uzbekistan case studies

Signed projects

Board approval is the final stage in the project approval process. After Board approval, the EBRD and the client sign the deal and it becomes legally binding. Signed project lists reflect year-end data.

Signed projects  (0.1Mb)

Case study

Weaving a magic carpet for the Uzbek private sector

Uzbekistan is famous for its ancient carpet culture. But cities such as Bukhara and Samarkand are not only the stuff of legend: the production of carpets is still a vibrant part of the country’s economy. The EBRD is supporting this trade with a US$ 1.5 million loan to Shahboz Shahrom, a privately owned carpet producer established in 1998 by the Uzbek businesswoman Muhabbat Teshaeva.

Ms Teshaeva is the founder and sole owner of Shahboz Shahrom, which she started with an initial investment of US $1,000 to finance imports from Iran. She has won several business awards and in 2006 was recognised as the country’s best entrepreneur.

The company, based in the Bukhara region, produces synthetic carpets and floor coverings (moquette). The loan is part of a financial package which will be used to launch a new polypropylene yarn production. This is the key raw material for synthetic carpet production and the new production facility will allow the company to reduce costs significantly.

Because of the country’s dry and dusty climate, synthetic carpets have a number of advantages compared with wool-made carpets. They are bacteria-free, less vulnerable to pollution, water resistant and easy to care for. More than 90 per cent of the total Uzbek market is accounted for by locally produced carpets.

The implementation of the investment programme will establish a complete production cycle at Shahboz Shahrom which will make the company more competitive. It will also allow the company to set out on its ambitious expansion strategy on the domestic and the neighbouring markets.