Everyone who decides to work abroad aims to achieve financial stability. The essential question is: how can you not only protect your earnings but also multiply them?
We continue our financial literacy series for migrants with the support of our trusted partner, Migrant.uz.
In this article, we’ll examine the main investment opportunities available to migrants, comparing their advantages and disadvantages.
Investing means using money, time, or other resources today to get more in the future. Unlike simply saving, where your money stays idle, investing actively puts your funds to work.
💰 Why is investing important?
Simply setting money aside isn't enough—it needs to be managed wisely to provide returns.
Investing helps you:
• Protect savings from inflation. Inflation gradually reduces your money’s value over time.
• Generate additional income.
• Establish passive income sources.
• Achieve financial independence.
• Build capital for future plans, such as returning home.
Overview of key investment methods
💵 1. Buying Dollars and Euros
✅ Advantages:
• Protects against currency depreciation. Over the past five years, the US dollar has strengthened by 30% against the Russian ruble and by 34% against the Uzbek sum.
• Easy to buy and sell.
• Simple storage.
❌ Disadvantages:
• Exchange rate fluctuations; no guaranteed profit.
• No regular income.
• Risks related to holding cash.
🪙 2. Purchasing Gold
✅ Advantages:
• Reliable method for preserving wealth.
• Long-term price growth potential. Gold’s value typically grows 8–10% per year.
• Recognized worldwide.
• Possibility to open a gold-linked account at banks.
❌ Disadvantages of buying physical gold:
• Additional storage costs.
• Difficulties in transportation.
• Risk of counterfeits.
📊 3. Investing in Stocks
✅ Advantages:
• Potentially high returns (8–12% annually).
• Investments can be managed remotely.
• Easily convertible back into cash.
❌ Disadvantages:
• Requires market knowledge and ongoing education.
• Risk of declining stock value.
• Challenges in opening investment accounts for migrants.
🏘 4. Buying Real Estate or Land in Uzbekistan
✅ Advantages:
• Stable price growth. In 2023, the average apartment price increased by 43% in local currency and 23% in dollars.
• Rental income opportunity. Apartment rentals start at $300/month in Tashkent and $200/month in surrounding regions.
• Dual profitability (appreciation and rental income).
• Resolves personal housing needs.
❌ Disadvantages:
• High initial investment required (from $30,000).
• Low liquidity—difficult to sell quickly.
• Ongoing maintenance costs and taxes.
🚗 5. Buying a Car
✅ Advantages:
• Rental opportunities (annual net return of 12–15%).
• Possibility of earning through driving services.
• Potential resale through installments with returns of 15–30% per year.
❌ Disadvantages:
• Significant expenses for repairs and maintenance.
• Risk of unexpected breakdowns.
• Vehicle value depreciates over time.
• Tenants or buyers may default on payments.
• Requires oversight.
💡 6. Starting a Business in Uzbekistan
Typical sectors: mini-markets, services (phone repairs), restaurants/cafés, barbershops, beauty salons.
Expected payback: 1.5–3 years.
✅ Advantages:
• Average annual returns of 20–50% (depending on the sector).
• Rapid growth potential with the right choices.
• Steady population growth ensuring demand.
❌ Disadvantages:
• High risk (88% of small businesses close within 3 years).
• Requires continuous oversight and active involvement.
• High competition in popular sectors, requiring effective marketing.
Success factors include:
• Thorough market research.
• Gradual development.
• Reinvesting profits.
• Building a reliable team.
• Applying experience gained abroad.
💭 Conclusions and Recommendations
• Diversify investments across different instruments—don't put all your eggs in one basket.
• First, establish an emergency fund covering at least 3–6 months of expenses in a deposit account.
• Only invest in businesses or vehicles if you're ready to actively oversee operations.
• For real estate, rental income is often more profitable than waiting for resale.
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In our next article, we'll cover ways to protect yourself against fraud.
