There are 32 joint ventures with foreign investment functioning in the Province at present. Their production totaled US $301,7 million in 1997. The economy of the Province consists of cotton-processing and foodstuff industries. There are numerous cotton refineries, oil extraction and silk-spinning factories, textile, confectionery and winemaking enterprises and more. The construction materials production is also very successful. The carpets made at the Khiva Carpet-Weaving Factory are well known all over the world. Mechanical engineering and textile industries continue to develop. The main crop of local agriculture is certainly cotton. Cereal production, especially rice, has increased significantly during last several years. There are also many orchards and vineyards, melon and gourd plantations and potato fields throughout the Province. The construction of a sugar-refinery is underway. The population of the Province about 80% living in the the Province.

The Province is ready to development its economic trends. Projects focussing on these areas are expected to ensure: the reconstruction, technical modernization and expansion of existing enterprises that utilize raw cotton, raw silk and other local resources. It is necessary to improve and increase the processing cycle of cotton fiber, to manufacture and export finished products such as knitted wear and fabrics, cotton yarn and carpets; the updating of existing foodstuff industries and to establish the new enterprises especially related to fruit, grapes, vegetables, melons and gourds. Confectionery and meat-and-milk based enterprises should be established.