central Asia's business capital is vacant, and Tashkent should claim it, at least by virtue of being the region's largest city.

Today, investors are more sensitive to social aspects, administrative quality, and environmental awareness than to impressive renderings and fantastic profitability figures. Therefore, the concept of promoting the country on the global economic stage should be built around these points.

From an urban development perspective, Tashkent has much to be proud of. To locals, this might seem surprising, but Tashkent is a very comfortable city, especially considering its geographical, historical, and climatic characteristics. The city can not only learn from others but also share its own experiences.

Unfortunately, there are business practices today that hinder sustainable development goals. For example, a major agenda item is the reconstruction of inefficient buildings or even repurposing them. In Tashkent, however, many buildings have been sold off as individual blocks or floors, which complicates their redevelopment.

Some argue that the green agenda and ESG (Environmental, Social, and Governance—initiatives companies take in these areas for sustainable development) are luxuries for wealthy countries with money to spare. However, the opposite is true: this approach largely levels the playing field between rich and poor countries in facing challenges.

Responsible consumption demands that residents of wealthy countries save on heating, packaging, air conditioning, and more. While this doesn’t equalize their consumer behavior with that of developing nations, it fosters better mutual understanding. After all, when a city faces heatwaves, traffic jams, and rolling blackouts, these problems are universal worldwide.