Fund for Reconstruction and Development of the Republic of Uzbekistan

At a glance. UFRD is Uzbekistan's state development fund, set up in 2006 under the Cabinet of Ministers to finance modernisation of core industries. It has funded 136 projects worth USD 27.72B in total cost, including USD 12.55B of its own loans, and holds joint investment companies with Oman, Abu Dhabi, Azerbaijan, Tajikistan and Kyrgyzstan plus 26 percent of Almalyk MMC. S5

Key points

• 84 projects completed (USD 17.87B) and 52 under way (USD 9.86B) in total project cost. S5
• Net profit of UZS 17.9 trillion in 2024, against UZS 29.5 trillion in 2023, mostly from exchange rate differences. S3
• Long-term investments rose almost 60 percent to UZS 58.9 trillion in 2024. S3
• Acquired 26 percent of Almalyk Mining and Metallurgical Combine in 2024. S5
• Takes equity of up to 25 percent in new enterprises with foreign participation. S5
• The Prime Minister chairs the Council that governs the fund. S1

Interesting facts

• Its executive director has deputy minister status and also heads the Agency for Strategic Reforms. S1 S6
• Its oldest joint vehicle, with Oman, dates from 2009 with USD 231M of capital. S5
• Its revenue and spending forecast is an annex to the national budget law. S4

Mandate and goals

Finance modernisation and technical re-equipment of core sectors and carry out structural and investment policy. S1

• Fund state programmes and infrastructure in less developed regions. S5
• Modernise transport and telecoms infrastructure. S5
• Co-finance with international lenders and partner states. S5

How it invests

Largest holdings: Almalyk MMC (26%), Tashkent Metallurgical Plant EUR 155M capital (49.9%), Uzbekistan-Oman Investment Company USD 231M capital (25%) S5

Published criteria

• Projects approved by presidential or government resolution. S5
• Equity up to 25 percent in strategic ventures with foreign partners. S5
• Co-financing with international financial institutions. S5

Past investments

Case studies

Building the Angren-Pop railway S5

• What: Fund loan to the electrified Angren-Pop railway line.
• When: Completed project
• Size: USD 242.5M loan; USD 1,702M total
• Why: Modernise transport infrastructure, a core fund task.
• Outcome: Listed among completed projects.

Joint investment companies with partner states S5

• What: Vehicles with Oman, Abu Dhabi, Azerbaijan, Tajikistan and Kyrgyzstan.
• When: 2009 to 2023
• Size: USD 12M to USD 231M capital each
• Why: Pool sovereign capital for projects in Uzbekistan and the region.
• Outcome: Six vehicles listed on the fund's site.

Stake in Almalyk MMC S5

• What: Acquired 26 percent of the mining and metallurgical group.
• When: 2024
• Size: Not published
• Why: Support expansion including the Yoshlik-I mine.
• Outcome: Strategic holding alongside project loans.

Investment process

Projects are financed by presidential and government resolution; the Council chaired by the Prime Minister governs and the Executive Directorate administers. S5 S1

1. Government resolution selects a project. S5
2. Fund lends directly or via banks, or takes equity. S5
3. Co-financing arranged with partners. S5

How to approach: General contact page on the fund's site. S5

Size and returns

• Headline size: Not disclosed (Total assets (balance sheet)) S5
• Financed project portfolio, total cost: USD 27.72B (Committed or authorised capital) S5
• Fund loans in those projects: USD 12.55B (Committed or authorised capital) S5
• Long-term investments, 2024: UZS 58.9 trillion (Total assets (balance sheet), as of 2024-12-31) S3
• Returns: the fund does not publish a return figure.

Leadership

Governance and transparency

• Legal basis: Presidential Decree PF-3751 of 11 May 2006 S1
• Oversight: Cabinet of Ministers; Council chaired by the Prime Minister S1
• Executive Director appointed by the Cabinet with deputy minister status. S1
• Annual revenue and spending forecast set by the budget law. S4

Transparency score: 5.5 of 10 (band 3 of 5). Our own 10-item rubric; see the methodology page.

• Published: holdings or deal list. S5
• Partly published: total assets, annual return, long-term returns, asset allocation, geographic or sector split, audited financial statements, governance and mandate documents, named leadership, regular reporting schedule. S1 S3 S5 S7 S8

History

Reports

• Audited financial statements 2017: https://ufrd.uz/f/2018_yilgi_audit_xulosasi_bilan_moliyaviy_hisobot_ingliz_tilida.pdf S7

Common questions

When was UFRD founded?

In 2006, by Presidential Decree PF-3751. S1

Who leads it?

Shukhrat Vafaev, Executive Director since August 2017. S8

What does it hold?

Joint investment companies with five partner states, 26 percent of Almalyk MMC and project loans. S5

How profitable was it in 2024?

Net profit of UZS 17.9 trillion. S3

Related profiles

• National Development Fund (Taiwan) Taiwan · NT$2,098.5B
• Baiterek National Investment Holding Kazakhstan · KZT 19,047.6B
• Japan Investment Corporation (JIC) Japan · JPY 2.60T
• CNIC Corporation Limited Hong Kong SAR, China · USD 11.1B capital
• China-Africa Development Fund (CADFund) China · USD 10B fund scale
• Hong Kong Investment Corporation (HKIC) Hong Kong SAR, China · HK$62B

All sovereign wealth funds in Asia · All strategic development funds · All funds in Uzbekistan

Sources

1. S1UFRD, About us
2. S2IFSWF, our members
3. S3UzDaily, UFRD 2024 net profit
4. S4Law of Uzbekistan ZRU-1011, Annex 3, 2025 forecast
5. S5UFRD, official website
6. S6World Bank, expert profile of Shukhrat Vafaev
7. S7UFRD, audited financial statements 2017
8. S8Samruk-Kazyna, meeting with UFRD