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Investment Expectations · Republic of Karakalpakstan

18 projects, $2.41 billion

Promising projects of the Kungrad district presented at the V Tashkent International Investment Forum (TIIF-2026), 16–19 June 2026. CAPPA connects international capital to these projects.

18
projects
$2.41B
total capex
6
sectors
Kungrad
Karakalpakstan

Chemical Industry

6 projects · $680M
1. Salt Recycling Cluster (food & industrial salt)$150M

“Barsakelmes” salt mine (NaCl): 2.0 bn t reserves over 110k ha; 200 ha allocated (Res. PP-333), state privileges, cheap independent power. Target: South Korea (imported $120–130M of salt in 2025, demand growing). Salt is used in food, pharma, cosmetics, water purification, chemicals and plastic recycling.

2. Pharmaceutical raw materials from salt$140M

Based on the Barsakelmes salt mine; value-added products via processing of secondary chlorine; export-grade output.

3. Caustic soda & chlorine manufacturing$100M

Barsakelmes base; value-added secondary-chlorine products; export-grade output.

4. Sodium percarbonate production$160M

From hydrogen peroxide & calcined soda of “Kungirot Soda Plant”. Used in washing powders, fabric bleaching, paper & textile, greenhouse/warehouse sanitation, and cleaning drip-irrigation systems.

5. Chlorinated polymer products$100M

Secondary chlorine processed with polymers from the UzKorGas gas-processing plant into export-oriented products.

6. Magnesia Alba (magnesium carbonate)$30M

From Kungrad Soda Plant waste water + liquid salt of the Karaumbet mine. Used in construction (magnesite cement, fire-resistant materials, fillers), chemicals (rubber filler, plastic stabiliser), pharma (tablet fillers, antacids) and cosmetics (talc substitute).

Energy Industry

2 projects · $220M
7. Wind turbines & spare parts$100M

Turbine parts, metal structures, cables, battery blocks, smart-grid equipment. Large-scale wind is being built in Kungrad; easy logistics and cheap power; potential to become an export base for Central Asia.

8. Battery energy storage systems (BESS)$120M

Lithium battery packs, storage containers, industrial battery blocks, solar-storage systems. Backed by wind projects and Barsakelmes salt; cheap power; almost no battery plants in Central Asia. Target: South Korea (LG Energy Solution, Samsung SDI).

Digital Technology

2 projects · $800M
9. Data Center$500M

Strong winds, sunny climate, large land; 2.5 GW of wind built in 2026–2029. Per PP-189 (22.10.2025): incentives for AI-infrastructure projects > $100M. SEZ tax exemption: $3–5M → 3y, $5–15M → 5y, $15M+ → 10y. Data-center power tariff $0.05/kWh (excl. VAT); wind-powered with BESS (30–35%).

10. “Besqala Mining Valley” special mining zone$300M

Strong winds, large land, 2.5 GW wind. Per PP-143 (17.04.2026): special-zone resident status; mining permit without extra documents; residents’ mining income tax-free until 01.01.2035.

Automobile & Electrical Parts

1 projects · $200M
11. Plastic parts for cars & machinery (outsourcing)$200M

UzKorGas (Kungrad) produces 380,000 t polyethylene + 80,000 t polypropylene/yr → auto interior plastics (panels, coatings), battery cases, equipment cases, cable insulation.

Agriculture

5 projects · $270M
12. Agri-plastics (outsourcing)$50M

Drip-irrigation pipes, greenhouse film, covers, crop-protection materials — from UzKorGas polymers. Export logistics via Caspian port, rail and routes to Europe/CIS.

13. Smart Greenhouse cluster$150M

Abundant sun, large land, low power prices, uninterrupted supply. Target: South Korea (advanced smart-greenhouse tech).

14. Cotton Cultivation Cluster (Chinese water-saving experience)$30M

30,000+ ha of land reserves; “Ajiniyaz” to acquire 712 ha in 2026.

15. Livestock cluster (camel, sheep, goat)$20M

1.0 million ha of “Ustirt” plateau pasture land.

16. Deep licorice-root processing$20M

5,000+ ha where licorice grows; ~10,000 ha available for plantations; the district already exports licorice.

Building Materials

2 projects · $240M
17. Plastic building materials (outsourcing)$120M

Foam insulation, plastic rebar, light building panels, slate-replacing polymers — from UzKorGas polymers (380k t / 80k t per year).

18. Glass & mirror production$120M

The district has sodium sulfate, calcined soda and other glass chemicals; power supply available.

Investor incentives in Karakalpakstan

Tax holidays, free economic zones, duty-free imports and special zones — backed by presidential decrees.

Decree PF-213 (31.08.2022)
−50% on profit, turnover, property and land tax until 01.01.2028; −1% social tax for entrepreneurs in Karakalpakstan.
Decree PF-129 (08.08.2023)
Privatisation of land/buildings to investors who meet their obligations; direct long-term land lease with an obligation to invest $1.0M in Nukus / $300k in other districts.
Resolution PP-66 (09.02.2024)
Import-substituting production in Karakalpakstan granted Nukus Free Economic Zone participant status.
Resolution PP-333 (03.11.2025)
“Kungrad Salt Free Zone” (50 → 200 ha) with full utilities; FEZ tax & customs privileges 3–10 years; $10M+ → 10-year exemption from land, property, water and profit tax; duty-free import of equipment/materials not produced locally.
Resolution UF-189 (22.10.2025)
AI-infrastructure benefits: fast-track / turnkey construction; duty-free import of compute & cooling equipment until 01.01.2030; data-center tariff $0.05/kWh.
Resolution PP-143 (17.04.2026)
“Besqala Mining Valley” special mining zone — residents’ mining income tax-free until 01.01.2035.

Interested in any of these projects?

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Source: project list of the Kungrad district / Republic of Karakalpakstan for TIIF-2026. Figures are indicative estimates.