OPEC Fund extends new loan to SQB to support SMEs and agriculture in Uzbekistan

October 23, 2024: The OPEC Fund for International Development (the OPEC Fund) is providing a US$40 million loan to Sanoat Qurilish Bank (SQB), formerly known as JSCB Uzbek Industrial and Construction Bank (Uzpromstroybank), to support small and medium-sized enterprises (SMEs) and the agriculture sector in Uzbekistan. The loan will enhance access to finance for local businesses and agribusinesses, helping them grow, create jobs and contribute to sustainable economic development.

OPEC Fund President Abdulhamid Alkhalifa said: 

“This new partnership with SQB reflects our commitment to promoting inclusive and sustainable development in Uzbekistan. We are helping to unlock the potential of local SMEs and the agriculture sector, key drivers of economic growth and job creation. With this new loan we are building on our successful track record and reinforcing our long-standing partnership with Uzbekistan.”

The loan agreement was signed today during the World Bank/IMF Annual Meetings in Washington, D.C., reinforcing the strategic partnership between the OPEC Fund and Uzbekistan.

SMEs account for more than half of Uzbekistan's GDP and provide around 75 percent of the nation’s employment, yet they face significant financial barriers. The country’s agriculture sector, which employs a quarter of the workforce, is also in need of investment to increase productivity and support food security. The OPEC Fund’s loan will help to reduce the financing gap and to increase access to crucial funding for businesses.

The partnership between Uzbekistan and the OPEC Fund began 25 years ago and includes almost 30 public and private sector projects with a total loan volume of US$800 million. A country partnership framework agreement, signed last year, earmarks US$500 million in new OPEC Fund financing to support the country’s sustainable development agenda in the period 2024-2029.

About the OPEC Fund

The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed about US$27 billion to development projects in over 125 countries with an estimated total project cost of more than US$200 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.