The rapid development of Uzbekistan’s regions has become a central pillar of the country’s economic transformation agenda. Among the most popular examples of this regional strategy is the Urgut district of the Samarkand region, which in recent years has emerged as a focal point for industrial expansion, job creation, and foreign investment. Anchored by the Urgut Free Economic Zone (FEZ), the district is steadily transforming from a historically entrepreneurial area into a large-scale industrial and export-oriented center with growing international visibility.

This transformation reflects a broader state policy aimed at decentralizing economic growth, strengthening regional production chains, and ensuring employment for a rapidly growing population. Urgut, with its demographic scale, geographic advantages, and long-standing culture of private enterprise, has become a natural testing ground for these ambitions.

This economic reform demonstrates a broader state policy aimed at decentralizing economic growth, expanding regional production chains, and supporting employment for a rapidly growing population. Urgut, with its demographic scale, geographic advantages, and long-standing culture of private enterprise, has become a natural testing ground for these ambitions, and Urgut FEZ was established in 2017.

Urgut: demography, geography, and entrepreneurial heritage

Urgut district is the most populous district in Uzbekistan. Home to more than 560,000 residents, it surpasses several entire regions of the country in population size. The district borders Tajikistan as well as the Kashkadarya region and the Toyloq, Samarkand, and Bulungur districts, positioning it as an important cross-border and interregional junction.

Geographically, Urgut lies on the slopes of the Zarafshan mountain range, an area historically linked to the Great Silk Road. According to historical sources, these mountain passes were used by trade caravans and notable historical figures, including Amir Temur and Alexander the Great. Today, this geography not only underpins Urgut’s tourism potential but also contributes to its logistical connectivity between Samarkand, southern Uzbekistan, and neighboring countries.

For decades, Urgut has been known domestically as the “land of entrepreneurs.” Small and medium enterprises dominate the local economy, producing textiles, carpets, footwear, household goods, and electrical products. These goods supply both domestic and foreign markets, reinforcing the district’s reputation as a production-oriented region even before the creation of the free economic zone.

Recognizing Urgut’s untapped industrial capacity, Uzbekistan’s leadership has consistently emphasized the need for a dedicated development strategy for the district. In 2021, President Shavkat Mirziyoyev highlighted that Urgut’s population size alone necessitates a separate, large-scale economic program. He called for the expansion of the Urgut Free Economic Zone, the transformation of the district into a fully fledged innovation- and investment-oriented industrial territory, and the creation of FEZ branches across the Samarkand region.

Establishment and expansion of the Urgut Free Economic Zone

The Urgut Free Economic Zone was established in 2017 at the initiative of the President of Uzbekistan, Shavkat Mirziyoyev, and has since become one of the country’s most dynamic industrial platforms. The FEZ was created to attract domestic and foreign investment, localize production, and provide sustainable employment for the district’s rapidly growing workforce.

According to official data, the Urgut FEZ today covers a total area of 1,334.2 hectares. Within this territory, 169 investment projects are being implemented with a total value of approximately $1.61 billion. These projects are expected to generate 14,138 jobs, directly addressing one of the district’s most pressing socio-economic priorities, employment.

The Urgut Free Economic Zone hosts enterprises operating across a wide range of sectors, including electrical engineering, textiles, polymer processing, household appliances, and construction materials. To date, 161 enterprises are actively operating in the zone, while construction and installation work continues on dozens of additional projects.

Export performance has become one of the defining indicators of the FEZ’s success. In 2023 alone, FEZ participants received tax incentives worth 9.6 billion soums, enabling them to expand production and enter new foreign markets. Industrial goods produced in Urgut are now exported to Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and other regional markets.

During business forums and other types of meetings in Uzbekistan, foreign trade delegates often visit the Urgut Free Economic Zone and get acquainted with production processes. For instance, the Iraq-Uzbekistan Business Forum took place in January 2026, and as a part of their visit, Iraqi entrepreneurs and officials also visited the Urgut Free Economic Zone.

Beyond investment figures and export volumes, the Urgut Free Economic Zone plays a critical social role. Thousands of jobs have already been created, with thousands more planned. Complementary initiatives, such as proposals to establish a branch of Samarkand State University in Urgut, including a future medical faculty, aim to ensure a steady supply of skilled specialists for the zone’s industries.

This integration of industrial policy, education, and regional governance reflects a long-term approach to development, positioning Urgut not only as an industrial zone but also as a sustainable economic ecosystem. Moreover, more free economic zones are being established across the country to attract foreign investment and partners, create jobs, and increase exports from Uzbekistan.