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Uzbekistan 11/08/2025 Socio-Economic Development of Mahallas in Khorezm Region: Key Findings and Entrepreneurial Potential

Socio-Economic Development of Mahallas in Khorezm Region: Key Findings and Entrepreneurial Potential

Tashkent, Uzbekistan (UzDaily.com) — The Center for Economic Research and Reforms (CERR) conducted a comprehensive study to systematically assess the level of socio-economic development across all 531 mahallas in the Khorezm region.

The analysis covered 36 indicators grouped into six areas: social protection, economy, infrastructure, education, healthcare, and public order.

Classification Results

All mahallas in the region were categorized into five development levels. A high level (Category 1) was recorded in 16% of territories, while 7% fell into the least developed group. The highest number of well-developed mahallas were in the city of Urgench (27), Gurlen district (23), Urgench district (25), and Khankin district (13). The lowest indicators were found in Khazarasp, Kushkupir, Shavat, and Yangiyarik districts.

Infrastructure Challenges

The study revealed that only 5% of mahallas have fully paved internal roads made of asphalt or concrete. On average, two-thirds of the territories have this figure at 48.4%, while in the remainder it does not exceed 7.3%.

Access to clean drinking water varies: in 65% of mahallas, centralized water supply covers 95% of households; however, in some settlements of Khazarasp, Khiva, and Shavat districts, more than 70% of residents still lack access.

Entrepreneurial Activity

In most mahallas, entrepreneurial activity remains stable, yet in every fourth mahalla the rate of new business creation is twice lower than the regional average. The lowest levels were recorded in Gurlen, Khankin, Khazarasp, Kushkupir, and Urgench districts. In every sixth mahalla, the number of active business entities per 1,000 residents does not exceed 5, which is almost three times lower than the regional average.

Preschool Education and Healthcare

Forty-one percent of mahallas have preschool education coverage at or above the regional average. The lowest figures were registered in Kushkupir, Khankin, Yangiyarik, Urgench, and Khiva districts. In healthcare, 24% of mahallas are located less than 1 km from the nearest medical facility, while in 17% the distance exceeds 7 km.

Entrepreneurial Potential

CERR surveyed over 10,000 legal entities in the region. Thirty-five percent of entrepreneurs expressed readiness to expand their businesses, especially in Khiva (52%), Tuprokkalinsky (47%), and Khankin (41%) districts. Experts estimate that realizing this potential could increase companies’ turnover by an average of 40% and create up to 25,000 new jobs.

The main obstacles to growth cited by entrepreneurs include the need for credit resources (31%), high tax burdens (30%), shortage of land plots (22%), problems with collateral, insufficient infrastructure, limited market access, and workforce shortages.

Conclusion

The study’s findings will serve as a basis for targeted allocation of resources and the development of programs to support specific territories. Khorezm region holds significant potential for expanding entrepreneurial activity, while infrastructure development, improved access to finance, and better business conditions could become key drivers of regional economic growth.

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