What's Happening?
The International Air Transport Association (IATA) has released a study highlighting the significant impact of Uzbekistan's aviation sector on the country's economy. The report reveals that aviation directly
employs 12,400 people, contributing USD 96.5 million to the economy, which is 0.1% of the GDP. The sector's broader impact, including supply chain and tourism, supports 128,000 jobs and contributes USD 795.5 million, or 0.9% of GDP. Uzbekistan's strategic investments in airport infrastructure and safety improvements have bolstered its tourism industry and foreign direct investment, positioning the country as a potential east-west transit hub for passengers and cargo. In 2023, Uzbek airports handled 66,600 tonnes of air cargo, with further growth expected due to new cargo terminals.
Why It's Important?
Uzbekistan's aviation sector is crucial for its economic development, providing employment and supporting tourism and trade. The country's central location in Central Asia offers strategic connectivity, enhancing its role as a regional hub. Continued investment in infrastructure and alignment with global standards are essential for maintaining safe and efficient operations, which can attract more international business and tourism. The expansion of air cargo capabilities further strengthens Uzbekistan's position in global trade networks, potentially increasing foreign direct investment and economic growth.
What's Next?
Policymakers are advised to focus on aligning with global standards, expanding infrastructure, producing Sustainable Aviation Fuel, and investing in workforce development. These steps are vital for Uzbekistan to enhance its attractiveness as a transit hub between Europe and Asia. The opening of new airports and cargo terminals will support passenger and cargo growth, while sustainable fuel production can ensure environmental integrity. Workforce upskilling and retention are necessary to maintain safe operations and support the sector's growth.
