On the Inaugural Meeting of the Peace Council in Washington

At the invitation of the President of the United States Donald Trump, President of the Republic of Uzbekistan Shavkat Mirziyoyev paid a working visit to Washington on February 17–19 to participate in the inaugural meeting of the Peace Council. The visit combined a substantive political agenda with an extensive economic program and resulted in a number of agreements aimed at further strengthening Uzbek-American strategic partnership and expanding bilateral cooperation across key sectors.

Expanding Participation in Addressing Global Challenges

The Peace Council is an intergovernmental initiative put forward by President Trump within the framework of the Gaza peace plan endorsed by the UN Security Council in November 2025. The establishment of this platform is intended not only to coordinate humanitarian assistance but also to create institutional mechanisms for long-term stabilization, reconstruction, and socio-economic recovery of the Gaza Strip, while reducing the risks of renewed escalation in the Middle East.

The Charter of the Peace Council was signed on January 22, 2026, on the sidelines of the World Economic Forum in Davos. Signatories included leaders and representatives of Azerbaijan, Argentina, Armenia, Bahrain, Bulgaria, Hungary, Indonesia, Jordan, Kazakhstan, Qatar, Morocco, Mongolia, the United Arab Emirates, Pakistan, Paraguay, Saudi Arabia, Türkiye, Uzbekistan, and Kosovo. Subsequently, Belarus, Albania, Cambodia, Egypt, El Salvador, Jordan, and Kuwait officially joined the group of founding states, expanding the Council’s geographic and political representation.

By joining the founding members at the invitation of the U.S. President, Uzbekistan reaffirmed its commitment to peaceful diplomacy, respect for international law, and shared responsibility for maintaining global stability. Uzbekistan recognized Palestine in 1994 and consistently supports the right of the Palestinian people to establish an independent state in accordance with international legal norms and UN resolutions.

Uzbekistan’s policy toward Gaza combines principled political positioning with practical humanitarian engagement. In 2023, Uzbekistan allocated $1.5 mln through UNRWA. In December 2023, 100 wounded Palestinian women and children were evacuated and provided with medical treatment and rehabilitation services. In 2025, Uzbekistan developed a comprehensive state support mechanism for Palestinian citizens received in the country, including asylum procedures, access to healthcare, education for children, and employment assistance. A dedicated fund under the National Agency for Social Protection was established to finance these measures through budgetary and charitable resources.

The inaugural meeting of the Peace Council held on February 19 in Washington brought together leaders and representatives of more than 40 countries. Discussions focused on humanitarian relief, infrastructure restoration, and ensuring the sustainability of the post-conflict recovery process. At the opening of the session, President Trump announced that nine countries – Kazakhstan, Azerbaijan, the UAE, Morocco, Bahrain, Qatar, Saudi Arabia, Uzbekistan, and Kuwait – had jointly pledged $7 bn in assistance to Gaza, while the United States committed an additional $10 bn to support the Council’s activities.

In his address, President Mirziyoyev expressed full support for the peace initiative and confirmed Uzbekistan’s readiness to participate practically in its implementation. Particular emphasis was placed on the principle that any external governance framework for Gaza must rely on internal public support in order to ensure legitimacy, stability, and long-term effectiveness.

Highlighting the importance of coordinated international efforts, the President noted that joint actions would help secure the sustainability of the post-conflict process and accelerate socio-economic recovery. Uzbekistan also declared its readiness to contribute to the construction of residential housing, schools, kindergartens, and healthcare facilities in Gaza, thereby supporting both humanitarian and development objectives.

The Palestinian and Gaza issue has remained on the international agenda for decades without a comprehensive solution. In this context, the creation of the Peace Council represents one of the most structured multilateral attempts in recent years to address the crisis, while Uzbekistan’s participation among the founding states reflects the growing recognition of its constructive diplomatic role.

Expanding Trade and Economic Cooperation

Alongside political dialogue, the economic dimension of the visit formed a central pillar of bilateral engagement. In recent years, Uzbekistan and the United States have steadily restored institutional mechanisms of strategic partnership and expanded practical cooperation.

Cooperation with the U.S. Export-Import Bank resumed in 2017 after a 13-year hiatus. Agreements were concluded between Amazon and Uztrade, while science, technology, and economic modernization were identified among priority cooperation areas. In 2018, a $100 mln memorandum on trade financing was signed between Eximbank and Uzbekistan’s National Bank for Foreign Economic Activity. Cooperation with Openbucks supported the development of e-commerce and digital payment infrastructure.

A major milestone was reached in September 2025 during the 80th UN General Assembly in New York, where negotiations between the two presidents resulted in the formation of a portfolio of contracts and prospective projects exceeding $100 bn. The agreements covered aviation, mining and chemicals, energy, finance, and innovation. Specific arrangements included cooperation with Denali Exploration Group on rare earth elements, Re Element Technologies in rare earth metals, Flowserve on modernization of pumping stations, Valmont Industries on water-saving technologies, and Palo Alto Networks in artificial intelligence.

During the Washington visit, President Mirziyoyev held meetings with U.S. Secretary of Commerce Howard Lutnick, Eximbank President John Jovanovic, DFC CEO Ben Black, and U.S. Trade Representative Jamieson Greer. Discussions focused on expanding financing for major industrial and infrastructure projects, supporting high-tech equipment exports, launching a bilateral Investment Platform, advancing Uzbekistan’s WTO accession, and strengthening regional trade cooperation under TIFA. The agreement establishing the Investment Platform was formally signed during the visit.

Additional bilateral documents were concluded covering construction of fuel station networks, sprinkler irrigation technologies, extraction and supply of critical minerals, development of poultry clusters, agro-industrial cooperation, financial market development, and investment climate reforms. The economic agenda was identified as one of the key pillars of Uzbek-American strategic partnership, with priority cooperation areas including critical raw materials, petrochemicals, energy, agriculture, and industrial modernization.

Trade and Investment Dynamics

The intensification of bilateral cooperation has already produced tangible economic results. Between 2017 and 2025, trade turnover increased 4.7-fold from $215 mln to $1 bn. Exports grew 9.1-fold to $291.7 mln, while imports rose 3.9-fold to $712.3 mln.

Exports to the United States are dominated by services (81%), including programming, financial, information, and transport services. Petroleum products account for 8.6%, machinery and equipment 3.7%, food products 3.5%, and industrial goods 3.3%.

Imports from the United States are led by machinery and equipment (59%), including aircraft, vehicles, computing equipment, engines, pumps, and industrial installations. Services account for 20.5%, chemicals 9.7%, industrial goods 3.8%, food products 3.2%, and manufactured goods 2.2%.

Investment cooperation has expanded dynamically. U.S. FDI and loans increased nearly 64-fold from $8.6 mln in 2017 to $383.2 mln in 2025, with cumulative inflows exceeding $2.9 bn. As of February 2026, 346 enterprises with U.S. capital operate in Uzbekistan, including 146 joint ventures and 200 wholly foreign-owned firms. Investments are concentrated in manufacturing, mining, construction, services, and agriculture.

Prospects for Deeper Economic Partnership

Recent dynamics indicate a transition from trade expansion toward long-term technological and industrial partnership. While services dominate exports, significant untapped potential remains in agro-processing, textiles, non-ferrous metallurgy, and higher value-added manufacturing.

Given annual U.S. imports of $118 bn in textiles and apparel, $539 bn in food products, and $213 bn in pharmaceuticals, even limited market penetration could significantly expand Uzbek exports and rebalance their structure.

Technology cooperation represents a separate strategic track. The United States accounts for 45% of Uzbekistan’s IT exports, with 448 of 800 exporters supplying digital services to the U.S. market. The next phase may involve joint industrial production in electronics and microelectronics with companies such as NVIDIA, Intel, and Qualcomm, enabling integration into global value chains.

Energy cooperation could support infrastructure modernization and renewable energy deployment, while pharmaceutical localization and joint R&D with companies such as Pfizer, Johnson & Johnson, and Merck offer additional avenues for technology transfer and investment.

Privatization and PPP initiatives create further opportunities. By 2030, the private sector share in Uzbekistan’s economy is projected to reach 85%, with stakes in 2,000 enterprises planned for sale and $30 bn in PPP projects to be launched. Cooperation with U.S. capital markets, including the NYSE and Nasdaq, may further support the development of Uzbekistan’s financial infrastructure.

Conclusion

President Mirziyoyev’s visit to Washington and participation in the inaugural Peace Council meeting carry both diplomatic and economic significance.

Uzbekistan’s engagement in the Council strengthens its international standing and expands its contribution to addressing global challenges. At the same time, the agreements reached and the expanding portfolio of joint projects elevate Uzbek-American relations to a new stage characterized by deeper institutional cooperation, industrial integration, and long-term strategic trust.

Viktor Abaturov,

Center for Economic Research and Reforms

In January, growth in the business climate was mainly driven by an outpacing increase in the expectations component. The agricultural sector and services became the key drivers of business confidence.

The Center for Economic Research and Reforms (CERR) presented the results of its business climate analysis based on monthly surveys of entrepreneurs across the republic. Based on the collected data, a composite Business Climate Indicator was formed, reflecting both current assessments of business conditions and expectations for the next 3 months.

Dynamics of Uzbekistan’s Composite Business Climate

In January of the current year, Uzbekistan’s composite Business Climate Index stood at 64 points (on a scale from −100 to +100), which is 23% higher than the level of 2025.

The improvement in the business climate was primarily driven by stronger assessments of the current business situation, which increased by 28%.

An additional contribution came from improved optimism regarding short-term business prospects. In particular, business expectations rose by 20%.

According to the survey, 22% of enterprises increased their number of employees. At the same time, 71% of respondents expect demand for their products to grow over the next three months, compared to about 60% in the same period last year.

The share of enterprises forecasting an increase in employment in the coming quarter rose to 65%, up from 58% a year earlier.

Sectoral Dynamics of the Business Climate Index

In sectoral terms, an improvement in the business climate compared to last year was observed in construction, agriculture, and services.

In agriculture, the Business Climate Index increased by 62% year-on-year and reached 77 points, compared to 48 points in January 2025.

Growth was mainly supported by a significant improvement in assessments of current conditions and more favorable expectations. The current situation indicator in the sector increased 2.7 times from 27 to 72 points, while expectations grew by 17% to reach 82 points.

44% of entrepreneurs assessed the condition of their business in the sector as “good,” compared to 39% a year earlier. Growth in demand for products over the past three months was reported by 46% of enterprises versus 39% in January last year. Expectations for further demand growth in the near term remain high at 71%, compared to 68% a year earlier.

In the services sector, the business climate increased by 25% compared to January last year, reaching 65 points versus 52 points a year earlier.

Growth was driven by a gradual improvement in current business conditions. Current assessments in services rose by 18% to 52 points. At the same time, a more pronounced increase was observed in the expectations component, which grew by 32% to 79 points, indicating a substantial strengthening of companies’ confidence in short-term prospects.

70% of entrepreneurs expect demand for their services to grow over the next three months, compared to 58% in January 2025. The share of enterprises expecting to increase employment in the coming quarter amounted to 61%, up from 54% a year earlier.

In the construction sector, the business climate increased by 13% to 61 points, compared to 54 points a year earlier. The current situation indicator improved by 43% to 57 points. Expectations were formed at the level of 66 points, showing a decline of 4%.

38% of respondents reported that business conditions in construction had improved over the past three months, compared to 35% a year earlier. The share of enterprises reporting workforce growth rose to 38% from 22% a year earlier. Expectations of demand growth over the next three months were expressed by 77% of entrepreneurs, compared to 61% in January last year.

In industry, the business climate slightly declined by 5% compared to last year, while remaining at a sufficiently high level of 54 points.

At the same time, optimism among industrial enterprises remains steadily high. In January, expectations increased by 10%, reaching 78 points, indicating a continued positive outlook regarding development prospects.

According to the survey, the share of respondents reporting an improvement in business conditions over the past three months reached 32%, compared to 30% a year earlier. Demand growth over the same period was noted by 38% of industrial enterprises versus 36% in January last year. Meanwhile, employment expansion plans strengthened — 69% of entrepreneurs expect to increase their workforce in the next three months, compared to 62% a year earlier.

Barriers to Entrepreneurial Activity

According to the survey, more than half (57%) of entrepreneurs see no barriers in their activities. Among the problems cited, the most frequent are taxation (11%), utilities (9%), and access to credit (8%).

CERR Sector for the Study of Sectoral Competitiveness and Investment Activity

Tel: (78) 150 02 02 (441)

CERR Public Relations and Media Sector

Tel: (78) 150 02 02 (417)

Comprehensive monitoring of key business activity indicators across the regions of Uzbekistan shows growth across all major metrics.

According to оперативные данные from the Tax and Customs Committees, the Central Bank, and the Uzbek Republican Commodity Exchange, the Center for Economic Research and Reforms conducts ongoing monitoring of regional business activity in the Republic of Uzbekistan.

As of January this year, tax revenues demonstrated stable positive dynamics, increasing by 39.2% compared to the same period last year.

The most notable increase in revenues was recorded in the Syrdarya, Navoi, Khorezm, and Kashkadarya regions, where growth rates averaged approximately 49%.

Personal income tax revenues increased by 15.1%, property tax revenues by 19.6%, and land tax revenues by 20.3%.

Customs payments grew by 19.8% year-on-year. The highest growth rates were observed in the Navoi, Jizzakh, and Namangan regions, averaging approximately 67%.

Stable positive dynamics were also recorded in the Samarkand region and the Republic of Karakalpakstan, where revenues increased on average by 31%.

According to the analysis of foreign economic indicators, exports of goods increased by 19.5%. The most significant growth in export deliveries was observed in the Tashkent and Navoi regions, increasing on average by 47%.

At the same time, a notable expansion in lending activity was recorded. During the reporting period, the volume of loans issued by commercial banks increased by 2.7%. The highest growth was observed in the Samarkand, Bukhara, and Khorezm regions, averaging approximately 58%.

The active development of the private sector is confirmed by a significant increase in the number of newly registered business entities. In January 2026, a total of 7,116 new enterprises were registered. The largest number of new business entities was recorded in the city of Tashkent (1,712). Among the regions, the leaders were Tashkent region (735), Samarkand region (610), and Khorezm region (550).

The volume of transactions on the Uzbek Republican Commodity Exchange increased 1.8 times. Growth in exchange activity was recorded in most regions of the country, particularly in the Syrdarya region, where activity increased 11.1 times. In addition, growth was observed in the Khorezm, Surkhandarya, Bukhara, Jizzakh, and Kashkadarya regions, averaging 6.5 times.

Sultonmurod Ozodov,

Center for Economic Research and Reforms

An expert from the Institute for Strategic and Regional Studies under the President of Uzbekistan, commented to Dunyo IA on the outcomes of President Shavkat Mirziyoyev’s working visit to the United States, which took place from February 17 to 19:

- The visit of the President of Uzbekistan to the United States, which took place as part of his participation in the first meeting of the Board of Peace, was not just another diplomatic event, but a logical continuation of the strategy of pragmatic and mutually beneficial dialogue with Washington built over recent years. It demonstrated a shift from symbolic political interaction to systemic coordination in security, economics, trade, and humanitarian exchanges.

This visit marked the culmination of an intensive partnership over the past six months. Meetings on the sidelines of the UN General Assembly, the C5+1 summit, participation in events in Davos, and the signing of the Charter of the Board of Peace, as well as personal contacts between the two leaders, have fostered a stable dynamic of political dialogue. This fifth summit in six months demonstrates that relations have entered a phase of regular strategic communication, with each meeting reinforced by concrete agreements.

The visit’s busy business program confirmed its practical nature. During his stay in the United States, the head of state held talks with representatives of the American administration, financial institutions, and business circles, including the Export-Import Bank of the United States, the International Development Finance Corporation, the American-Uzbekistan Chamber of Commerce, as well as the heads of major companies such as Traxys, Valmont Industries, Gulf Oil, Aviagen, John Deere, BlackRock Financial Markets Advisory, Oppenheimer, and others. Following the signing of bilateral documents, the parties solidified agreements in priority areas such as the agro-industrial complex, critical minerals, financial market development, improving the investment climate, and the creation of an investment platform.

Discussions with the US Trade Representative and the Secretary of Commerce deserve special attention. During these talks, the need to intensify work within the framework of the Trade and Investment Framework Agreement between the countries of Central Asia and the United States was emphasized. This gave cooperation not only a bilateral but also a regional dimension, strengthening Uzbekistan’s position as a coordinator of economic processes in the region.

Viewed historically, the current stage’s foundation was laid back in 2018 during Shavkat Mirziyoyev’s first official visit to Washington, when agreements worth over $4.8 billion were signed. This package signaled Uzbekistan’s systemic openness to international businesses. In 2021, the Strategic Partnership Dialogue was established, and its subsequent expansion testifies to the institutionalization of bilateral relations. The invitation of the Uzbek leader to the G20 summit in Miami, personally initiated by US President Donald Trump, further confirmed the country’s strengthening international status and recognition of its growing role on the global agenda.

The economic dimension of cooperation is demonstrating steady growth. While trade turnover stood at $408 million in 2018, it consistently exceeded $1 billion by the end of 2024-2025. The current three-year Economic Cooperation Program, worth $35 billion, reflects the long-term nature of the parties' intentions. At the same time, the structure of interaction is undergoing a qualitative change: the emphasis is shifting from trade operations to the implementation of investment and production projects.

Today, flagship American companies such as Air Products, General Electric, General Motors, Boeing, Honeywell, and John Deere are actively operating in Uzbekistan. The $8.7 billion package of agreements signed at the C5+1 summit, including a contract for 22 Boeing aircraft, investments in the critical minerals sector, and projects in the agro-industrial sector, confirms the practical focus of the dialogue.

The transformation of the export structure is particularly revealing: services now account for approximately 86% of Uzbek exports to the US, with the IT sector remaining the key driver. Of the 800 active digital services exporters, 448 target the US market, accounting for 45% of all industry exports. This demonstrates that the partnership is gradually becoming more high-tech, moving beyond traditional commodity-based models.

The humanitarian dimension of cooperation is no less important. Academic exchange is expanding, the number of joint research projects is growing, and the integration of Uzbek specialists into international educational networks is strengthening. Currently, 40 Uzbek universities are implementing partnership programs with more than 25 US universities. Webster University’s Tashkent branch and the American University of Technology, established jointly with Arizona State University, are successfully operating. Thus, a long-term intellectual infrastructure for strategic partnership is being formed.

Overall, the current stage of relations between Uzbekistan and the United States is characterized by a transition from symbolic declarations to systemic coordination on issues of regional security, sustainable development, investment policy, and technological modernization. These achievements confirm that Uzbekistan is steadily establishing itself as a key US partner in Central Asia.

Dunyo IA

On 17–19 February, the President of Uzbekistan, Shavkat Mirziyoyev, will pay a visit to the United States and take part in the inaugural meeting of the Peace Council, a new international body established as a multilateral platform to promote dialogue and the peaceful resolution of pressing global and regional conflicts.

The Peace Council was founded in January 2026 at the World Economic Forum in Davos, where the founding charter was formally signed in a ceremony attended by heads of state and government, as well as representatives of several founding countries.

Launched earlier this year, the initiative has garnered the support of a number of states, including Uzbekistan, which joined as a founding member, thereby reaffirming its commitment to the principles of peaceful diplomacy, multilateral engagement, and shared responsibility for maintaining international stability.

The establishment of the Peace Council represents a logical continuation of the international community’s efforts to develop effective mechanisms for conflict prevention and to seek political and diplomatic solutions to the most acute crises of our time, particularly in the Middle East.

Uzbekistan’s participation in the creation of this structure reflects Tashkent’s consistent foreign policy course aimed at promoting dialogue, respect for international law, and the rejection of force-based scenarios. The country’s position on the Palestinian issue—grounded in support for a just and sustainable peace settlement in accordance with United Nations resolutions—has gained additional international resonance within the framework of this initiative.

The upcoming participation of the Uzbek head of state in the first meeting of the Peace Council also aligns with the recent intensification of Uzbek–American political dialogue. Over the past six months, high-level contacts between Tashkent and Washington have significantly increased, signaling a qualitatively new stage in bilateral relations.

In September of last year, the President of Uzbekistan visited New York to attend a regular session of the United Nations General Assembly, where he held meetings with world leaders and heads of international organizations and discussed key issues on the global and regional agenda.

Further momentum was generated in early November 2025 during the Uzbek President’s working visit to the United States, which included talks with the U.S. President, as well as meetings with representatives of the American establishment, Congress, and business circles. Particular attention during the visit was devoted to strategic partnership, economic cooperation, investment engagement, and regional security, including the “C5+1” format, viewed by both sides as an effective mechanism for coordinating efforts in Central Asia.

Contacts between Tashkent and Washington have been maintained across various channels, including telephone conversations and interagency cooperation. An additional indication of growing mutual trust has been the expansion of economic dialogue and the establishment of new business cooperation platforms, reflecting a shared interest in deepening practical engagement. In the United States, Uzbekistan is increasingly perceived as a reliable, predictable, and responsible partner pursuing a balanced and pragmatic foreign policy.

Uzbekistan’s participation in the Peace Council is thus seen as further evidence of the country’s growing international standing and recognition of its constructive role in global affairs. For Washington, it also confirms that Tashkent is an important partner in advancing initiatives aimed at strengthening peace, security, and sustainable development across Eurasia and beyond.

Amid the intensification of political dialogue, Uzbek–American cooperation continues to expand across key areas. These include collaboration in regional security, support for economic reforms in Uzbekistan, the development of trade and investment, and the deepening of humanitarian and educational ties. Joint projects in energy, digitalization, infrastructure, and human capital development are laying a solid foundation for a long-term partnership.

In sum, the forthcoming participation of the President of Uzbekistan in the inaugural meeting of the Peace Council not only underscores the country’s active role in shaping a new architecture of international dialogue, but also complements the positive trajectory of Uzbek–American relations. The visit to the United States will undoubtedly contribute to elevating interaction between Tashkent and Washington to a stable strategic level, serving the interests of both sides and the broader goal of strengthening peace and stability in the region and worldwide.

«Dunyo» IA

At the invitation of the President of the United States, Donald Trump, the President of Uzbekistan, Shavkat Mirziyoyev, will pay a working visit to Washington, D.C. on February 17–19 of this year to participate in the inaugural meeting of the Peace Council. The Center for Economic Research and Reforms (CERR) has prepared an infographic presenting key indicators of trade, economic and investment cooperation between Uzbekistan and the United States over the past 9 years.

History of visits

The President of the Republic of Uzbekistan has visited the United States several times on working visits aimed at expanding bilateral Uzbek-American cooperation, as well as participating in events organized by the United Nations. The first official visit of the Head of our State to the United States took place on May 15–17, 2018 at the invitation of the U.S. President. During the visit, negotiations were held at the White House, the U.S. Congress and the Pentagon, and agreements were signed that marked the beginning of a new stage in the development of Uzbek-American relations.

In subsequent years, dialogue between the two countries developed through bilateral meetings and regional initiatives, including the C5+1 platform.

On September 20–24, 2025, a historic visit of the President of our country to New York took place to participate in events of the юбилейной 80th session of the UN General Assembly. The central event of the visit was the meeting between the Head of our State and U.S. President Donald Trump. The leaders of the two countries agreed to further strengthen Uzbek-American strategic partnership relations and expand practical cooperation.

During his stay in the US, the President of Uzbekistan also held a roundtable with representatives of the U.S. business community, as well as negotiations with executives of a number of leading multinational companies, corporations, investment funds and financial institutions, and took part in a ceremony for the exchange of signed bilateral trade contracts and investment agreements, including in the fields of critical minerals, civil aviation, chemical industry, energy and other priority sectors.

In order to create favorable conditions for the further development of bilateral interstate relations in trade, economic and tourism spheres, by Presidential Decree dated November 3, 2025, a visa-free regime for U.S. citizens entering Uzbekistan was introduced effective January 1, 2026.

Mutual trade indicators

The two countries operate under a Most Favored Nation trade regime.

Over the period 2017–2025, trade turnover between Uzbekistan and the United States increased 4.7-fold, from $215 mln to $1 bn. Exports grew 9.1-fold, from $32.1 mln to $291.7 mln, while imports increased 3.9-fold, from $182.9 mln to $712.3 mln.

The share of the United States in Uzbekistan’s foreign trade over this period rose as follows: in total trade turnover from 0.8% to 1.2%, in exports from 0.3% to 0.9%, and in imports from 1.3% to 1.5%.

In the structure of exports to the United States, the main share is accounted for by services — 81% (programming, financial, information and transport services), as well as petroleum products — 8.6% (aviation kerosene and others). These are followed by machinery and equipment — 3.7%; food products — 3.5% (dried fruits and vegetables, spices, rice and others); industrial goods — 3.3% (aluminum bars and profiles, rhenium metal and others); miscellaneous manufactured articles — 0.9%; chemicals — 0.4%; beverages and tobacco — 0.2%; and non-food raw materials — 0.1%.

In imports from the United States, machinery and equipment dominate — 59% (aircraft, automobiles and their parts, computer units, engines, pumps, machine tools and industrial installations). A significant share is also accounted for by services — 20.5% (financial, licensing, leasing and transport services). These are followed by chemicals — 9.7% (pharmaceuticals, binding agents and cosmetic substances); industrial goods — 3.8% (plastic and ferrous metal products and others); food products — 3.2% (poultry meat and by-products); miscellaneous manufactured articles — 2.2% (devices, instruments, paper products); non-food raw materials — 1.1% (cellulose and others); as well as beverages and tobacco — 0.5%.

Investment cooperation

As of February 1, 2026, there are 346 enterprises with U.S. capital operating in Uzbekistan, which accounts for about 2% of the total number of enterprises with foreign investment. Of these, 146 are joint ventures and 200 are foreign companies with U.S. capital participation.

The volume of foreign direct investment and loans from the United States over the past nine years has increased nearly 64-fold — from $8.6 mln in 2017 to $383.2 mln in 2025.

Overall, in 2017–2025 the cumulative volume of attracted U.S. FDI and loans into Uzbekistan’s economy exceeded $2.9 bn.

Investments were directed primarily into manufacturing industries (metallurgy, production of motor vehicles, beverages and textile products), mining industry, construction, services (real estate operations, education), as well as agriculture.

CERR Public relations and media sector

Throughout the year, the business climate remained in positive territory, with an annual average of 57 points, indicating an overall favorable business environment in Uzbekistan.

The Center for Economic Research and Reforms (CERR) presented the results of its 2025 business climate analysis, based on monthly nationwide surveys of entrepreneurs. Using the collected data, a composite Business Climate Indicator was constructed, reflecting assessments of current business conditions as well as expectations for the next three months.

Dynamics of the Composite Business Climate in Uzbekistan

According to the results of 2025, the annual average value of the Composite Business Climate Index in Uzbekistan amounted to 57 points on a scale from −100 to +100, which is 7% higher than in 2024. The growth was primarily driven by improved assessments of current conditions. The annual average value of the Current Business Conditions Index increased by 22% and reached 47 points.

At the same time, the Expectations Index declined slightly from 68 to 66 points, while remaining at a relatively high level. This reflects a certain degree of caution among enterprises regarding future prospects amid an overall improvement in perceptions of current conditions.

Over the year, the dynamics of the Composite Business Climate Index were uneven. The highest value was recorded in June at 63 points, while the lowest level was observed in January at 52 points. Fluctuations during the year reflected both seasonal factors and businesses’ adaptation to rapidly changing economic conditions.

By the end of the year, a high level of optimism among enterprises persisted. In December, the Business Climate Index stood at 58 points, increasing by 2 points compared to the end of 2024.

Sectoral and Regional Dynamics of the Business Climate Index

From a sectoral perspective, improvements in the business climate were recorded across most sectors of the economy in 2025. In the services sector, the index reached 58 points, representing an increase of 14.7%. In construction, the index stood at 57 points, up by 14.2%, while in industry it reached 54 points, increasing by 6.8%.

In agriculture, the index remained virtually unchanged at 56 points, indicating the persistence of previously established assessments of business conditions in this sector.

From a regional perspective, the annual average Business Climate Index increased compared to the previous year in 11 regions of the republic. In seven regions, the annual average value of the index reached 57 points.

The most pronounced improvement in business climate conditions was observed in Kashkadarya region, where the index increased by 27%, followed by Jizzakh region with a 23% increase and Khorezm region with a 17% increase. In the Republic of Karakalpakstan, growth amounted to 19%.

In Samarkand region, despite a slight decline in the index, the annual average business climate remained in positive territory at 51 points. In Tashkent region, the indicator remained unchanged at 44 points.

Business Expectations Regarding Price Dynamics and Demand

In terms of business expectations, inflationary and market assessments remained moderate in 2025. On average, 23% of companies expected price increases in the near term, which is 2 percentage points lower than in 2024.

During the year, the share of entrepreneurs expecting price increases fluctuated within the range of 18–27%, reaching a peak in April and the lowest levels in September and December. The highest price expectations were observed among enterprises in agriculture and construction, reflecting sector-specific cost structures as well as the impact of seasonal and weather-related factors.

At the same time, assessments of market conditions remained relatively strong. On average, 66% of entrepreneurs expected an increase in demand for goods and services, while 57% of companies planned to expand their workforce. Overall, the results indicate the persistence of positive expectations regarding business activity and employment, alongside more restrained assessments of price dynamics.

Assessments of Demand and Employment

The Employment Index in 2025 amounted to 43 points, corresponding to a 12% increase. The most significant growth was recorded in the services sector at 14%, construction at 17%, industry at 7%, and agriculture at 11%. Throughout the year, employment dynamics remained moderate, with sustained demand for labor.

The Demand Index also showed improvement. Its annual average value reached 48 points, representing an increase of 13%. The largest contribution came from the services sector, where the index increased by 19%, while in construction, industry, and agriculture the Demand Index rose by 6% in each sector. During the year, the index remained relatively stable, with stronger positive assessments in the second half of 2025.

Barriers to Entrepreneurial Activity

Over the course of the year, a gradual reduction in barriers to doing business was observed. According to the results, 60% of entrepreneurs reported that they did not face difficulties in conducting business, which is 6% higher than in 2024.

In industry, problems related to electricity supply decreased by 4%, high tax rates by 3%, and access to financing by 3%.

At the same time, in agriculture and construction, financing-related barriers declined significantly, by 7% and 5%, respectively.

Despite the overall reduction in complaints, financing remained the main obstacle cited by entrepreneurs in construction and industry, reported by 11% of respondents in each sector.

Overall, sectoral data indicate an increase in the share of entrepreneurs who do not face significant constraints, as well as a decline in the importance of financial and infrastructure barriers.

The Business Climate Change Indicator is constructed based on the methodology of the Ifo Institute (Germany). As part of the surveys, company managers assess current and expected changes in business activity based on developments in production, demand, prices, and other indicators.

CERR Sector for the Study of Competitiveness of Economic Sectors and Investment Activity
tel.: (78) 150 02 02 (441)

CERR Public Relations and Media Sector
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The First Deputy Director of the Institute for Strategic and Regional Studies under the President of the Republic of Uzbekistan Akramjon Nematov shared this assessment, commenting on the results of President of the Republic of Uzbekistan Shavkat Mirziyoyev's visit to Turkiye.

According to him, the official visit of the Uzbek leader to the Republic of Turkiye, which concluded on January 29, 2026, should be viewed not only as another event on the bilateral political calendar, but above all as an important milestone in the institutional strengthening of Uzbek-Turkish relations. Its results convincingly confirmed that the interaction between Tashkent and Ankara, which was largely fragmented just a few years ago, has reached a qualitatively new level – the level of a comprehensive strategic partnership based on pragmatism and mutual benefit.

The personal role of President Shavkat Mirziyoyev in shaping this new quality of relations deserves special mention. His proactive policies and strategic approach have enabled bilateral cooperation to reach a systemic level, where pragmatism is combined with a long-term focus on sustainable development. Thanks to the President's initiative, visits and cooperation programs have become regular and institutionalized, and the agreements reached have begun to be implemented with clear planning and measurable results, strengthening trust between the countries and creating a reliable platform for economic, humanitarian, and technological ties.

Thus, the current visit's program, which included talks in narrow and expanded formats, as well as the fourth meeting of the High-Level Strategic Cooperation Council, demonstrated a high level of political trust and the maturity of the bilateral dialogue. While such meetings were previously held sporadically, today the Strategic Cooperation Council functions on a regular basis, ensuring the continuity of decisions and overseeing their implementation. Symbolically, the key events took place on the eve of the holy month of Ramadan and the 30th anniversary of the Treaty of Eternal Friendship and Cooperation, underscoring the value-based and historical foundation of the partnership.

Of fundamental importance is the fact that Uzbek-Turkish cooperation is currently characterized by constructive and pragmatic mutual approaches, and is being built as an open partnership model focused on ensuring shared security and sustainable development. This is reflected in the finalization of the "4+4" format, which brings together coordination across foreign policy, defense, and law enforcement agencies. Unlike previous consultation mechanisms, this format is practical in nature and allows for a systemic response to cyber threats, cross-border crime, and other unconventional challenges.

The economic dimension of the partnership demonstrates sustained positive momentum and a high degree of complementarity. In recent years, mutual trade has more than doubled, reaching $3 billion by the end of 2025, compared to just $1.5 billion at the beginning of the decade. The goal set by the heads of state to increase trade turnover to $5 billion is supported not by mere declarations, but by a real investment portfolio of approximately $9 billion. The number of enterprises with Turkish capital has also increased significantly: while there were previously hundreds, today over 2,100 such companies operate in Uzbekistan, demonstrating growing business confidence and the formation of a solid material foundation for the strategic partnership. The need for further advancement of projects in industry, agriculture, social protection, and other priority areas was emphasized, including by expanding the list of goods covered by the Preferential Trade Agreement.

In preparation for the visit, new priority areas of industrial cooperation were identified, which will be implemented under a separate program. Compared to previous stages of cooperation, which focused primarily on trade and construction, the current emphasis is on joint production, localization, and export-oriented industries. Particular attention is paid to developing cooperation in tourism, theater festivals and cultural weeks, joint production of historical films, and the restoration of cultural heritage sites, reflecting the expanding humanitarian component of the partnership.

It is particularly noteworthy that the agreements reached are directly aimed at addressing the structural challenges of Uzbekistan's national development. The development of the Middle Corridor and the cooperation in transport and transit enshrined in the corresponding protocol are aimed at overcoming the country's geographic isolation and diversifying external logistics routes. Compared to traditional routes, these solutions reduce delivery times and increase the resilience of supply chains. Agreements on industrial cooperation, the management of special economic zones, and the creation of joint clusters contribute to reducing the economy's reliance on raw materials and fostering high-value-added production. The transfer of technological competencies, including nuclear safety and digitalization, should be viewed as an element of sovereign modernization, not technological dependence.

A fundamentally new stage has been the expansion of cooperation to the regional level. The intention to organize visits by delegations from all regions of Uzbekistan to Turkiye reflects the transition from a centralized model of interaction to a more flexible, decentralized partnership architecture. While interregional contacts were previously limited, the Action Plan for 2026–2027 envisages the formation of sustainable partnerships between the regions of the two countries, the launch of joint projects, and the development of a portfolio of local initiatives. Significant potential for implementing advanced Turkish practices in agriculture, horticulture, healthcare, and medical tourism has also been noted.

The military-technical cooperation sector deserves special attention. Compared to previous years, when interaction was limited to consultations, the signed agreements provide for deeper cooperation in military medicine, personnel training, and the implementation of surveillance systems and unmanned aerial vehicles. This cooperation is exclusively defensive in nature and is aimed at enhancing the professional level and technical capabilities of the Armed Forces of Uzbekistan, which is a rational contribution to strengthening national defense capability.

The humanitarian dimension of the Uzbek-Turkish partnership lends further depth and stability to the relationship. The implementation of the Cultural Cooperation Plan for 2026–2027, the agreement to hold the fourth Rectors' Forum in Bukhara, and joint education projects form a long-term foundation for cooperation. Uzbekistan's participation in the reconstruction of the earthquake-damaged Hatay province, the construction of the "Uzbekistan" residential complex, and a comprehensive school have become clear examples of practical solidarity. The start of construction of an Uzbek school in the Bekirkoy district of Istanbul—Uzbekistan's first educational institution abroad—is also symbolic, reflecting the strategic focus on the humanitarian aspect of cooperation and outreach to the diaspora.

Overall, the visit to Turkiye confirmed that Uzbek-Turkish relations are developing as a pragmatic, dynamic, and responsible partnership. Compared to previous stages of bilateral cooperation, the current format is characterized by greater institutional stability, expanded economic and regional cooperation, and deepened humanitarian ties. The agreements reached create additional tools for overcoming transportation and technological constraints, modernizing the economy, strengthening defense capabilities, and ensuring shared security, forming a solid foundation for further expanding Uzbekistan's international cooperation in a changing global environment.

«Dunyo» IA

Tashkent

On 23 January, under the chairmanship of the President of the Republic of Uzbekistan, a videoconference meeting was held on the key tasks of poverty reduction and employment provision for 2026. In terms of both substance and the framing of issues, the meeting marked a turning point in the evolution of the country’s social policy.

The relevance of transitioning to a new model

The results of the reforms demonstrate a transition to the next stage of social policy. For the first time, poverty reduction has been placed in direct dependence on outcomes at the level of individual mahallas.

This shift is a consequence of the socio-economic results achieved. By the end of 2025, the national economy grew by 7.7%, significantly above the forecast level of 6.5%. GDP exceeded $147 bn, reaching approximately $3,900 per capita. Growth rates in all sectors surpassed those of 2024. Foreign investment reached $43 bn, while exports amounted to $33.8 bn. Inflation declined from 9.8% to 7.3% in 2025.

Sustained economic growth ensured a significant increase in budget revenues, which were consistently directed toward addressing social issues, reducing poverty, and developing mahallas. As a result, in 2025 income sources were provided for 5.4 mn people, and 330,000 families were lifted out of poverty. Unemployment declined to 4.8%, while the poverty rate fell to 5.8%.

As overall poverty indicators decline, its geography is changing. Poverty is becoming localized, concentrated, and heterogeneous. Nearly one-third of low-income households and around one-fifth of the unemployed are concentrated in a limited number of mahallas, which necessitates a transition to a new model.

Against this backdrop, the primary indicator becomes the outcome achieved at the level of each mahalla. The persistence of poverty or unemployment indicates that measures require further calibration.

Accordingly, for the first time at the national level, a systematic classification of all territories by poverty level was conducted. Based on 20 criteria, 37 “difficult” districts and 903 “difficult” mahallas were identified, home to around 120,000 poor families and approximately 155,000 unemployed citizens. At the same time, work to shape the image of a “New Uzbekistan” has also begun in an additional 33 districts and 330 “difficult” mahallas.

A distinctive feature of the new approach is that “difficult” territories are viewed as points of structural transformation. For each mahalla and district, comparative advantages are assessed, including economic, agricultural, industrial, logistics, or service-related strengths.

Individual development programmes for mahallas are being formulated. Practice shows that even in the most vulnerable areas, ensuring stable access to water and electricity, basic infrastructure, and integration with markets can multiply household incomes.

In the current year, territorially targeted development becomes the main instrument for achieving the stated goals, as clearly articulated by the President.

Infrastructure as an economic asset

A particular emphasis in the new model is placed on revising regional policy priorities. As noted by the President, residents and entrepreneurs in “difficult” districts and mahallas primarily expect improvements in roads, water supply, and electricity provision, rather than an expansion of tax incentives.

Concentrating resources on a limited number of problem territories allows infrastructure investment to be transformed from general budget spending into an instrument of targeted socio-economic impact. In 2026, $1.6 bn will be allocated for regional infrastructure development, of which $990 mn will be directed to “difficult” districts and mahallas.

At the same time, transfers from the republican budget to local budgets will double.

Additionally, allocations of $4.1 mn to each “difficult” district and $165 ths to each “difficult” mahalla are envisaged.

In total, district hokimiyats (district executive administrations) and local kengashes (local representative councils) will receive an additional approximately $330 mn exclusively to support problem territories.

A key element of this model is ensuring stable energy supply for “difficult” districts and mahallas.

In 2026, each of the 903 “difficult” mahallas is expected to host the construction of a small solar power plant with a capacity of 300 kW, with a total investment of around $110 mn. These plants will be transferred to the mahallas free of charge, creating a local energy asset. Through the generation of “green” electricity, each mahalla will gain a sustainable additional income source of $33-41 ths per year.

The proceeds are intended to be used for energy-efficient renovation of housing stock, reducing utility costs, and improving quality of life. Operation of the solar plants will involve members of low-income households, simultaneously addressing employment and infrastructure sustainability objectives.

A separate emphasis is placed on supporting the most vulnerable households. An instruction has been issued to conduct targeted assessments of 6,700 families with a member having a first-degree disability and no able-bodied household members, followed by identification of needs for energy-efficient housing upgrades and the launch of “green” renovation.

Taken together, these measures form a model of territorial and energy resilience. The effectiveness of local authorities’ performance will be subject to public evaluation, reinforcing the transition to results-oriented governance.

Comparative advantages of mahallas

The President clearly defined key socio-economic targets for 2026, including the provision of permanent employment for around 1 mn people, lifting 181,000 families out of poverty, increasing the number of poverty-free mahallas by 2.5 times to 3,500, and reducing the unemployment rate to 4.5%.

Achievement of these targets is expected to be based on the comparative advantages of specific districts and mahallas in industry, agriculture, and services. This approach allows resources to be concentrated where they generate the greatest multiplier effects for employment and household incomes.

As an example of leveraging comparative advantages based on location and specialization of mahallas, the President cited Furqat District. Its advantages include, first, cooperation with neighboring economically active centers; second, deepening specialization among nearby mahallas and combining competencies; and third, increasing value added through the launch of processing activities.

Further measures were outlined within the framework of a differentiated approach to developing problem territories.

Deepening mahalla specialization

Primary attention will be focused on deepening mahalla specialization, as welfare levels are significantly higher in mahallas with deep specialization. Practice shows that in such mahallas, welfare levels are noticeably higher, while the number of recipients of social assistance is half as large, at around 7 people per 10,000 population.

Currently, the 903 “difficult” mahallas encompass around 90,000 hectares of household and leased land. To transform this resource into a source of sustainable income, a new mechanism of a “social contract” between the state and the mahalla has been proposed. Mahallas that, by leveraging residents’ skills and rational land use, manage to increase household incomes by three to four times will receive additional financing of $165 ths for the development of road, water, and irrigation infrastructure. Implementation of this model is planned to begin with “difficult” mahallas.

To support deeper specialization, banks will allocate a total of $1.4 bn in loans. For production projects, 4% of the loan will be compensated, while for processing projects the compensation will amount to 6%.

Comparative advantages of mahallas

In 2026, $11.5 bn in credit resources are earmarked for the development of small and medium-sized businesses in mahallas, compared to $10.7 bn a year earlier. At the same time, banks have been tasked with strengthening entrepreneurship financing: alongside a planned $6 bn from external sources, the total volume of funds directed to mahalla-level projects should reach $8 bn.

Not only the scale but also the principle of credit allocation is changing. The model under which loans within the “Family Entrepreneurship” programme were issued on uniform terms at a 17.5% rate across all districts and cities is giving way to territorial differentiation. In particular, for the 37 “difficult” districts, the rate is reduced to 12%. This step transforms lending into an instrument for accelerating the development of problem territories.

In parallel, programme limits and target areas are being expanded. In all districts, the maximum size of concessional loans is increased by 1.5 times, from $2.7 ths to $4.1 ths. To support this decision, an additional $165 mn is added to the planned $297 mn.

Overall, the 2026 credit policy is shaped as a targeted development mechanism, a managed conversion of credit into employment, income, and local growth.

Institutional changes in system governance

A number of institutional changes are also envisaged to enhance the effectiveness of all governance levels involved in mahalla development.

Work in mahallas is moving away from an administrative-intermediary model and is being structured around specific projects. In this framework, the hokim’s assistant acts as a territorial development manager responsible for implementing project solutions.

To ensure integrated project governance, multi-level coordination is being introduced. Initiatives proposed by hokims’ assistants are paired with regional bankers; the first deputy hokim of the region provides operational oversight; and the “Reform Headquarters” supervises issues requiring inter-agency solutions. From February, a system of training hokims’ assistants in project management will be launched, starting with “difficult” mahallas. Each district will form a project portfolio followed by a transition to practical implementation.

One hundred “difficult” mahallas that demonstrate the best performance in job creation, income growth, and poverty reduction will receive an additional $82.5 ths each. Hokims’ assistants from these mahallas will be able to upgrade their qualifications in China, Turkiye, South Korea, and Malaysia.

In this context, work on developing mahalla master plans is being intensified. International experts are being engaged, alongside the potential of domestic universities. Final-year students in architecture programmes will be able to participate in the development of “difficult” mahallas, with the best projects being supported by state grants.

Overall, the institutional changes formalize a shift from a universal approach to a differentiated territorial policy.

Resource redistribution is justified by the structure of the economy: 62% of industrial production and 57% of services are concentrated in 50 districts and cities with high entrepreneurial potential. Growth in their budget revenues creates an opportunity to concentrate state efforts on problem territories.

This is evident from revenue dynamics: three years ago, additional local budget revenues in these 50 territories amounted to $72.2 mn, while in the current year they are expected to increase 8.5 times, to $610.5 mn.

As a result, greater attention can be directed to “difficult” districts and mahallas, where poverty and unemployment are territorially concentrated.

Conclusion

The decisions and instruments for 2026 demonstrate that Uzbekistan’s social policy is moving beyond traditional resource redistribution toward a model of managed territorial development. The new model rests on three interlinked pillars.

First, the concentration of infrastructure resources in “difficult” districts and mahallas, with the creation of long-term local assets, reduced household costs, and enhanced energy resilience.

Second, the expansion of employment based on comparative advantages and deeper territorial specialization, supported by financial incentives, access to credit, and solutions along value chains.

Third, institutional recalibration of governance, where a project-based approach and multi-level coordination align resources, responsibility, and measurable outcomes.

The essence of the current phase is that targeting becomes a technology focused on “difficult” territories. Exiting poverty is understood as an individual household trajectory, in which local conditions, skills, and infrastructure are decisive. The “Mahalla Seven” and the institution of hokims’ assistants serve as the connecting link, ensuring coordination and feedback until results are achieved.

Khurshed Asadov,
Deputy Director of Center for Economic Research and Reforms

The formula of "comprehensive strategic partnership" in relations between Uzbekistan and Türkiye has in recent years ceased to be merely a diplomatic definition and increasingly reflects the actual substance of bilateral cooperation. Political dialogue, economic collaboration, humanitarian contacts, and transport connectivity form the stable pillars of systemic Uzbek-Turkish relations.

Analysis of the current state of partnership between the two countries confirms that Tashkent and Ankara have successfully established an institutional architecture for comprehensive strategic partnership. The key mechanism of bilateral interaction is the High-Level Strategic Cooperation Council co-chaired by the presidents of both states, with its fourth meeting scheduled for 2026. This format ensures systematic political dialogue and coordination of joint efforts across a broad spectrum of areas.

An important factor in the effective functioning of this institutional system is the active and trusting dialogue between Presidents Shavkat Mirziyoyev and Recep Tayyip Erdoğan, maintained through regular telephone conversations and meetings on the sidelines of international events. Such dynamics impart a personal dimension to strategic interaction and create a favorable environment for deepening practical cooperation at the levels of governments, businesses, and expert communities of both countries.

Uzbek-Turkish relations gain an additional dimension through cooperation within the Organization of Turkic States (OTS). The participation of Tashkent and Ankara in this organization's activities allows bilateral initiatives to be elevated to a broader regional level and to find synergy with other countries of the Turkic world. OTS summits, including those held in 2025, have demonstrated participants' commitment to giving practical substance to cooperation from economy and transport to culture and digital development.

For Uzbekistan and Türkiye, this creates opportunities for advancing joint projects, harmonizing approaches to the regional agenda, and strengthening their positions in a broader geopolitical space.

Uzbek-Turkish cooperation carries significant regional and international dimensions. During a meeting in the "4+4" format in January 2026, the parties discussed regional and international issues, including the situations in Afghanistan, Gaza, Ukraine, and Syria. This demonstrates the two states' intention to coordinate their positions on key items of the international agenda.

Against the backdrop of strengthening political understanding and institutional consolidation of Uzbek-Turkish partnership, the economic component of bilateral relations acquires particular importance, becoming a key driver for their further development.

Trade and economic cooperation between Uzbekistan and Türkiye has demonstrated consistent progress in recent years. The target of raising bilateral trade turnover to USD 5 billion in the medium term and to USD 10 billion in the longer term remains relevant and reflects the potential of bilateral ties. Trade volume in 2025 exceeded USD 3 billion, indicating significant progress compared to figures from eight years prior.

Particularly noteworthy is the structure of economic interaction. The relationship involves not only trade but also the formation of a stable investment presence. By the end of 2025, more than 2,100 enterprises with Turkish capital participation were operating in the country a testament to the establishment of a sustainable Turkish business ecosystem in Uzbekistan and one of the highest figures among Uzbekistan's foreign partners. The dynamics of direct investment from Türkiye clearly confirm the progressive strengthening of this area of cooperation: USD 2.2 billion was invested in Uzbekistan in 2024, and USD 2.9 billion during January–October 2025.

The parties are conducting systematic work to expand economic cooperation. In particular, during the 4th meeting of the Joint Strategic Planning Group held on January 21, 2026, progress was noted in implementing the Action Plan of the 8th meeting of the Joint Economic Commission (JEC). The key role of the JEC as an effective mechanism for developing practical trade and economic cooperation between Uzbekistan and Türkiye was emphasized.

For Uzbekistan, cooperation with Türkiye is valuable in that Turkish businesses bring not only capital but also managerial expertise, technologies, and production culture. For Türkiye, the Uzbek market is attractive as a dynamically developing economy with a population exceeding 38 million and growing domestic demand. In this sense, interaction increasingly takes on the character of mutual complementarity.

One of the notable trends of 2025 was the development of transport connectivity between the two countries, primarily in the aviation sector. The number of weekly flights reached 97, with routes expanding to 8 destinations. The broadening of geography and frequency of direct flights between Tashkent, Samarkand, Namangan, Andijan, Ankara, Istanbul, and Izmir promotes growth in business mobility, tourist flows, and humanitarian contacts. The launch of new routes by both national and private carriers became an important practical step toward further rapprochement.

The increase in flight numbers offers not only passenger convenience but also broader economic effects. It facilitates contacts between entrepreneurs, simplifies participation in exhibitions and negotiations, and makes accompanying joint projects more accessible. Prospectively, this also creates prerequisites for developing air cargo transportation, which could further strengthen trade and economic ties.

Energy cooperation also demonstrates positive dynamics. Turkish companies are actively participating in modernizing Uzbekistan's energy infrastructure, including projects for developing renewable energy sources.

Particular emphasis must be placed on the special role of cultural and humanitarian interaction in developing bilateral relations. Common historical, cultural, and linguistic roots create a favorable foundation for expanding cooperation in education, science, culture, and tourism. Branches of leading Turkish universities operate in Uzbekistan, joint educational programs are implemented, and student and faculty exchanges take place.

Tourist exchange between the two countries shows sustained growth. By the end of 2025, Türkiye entered the top five countries by number of tourists visiting Uzbekistan. In turn, Türkiye remains one of the most popular tourist destinations for Uzbek citizens. Development of tourism ties contributes to strengthening intercultural dialogue and people-to-people diplomacy.

These figures reflect not only the attractiveness of the Turkish tourism market but also the general expansion of population mobility. In the long term, it is precisely cultural and humanitarian ties that form the solid social foundation of bilateral partnership.

Analysis of 2025 dynamics allows identification of several directions that could become key to further deepening Uzbek-Turkish partnership:

First, development of industrial cooperation. The existing network of joint enterprises could become the basis for more complex projects oriented not only toward the domestic market but also toward exports to third countries. Such an approach corresponds to the strategic objectives of both economies.

Second, transport, logistics, and infrastructure. Expansion of air connectivity is an important step, but the potential for cooperation in this sphere is significantly broader and includes development of multimodal transportation, warehousing infrastructure, and digital trade solutions.

Third, services and human capital. Türkiye possesses considerable expertise in tourism, medicine, construction, and education. For Uzbekistan, interaction in these areas opens opportunities not only for adopting experience but also for jointly entering regional markets.

Uzbek-Turkish relations are developing on a positive and constructive basis, confirming the maturity and stability of bilateral interaction. The parties demonstrate readiness for dialogue, pragmatism, and a commitment to considering mutual interests. The growing number of joint enterprises, expanding transport links, increasing tourist flows, and stable political dialogue form a solid foundation for further development of cooperation.

Alisher Kadirov,

Head of Department of the Institute of Strategic and Regional Studies under the President of the Republic of Uzbekistan

Today, one of the priority areas of state policy in Uzbekistan is focused on expanding forested areas, increasing green coverage, mitigating the negative impacts of climate change, and ensuring environmental sustainability. In order to achieve effective results in these areas, studying advanced foreign experience and adapting it to the country’s climatic conditions is of particular importance. In this context, the participation of a delegation of representatives of the Forestry Agency under the National Committee on Ecology and Climate Change of Uzbekistan in a training and practical seminar organized during their visit to the Republic of Turkey in October 2025 was of significant importance.

The seminar, organized in cooperation between the Forestry Agency and the Ministry of Agriculture and Forestry of the Republic of Turkey, enabled participants to familiarize themselves with Turkey’s experience in forest establishment, restoration, ecological classification, and sustainable forest management. In particular, on the first day of the seminar, Turkish specialist Ahmed Yalvach delivered a detailed presentation on modern approaches applied in the development of forestry.

Within the framework of the practical visit, Turkey’s advanced experience in establishing and managing nurseries, creating forests using the “terrace” method in mountainous areas, developing “green belts” around cities, and establishing green public parks in urban and district areas was studied.

In addition, members of the delegation closely examined the activities of nurseries operated by the Seydikemer and Gökova Forestry Departments located in Muğla Province. Notably, the Seydikemer nursery, established in 1983, covers an area of 144 hectares and has an annual production capacity of 1.5 million seedlings. The Gökova nursery, occupying more than 61 hectares, stands out with its capacity to produce up to 7 million seedlings per year.

It was emphasized that special attention to seed collection, storage, and laboratory analysis in these nurseries allows the production rate of high-quality seedlings and saplings to reach 90–95 percent. Participants studied the practical experience of Turkish specialists in establishing mother plantations, caring for seedlings and saplings, and grafting techniques.

The delegation members were also introduced to the use of greenhouses, in vitro laboratories, modern equipment, and mechanisms for managing seasonal work processes. The experience-sharing activities were conducted in an atmosphere of open dialogue and professional cooperation.

In conclusion, cooperation between Uzbekistan and Turkey in the forestry sector has acquired a practical dimension, contributing to the adoption of advanced practices, enhancement of specialists’ capacity, and the formation of a sustainable ecological environment in Uzbekistan. The knowledge and skills gained within the framework of this cooperation will play an important role in further improving the national forestry system.

Economic cooperation between Uzbekistan and Turkiye is carried out within the framework of signed bilateral agreements and established intergovernmental mechanisms, and is supported by regular high-level contacts. In addition, Uzbekistan and Turkiye cooperate within the framework of the Organization of Turkic States.

In 2023, the President of the Republic of Turkiye paid an official visit to Uzbekistan, during which the Uzbekistan–Turkiye Business Forum was held. As a result of the visit, a substantial package of intergovernmental and commercial agreements was signed, covering key sectors of the economy with a total value of around $10 bn.

In June 2024, the President of the Republic of Uzbekistan paid an official visit to Turkiye. During the visit, a meeting of the High-Level Strategic Cooperation Council was held, resulting in the signing of an important package of agreements, protocols, and roadmaps aimed at further expanding trade, economic, and investment cooperation.

Mutual trade between Uzbekistan and Turkiye operates under a most-favoured-nation regime, and a Preferential Trade Agreement has also been signed.

Turkiye is among Uzbekistan’s leading trade and economic partners, ranking 4th in terms of total trade turnover and imports, and 5th in terms of Uzbekistan’s exports.

In 2025, Turkiye’s share in Uzbekistan’s foreign trade turnover amounted to 3.7%, including 3.4% of exports and 4.0% of imports.

Dynamics of Bilateral Trade

Over the period 2017–2025, bilateral trade between the two countries increased by 1.9 times and reached $3.0 bn by the end of 2025. Exports to Turkiye grew by 1.3 times to $1.1 bn, while imports from Turkiye increased by 2.8 times to $1.9 bn.

At the same time, annual growth rates of imports from Turkiye consistently exceeded export growth rates, resulting in a widening trade deficit to –$751.6 mn.

Uzbekistan’s exports to Turkiye in 2025 comprised the following categories: industrial goods (copper products, yarn, etc.) amounting to $511.4 mn (45%); miscellaneous manufactured articles (mainly precious metal products) at $152.3 mn (13.4%); chemical products (polymers, fertilizers, etc.) at $124.3 mn (11%); machinery and transport equipment at $80.1 mn (7%); food products (dried fruits and nuts) at $63.0 mn (5.5%); petroleum products (gasoline, gas oil) at $36.6 mn (3.2%); non-food raw materials at $18.0 mn (1.6%); as well as services, primarily transport services, at $149.9 mn (13.2%).

Imports from Turkiye in 2025 were dominated by the following categories: machinery and transport equipment at $674.6 mn (35.7%); chemical products at $408.9 mn (21.7%); industrial goods at $390.2 mn (20.7%); miscellaneous manufactured articles at $136.2 mn (7.2%); food products at $94.6 mn (5.0%); petroleum products (lubricating oils) at $30.2 mn (1.6%); non-food raw materials at $30.1 mn (1.6%); and services at $117.4 mn (6.2%).

Investment Cooperation

The two countries have signed an Agreement on the Promotion and Reciprocal Protection of Investments. As of 1 January 2026, 2,137 enterprises with Turkish capital operate in Uzbekistan, accounting for 11.8% of all active enterprises with foreign investment. Of these, 496 are joint ventures and 1,641 are wholly owned by Turkish investors.

Total direct investments and loans from Turkiye to Uzbekistan’s economy over 2017–2025 amounted to $9.0 bn, including $2.6 bn attracted in 2025 alone.

Turkish capital continues to expand its presence in Uzbekistan, primarily in priority sectors such as energy, manufacturing, agriculture, and construction.

In particular, investments in the power sector are linked to the construction by the Turkish company Cengiz Enerji of a 240 MW thermal power plant in Tashkent Region and a similar 220 MW plant in Syrdarya Region.

Prospective Areas of Economic Cooperation

An analysis of Turkiye’s import structure indicates opportunities to increase Uzbekistan’s exports to Turkiye, particularly in product categories that Uzbekistan already supplies to global markets. These include polymers (Turkiye’s imports amounting to $2.8 bn), copper wire ($1.4 bn), fertilizers ($1.1 bn), legumes ($1.0 bn), zinc ($857 mn), copper tubes ($360 mn), textile products, particularly T-shirts and undershirts ($373 mn), knitted fabrics ($158 mn) and other manufactured goods.

Promising areas for cooperative engagement between Uzbekistan and Turkiye include manufacturing industries – especially textiles, electrical engineering, and machinery – chemical industry, agriculture, healthcare, education, as well as projects aimed at preserving and promoting cultural heritage. There are also prospects for joint infrastructure projects, including the construction of water treatment facilities.

In agriculture, particular attention is paid to the selection and cultivation of domestic pistachio varieties and the development of pistachio farming. Agreements have been reached on implementing joint research projects focused on cultivation techniques and adaptation.

A significant emphasis is placed on expanding cooperation in education, including the involvement of Turkish lecturers and specialized professionals in educational initiatives in Uzbekistan, experience exchange, and human capital development.

At the same time, areas of cooperation in healthcare are being discussed, focusing on the development of primary healthcare, the introduction of medical insurance systems, sector digitalization, improvement of service quality, and modernization of the pharmaceutical industry.

Tourism has been identified as a separate and promising area of cooperation. Currently, 12 hotels in Uzbekistan operate with the participation of Turkish partners, along with more than 100 joint restaurants, reflecting sustained interest by Turkish businesses in the country’s tourism sector.

In 2025–2026, with the support of Turkish investors, 11 hotel projects with a total value of $167.9 mn are planned in Bukhara, Samarkand, Jizzakh, Fergana, and Tashkent regions.

Transport connectivity is also expanding significantly. The number of weekly flights between Uzbekistan and Turkiye has increased from 62 in 2023 to 106 at present, creating additional conditions for the growth of mutual tourist flows and the expansion of travel routes.

A key initiative in tourism is the “Million + Million” programme, aimed at attracting at least one million tourists to each country. The programme envisages a further increase in flight frequency and the expansion of tourist routes between Uzbekistan and Turkiye.

Conclusion

In recent years, there has been steady growth in bilateral trade, investment volumes, the number of enterprises with Turkish capital, and the breadth of economic cooperation.

At the same time, Uzbekistan’s exports to Turkiye are still dominated by raw materials and intermediate goods used in Turkiye’s industrial sectors. Against this background, the key task for the coming years is to move from a “raw materials–finished goods” trade model toward the formation of joint production chains with higher value added.

In this context, Turkiye can play a role for Uzbekistan not only as one of its principal trading partners, but also as a contributor to Uzbekistan’s industrial development and to the expansion of its participation in global value chains.

Edvard Romanov
Center for Economic Research and Reforms