Ayritom Becomes a New Node of Cross-Border Trade – Results of a Study by CERR

Ayritom Becomes a New Node of Cross-Border Trade – Results of a Study by CERR

The Center for Economic Research and Reforms (CERR) conducted a comprehensive assessment of the Ayritom Free Trade Zone. The analysis indicates a demand for expanded services and 24/7 operation.

Scale and Infrastructure of the Project

The Ayritom Free Trade Zone was opened in August 2024 in the city of Termez and has become one of the largest projects for the development of cross-border trade in Central Asia, strengthening Uzbekistan's position as a regional hub for trade and logistics.

The total area of the zone is 26 hectares, of which 164.2 thousand m² is occupied by infrastructure facilities. It houses a hotel, a medical clinic, a business school, restaurants, production areas, and a logistics complex. The project is designed to create 3.0 thousand jobs, with an annual export volume of $1.2 billion and an annual attraction of up to 1.4 million visitors.

The trade zone provides an opportunity for visa-free visits for Afghan citizens, activates cross-border trade, and contributes to the expansion of economic ties between the two countries.

Since its launch, Ayritom has been visited by more than 740 thousand people, including 400 thousand citizens of Afghanistan. The highest demand was for hotel and medical services. For example, the Hilton Garden Inn (190 rooms, 3 stars) was used by more than 9.0 thousand guests. The multidisciplinary clinic Akfa Medline, designed to serve up to 46 thousand patients per year, has already provided services to more than 76 thousand people, with about 80% of them being citizens of Afghanistan.

Trade activity shows positive dynamics. Out of 490 retail spaces, 218 shops are already operating. Goods and products worth $187 million were exported to Afghanistan through the trade zone.

Given the project's significance, CERR conducted a survey among entrepreneurs and visitors of the Ayritom trade zone. The results identified trends in trade activity and priority areas for further development.

Results of a Survey of Entrepreneurs in the Ayritom Trade Zone

According to the survey, more than 70% of respondents stated that they have been conducting trading activities in the Center since its launch. An analysis of turnover showed that for 67% of businesses, the annual trade volume does not exceed 1 billion soums (about $78 thousand), while for almost a third (29%) it is in the range of 3-5 billion soums ($235-390 thousand).

The Ayritom trade zone occupies 57 thousand square meters, with three-story retail and service premises. Rental rates vary from $2.6 to $8.3 per square meter depending on the location (basements, first floor, second floor). Almost half of the respondents (48%) characterized the current rental rates as high.

Trading activity in the center shows moderate customer traffic. About two-fifths of stores (43%) serve an average of 30 customers per day, while almost a quarter (24%) report a daily footfall of 100-150 customers. More than half of the entrepreneurs (52%) said that their main customers are citizens of Afghanistan.

In addition to trading activities, the trade zone's infrastructure has created additional employment opportunities. More than 1,000 local residents and about 140 Afghan citizens have obtained jobs in restaurants, retail facilities, production and logistics structures, the clinic, hotel, and hostel.

Results of a Survey of Buyers in the Ayritom Trade Zone

According to the survey among buyers, the vast majority (91%) visited the shopping center primarily to purchase food products. Nearly half (48%) choose it for buying clothes, 38% for household appliances, and another 14% for pharmaceutical products. At the same time, about 71% of respondents noted that prices for goods and services in the zone are somewhat lower than in other markets.

At the same time, visits to the Ayritom trade zone remain irregular. For example, almost a third (29%) of buyers come here only once a month. An analysis of transport accessibility showed that about 38% of buyers travel using public transport, while 43% of respondents noted the lack of regular transport links to the trade zone.

Directions for Further Development

The analysis confirms the high interest and significant growth potential of the Ayritom trade zone. At the same time, a number of priorities for improvement have been identified.

For Afghan citizens, who make up the main part of the clients, accelerating border crossing and customs control remains important. 71% consider this process time-consuming.

The high demand for expanding the availability of services in Ayritom is confirmed by 95% of visitors who advocated for a 24/7 operating mode for retail facilities.

Hotel services also require further adaptation of the pricing policy, as stated by more than two-thirds of visitors (71%). Furthermore, a significant portion of clients from Afghanistan are interested in expanding the range of services, including educational (52%), household (29%), and pharmacy (29%) services.

Thus, demand for the center's services remains high, and further development of infrastructure and services will strengthen Ayritom's role as a key node for cross-border trade and cooperation.

CERR Public Relations Sector