International Relations

Uzbekistan Joins the New Development Bank

Uzbekistan Joins the New Development Bank
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Why in news?

On 5 June 2026 Uzbekistan formally became the 10th member of the New Development Bank (NDB) after its parliament ratified the bank’s Articles of Agreement. It is the first Central Asian country to join the BRICS‑led multilateral lender. Membership is expected to help Uzbekistan finance infrastructure and sustainable development projects and deepen ties with the Global South.

Background

The New Development Bank was created by Brazil, Russia, India, China and South Africa during the 6th BRICS summit in Fortaleza in July 2014. It became operational in 2015 and is headquartered in Shanghai. The bank aims to mobilise resources for infrastructure and sustainable development projects in emerging economies and developing countries. Its authorised capital is USD 100 billion and the five founding members each subscribed an equal share of the initial USD 50 billion capital. Governance is based on one‑country one‑vote, with no veto power and the BRICS members retaining a combined majority share to maintain balance. Since 2021 the bank has gradually opened its doors to other United Nations member states.

Key details

  • Current membership: In addition to the founding members, Bangladesh and the United Arab Emirates joined in 2021, Egypt in 2023, Algeria in 2025 and Uzbekistan in 2026. Uruguay, Colombia and Ethiopia have been approved and await formal accession.
  • Significance for Uzbekistan: Joining the NDB gives Uzbekistan access to concessional financing for large infrastructure projects. It also helps the landlocked nation diversify its funding sources and strengthen regional connectivity in Central Asia.
  • Global South focus: The NDB emphasises sustainable development and promotes local‑currency lending to reduce reliance on the US dollar. Uzbekistan’s entry expands the bank’s geographic reach and enhances representation of Central Asia.

Conclusion

Uzbekistan’s membership underscores the NDB’s gradual evolution from a BRICS‑only lender to a broader coalition of emerging economies. With equal voting rights and a focus on infrastructure and sustainability, the bank offers an alternative source of finance outside traditional Western‑dominated institutions. For Uzbekistan, it promises new investment avenues and closer integration with the Global South.

Sources

ANI News

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