Central Asia is entering a new stage of regional cooperation. What is emerging is neither a replica of the European Union nor an attempt to build a supranational bloc. Instead, the countries of the region are developing a flexible model based on sovereignty, political dialogue, practical cooperation and an expanding habit of consultation.

A region moving from fragmentation to coordination

For many years, Central Asia was often described through the language of fragmentation. Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan shared geography, history, infrastructure and common environmental challenges, yet cooperation was constrained by unresolved borders, water disputes, trade barriers and limited political trust.

That picture is no longer sufficient. Over the past decade, the region has entered a new phase in which political dialogue has become more regular, practical cooperation has widened and the habit of consultation has become increasingly institutionalised.

One of the important catalysts for this shift was the change in Uzbekistan’s approach to its neighbourhood. From 2017, Tashkent placed relations with Central Asian states at the centre of its foreign-policy agenda and promoted direct, regular dialogue among the region’s leaders. At the 72nd session of the United Nations General Assembly in September 2017, President Shavkat Mirziyoyev proposed holding regular consultative meetings of the heads of Central Asian states. The first such meeting took place in March 2018.

Cooperation without delegated sovereignty

The Consultative Meetings have gradually become the region’s principal political platform for discussing common challenges. Yet the format was not designed as a supranational organisation. Central Asia has no regional commission with independent authority, no regional parliament and no legal order comparable to that of the European Union.

Cooperation advances mainly through presidential meetings, ministerial coordination, bilateral and multilateral agreements and issue-specific arrangements. Institutions exist, but they remain light and state-controlled. This is institutionalisation without the transfer of sovereignty.

Uzbekistan’s role in this process is therefore best understood not as an attempt to construct a hierarchical integration project, but as a contribution to creating a political environment in which regular consultation and practical cooperation became possible. That distinction is important: the emerging regional order depends on the participation and political will of all the states involved.

Political trust as regional infrastructure

The clearest evidence of change is not a new headquarters or treaty organisation. It is the gradual reduction of problems that once made regional cooperation difficult.

In March 2025, Kyrgyzstan and Tajikistan signed a treaty on their state border, bringing a decades-long negotiation process to a formal conclusion. Given the history of tensions along parts of that frontier, the agreement improved the political environment for wider regional cooperation.

Transport connectivity, water management, energy, climate resilience, trade and industrial cooperation are also increasingly discussed as regional issues. For Uzbekistan, which is double-landlocked and closely connected to its neighbours through transport, water, energy and trade networks, a more predictable regional environment has direct economic and security significance.

This practical dimension has helped give the new regionalism substance. Political rapprochement has been followed by efforts to expand cross-border trade, improve transport links and coordinate responses to shared challenges.

Uzbekistan and the institutional evolution of regional cooperation

The seventh Consultative Meeting of the Heads of State of Central Asia, held in Tashkent on 16 November 2025 under the chairmanship of President Shavkat Mirziyoyev, marked another stage in this evolution. The leaders adopted a decision admitting Azerbaijan as a full-fledged participant in the format.

The Tashkent meeting also demonstrated how the mechanism is becoming more structured while retaining its intergovernmental character. During Uzbekistan’s chairmanship, the regional agenda expanded across security, interregional cooperation, industry, agriculture, ecology, culture and other areas.

The sequence matters. In Central Asia, institutionalisation has largely followed political rapprochement rather than preceded it. Governments first rebuilt dialogue, reduced bilateral tensions and expanded practical cooperation. Formal mechanisms followed cautiously and selectively.

This may be described as sovereignty-preserving regionalism: states seek deeper coordination while avoiding the transfer of political authority to a regional centre.

From regional rapprochement to international recognition

External partners are increasingly responding to Central Asia as a more coherent regional space. A major example was the first European Union–Central Asia Summit, held in Samarkand on 4 April 2025. The summit was chaired by President Shavkat Mirziyoyev, with the participation of the leaders of the five Central Asian states and the European Union.

The meeting elevated relations between the European Union and Central Asia to a strategic partnership. Its agenda covered connectivity, trade, energy, water, climate, critical raw materials and other areas that are difficult to address through five unrelated bilateral tracks alone.

For Uzbekistan, hosting the summit reflected an important dimension of its regional policy: strengthening Central Asia’s collective international agency without replacing national foreign policies with a single regional centre. Greater coordination does not require the region’s states to speak with one voice on every issue. It enables them to identify areas where interests overlap and where joint engagement can bring practical benefit.

A model with strengths and limits

The emerging model has clear advantages. It lowers political barriers to cooperation, preserves national ownership and allows governments to advance practical initiatives without first resolving sensitive questions about supranational authority.

But it also has limitations. Consensus-based cooperation can slow decision-making. Light institutional structures may make implementation uneven, and regional cooperation can remain vulnerable to leadership changes, economic shocks or renewed disputes. Its durability will ultimately depend on whether repeated cooperation can survive moments when national interests diverge.

The next stage will therefore be judged less by the number of summits than by whether political agreements produce sustained results in transport, trade, water, energy, climate adaptation, security and people-to-people links.

Why Central Asia matters beyond Central Asia

Central Asia matters to debates about regionalism precisely because it does not resemble the European Union. The European experience has often shaped assumptions about how regional cooperation should evolve: states cooperate, build common institutions, accept shared rules and, in some fields, delegate authority above the national level.

Central Asia is moving differently. Its governments are building a denser pattern of political consultation and practical interdependence while maintaining a strong preference for sovereignty and intergovernmental decision-making.

Uzbekistan has contributed significantly to this process by promoting a more open regional political environment, initiating regular consultative dialogue among Central Asian leaders and linking political rapprochement with practical cooperation. At the same time, the process is fundamentally collective: its progress depends on the willingness of all participating states to reconcile national priorities with common regional interests.

Central Asia may never become another European Union — nor does it necessarily seek to. Its significance lies in showing that a region can become more cohesive, coordinated and internationally consequential while following its own institutional path.

Jakhongir Isaev

Head of Department, NGO Center for Sustainable Development, Uzbekistan

On October 8–9^th, President Shavkat Mirziyoyev will attend the 8^th Consultative Meeting of the Heads of State of Central Asia and Azerbaijan, as well as a meeting of the CIS Council of Heads of State.

The consultative meetings stem from an initiative put forward by the President of Uzbekistan in 2017. The first meeting took place in Astana in March 2018. This framework allows countries to work together on transit, infrastructure use, border procedures and industrial cooperation where the involvement of several countries is required.

At the seventh meeting, held in Tashkent on November 16, 2025, participants agreed to Azerbaijan’s full participation. This creates opportunities to coordinate industrial development in Central Asia with transport infrastructure in the South Caucasus and routes to markets in Türkiye and Europe.

For businesses, transport arrangements need to be coordinated along the entire route. Faster customs clearance in one country will have limited benefits if cargo is held up at the next border or port. Joint ventures also need coordinated arrangements for raw material supplies, certification and financing. Expanding the group of participants therefore makes multilateral coordination more useful in practice.

Expanding Trade and the Regional Market

According to the Center for Economic Research and Reforms (CERR), Uzbekistan’s trade with Central Asian countries grew 3.1-fold between 2017 and 2025, reaching $8.3 billion. In 2025, trade with Kazakhstan totaled $5 billion, with Kyrgyzstan and Turkmenistan $1.2 billion each, and with Tajikistan $912.3 million.

In January–August 2026, trade with the four neighboring countries reached $6.14 billion, up 26.2% from the same period a year earlier. Uzbekistan’s exports rose 37.5% to $2.36 billion, while imports increased 20.1% to $3.78 billion. Trade grew with every partner: Kazakhstan by 23.4%, Kyrgyzstan by 51.2%, Tajikistan by 45.7% and Turkmenistan by 5.7%.

Trade with Azerbaijan grew 9.5-fold between 2017 and 2025, reaching $307.3 million. In 2025, Uzbekistan’s exports totaled $227.3 million and imports $80 million. Established trade in machinery, textiles, food and metals provides a basis for greater specialization among businesses and joint efforts to promote their products. Long-term contracts, well-developed distribution networks and equipment servicing in the partner country can support more sustained growth.

Investment and Production Links

Between 2017 and 2025, Uzbekistan attracted $2.5 billion in foreign direct investment and loans from Central Asian countries, including $1.3 billion in 2025. The corresponding figures for Azerbaijan were $318.6 million and $173.7 million. As of August 2026, Uzbekistan had 2,538 operating companies with investment from Central Asian countries and 503 with Azerbaijani investment.

The Azerbaijan–Uzbekistan Investment Company supports joint projects and has charter capital of $500 million. Joint investment institutions also operate in Central Asia, including Uzbek–Kyrgyz and Uzbek–Tajik institutions. They enable partners to finance projects together and share risks.

Practical Steps Since the Tashkent Meeting

On November 17, 2025, Uzbekistan and Turkmenistan launched the Shavat–Dashoguz border trade zone. It houses trading and warehousing facilities, customs, quarantine and other inspection services. Government services are to be provided through a single-window system.

On March 26, 2026, Uzbekistan and Tajikistan launched ten joint projects in furniture, leather and textile production, household appliances and other industries. At the same time, facilities were launched to produce dairy products in Andijan Region, and fruit juices and metal briquettes in Surkhandarya Region.

During Uzbek–Kyrgyz talks on July 30, 2026, the two sides agreed to establish an Interstate Council. A package of trade contracts and investment agreements was put together at the preceding business forum. They also reached agreements on developing border, trade and logistics infrastructure along the China–Kyrgyzstan–Uzbekistan railway and digitizing permit procedures.

On July 31, 2026, the leaders of Central Asia and Azerbaijan held an informal meeting at Issyk-Kul. The President of Uzbekistan called for further work on industrial and technological production chains, shared digital services and investment platforms.

On August 23, 2026, Uzbekistan and Azerbaijan signed a program to increase trade to $1 billion by 2030, along with an action plan for investment and trade. The third meeting of the Supreme Interstate Council also launched joint projects in finance, building materials, oil and gas, mining, agriculture and other sectors.

Industrial Cooperation and Access to New Markets

CERR estimates that replacing some imports from third countries with supplies from within the region could increase intraregional trade by approximately $11.4 billion. Realizing this potential will depend on whether regional suppliers can compete. This requires matching imported products with what regional producers can offer and identifying barriers to concluding contracts.

Developing the Middle Corridor through the Caspian Sea and the South Caucasus could expand Uzbekistan’s opportunities to supply markets to the west. The route’s competitiveness depends on the total cost of delivery, regular departures and transit times along each section. This requires coordination among railways, ports, carriers and customs services.

Joint preparations for the Kambarata-1 hydropower plant and work on Uzbek–Tajik hydropower projects require agreement on financing, water use arrangements and electricity supply terms. Investment decisions need to reflect growing industrial demand and businesses’ need for reliable energy supplies.

An interagency working group has also been established to prepare joint green energy projects involving Uzbekistan, Kazakhstan and Azerbaijan.

Priorities for the Upcoming Meeting

The upcoming meeting in Avaza offers an opportunity to advance joint projects by addressing trade barriers, coordinating transport arrangements and securing financing. Moving beyond separate bilateral projects to align business conditions across the expanded group of participating countries could help advance these efforts.

Projects backed by proven demand, competitive production and reliable logistics can deliver the most tangible economic benefits. The regional mechanisms proposed by Uzbekistan could support these projects by removing trade barriers, coordinating infrastructure development and improving investment conditions. Under these conditions, growth in trade within the region would be accompanied by more value added within the region and a stronger position for its producers in international markets.

Edvard Romanov
Center for Economic Research and Reforms

For centuries, life in Central Asia has been inseparable from water. Across the Amu Darya and Syr Darya basins, settlements, agriculture and trade developed around rivers, canals and irrigation systems. Water has therefore never been merely a natural resource for the region; it has been one of the foundations of its economic life, social stability and shared history.

Today, the water challenge is more pressing than ever. Climate change, population and economic growth, shrinking glaciers, droughts and increasingly frequent extreme weather events are placing mounting pressure on water resources. One conclusion is clear: no single country can ensure water security in Central Asia on its own. The only sustainable path lies in cooperation, mutual trust, accurate measurement and shared responsibility.

One River Basin, Shared Interests

Central Asia’s major rivers originate in some countries and flow through others. The Syr Darya is of vital importance to Kyrgyzstan, Tajikistan, Uzbekistan and Kazakhstan, while the Amu Darya is equally significant for Tajikistan, Afghanistan, Uzbekistan and Turkmenistan.

This geographical reality makes it essential to avoid framing the interests of upstream and downstream countries as inherently opposed. For one state, water may be a key source of hydropower; for another, it is indispensable for irrigated agriculture. At the same time, preserving river ecosystems, improving the environmental situation in the Aral Sea region and ensuring access to safe drinking water are common priorities for all countries.

Around 90 per cent of water in Central Asia is used in agriculture. Water management therefore cannot be shaped solely around the interests of one sector or one country. What is needed is a regional approach that recognises the close interdependence of water, energy, food security and the environment.

Open Dialogue, Practical Results

In recent years, dialogue among the countries of Central Asia has become more open and constructive. This has had a direct impact on cooperation in the water sector. Whereas discussions once focused primarily on seasonal water allocation, the agenda today is considerably broader, encompassing water-energy cooperation, joint management of shared facilities, digitalisation, improved water accounting, scientific collaboration and professional training.

At the Seventh Consultative Meeting of the Heads of State of Central Asia, held in Tashkent in November 2025, the President of Uzbekistan drew attention to growing water scarcity and proposed declaring 2026–2036 the “Decade of Practical Action for the Rational Use of Water in Central Asia”. The establishment of a Regional Competence Centre for Water Management at the Tashkent Institute of Irrigation and Agricultural Mechanization Engineers National Research University was also proposed.

At the summit of the International Fund for Saving the Aral Sea in April 2026, the President of Uzbekistan outlined priority tasks for the country’s chairmanship of the Fund in 2027–2029. These include improving the Fund’s organisational and legal mechanisms, increasing the effectiveness of programmes in the Aral Sea basin, attracting international financing, promoting a culture of responsible water use and strengthening professional capacity in the sector.

Agreements as the Practical Basis of Cooperation

Regional dialogue produces lasting results only when it is backed by concrete agreements and practical cooperation.

On 15 November 2025, Uzbekistan and Kazakhstan signed an Agreement on the Joint Management and Rational Use of Transboundary Water Bodies. The agreement is designed to establish systematic cooperation between the two countries in the water sector, improve coordination among responsible agencies and ensure more effective use of shared water resources and infrastructure.

With the Kyrgyz Republic, issues related to water use, the operation of hydraulic structures and the distribution of water during the irrigation season are regularly addressed through joint mechanisms. On 15 May 2026, the eighth meeting of the Uzbek-Kyrgyz Joint Commission on Water Management was held in Namangan. In June, Uzbekistan, Kazakhstan and Kyrgyzstan also agreed on water release volumes and electricity supplies for the 2026 irrigation season.

Within the framework of the joint Working Group with Tajikistan, the parties regularly discuss transboundary water-management projects, exchange experience in managing water resources and address other practical matters.

Uzbekistan, Tajikistan and Kazakhstan also cooperate in coordinating the summer operating regime of the Bahri Tojik Reservoir. This issue is agreed annually at working-level meetings involving representatives of the three countries and is formalised through the relevant protocols.

A joint intergovernmental commission on water issues operates between Uzbekistan and Turkmenistan. Cooperation covers water-saving technologies, the reconstruction of collector-drainage networks, scientific exchange and professional training in irrigation. In 2025, for example, the second stage of the reconstruction of the Ozyorny and Daryolik main collectors in Turkmenistan was completed.

These examples demonstrate an important shift: water cooperation in Central Asia is moving beyond general declarations towards concrete mechanisms — commissions, agreements, technical projects and water-energy exchanges.

Accurate Data as a Foundation of Trust

In water relations, trust is built not only through political declarations but also through accurate and transparent data.

How much water is flowing in a river? What volumes are stored in reservoirs? How much water has been released, how much has reached users and how much has been lost along the way? These questions must be answered on the basis of reliable information that all parties can trust.

This is why it is increasingly important to automate transboundary hydrological gauging stations, enable remote data transmission, introduce digital water accounting and harmonise information-exchange systems among countries.

In July 2026, the World Bank approved the Regional Cooperation Project to Improve the Efficiency of Water Resources Use in Central Asian Countries (CAWEC), aimed at strengthening transboundary water cooperation in the region.

The project envisages a US$20 million grant to the Executive Committee of the International Fund for Saving the Aral Sea. The funds are intended to support the digitalisation of water accounting in the Amu Darya and Syr Darya basins, modernise information systems and strengthen the professional capacity of specialists.

By 2031, the project is also expected to support the preparation of mutually beneficial transboundary investment projects involving at least two Central Asian countries, including preliminary feasibility studies, design and cost documentation, and environmental and social assessments.

It is expected that around 40 million people will benefit directly or indirectly from the project’s results.

Water Conservation in Uzbekistan Also Serves Regional Interests

The rational use of transboundary water resources begins with the responsibility of each country to use water efficiently within its own territory.

In 2017, water-saving technologies were applied on 28,000 hectares in Uzbekistan. By the end of 2025, this figure had reached 2.6 million hectares — nearly 60 per cent of the country’s irrigated land. Since the beginning of 2026, water-saving technologies have been introduced on a further 640,000 hectares.

Around 174,000 kilometres of irrigation networks are used to supply water to 4.3 million hectares of irrigated land in Uzbekistan. Public funding for modernising this extensive system, reducing water losses in canals and improving efficiency has increased steadily. In 2017, 842 billion soums were allocated to irrigation and land-reclamation works; in 2020, the figure rose to 1.7 trillion soums, and in 2025 to 3 trillion soums.

In 2026, 4.1 trillion soums were allocated from the state budget for irrigation and land-reclamation facilities — 4.9 times the 2017 level.

By the end of 2026, Uzbekistan plans to save 11 billion cubic metres of water through the wider use of water-saving technologies, laser land levelling, the repair and concrete lining of irrigation networks, digitalisation, optimisation of crop patterns and improved agricultural practices. Under the state programme for 2025–2028, this figure is expected to rise to 12 billion cubic metres in 2027 and 13 billion cubic metres in 2028.

These figures matter not only for Uzbekistan, but for the region as a whole. Every cubic metre of water saved in one country reduces pressure on the shared river basin. Water conservation is therefore not merely a national objective; it is also a practical expression of good-neighbourly responsibility.

Five Pillars for the Future

Five areas are particularly important if Central Asia is to take water cooperation to a new level.

First, interstate cooperation mechanisms need to be adapted to contemporary realities. Clear legal arrangements are required for water allocation, the use of shared infrastructure and the exchange of information.

Second, water accounting should be further digitalised, with timely exchange of data on water availability and flows. Reliable information is the foundation of reliable cooperation.

Third, the region needs more joint investment projects to modernise ageing canals, hydraulic structures, pumping stations and water-metering facilities. The uninterrupted operation of a single facility in one country may directly serve the interests of several neighbouring states.

Fourth, water and energy issues should be addressed in an integrated manner. Better coordination of reservoir operating regimes, electricity supplies and seasonal water needs can significantly improve the efficiency of resource use.

Fifth, greater attention must be paid to science, human capital and a culture of responsible water use. Modern technologies alone are not enough. They require skilled specialists, farmers who have a clear incentive to conserve water, and a society that understands the true value of this resource.

Water conservation is not the responsibility of water professionals alone. It is also a matter of economic thinking, environmental responsibility and everyday culture.

Water as a Shared Responsibility for a Common Future

The history of Central Asia shows that water has not only sustained communities; it has also connected them. Villages, cities, markets and cultural ties developed along rivers, canals and irrigation channels. Preserving that unifying role of water is just as important today.

In the twenty-first century, effective water management is determined not only by how much water is available. It also depends on the quality of cooperation between countries, the efficiency with which water is used, and the accuracy with which it is measured and accounted for.

The challenges ahead are substantial. Demand for water is rising, the climate is changing and economies are expanding. Yet Central Asia has also developed a stronger culture of cooperation. Regular dialogue among heads of state, bilateral and multilateral agreements, modern technologies and support from international partners are creating practical opportunities to address shared challenges together.

Joint efforts to conserve water contribute to peace and stability. Rational use of this vital resource is an investment in economic development. Above all, it is an investment in a more prosperous, resilient and sustainable future for the entire region.

Shavkat KHAMRAEV,

Minister of Water Resources of the Republic of Uzbekistan,
Honored Irrigator of Uzbekistan

The eighth Consultative Meeting of the Heads of State of Central Asia and Azerbaijan, scheduled for 8 October 2026 in Awaza, lends particular significance to the strategic partnership between Uzbekistan and Turkmenistan. The agenda proposed by Turkmenistan covers security, the economy, energy, transport, water resources and humanitarian ties. In each of these areas, cooperation between Tashkent and Ashgabat can deliver benefits for the region as a whole.

Against a backdrop of global instability and the restructuring of Eurasian logistics networks, this partnership is becoming a pillar of regional stability. Its broader significance rests on a combination of political trust, complementary economies and responsibility for shared resources. Coordination between the two neighbours creates a more predictable environment for trade, investment and long-term planning across Central Asia.

From Strategic Partnership to Regional Trust

The 1996 Treaty of Friendship, Cooperation and Mutual Assistance laid the foundations for bilateral relations. A new stage began in March 2017, when President Shavkat Mirziyoyev made his first foreign visit as head of state to Turkmenistan. The visit culminated in the signing of the Treaty on Strategic Partnership. The Declaration of 21 October 2022 reaffirmed the commitment to deepening this partnership, expanding economic ties and strengthening cooperation on the international stage.

The settlement of border issues through negotiated agreements is equally significant. On 10 November 2017, Uzbekistan, Turkmenistan and Kazakhstan signed a treaty concerning the area where their state borders meet. Such agreements strengthen regional trust and provide legal certainty for the development of cross-border cooperation.

Regular dialogue between Shavkat Mirziyoyev, President Serdar Berdimuhamedov and the National Leader of the Turkmen People, Gurbanguly Berdimuhamedov, ensures continuity in this approach. The state visit of the President of Turkmenistan to Uzbekistan in November 2025 gave fresh impetus to cooperation. Agreements were signed on border trade, agriculture, healthcare and ties between the regions of the two countries. Political trust is steadily being translated into practical mechanisms for joint action.

Ashgabat’s diplomatic engagement plays a particular role. On Turkmenistan’s initiative, the UN General Assembly adopted the resolution “Zone of Peace, Trust and Cooperation of Central Asia” on 28 July 2022, with Uzbekistan among its co-sponsors. The resolution secured international political support for regional dialogue and the peaceful settlement of disputes. By advancing this agenda, Turkmenistan assumes an important responsibility for strengthening trust in Central Asia. This approach is consistent with Uzbekistan’s policy of good-neighbourly relations: joint efforts to prevent risks create the conditions needed for national development programmes and regional projects.

Economic Cooperation as a Foundation for Integration

Trade growth demonstrates the economic foundations of closer ties. According to Uzbekistan’s National Statistics Committee, bilateral trade rose from $177.9 million in 2017 to $1.2 billion in 2025, an increase of approximately 6.8 times. In January–August 2026, it reached $807.4 million, up 5.7 per cent on the same period of the previous year.

A free trade regime has been in effect since 25 February 2025, eliminating customs duties on goods originating in the two countries, subject to certain exceptions. In November 2025, the Shavat–Dashoguz border trade zone opened, bringing together trading, warehousing and service facilities. It enables businesses to store and sell products, complete shipment formalities and access essential services in one location. The two sides agreed to extend this model to the Alat–Farap area. Establishing a similar zone between Bukhara Region and Lebap Province would bring more local producers into direct trading relationships.

These arrangements are turning border areas into centres of economic cooperation. Simpler trade and border procedures reduce business costs and create more opportunities for small enterprises and employment. Bilateral cooperation provides a practical setting for developing solutions that can subsequently be discussed at Consultative Meetings and applied across the wider region. This approach builds integration around measurable benefits for producers and local communities.

The leaders’ target of increasing bilateral trade to $2 billion calls for closer industrial cooperation, including in the production of construction materials, pharmaceuticals and food products.

Joint processing activities and the manufacture of finished goods could diversify both countries’ exports and strengthen regional production links. Cooperation in the purchase, supply and transit of gas and electricity complements these efforts. It offers Uzbekistan opportunities to secure reliable energy supplies for its growing economy, while enabling Turkmenistan to expand its export markets. Predictable supplies provide a more stable basis for industrial cooperation in Central Asia.

From Landlocked Geography to Eurasian Connectivity

Turkmenistan provides Uzbekistan with access to the Caspian Sea and, through the South Caucasus, to Europe. Uzbekistan’s infrastructure, in turn, connects Turkmen businesses with markets elsewhere in Central Asia. The Turkmenabat–Farap bridges, opened in 2017, strengthened this connection. Its further development marks a shift from the constraints of being landlocked towards becoming active, land-linked hubs in international transport networks.

The Awaza Programme of Action for Landlocked Developing Countries for the Decade 2024–2034 provides a global framework for this transformation. Adopted by the UN General Assembly on 24 December 2024, it was endorsed at the Third UN Conference on Landlocked Developing Countries in Awaza in August 2025. Hosting the conference and advancing its outcomes highlight Turkmenistan’s role in mobilising international support for transport connectivity, trade and climate resilience. For Tashkent and Ashgabat, this is a shared agenda for overcoming geographical constraints on development.

Practical steps include the trilateral dialogue between Uzbekistan, Turkmenistan and Azerbaijan, launched at the highest level in Awaza in August 2025, and the November agreement on the joint development of the Port of Turkmenbashi. Azerbaijan’s full participation in the Consultative Meetings creates further opportunities to coordinate Caspian transport operations. Priorities include through tariffs, electronic documentation and coordinated border-crossing operations, which are essential to turning infrastructure into a competitive transport route.

Combining Caspian and southern transport links with existing routes gives exporters across Central Asia more options and expands transport opportunities along the East–West and North–South axes. This reduces exposure to disruptions on individual routes, strengthens the region’s economic autonomy and improves its position in Eurasian trade. In this area, the value of the partnership is measured by the reliability of deliveries and access to external markets.

The Amu Darya: Water Security and Preventive Diplomacy

Cooperation on the Amu Darya, Central Asia’s largest river by discharge, directly links the resilience of both countries to the security of the entire basin. For countries along its middle and lower reaches, coordinated water use is essential to irrigation, energy supply, food security and the preservation of ecosystems in the Aral Sea region.

The intergovernmental Agreement on the Management, Protection and Rational Use of the Water Resources of the Amu Darya River, signed on 14 July 2022, strengthened the legal framework for cooperation. The fifth meeting of the Joint Water Management Commission, held in Khiva on 30 January 2026, addressed improvements in water accounting and monitoring, modern technologies and adaptation to climate change. Regular data exchange and coordinated action help the two countries anticipate water shortages and reduce the risk of disagreements.

The reliable operation of the Tuyamuyun hydraulic complex, which combines flow regulation, irrigation and electricity generation, is particularly important. Joint expert work has examined sedimentation in its channel reservoir. Sediment accumulation reduces water storage and flow-regulation capacity. Modernisation of the complex, water conservation and the reduction of losses in irrigation networks should therefore be treated as interconnected tasks in ensuring water and energy security.

Tashkent and Ashgabat share the task of establishing lasting water cooperation with all countries in the basin, including Afghanistan. In 2023, Shavkat Mirziyoyev proposed jointly studying the impact of the Qosh Tepa Canal on the flow regime of the Amu Darya and considering the involvement of Afghan representatives in regional water dialogue. Both countries attach fundamental importance to balancing Afghanistan’s economic development with the need to maintain reliable water supplies downstream. Achieving this balance requires joint assessments of the impact of new projects, the exchange of reliable data, agreement on water withdrawal parameters and consideration of each other’s interests. This gives the dialogue on the Qosh Tepa Canal significance for the entire region.

This illustrates the preventive role of water diplomacy: reaching agreement in advance reduces vulnerability to drought and the associated food security and humanitarian risks. The experience of Uzbekistan and Turkmenistan can strengthen basin-wide cooperation and engagement between upstream and downstream countries. Its effectiveness matters to the entire region because the consequences of a water crisis extend beyond national borders.

Awaza and Central Asia’s Long-Term Prospects

The “Central Asia 2040” Concept for the Development of Regional Cooperation, adopted in Astana in 2024, provides a long-term framework for joint action. The forthcoming meeting in Awaza offers an opportunity to translate that framework into practical decisions. The Uzbek–Turkmen partnership contributes concrete elements to this agenda: production links, reliable energy supplies, access to Caspian and southern transport routes, and responsible water use. Together, these areas strengthen the ability of the region’s states to shape their own development paths.

Lasting cooperation requires support from society and professional communities. Expanding cultural and people-to-people ties is particularly important in this regard. A shared cultural heritage and appreciation of the works of Alisher Navoi and Magtymguly Pyragy sustain mutual interest between the two peoples. The Days of Turkmen Culture and screenings of Turkmen films held in Urgench and Tashkent in 2025 were followed by agreements on regular exchanges. The Cultural Cooperation Programme for 2026–2027 provides a basis for bringing the two countries closer together. Joint educational programmes and the training of specialists in water management, logistics and industry could make a valuable further contribution.

Expert dialogue is also intended to support these processes. In November 2025, the Institute for Strategic and Regional Studies under the President of the Republic of Uzbekistan and the Institute of International Relations of the Ministry of Foreign Affairs of Turkmenistan signed a memorandum establishing an Uzbek–Turkmen Expert Council. This mechanism creates opportunities to assess regional risks jointly and develop proposals on trade, transport and water use. Its practical value lies in providing research-based input into interstate decisions while taking account of the interests of businesses and the public.

The new stage in the partnership between Tashkent and Ashgabat is thus defined by its contribution to the broader framework of security and sustainable development. By translating political trust into accessible markets, reliable transport and infrastructure links, and coordinated resource management, the two countries strengthen the foundations of regional cooperation. This is their strategic contribution to the future of Central Asia as a region of good-neighbourly relations, economic interconnectedness and open engagement with the Caspian basin and other parts of Eurasia.

Vladislav Tyan
Leading Research Fellow
Institute for Strategic and Regional Studies
under the President of the Republic of Uzbekistan

Opening ceremony will take place on 12 October at the Central Exhibition Hall

11^th Tashkent International Biennale of Contemporary Art, titled “Event Horizon”, will be held in Tashkent from 12^th to 16^th October this year.

Works by international and Uzbek artists will be displayed at leading museums and galleries across the capital. Program will also include a visit to Samarkand, giving cultural tourists visiting Uzbekistan in October an opportunity to explore both contemporary art and the country’s historical heritage as part of a single trip.

Biennale has been held every two years since 2001. This year’s theme explores the human condition at the threshold of technological and cultural change. According to the concept of the event, Tashkent, located at the crossroads of ancient caravan routes, is presented as an “oasis” — a symbol of hope and new meanings.

Opening ceremony will take place on 12^th October at the Central Exhibition Hall. In the following days, exhibitions will open at the Tashkent House of Photography, the Kamoliddin Behzad Museum of Miniature Art of the East, the Uzbekistan State Museum of Arts and the Ikuo Hirayama International Culture Caravanserai. The programme will also feature performances, masterclasses, an international scientific and practical conference, and the “Charxpalak” exhibition dedicated to the 35^th anniversary of Uzbekistan’s independence. The biennale will conclude on 16^th October

The 10^th biennale, held in 2024, brought together more than 40 international participants from around 30 countries.

Dunyo IA

In recent years, fundamental changes in global trade routes and disruptions in supply chains have sharply increased the need for reliable and alternative transport corridors. Under these conditions, cooperation in the transport and logistics sector among the member states of the Organization of Turkic States (OTS), located in a strategic region at the junction of Europe and Asia, is becoming one of the main drivers of regional integration.

The economic foundation of this cooperation is strengthening year by year. In 2025, the total economic potential of the organization's member states exceeded $2.4 trillion, and its growth rate (6.8%) was twice as high as the global average. During this period, Uzbekistan's trade turnover with OTS countries increased by 14 percent, reaching $11 billion.

Transport indicators also confirm this trend. According to the results of the first six months of 2026, our country's export-import cargo transportation with OTS countries amounted to 8.5 million tons, accounting for about 29% of total international transportation. Of the total volume of transportation with OTS countries, 66% was carried out with Kazakhstan, 21% with Kyrgyzstan, 7% with Turkey, 5% with Turkmenistan, and 1% with Azerbaijan.

It is worth noting that on October 7, 2025, the 12th Summit of the Organization of Turkic States was held in Gabala, Azerbaijan, under the motto "Regional Peace and Security" to further accelerate multifaceted cooperation within the Organization and strengthen the strategic partnership among member states.

Following the summit, the parties adopted the Gabala Declaration, which is aimed at expanding cooperation in the political, economic, transport and communication, energy, and security spheres. At the same time, the development of the Middle Corridor was consolidated as a strategic priority of the organization, and the "OTS+" format was introduced to expand cooperation with external partners.

In addition, a number of important events were held within the framework of the OTS in 2026. Specifically, on April 2, 2026, the second meeting of the heads of government of the organization's member states took place in Baku. During the meeting, priority attention was paid to expanding trade, economic, and investment cooperation, implementing joint projects, and improving the business environment. The importance of developing industrial cooperation and transport connectivity, including the implementation of the Trans-Caspian International Transport Route and the China-Kyrgyzstan-Uzbekistan railway projects, was also noted.

On April 23, 2026, the 9th meeting of the OTS transport ministers was held in Bishkek. The successful ongoing implementation of the e-Permit project was noted at the meeting. Following the meeting, a Memorandum was signed on the introduction of the e-CMR electronic waybill system. This system enables the electronic transmission of transport documents and significantly reduces processing times at the borders.

On May 15, 2026, an informal OTS summit titled "Artificial Intelligence and Digital Development" was held in Turkistan, Kazakhstan. The Turkistan Declaration, adopted at the conclusion of the summit, outlined a number of practical tasks in the field of transport. In particular, the introduction of the e-CMR system, the full launch of the e-Permit system, the integration of national "single window" systems to simplify document flow along the Trans-Caspian International Transport Route (Middle Corridor), the introduction of the eTIR procedure, as well as the promotion of a unified support system among the competent authorities of member states, border services, and transport operators to resolve cargo transportation issues, were approved.

Speaking at the Turkistan Summit, President Shavkat Mirziyoyev noted that, given the strategic location of the Middle Corridor, special attention will be paid to connecting it with the China-Kyrgyzstan-Uzbekistan railway, the construction of which is rapidly progressing. At the summit, initiatives were put forward to develop the concept of the "Digital Turkic Corridor," which will connect data centers in the region via high-speed communication channels, as well as to establish a Turkic Alliance for Cybersecurity and the Protection of Digital Infrastructure.

At this point, it is worth highlighting the results achieved by our country in the field of digitalization. In 2021, for the first time in the world, the e-Permit system for the electronic exchange of permit forms was launched between Uzbekistan and Turkey, while in December 2022, the world's first pilot transport operation based on the eTIR system was carried out with Azerbaijan. Today, the e-Permit system has been fully implemented with all OTS member states, and as a next step, the practical introduction of the electronic waybill (e-CMR) system used in international road transport is on the agenda.

The "China-Kyrgyzstan-Uzbekistan" and "Uzbekistan-Afghanistan-Pakistan" railway projects play a special role in the integration of the region. While one forms the shortest corridor from China to European and Middle Eastern countries, the other connects the South Asian railway system with the Central Asian and Eurasian railway systems.

In recent years, attention to the Trans-Caspian Corridor has also been growing. Over the past 5 years, the transit of Uzbekistan's cargo through the port of Baku has doubled, reaching 1.2 million tons in 2025. According to the results of January-June 2026, this figure amounted to 0.5 million tons, an increase of 2 percent compared to the same period last year.

According to forecasts, the intensive cooperation being carried out within the Organization is expected to become an important milestone towards the formation of a unified transport space among the Turkic states. Joint reforms to eliminate operational and infrastructural shortcomings, as well as agreements to connect the Middle Corridor with the "China-Kyrgyzstan-Uzbekistan" railway and the Trans-Afghan corridor, will serve to further strengthen the role of the OTS countries in the Eurasian transport system.

Leading Specialist of the Center for the Study of Transport and Logistics Development Problems Under the Ministry of Transport of the Republic of  Uzbekistan

 Sh. Akhmedov

Today, the combined economic potential of the OTS countries exceeds $2.1 trillion. In 2025, the economies of these countries grew by 6.8 percent. Uzbekistan’s trade turnover with OTS countries reached $10.8 billion in 2025.

These figures demonstrate the significant potential for economic cooperation across the Turkic world.

Turning Economic Initiatives into Practical Mechanisms

A key aspect of Uzbekistan’s approach within the OTS is its focus on strengthening economic cooperation through concrete mechanisms and projects. Currently, practical cooperation is being carried out in more than 35 areas within the Organization. Uzbekistan has also put forward the idea of creating a “Space of New Economic Opportunities” in the near future, bringing together favorable conditions for trade, business, and mutual investment, as well as the necessary legal framework and infrastructure.

The President of the Republic of Uzbekistan has also proposed establishing a Permanent Council on Economic Partnership of the Turkic States and locating its Project Office in Tashkent. Such a mechanism could help move from discussing economic initiatives to their systematic preparation and implementation.

Another important initiative put forward by Uzbekistan is the establishment of a Turkic States Industrial Alliance. Cooperation in such sectors as mechanical engineering, electrical engineering, mining, petrochemicals, pharmaceuticals, textiles, food processing, and construction materials could enable the formation of new production chains across the OTS region. In this regard, a cooperation model based on the principle of “raw materials – processing – science and technology – finished products” is of particular importance.

For Uzbekistan, this model could, on the one hand, facilitate the integration of domestic producers into major regional value chains and, on the other, support the production of higher value-added goods and the expansion of export destinations.

Transport Connectivity as the Economic Foundation of Integration

Uzbekistan’s geographical location makes transport connectivity a strategically important area of economic integration within the OTS. As a landlocked country, the development of new transport corridors is one of the key factors determining the competitiveness of Uzbekistan’s foreign trade.

In this regard, the development of the Middle Corridor and its connection with the China–Kyrgyzstan–Uzbekistan railway currently under construction could create new economic opportunities. In the future, connecting this system with the Trans-Afghan Corridor could further strengthen Central Asia’s potential to become a major transport hub linking the markets of East Asia, South Asia, the Caucasus, Türkiye, and Europe.

New Financial Infrastructure

Deepening economic integration also requires institutions capable of financing it. In this regard, the establishment of the Turkic Investment Fund has marked a new stage in cooperation within the OTS. The Fund is focused on developing trade and economic cooperation, financing joint projects, and supporting small and medium-sized enterprises.

The launch of the Fund’s operational activities in 2026, along with the establishment of the OTS Council of Central Bank Governors and the Turkic Council for Green Finance, demonstrates that the financial infrastructure of a common economic space is gradually taking shape.

Uzbekistan supports efforts to combine the resources of the Turkic Investment Fund with those of other international financial institutions. In particular, it has proposed establishing strategic cooperation between the Fund and the Islamic Development Bank, the European Bank for Reconstruction and Development, as well as other international and national financial institutions.

Such an approach could enable the OTS to combine its own financial resources with international capital and expand opportunities for financing large-scale infrastructure, industrial, energy, and green projects.

Digital Economy – A New Frontier of Integration

The next major growth area for economic integration among the Turkic states is linked to the digital economy and artificial intelligence.

At the informal OTS summit held in Turkistan in 2026, Uzbekistan proposed establishing a strategic cooperation network in the field of artificial intelligence and developing a “Digital Turkic Corridor Concept”. The concept is aimed at interconnecting data centers across the region through high-speed communication networks, developing a unified modern digital space, and creating a new market for technology-based services.

This initiative is particularly important for Uzbekistan. The country’s geographical position in Central Asia could strengthen its future role not only as a transport hub, but also as a center for digital transit and data exchange.

Green Economy and New Markets

New sources of growth for the Turkic states are not limited to traditional industries. Renewable energy, green hydrogen and ammonia, critical minerals, organic agriculture, and environmental technologies are emerging as promising areas of cooperation.

The “Green Transformation” Consortium proposed by Uzbekistan is aimed at jointly implementing green energy projects, attracting technologies and standards, and expanding the use of public-private partnership mechanisms. In the area of critical minerals, the focus is shifting from exporting raw materials toward their deep processing and the production of higher value-added goods.

The significant agricultural potential of the OTS countries, their diverse climate zones, and proximity to major consumer markets create opportunities for establishing new cooperation chains in the production and export of organic products. In this area, Uzbekistan has proposed combining scientific research, breeding, production, and logistics capabilities and, in the future, bringing products to global markets under a common brand.

A New Stage – New Opportunities

Today, economic cooperation within the Organization of Turkic States is moving to a qualitatively new stage. Alongside increasing trade volumes, industrial cooperation, mutual investment, transport and digital connectivity, energy, and new financial mechanisms are becoming key areas of the common economic agenda.

This creates broad opportunities for making more effective use of the potential available across the OTS region and developing new sources of economic growth.

Today, Asia is playing a decisive role in global economic processes, bringing together major production capacities, rapidly growing consumer markets, and technological and financial centres. At the same time, geopolitical developments, changes in global trade and logistics chains, climate risks, and intensifying competition for investment resources are further increasing the importance of dialogue and practical cooperation among Asian countries.

Against this backdrop, economic cooperation within the Conference on Interaction and Confidence-Building Measures in Asia (CICA) is becoming increasingly important. Today, CICA brings together 28 countries, covering nearly 90 percent of the Asian continent and more than half of the world’s population. CICA member states account for more than 50 percent of global GDP and nearly two-thirds of global economic growth. This demonstrates the significant potential for expanding economic and financial cooperation across the CICA region.

Uzbekistan has consistently viewed cooperation within CICA as an important instrument not only for ensuring peace and stability in Asia, but also for expanding practical partnerships aimed at economic development and prosperity.

New Opportunities for Uzbekistan

The rapid economic growth observed in Uzbekistan and the ongoing modernization of the economy are, in turn, increasing demand for long-term investment, private capital, and modern financial instruments.

As President of the Republic of Uzbekistan Shavkat Mirziyoyev noted at the ceremonial event dedicated to the 35th anniversary of the country’s independence, Uzbekistan plans to attract $450 billion in foreign investment over the next decade and increase GDP to $300 billion by 2030 while maintaining high economic growth rates.

One of the key tasks in achieving these objectives is not only to increase investment volumes, but also to diversify their sources and make greater use of private and institutional investors, capital markets, public-private partnerships, and other modern financial mechanisms.

This process is also in line with global trends. According to United Nations estimates, the annual financing gap for achieving the Sustainable Development Goals in developing countries is estimated at more than $4 trillion. This means that sustaining economic growth solely through traditional sources of financing is becoming increasingly challenging, while the need for new forms of investment and financial cooperation among countries continues to grow.

At the 6th CICA Summit held in Astana on October 13, 2022, President of the Republic of Uzbekistan Shavkat Mirziyoyev emphasized the importance of strengthening connectivity across the Asian continent, primarily through the development of production and logistics chains and transport corridors effectively linking Central Asia with South and East Asia, as well as the Middle East.

This issue is of not only strategic but also tangible economic importance for Uzbekistan. In 2025, the country’s foreign trade turnover reached $81.2 billion, an increase of 20.7 percent compared to 2024.

At the same time, the majority of Uzbekistan’s key trading partners are located within the CICA region. In 2025, China accounted for 21.2 percent of the country’s foreign trade turnover, Russia for 16 percent, Kazakhstan for 6.1 percent, Türkiye for 3.7 percent, and the Republic of Korea for 2.1 percent.

The President of the Republic of Uzbekistan has also placed particular emphasis on the development of the knowledge economy within CICA, highlighting the need to make fuller use of the potential for technology and innovation transfer, promote digitalization, and coordinate the efforts of Asian countries to develop cloud technologies, artificial intelligence, and the Internet of Things.

This area is becoming increasingly relevant in the context of CICA’s emerging financial agenda. The development of the digital economy is creating new opportunities for modern payment systems, fintech solutions, digital financial services, and cross-border financial cooperation.

Another important area is the initiative to establish regular expert consultations on the rapid greening of countries and ensuring ecosystem connectivity within the framework of the “Green Asia” conceptual programme. This initiative is directly aligned with efforts to expand green and sustainable finance and attract private capital to climate and energy transition projects.

A New Stage of Financial Cooperation

Financial cooperation is becoming one of the key components of connectivity within CICA.

A major step in this direction was the establishment of the CICA Financial Summit. The Regulation on the new consultative body was adopted in 2025. According to the document, its activities are aimed at developing cooperation among member states in the financial sector in order to ensure financial stability, promote sustainable economic development, and enhance the prosperity of the CICA region.

The new mechanism began its practical activities this year. On September 8, 2026, the first meeting of the CICA Financial Summit was held in Astana. It brought together representatives of government authorities, national financial institutions, the banking sector, businesses, international organizations, and the expert community.

The emergence of a dedicated platform for financial dialogue demonstrates the changing nature of economic cooperation in Asia.

Today, financial connectivity is becoming no less important than connectivity in transport or trade. The implementation of large-scale infrastructure projects requires long-term capital; the development of cross-border trade requires efficient settlement and financial mechanisms; the green transition requires new investment instruments; and the rapid development of technology calls for closer cooperation between financial regulators and market participants.

These areas are shaping the substance and priorities of CICA’s new financial mechanism.

The agenda of the inaugural meeting also demonstrated the broad scope of this cooperation. Key areas of focus included financial connectivity, development finance, sustainable and inclusive finance, digital finance, and financial technologies.

Thus, the initiative is not about establishing yet another financial institution or development bank. Rather, it is creating a platform for cooperation among existing national financial institutions, regulatory authorities, banks, stock exchanges, and development institutions of CICA member states.

In this regard, the emerging financial mechanisms within CICA create additional opportunities to translate the initiatives put forward by the President of the Republic of Uzbekistan on connectivity, digital development, and green growth into practical investment projects, while also strengthening Uzbekistan’s role as an active participant in the new financial linkages taking shape across Asia.

More than 200 companies and brands from 11 countries to participate

14^th International Exhibition for Heating, Ventilation, Air Conditioning, Water Supply, Plumbing, Swimming Pools, Environment and Renewable Energy – Aquatherm Tashkent 2026 will be held from October 6 to 8, 2026, at the Uzexpocentre National Exhibition Complex in Tashkent.

The event will bring together equipment manufacturers and suppliers, distributors and dealers, as well as key market professionals, including installers, developers and engineering systems designers, representatives of construction and utility organizations, industry experts and professional associations.

The organizers are international exhibition company “Iteca Exhibitions” and its partner “ICA Eurasia Group.” The exhibition is held with the official support of the Ministry of Construction and Housing and Communal Services of Uzbekistan.

“Aquatherm Tashkent” is the leading specialized exhibition in Uzbekistan showcasing the latest developments and comprehensive solutions in the fields of HVAC, water supply, plumbing and related sectors. For 14 years, it has remained a key platform for demonstrating modern equipment, exchanging professional expertise and developing business cooperation.

In Uzbekistan, it is the only specialized exhibition that comprehensively presents all types of engineering solutions, including equipment for heating and hot water supply, ventilation, air conditioning and refrigeration, water treatment systems, wastewater and sewage systems, gas supply, pipes, fittings and valves, plumbing equipment, solutions for swimming pools, saunas and spas, as well as instrumentation and control systems, automation, tools and installation technologies.

This year, the exhibition will feature more than 200 companies and brands from 11 countries, including Belarus, Germany, Iran, Italy, Kazakhstan, China, the Republic of Korea, Poland, Russia, Türkiye and Uzbekistan.

Among the participants are Climadens Pro, Akfa, Bosch, Buderus, Besterm Itermic, Tepliy Vozdukh, Format, Rols Isomarket, Termaflex Izolyatsiya, Daikin, Haier, Thaicon, Hitium, Lesso, Tokamnet, Newterm, Akvadis, PK Kontur, Craft, Zip24, Nimbus, Santim, Ostendorf Rus and Edelweiss.

The exhibition will offer solutions across different price segments, including affordable options for a wide range of consumers.

A new area at this year’s exhibition will be wastewater treatment, which is particularly relevant for Uzbekistan amid water resource shortages, population growth, aging infrastructure and the pollution of water bodies by industrial and municipal wastewater.

The exhibition program will include expert presentations, professional skills competitions and practical master classes.

Aquatherm Tashkent 2026 is of practical interest to international manufacturers of equipment and raw materials, chambers of commerce and industry, and specialized associations that view Uzbekistan as a promising market for developing business ties and establishing new partnerships.

The exhibition will also serve as a networking platform for official delegations, representatives of the construction industry and utility companies seeking modern solutions for engineering infrastructure, water supply, water treatment, heating, ventilation and more efficient use of resources.

Every year, Aquatherm Tashkent brings together the professional community, providing an opportunity to see new technologies and equipment in operation, receive consultations, establish direct business contacts, discuss prospective projects and find solutions for construction and infrastructure facilities.

Visitors from across Uzbekistan and abroad attend Aquatherm Tashkent to see what the market has to offer, compare available technologies and equipment, find reliable suppliers and identify suitable solutions for their specific needs.

As a result, the exhibition serves as a starting point for a new stage in the development of the engineering market for the following year – a place where new business relationships are established, priorities for further work emerge and the foundations for future projects are laid.

Visitors are encouraged to register in advance and obtain an online badge at: https://bit.ly/ATT_Dunyo_ru

More information is available at www.aquatherm-tashkent.uz or by phone at +998 71 205 14 14.

“Aquatherm Tashkent” is held under the internationally recognized Aquatherm® exhibition brand in the HVAC sector, owned by Austrian company Wiener Messe und Congress GmbH.

Dunyo IA

Today, Uzbekistan is gradually carving out its own niche in the global technology outsourcing market. In recent years, the sector has evolved from a predominantly domestic IT market into an export-oriented model encompassing software development, BPO, KPO, creative industries and professional services.

Today, scale of this transformation is reflected in the market's own dynamics. The volume of IT outsourcing services grew from $3.2 million in 2019 to $716.4 million in 2025. Over the same period, the number of IT companies increased from 369 to 3,400, while the volume of IT services provided reached $2.8 billion.

The most important change, however, extends beyond these figures. Uzbekistan's role in the international service delivery chain is itself changing, as the country gradually moves from performing individual technology-related tasks to hosting a broader range of corporate functions.

A young population is becoming a key advantage

The outsourcing industry depends directly on the ability to quickly build and scale teams. In this respect, demographics remain one of Uzbekistan's fundamental advantages.

The country's population stands at approximately 38 million, with around 60% under the age of 30. The working-age population is estimated at 21 million.

This demographic structure creates a substantial talent reserve for industries built on human capital. A young population alone, however, is not sufficient for outsourcing — a continuous pipeline of specialists with technical and language skills is also required.

More than 220 universities currently operate in Uzbekistan, 145 of which offer IT-related programs. Specialized IT universities graduate around 25,000 specialists annually. Language training is developing in parallel, with more than 350,000 people studying foreign languages each year. The country has around 500,000 IT specialists, ranging from full-stack and backend developers to experts in data engineering, DevOps and UI/UX.

It is precisely the combination of technical and language skills that is becoming particularly important for international outsourcing. While labor costs may be a key competitive factor at the initial stage of industry development, further growth requires the ability to assemble teams with diverse profiles and work with clients from multiple regions.

Uzbekistan's competitive advantage is therefore gradually shifting from simply offering affordable specialists toward the ability to scale qualified teams.

From software development to comprehensive outsourcing

Another change concerns the structure of the market itself.

Technology outsourcing in Uzbekistan is no longer limited to programming. The BPO segment is also expanding, covering customer support, data processing, and administrative and operational processes.

More than 540 companies and over 14,500 specialists currently operate in this segment. By comparison, BPO companies employed just 136 people in 2020.

This growth demonstrates the market's transition to the next level. International companies can now consider Uzbekistan not only as a source of developers but also as a platform for locating a range of internal functions.

KPO, a more specialized form of outsourcing requiring industry-specific expertise, is also developing. More than 300 companies operate in the logistics sector.

At the same time, the professional services market is expanding, covering accounting, auditing, recruitment, marketing, consulting and staffing and personnel placement.

This represents a fundamental change for the market. The more functions that can be localized within a single country, the greater the likelihood that a foreign company will gradually expand its presence — starting with a small support team and adding development, analytics, finance or other processes.

Exports become the key indicator of market maturity

North America currently accounts for 54% of exports by companies in the ecosystem, while the European Union and the United Kingdom account for a further 17%. The CIS and Asia-Pacific regions account for 22%, while the Middle East and North Africa account for approximately 7%.

The structure of exports also shows that the market is becoming more diversified. IT services account for 45% of exports, BPO and KPO for 35%, creative industries and GameDev for 13%, and SaaS for 7%.

The next stage of development should focus not so much on increasing the number of exporting companies as on increasing the complexity of the services themselves — moving from relatively standardized processes toward analytics, engineering solutions, product management and other higher value-added areas.

Foreign business becomes part of the local ecosystem

At the same time, the nature of international presence in the country is changing.

More than 4,000 companies currently operate within the IT Park Uzbekistan ecosystem, including over 1,100 companies with foreign capital. Companies from 75 countries are represented, and more than 56,000 jobs have been created.

For the development of the outsourcing industry, this indicator is no less important than export figures.

There is a fundamental difference between a foreign company that purchases services remotely and one that decides to establish its own team or operational center in the country. In the latter case, more long-term ties with the market are formed: the company hires employees, works with local contractors and gradually expands the scope of its operations.

Therefore, competition for international projects will take place not only among service providers but also among countries capable of offering the most straightforward path to entering the market.

Uzbekistan already has mechanisms in place for this purpose, including the soft landing framework and the Zero Risk program. These mechanisms cover office space, equipment, staff recruitment and initial operational support for companies.

Cost remains an advantage, but is no longer the main argument

Operating costs remain one of the factors influencing the choice of an outsourcing location. According to the data presented, potential cost savings in professional services in Uzbekistan can average up to 40% compared with Eastern Europe.

However, building a long-term strategy solely around cost differences is not sufficient.

As the market develops, greater importance is placed on intellectual property protection, personal data, commercial law, international payments, the ability to attract foreign specialists and the predictability of the business environment.

From this perspective, the establishment of Enterprise Uzbekistan represents a continued transition from supporting an individual sector toward creating a comprehensive infrastructure for international technology businesses. The special legal regime covers commercial and civil disputes, intellectual property, personal data, banking and government services, tax and customs matters, as well as regulatory sandboxes.

Uzbekistan has already established several of the conditions necessary to enter the global outsourcing market: a large pool of young talent, a growing IT sector, expanding BPO and KPO segments, exports to key international markets, and infrastructure to support the entry of foreign companies.

Further development, however, will be measured not only by the number of companies or specialists.

The key indicators of the next stage will include the average size of export contracts, the complexity of the functions performed, the number of large international teams established within the country, and the share of high value-added services.

It is precisely this shift from rapid quantitative growth toward more sophisticated exported services that can transform the current momentum into a sustainable position for Uzbekistan in the global technology outsourcing market.

FROM A DIGITAL AGENDA TO PRACTICAL COOPERATION

Organization of Turkic States currently counts Azerbaijan, Kazakhstan, Kyrgyzstan, Turkiye and Uzbekistan among its full members, while Turkmenistan participates in observer status. The organization holds annual summits of heads of state, establishing a mechanism for reviewing results achieved and defining directions for future cooperation.

The informal OTS summit held in Turkistan on May 15^th, 2026 likewise underscored the growing importance of digital technologies within this process. At a meeting devoted to “Artificial Intelligence and Digital Development”, President Shavkat Mirziyoyev of Uzbekistan put forward initiatives on building a strategic cooperation network in artificial intelligence, advancing cloud and quantum computing technologies, and creating a unified digital space.

The head of state also proposed developing a “Digital Turkic Corridor Concept” aimed at connecting the region's data centers through high-speed communication channels, and holding a Technology Forum in Tashkent with the participation of OTS member states. These initiatives placed on the agenda the task of elevating digital infrastructure from projects pursued by individual states to the level of regional cooperation.

Seen in this light, the existing bilateral ties within the OTS space form the practical foundation of the digital agenda ahead of the Ankara summit. A distinctive feature of today's cooperation is that it is no longer limited to agreements and meetings alone, but is also taking shape at the level of companies, exports, investment, technological infrastructure and specialists.

IT EXPORTS AND CAPITAL FLOWS: THE ECONOMIC DIMENSION OF COOPERATION

Uzbekistan's digital economy ties with OTS states can also be traced through the activities of IT Park Uzbekistan.

Cooperation with Kazakhstan stands out for its particularly broad scope of indicators. As of the first half of 2026, 79 enterprises with Kazakh capital were operating as residents of IT Park Uzbekistan. Over the six-month period, these companies provided export services worth $3.1 million and created 1,409 jobs. During the same period, the number of companies exporting IT services from Uzbekistan to Kazakhstan reached 114, with export volume totaling $8.2 million and employing 2,299 people.

This cooperation is not confined to bilateral export figures alone. Since 2024, mechanisms for bringing Central Asian startups to international markets have begun taking shape within the Central Asian Innovation Hubs partnership. Through ties between Kazakhstan's Astana Hub and Uzbekistan's IT Park Uzbekistan, startups are participating in international acceleration programs, investment events and projects aimed at entering foreign markets.

Digital economy cooperation with Azerbaijan is likewise expanding steadily. According to preliminary data for the first half of 2026, the number of IT Park residents with Azerbaijani capital reached 16. These companies provided export services worth $2.6 million over six months and created 137 jobs. In turn, the number of resident companies exporting services to the Azerbaijani market reached 19, with export volume totaling $1,282,700.

Ties with Kyrgyzstan in IT and digital services are also developing at a notable pace. By the end of the first half of 2026, 28 enterprises with Kyrgyz capital were operating as IT Park residents. These companies provided export services worth $974,000 and created 255 jobs. During the same period, the number of companies exporting IT services from Uzbekistan to the Kyrgyz Republic reached 39, with export volume totaling $3.3 million and employing 1,939 people.

These figures point to a steadily strengthening economic substance within digital cooperation among the Turkic states. IT services exports, engagement with local markets, companies with foreign capital participation and new job creation are emerging as mutually reinforcing processes.

STARTUPS AND VENTURE CAPITAL: NEW MECHANISMS FOR A SHARED TECHNOLOGICAL SPACE

Another important direction of digital cooperation involves linking startup ecosystems and expanding shared opportunities for venture capital.

In 2023, representatives of the technology ecosystems of Uzbekistan, Kazakhstan and Kyrgyzstan held a dialogue titled “Central Asia's Emerging Digital Market”. The discussion advanced the idea of developing Central Asia not as a collection of separate national markets but as a unified technological space for global investors. In subsequent years, this approach has been reinforced by the emergence of regional acceleration and export mechanisms for startups.

Expanding activity of Kazakh venture funds in Uzbekistan represents one of the practical manifestations of this process. In 2025, the Big Sky Capital fund began operating in Uzbekistan, while White Hill Capital was selected among international venture funds by the IT Park Ventures fund. The parties are working to establish a co-investment structure based on equal participation.

At the informal OTS summit held in Turkistan in May 2026, the President of Uzbekistan invited OTS member states to join a joint venture fund being established by Uzbekistan and Kazakhstan to finance promising youth startups, innovative developments and AI-based solutions. This initiative reflects an approach focused on linking national startup ecosystems through shared capital, expertise and markets, rather than developing them in isolation from one another.

The first Technology Forum of the Organization of Turkic States was held in Tashkent as part of ICT Week Uzbekistan 2026, at the initiative of President Shavkat Mirziyoyev. The proposal to hold a Technology Forum in Tashkent with the participation of OTS member states had been advanced by the head of state at the informal OTS summit in Turkistan in May 2026. The forum brought together representatives of leading technology parks and innovation agencies from Uzbekistan, Azerbaijan, Kazakhstan, Kyrgyzstan and Turkiye.

Within the forum, a memorandum was signed between IT Park Uzbekistan, the Azerbaijan Innovation and Digital Development Agency, Astana Hub, the High Technology Park of the Kyrgyz Republic and Bilişim Vadisi. The document is aimed at the systematic development of cooperation among the technological and innovation ecosystems of the Turkic states.

Under the memorandum, the OTS Technology Forum will be held annually on a rotating basis in one of the member states, with the heads of technoparks and innovation organizations to meet regularly to discuss cooperation outcomes and new joint initiatives.

In addition, IT Park Ventures and Bilişim Vadisi signed a cooperation memorandum within the forum aimed at strengthening ties between the startup and investment ecosystems of Uzbekistan and Turkiye. Key areas of this cooperation include the exchange of promising startups and investment opportunities, along with the joint review of potential deals, attracting investors, and developing mechanisms to support technology companies' entry into and expansion within international markets.

DIGITAL GOVERNMENT AND TELECOMMUNICATIONS: THE INFRASTRUCTURE LAYER OF COOPERATION

Digital cooperation with the Turkic states is not confined to IT business alone. E-government, telecommunications, data exchange and state information systems are likewise becoming increasingly significant areas of engagement.

In the field of e-government, cooperation with Azerbaijan has been established between the Digital Government Projects Management Center and the “ASAN” agency. Practical assistance has also been provided to Azerbaijan's “DOST” agency in introducing an online queuing service for socially vulnerable population groups.

Ties with Kazakhstan in cross-border data exchange and digital government services are likewise advancing. Within a pilot project on data exchange in tourism launched in 2025, the legal and technical foundations for cross-border data exchange among Uzbekistan, Kazakhstan and Korea have been developed. Subsequent stages envisage extending this mechanism to other priority areas and establishing a unified platform for interstate data exchange.

Bilateral mechanisms have likewise taken shape in telecommunications. Traffic exchange through international communication channels has been established with Kazakhstan, while services related to international internet connectivity, channel leasing and international traffic exchange are being carried out with Kyrgyzstan.

In his address at the Turkistan summit, the President of Uzbekistan noted that the “E-Permit” electronic permit system had been fully launched between Uzbekistan and OTS member states, and advanced practical objectives concerning the digitalization of customs and transit procedures, the expansion of data exchange, and improved efficiency of logistics chains.

Digital transformation within the OTS framework is thus emerging not as a collection of separate technological projects, but as an infrastructural layer connecting trade, logistics, customs, government services and telecommunications processes.

TIES WITH TURKIYE AND TURKMENISTAN: OTHER AREAS OF COOPERATION

Within digital cooperation with Turkiye, professional development and workforce training occupy a distinct place. Through TIKA, various professional development programs and short-term training courses are being carried out in Uzbekistan. Proposals exist for further deepening cooperation in digital technologies, state information systems, digital healthcare and cybersecurity.

This approach places particular emphasis on human capital, a factor of central importance to the digital economy. The sustainable development of a technological ecosystem depends not only on infrastructure and investment, but equally on training qualified specialists, exchanging international experience and building new competencies.

Turkmenistan participates in the OTS in observer status. Cooperation with Uzbekistan also exists in the digital economy and telecommunications sectors. As of the end of the first quarter of 2026, three IT Park residents with Turkmen capital were operating. A contract for international telecommunications services also remains in effect between “Uztelecom” and “Turkmentexnokurilishyk” of Turkmenistan.

A PRACTICAL FOUNDATION TAKING SHAPE AHEAD OF THE ANKARA AGENDA

The current picture indicates that digital cooperation among the Turkic states is gradually evolving from a collection of individual projects into a systematic ecosystem. Within this process, ties among IT services exports, foreign capital and startups are strengthening on one hand, while infrastructural areas such as data exchange, e-government, logistics, telecommunications and cybersecurity are advancing on the other.

The initiatives put forward by Uzbekistan at the informal summit in May 2026 have likewise defined the next stage of this process. Proposals concerning a strategic cooperation network in artificial intelligence, the “Digital Turkic Corridor Concept”, holding a Technology Forum in Tashkent, expanding joint venture financing mechanisms, and cooperation in cross-border data exchange and cybersecurity are giving the digital agenda a broader, regional character.

From this standpoint, the existing bilateral experience serves as an important practical foundation for the 13th Summit of the Organization of Turkic States to be held in Ankara. Uzbekistan's digital ties with OTS states today span a wide range, from companies and export geography to startup investment, government services, data exchange and digital infrastructure.

The principal task ahead lies in developing these ties not as separate, isolated directions, but as an interconnected technological and economic space. Such a model could give rise to new markets for IT companies, capital and acceleration opportunities for startups, international experience for specialists, and new mechanisms for digital infrastructure and data exchange among states.

This is precisely what matters most ahead of the Ankara summit: digital cooperation within the OTS framework is no longer about technology alone. It is shaping the digital dimension of processes ranging from trade and investment to human capital, logistics, public administration and regional connectivity. Uzbekistan's bilateral experience accumulated in recent years remains one of the key factors defining the practical substance of this agenda.

Today, cooperation agenda between Uzbekistan and Azerbaijan is gradually taking on a regional dimension. Tashkent and Baku are increasingly viewed not merely as two independent technology hubs, but as potential links connecting the innovation ecosystems of Central Asia and the South Caucasus.

Additional institutional groundwork for long-term cooperation was laid by the outcomes of the Uzbek-Azerbaijani summit in August 2026, during which a Treaty on Eternal Friendship between the two states was signed.

From Interagency Dialogue to Practical Cooperation

One of the starting points for modern cooperation in technology and innovation was June 2022. During Azerbaijani President Ilham Aliyev’s state visit to Uzbekistan, the Ministry of Digital Development and Transport of Azerbaijan and the Ministry for Innovative Development of Uzbekistan signed a Memorandum of Understanding.

Practical implementation of these agreements began just a few months later. In September 2022, Uzbek specialists visited the Ministry of Digital Development and Transport of Azerbaijan and its affiliated organizations. The delegation familiarized itself with the activities of Azercosmos, including the management of telecommunications satellites and Earth observation technologies, and studied the work of Azerbaijan’s Innovation and Digital Development Agency (IDDA) and its startup support mechanisms. One of the earliest areas of cooperation was therefore the exchange of practical experience in developing innovation and digital infrastructure.

The next important stage of cooperation came at the end of 2023, when a delegation from the Ministry of Digital Technologies and IT Park Uzbekistan visited Baku and took part in the INMerge Innovation Summit. As part of the visit, Uzbek representatives also held a meeting with PASHA Holding, which became an important point of contact for establishing business ties and discussing prospects for cooperation in innovation, digital technologies, and startup ecosystem development.

During talks with the Ministry of Digital Development and Transport of Azerbaijan, the parties identified areas such as e-government, telecommunications, electronic document management, and digitalization. An interagency working group was formed to further develop these projects. At the same time, substantive dialogue began with IDDA on the development of startup and venture ecosystems and the organization of joint acceleration programs.

Thus, from 2022 onward, Uzbek-Azerbaijani digital cooperation gradually moved from studying experience and establishing institutional contacts toward practical cooperation between the technology ecosystems of the two countries.

IT Business Becomes a Distinct Area of Bilateral Relations

The development of intergovernmental engagement has been accompanied by an expansion of direct ties between IT companies from both countries.

By the end of the first half of 2026, the number of IT Park Uzbekistan resident companies with Azerbaijani capital reached 16.

The volume of export services provided by companies with Azerbaijani capital exceeded $2.5 million in the first half of 2026 alone, already surpassing the figure for the whole of 2025, which stood at more than $2.3 million. These companies have created 172 jobs.

Their main areas of activity are software development and implementation, technical support, and software licensing. Companies with Azerbaijani capital include, among others, Financial Chain Corporation and Robertson and Blums.

At the same time, exports of Uzbek digital services to the Azerbaijani market are also growing. In the first half of 2026, 21 IT Park Uzbekistan companies exported services to Azerbaijan. Export volume exceeded $1.2 million, nearly matching the figure for all of 2025, which reached $1.34 million.

Companies serving the Azerbaijani market employ approximately 700 specialists. Among the largest exporters are T4Data, which works with SAP solutions, and Transproekt and IT A-Plus Solutions Software, which specialize in software development.

Startups and Venture Capital: A Fast-Growing Area

One of the key elements of Uzbek-Azerbaijani technological engagement has been the development of the startup ecosystem.

The first practical bridges began forming as early as 2023. IT Park Uzbekistan served as an information partner for Azerbaijan’s SABAH.lab acceleration program, which prepared technology companies for investment and provided funding opportunities for selected projects.

During the 2023 INMerge Innovation Summit in Baku, Uzbek startups TASS Vision, Workly, Sug’urta Bozor, and Uysot had the opportunity to present their projects to international venture funds, including 500 Global, Caucasus Ventures, White Hill Capital, Seedstars, TA Ventures, and Plug and Play.

At the same time, discussions were held with SABAH.HUB on investment in Uzbek startups and the development of university incubation programs, as well as with Azerbaijan’s Innovation and Digital Development Agency on joint acceleration projects.

In November 2024, four Uzbek startup projects were presented under the “Central Asian Innovation Hubs” brand at the InMerge innovation summit in Baku, marking the beginning of more active bilateral engagement in the startup sphere. This partnership was further developed on May 6, 2026, when IT Park Uzbekistan and PASHA Holding jointly held the “InMerge Uzbekistan Innovation Summit” in Tashkent, bringing together more than 40 startups and around 20 international experts and speakers, along with investors, corporations, and government representatives, to discuss business partnerships and investment attraction.

A practical outcome of this cooperation was that Azerbaijani startups “Push30” and “Clopos” attracted a combined $500,000 in investment from local funds IT Park Ventures and Aloqa Ventures as part of their expansion into Uzbekistan. At the same time, Uzbek startup “Recepta” secured $150,000 in investment from IT Park Ventures under the “Digital Startup Awards” program. Reciprocal activity has also been demonstrated by Uzbek startups “Tass Vision,” “Promptlab,” and “Oson,” which are actively expanding into the Azerbaijani market, as well as by startup “Sino AI,” which has been integrated into a clinic in Azerbaijan and is undergoing testing with 50 users.

A particularly notable practical outcome was Azerbaijan’s participation in the Digital Startup Awards 2025, organized by the Ministry of Digital Technologies of Uzbekistan, IT Park Uzbekistan, and IT Park Ventures.

Azerbaijani projects took part in several tracks simultaneously, including incubation, acceleration, and the “Best Startup Project” category. Startups from Azerbaijan received a combined total of $70,000 through the program. Recepta received $50,000 under the acceleration program, Lingozy and SnackPack AZ received support through incubation, while StarkidStories and Tryverse represented Azerbaijan in the finals of the Best Startup Project category.

This marks an important qualitative shift: capital is beginning to flow between the two ecosystems in both directions, creating the foundations for a regional venture capital market.

From Acceleration to Joint Work on AI Projects

Artificial intelligence is gradually becoming a distinct area of technological cooperation.

In June 2026, IT Park Uzbekistan, IT Park Ventures, Azerbaijan’s SABAH.HUB, and Founders Hub organized a Startup Deep Dive practical session for technology entrepreneurs in Tashkent. Selected startups had the opportunity to present their products to a SABAH.HUB expert and receive an assessment of their business models, market potential, and readiness for investment and international scaling.

Particular emphasis in the program was placed on startups considering Azerbaijan as their next market for expansion.

Alongside startup cooperation, another strategically important area developing in parallel is training and the exchange of professional competencies.

A notable example was the 3rd International Training Camp in Competitive Programming, held in Baku from August 20 to 27, 2026. Uzbekistan was represented by four teams, including teams from Tashkent University of Information Technologies, New Uzbekistan University, and the Tashkent branch of Moscow State University.

Three of these teams were winners of the IT Park Code Cup, and their participation was supported by IT Park Uzbekistan. Over the course of seven days, students worked on problems from one of the world’s most rigorous international competitive programming training programs and exchanged knowledge with foreign teams and coaches.

What the Next Stage of Cooperation Will Look Like

The experience accumulated so far points to the gradual formation of a new direction in Uzbek-Azerbaijani relations in the field of digital technologies.

While the first stage was centered on familiarization visits and the exchange of government experience, and the second on participation in joint events and startup programs, the next stage will involve establishing permanent infrastructure for technological cooperation.

ICT Week Uzbekistan 2026 will serve as an important platform for continuing this dialogue. As part of the week, a technology forum of the Organization of Turkic States is also planned to be held in Uzbekistan, with representatives of Azerbaijan’s technology ecosystem participating.

Looking ahead, this interconnection between the two ecosystems could become one of the region’s key competitive advantages. It creates conditions for the emergence of new cross-border companies, joint investment mechanisms, and technological solutions capable of scaling across multiple markets simultaneously.

In this way, Uzbekistan and Azerbaijan are gradually forming an ecosystem that could become an independent hub for attracting entrepreneurs, capital, and technology professionals, strengthening the region’s role in the global innovation economy.