Samarkand: History, Culture, and the Jewel of the ‘New Uzbekistan’

CFI.co in conversation with Uzbekistan entrepreneur and philanthropist Bakhtiyor Fazilov, who sees rich promise in tourism.

A fresh and progressive government, led by President Shavkat Mirziyoyev, is forging ahead with the development of a “new Uzbekistan”.

Just eight years after the country’s new administration came to power, five-star tourist facilities, 21st Century infrastructure, and sparkling new business developments have begun to emerge. More state-of-the-art construction is under way, as is the development of yet more modern facilities. Since 2022, some $1bn has been invested in new infrastructure projects in Samarkand.

Uzbekistan entrepreneur, investor, and philanthropist Bakhtiyor Fazilov is heading major investments, domestically and internationally. He began his career with an import-export business for leather and food products. His focus now extends to include the International Oil Field Services group and Uzbekistan’s largest construction company, Enter Engineering.

Also benefiting from Fazilov’s expertise are Silk Road Samarkand, a world-class, multi-purpose resort, and the state-of-the-art Samarkand International Airport. And that’s not all: he is also involved with the agriculture and farming sectors, aviation, banking, construction and engineering, digital services and technology, hospitality, leisure, logistics terminals, mining, oil and gas, renewable energy, and steel production.

In his home city of Samarkand, an ancient and mythical metropolis on the famed Silk Road, a major tourism drive is under way. Here Fazilov talks to CFI Magazine about the city’s transformation — and the investment opportunities being unlocked.

CFI.co: You made your money in the energy sector. Why now tourism?

Bakhtiyor Fazilov: As you say, I’ve been involved in energy projects, as well as construction, via Enter Engineering, which is one of the largest EPC contractors in Central Asia. Our construction skills have been at the core of our push to develop tourism, especially in Samarkand.

I’ve been investing in the construction of some of the largest facilities in Uzbekistan: Samarkand International Airport, a first-ever joint public-private investment initiative in this region, and the Silk Road Samarkand tourist complex. It’s the country’s first multi-function centre, covering 260 hectares, with eight hotels, an international congress centre, expo centre, parks, sports arenas and more.

Our city of historical sites has become a city of forums, too, from economic to environmental. Major investors in the UAE, Saudi Arabia, and Türkiye are following this path, diversifying their activities in tourism. For investors, I believe we offer a better opportunity. We’re surrounded by large nations with aspirational middle-class populations keen to welcome the outside world.

And Samarkand is a hub, relatively easy to reach by air from China, Türkiye, Western Europe, the UAE, and the rest of the Middle East. It’s attractive not only as a world-famous tourist city, but also as a transport crossroads with enormous potential. The modern infrastructure here provides every opportunity for the development of tourism in various directions, from historical to business.

I have a personal reason for supporting this magical city: I was born and raised here, and I’ve always wanted to share its wonders with the rest of the world.

Tell us more about that…

Samarkand has always been my home, so it’s very special to me. It’s where I my character developed, and my parents still live there. I’m happy that the time has come —with the support from the state — to implement large-scale tourism projects.

Our government has made this possible by introducing policies that encourage tourism, such as visa-free travel for up to 30 days for visitors from 120 countries. Aviation is a centrepiece, with domestic and international airlines now operating within, to, and from Uzbekistan.

Among those international visitors is a growing band of investors, representatives and advisors, attracted by opportunities and tax incentives. What we’ve found is that investors need professional advice as well as financial incentives. This new Uzbekistan of ours is entering into a kind of renaissance, with foreign investment and tertiary education facilities.

Part of this trend has been the founding of Samarkand International University of Technology (SIUT). It’s the city’s first private university and just recently started classes — but 200 first-year students are already enrolled. Once again, there’s a state policy behind this: a presidential decree signed two years ago. We expect the university to move to its new campus — which can cater for 1,200 students — late this year.

This has no direct implication for local tourism, obviously. But it’s a further sign of our openness to the outside world. With 30 faculty members from 15 countries, our students are seeing the world in a different way.

I’m sure that we’re only at the start of the journey, at an early inflection point, from which we expect the tourism sector to grow exponentially. Silk Road Samarkand and the new airport contribute to this.

But more needed to be done — much more — and that is now in hand. Not just hotels, but highly trained, multilingual management and staff to run them, as well as more restaurants, tour guides, better infrastructure, and retail development. Some international multiples are doing well here. Other globally-known retail brands, whether owned or franchised, would be welcome.

This is also part of the tourism boom, although my business initially had no plans for this type of investment. But, as the saying goes, “Never say never.” Analyses of the market, its needs and promising areas, are part of sustainable business. Sustainability makes it possible to implement large-scale projects that expand the country’s capabilities, create jobs for our youth, and provide an opportunity for the whole world to visit our beautiful country and its pearls — like Samarkand.

What I’m suggesting is that over the next five to six years, there will be a growing influx of capital from direct and institutional international investors. They are catching on to Samarkand’s and Uzbekistan’s growth potential.

Won’t this drive up costs for the newcomers… and for you?

These are the market laws, but when calculating costs, I always remember that any project also means jobs, new opportunities for the people of Uzbekistan — especially for the younger generation. My companies employ over 70,000 people. I want all of them to earn more, and live comfortably. This, in turn, is an incentive for the growth of domestic tourism, where people have a chance to relax and make the most of the infrastructure that we’ve already built.

Samarkand was visited by 1.2 million foreign tourists in 2022 — that almost doubled in 2023 — and domestic tourism is growing fast. Samarkand is increasingly visited by our own citizens, from across the country. Taking that into account, there were more than four million visitors to the city last year.

The construction of Silk Road Samarkand features world-class facilities at various price-points. The complex is used by foreign tourists, our compatriots, representatives of global business, and individual travellers.

Developing tourism to meet the most demanding requirements can improve the wellbeing of all. Samarkand has great potential for its residents, which has always been important to me.

What will help it grow further?

I can judge the potential of this ancient city from personal experience. Since opening at the start of 2023 to the present day, Silk Road Samarkand has received tens of thousands of guests from Kazakhstan, Kyrgyzstan, Turkmenistan, Tajikistan, the UAE, Iran, Turkey, Azerbaijan, and more. There’s also been growing interest from Europe, the US, and China.

As we open new air routes, and continue to promote Samarkand, the opportunities are vast. We’re very much at the start of the journey, and many businesses recognise this. Hilton is the first hotel group to put a stake down in our country, and others will soon follow.

We’ve seen tourism-led cities develop around the world over the past two decades — Dubai, Abu Dhabi, Doha. They have demonstrated that with the right infrastructure, accommodation, and associated facilities, success will follow.

With the unique offering of cultural heritage and hospitality that only Samarkand and Uzbekistan can offer, I’m confident that tourism here can, and will, grow  and flourish. Foreign investments will follow.