Uzbekistan's construction industry, which has seen significant growth in recent years, is now grappling with a series of systemic issues that threaten its sustainability. Experts highlight difficulties in project financing, rising costs of construction materials, and a shortage of skilled labor as major obstacles.

According to analysts, new laws and regulations introduced by the government, while aimed at streamlining the sector, have instead created additional bureaucratic burdens for small and medium-sized enterprises. This has allegedly dampened the investment climate and slowed down project implementation.

Interviews with construction company executives reveal widespread dissatisfaction with delays and uncertainties in the permit approval process. “It takes at least six months to start a project, which drives up costs,” a sector representative claimed.

Meanwhile, declining demand in export markets and intensifying domestic competition are putting pressure on construction material producers. Some factories have reportedly been forced to cut production volumes.

Data from the Ministry of Economy indicates that growth in the construction sector slowed by 2.3% in the first half of 2024 compared to the same period last year. This figure suggests a shrinking share of the industry in the overall economy.

Experts warn that without stronger government support measures, the crisis in the construction industry could deepen, negatively impacting employment and incomes across the country.

Source: uznews.uz