Smart Cities: How Uzbekistan and Azerbaijan Are Rethinking Urban Development
25.05.2026Just a few years ago, the concept of the “smart city” was largely seen as a futuristic idea associated with digital control panels, autonomous transport, widespread sensor networks, and automated urban services.
Today, the smart city has become a practical tool for addressing modern urban challenges. This trend can be seen across countries facing rapid population growth, increasing migration to major metropolitan areas, overstretched infrastructure, and mounting climate risks.
In this context, smart technologies are no longer viewed as an end in themselves. Instead, they are increasingly used to improve the resilience and efficiency of key urban systems, including transport, energy, public utilities, waste management, and environmental monitoring. This allows cities to adapt more effectively to emerging challenges, reduce pressure on infrastructure, and improve the overall quality of urban life.
At the same time, smart city development is gaining strategic economic importance by creating long-term drivers of growth. Such projects attract substantial investment by combining digital infrastructure, innovative services, and principles of sustainable development.
The growth of smart urban areas also contributes to job creation in high-tech sectors ranging from IT and telecommunications to engineering and urban data analytics. In parallel, the modernization of urban infrastructure improves resource management and raises overall living standards.
Against this backdrop, the approaches taken by Uzbekistan and Azerbaijan deserve particular attention. Rather than simply following a global trend, both countries are developing their own models of smart urbanization — ones in which technology serves people and supports the creation of more comfortable, sustainable, and future-oriented cities.
In this regard, Uzbekistan offers a particularly notable example, as urbanization is becoming an increasingly pressing issue amid steady demographic growth. The country’s population is growing by approximately 1.8–2% annually, placing additional pressure on transport systems, housing, infrastructure, and social services.
Under these conditions, the government is focusing not on limited modernization of the existing urban environment, but on the creation of new growth centers. The Smart City concept adopted in 2019, followed by the Digital Uzbekistan – 2030 strategy, established the institutional foundation for the large-scale digital transformation of urban infrastructure and public services.
One of the most visible outcomes of this strategy is the New Tashkent project, whose significance extends far beyond that of a traditional urban development initiative.
In essence, the project aims to create a new economic, administrative, and investment hub capable of easing pressure on the existing capital while introducing a fundamentally new model of urban organization based on smart city principles and sustainable development.
In this case, the concept of the “15-minute city,” green infrastructure, digital governance, public transport prioritization, and energy efficiency are not treated as separate elements, but as components of a broader strategy aimed at expanding economic space and improving the quality of the urban environment.
Against this backdrop, New Tashkent illustrates how urbanization can serve not only as a response to infrastructure pressures, but also as a tool for creating new centers of economic growth capable of redistributing business activity and shaping the long-term development of the urban agglomeration.
This is also why the project has a distinctly international dimension. Its implementation involves Singapore’s Meinhardt Group, the UK-based Foster + Partners and Cross Works, the Dutch firm OMA, Japan’s Sojitz Corporation, South Korea’s Incheon International Airport Corporation, and other international partners. This reflects Uzbekistan’s efforts to integrate global expertise into its national development model.
Azerbaijan, in turn, has chosen a different approach to the development of smart urban spaces. Rather than building entirely new cities from scratch, the focus has been placed on the restoration and comprehensive modernization of recently reintegrated territories alongside the introduction of modern urban planning solutions and Smart City technologies.
This approach goes beyond the physical reconstruction of infrastructure and involves rethinking urban development through digital technologies, sustainable planning, and green standards.
Following the reintegration of Karabakh and Eastern Zangezur, Azerbaijan faced not only the challenge of rebuilding damaged territories, but also the task of their socio-economic reintegration into the country’s broader development framework. In this context, the concepts of Smart City and Smart Village have gained particular strategic importance, serving as the foundation for a new model of territorial planning and governance.
Within this model, technology is no longer viewed solely as a modernization tool, but as an instrument for comprehensive territorial development. It supports the rapid restoration of basic services, creates conditions for the return of displaced populations, stimulates economic activity, and enables more effective management of spatial development.
One of the clearest examples is Aghali — Azerbaijan’s first “smart village.” The project demonstrates how digital infrastructure, renewable energy, smart agriculture, and modern public services can become part of a new model of post-conflict reconstruction.
The village covers around 119 hectares and includes more than 200 modern eco-friendly homes equipped with smart systems, as well as social and public infrastructure facilities, including a school, kindergarten, medical center, ASAN xidmət and DOST service centers, small business facilities, and administrative buildings.
A similar development model can also be seen in Fizuli, Aghdam, Shusha, Khojaly, and several other settlements, where new infrastructure systems are being developed based on environmental sustainability, transport accessibility, and digital management of urban and rural services.
Like Uzbekistan, Azerbaijan also relies heavily on international cooperation as a key driver of modernization. Huawei is involved in implementing digital solutions, the World Bank provides analytical and advisory support, while Japan is expanding cooperation in smart infrastructure and green energy, contributing to the adoption of advanced technological practices.
Uzbekistan is building a new urban environment from the ground up, while Azerbaijan is developing its model against the backdrop of a complex historical and territorial transformation. At first glance, these are very different starting points. Yet this is precisely what makes the similarities in their approaches particularly notable. In both cases, digital infrastructure is not treated as an additional layer built onto the city, but as a core element shaping its future development from the outset.
At the same time, neither country is pursuing a model based on copying existing examples. The experiences of Singapore, Dubai, and Qatar are being studied, but not replicated. Instead, both states are developing their own models tailored to local demographic, geographic, historical, and social realities. This reflects not a limitation of choice, but the maturity of their strategic approach.
Against the backdrop of accelerating urbanization across Central Asia and the South Caucasus, the experiences of Uzbekistan and Azerbaijan are increasingly emerging as a kind of laboratory for new development models. While their strategies differ in tools and priorities, both are driven by the same objective: building a new generation of cities that combine technology, sustainability, adaptability, and a people-centered approach.
Abbosbek Mashrapov
Senior Research Fellow, International Institute for Central Asia
The Constitution of Uzbekistan: a foundation for modern statehood and human dignity
28.11.2025The 33rd anniversary of the adoption of the Constitution of the Republic of Uzbekistan is a momentous occasion for the nation. For the first time in our independent statehood, a Constitution adopted through the will of the people stands as a cornerstone of modern governance. It embodies the rich experience of national state-building, addresses pressing societal and administrative challenges, and presents a carefully considered strategy for the relationship between the individual, society, and the state amidst complex global geopolitical developments. In essence, the renewed Constitution reflects our irreversible commitment to democratic reforms in both state governance and human rights.
Our Basic Law defines the path of national development, ensures that reforms remain irreversible, and serves as the guiding framework for the country’s statehood model.
The anniversary is not only a celebration but also an opportunity to reflect on the Constitution’s role in daily life and its unmatched significance in safeguarding human dignity and justice. The President’s directive on celebrating Constitution Day at a high level reinforces this, highlighting the deep legal, moral, and strategic importance of the Constitution in modern society.
In today’s rapidly changing world, a country’s competitiveness, the effectiveness of governance, and the protection of human rights depend on constitutional norms and institutional mechanisms that meet contemporary needs. The revised Constitution embodies such modern legal approaches. It articulates principles such as human dignity, liberty, equality, social justice, popular sovereignty, and the rule of law, and establishes practical mechanisms for implementing these principles.
The Constitution’s impact extends to all sectors, uniting them under a single socio-legal system aimed at the overarching goal of ensuring human well-being. It serves as the foundation for consistent and sustainable reforms, from strengthening democracy and civil society to protecting entrepreneurship and expanding social protection. Positive changes in healthcare, education, science, culture, and sports all reflect the practical outcomes of these constitutional principles.
The core of these tasks is to convey the philosophy of the renewed Constitution, endorsed by the people, to every layer of society. It recognizes human dignity as the highest value, strengthens social solidarity, elevates legal culture, and unites the efforts of citizens to consciously and responsibly shape their future as a modern state founded on the rule of law – all under the noble ideal: “For the Motherland, for the Nation, for the People!”
The scholarly community and mentors in constitutional law play a crucial role in this process. Every academic study, legal insight, and educational initiative deepens public understanding of the spirit and essence of constitutional norms.
Practical mechanisms are also advancing these goals. For instance, “Law School” (“Huquq maktabi”) mobile application, developed under the President’s 24 May 2024 decree, enables citizens to acquire legal knowledge independently, conveniently, and in a modern format. With nearly 66,000 registered users, 32 educational courses, and over 33,000 users having completed courses and obtained certificates, the application is a clear sign of growing public interest in legal literacy. It is an effective, modern tool for strengthening legal culture, ensuring the rule of law, and enhancing citizens’ legal knowledge.
Tashkent State University of Law plays a vital role in educating the younger generation. Its faculty have developed “Foundations of State and Law” textbooks for students in grades 8–11, based on the revised Constitution, which help students understand its spirit and essence and develop practical skills to apply it in everyday life.
Ultimately, understanding the Constitution’s place in our lives and ensuring that its provisions are applied in all areas requires active civic engagement, a high level of legal culture, and steadfast commitment to the rule of law. The Constitution is more than a legal document; it is the moral benchmark of national development and the foundation that strengthens citizens’ trust in the state and society’s confidence in the future. Respecting it is not only a constitutional duty but also a civic responsibility in building the New Uzbekistan.
Ikhtiyor Bekov
Head of Constitutional Law Department,
Tashkent State University of Law
Professor of Law, DSc.
Central Asia’s Shared Experience of Compromise Is Increasingly in Demand Globally as a Practical Model for Preventive Diplomacy
25.05.2026The UN General Assembly adopted by consensus, without a vote, the resolution Peaceful Settlement of Border Disputes, introduced by Kyrgyzstan, Tajikistan, and Uzbekistan and co-sponsored by 40 states. Akramjon Nematov, First Deputy Director of the Institute for Strategic and Regional Studies under the President of Uzbekistan, commented to IA Dunyo on the significance of the adopted document in the context of changing perceptions of our region on the international stage.
- This is truly a historic event of fundamental importance both for Central Asia and for the entire contemporary international practice. The fact that the resolution was adopted unanimously, without a formal vote, testifies to the unconditional support for and high level of trust in our region on the part of the international community. I would especially emphasize that dozens of countries acted as co-authors of the document, but the key initiators, acting in solidarity and on equal terms, were Kyrgyzstan, Tajikistan, and Uzbekistan.
The document is devoted to a topic that today remains one of the most difficult and painful on the global agenda – the peaceful delimitation and formalization of state borders. At a time when geopolitical fractures are deepening across the planet, trust is declining, and there is a dangerous rollback toward forceful methods of resolving disputes, the states of Central Asia have demonstrated high political maturity and responsibility.
In practice, we have proved to the entire world that direct, honest, and respectful dialogue is the only effective way to untangle the most complex knots of contradictions that remained unresolved since the collapse of the USSR. Central Asia is finally moving away from its former stereotypical image as a “zone of latent risks and border conflicts.” Today, our region is acting as a mature and independent subject of international politics, capable of ensuring stability in our common home through its own efforts and of shaping exemplary peaceful practices that are in demand on a global scale.
— Bringing this initiative to the UN level is a serious step. What strategic and legal consequences does it entail for the initiating states?
— Bringing the Central Asian case to the universal UN platform is important because it consolidates the results we have achieved and gives the processes of regional rapprochement a stable and irreversible character.
By registering these steps within the international legal framework, the states of the region publicly confirm their mutual commitments to follow the course of good-neighborliness. This places a high level of responsibility on all parties before the international community. Thus, strong political and legal guarantees of stability are being created, and the risks of any future revision of the agreements are being radically reduced.
This breakthrough became possible thanks to the firm political will and foresight of the leaders of all Central Asian states, who were able to place the long-term interests of stability and prosperity of our peoples above current disagreements. If we analyze the origins of this process, the most important role here was played by the open and pragmatic foreign policy course of Uzbekistan proclaimed by President Shavkat Mirziyoyev in 2017. This strategy was initially aimed at turning Central Asia into a space of trust.
What is fundamental is that this approach was not imposed from above as someone’s doctrine, but found a sincere and active response among our neighbors. The current success is precisely the result of joint work and inclusive regional synergy. The initiatives of Tashkent were supported, substantively supplemented, and jointly implemented together with Bishkek and Dushanbe. The signing by the leaders of the three countries of the agreement on the junction point of state borders and the opening of the “Stele of Friendship” became a logical outcome of this large-scale joint work, where the contribution of each side is equally valuable
- Akramjon Ilkhamovich, the political will of the leaders has given a powerful impulse, but peace must also be durable in practice. What economic prospects are opening up for the region, and how is the very model of ensuring security at the borders changing?
- Today we are witnessing a conceptual shift in approaches to regional security: the previous paradigm of rigid restrictions, fences, and barriers in border areas is being replaced by a modern security model based on joint economic development and the formation of deep interdependence. Security in the region is now measured not by the height of dividing barriers, but by the depth and scale of joint projects.
New round-the-clock border checkpoints are opening one after another, which has greatly simplified the movement of people and caused a colossal tourism boom. An illustrative fact: neighboring states now account for more than 60% of all tourists visiting Uzbekistan, which amounts to about 7 million people annually.
The economic framework of stability lies in the fact that we are moving toward major joint infrastructure projects. Trade and industrial zones and logistics centers are being built in border areas, a vivid example of which is the International Trade and Economic Park “Dostuk”. Moreover, we are jointly building the strategic railway China–Kyrgyzstan–Uzbekistan and launching projects for the construction of major hydroelectric power plants such as Kambarata HPP-1 and Yavan HPP. What until recently seemed like a distant, almost unattainable dream is today being realized through our common efforts.
All this opens colossal prospects. Central Asia is turning into a single, integral, and stable macro-region. Today our population amounts to about 85 million people. Such a demographic scale has never existed in our history before. But the most important thing is the absolute, practically one hundred percent literacy of this population. The presence of such an impressive body of educated, qualified intellectual capital makes the region a powerful asset for attracting high technologies, major investments, and transforming Central Asia into a key transit and industrial hub for the whole of Eurasia.
- For this complex process to develop progressively, agreements at the highest level must be supported by society. What role do institutions of people’s diplomacy and dialogue platforms on the ground play here?
- You are absolutely right: interstate agreements will be viable only when they possess a developed social base and take root at the level of civil society. Look at how actively dialogue through people’s diplomacy is developing today: regular forums of civil society and women leaders of our countries are being held, large-scale meetings of the creative and scientific intelligentsia are taking place, and living human ties are being restored.
The expert community plays an enormous role in this architecture. It is precisely for this purpose that new inclusive dialogue platforms are being created, and one of the key among them is the Fergana Peace Forum, which we are actively developing in close partnership with our neighbors. We are convinced that the Fergana Forum should become a permanent platform for cooperation in the Fergana Valley. This is a space where analysts, representatives of government bodies, entrepreneurs, and local communities of Uzbekistan, Kyrgyzstan, and Tajikistan conduct direct and transparent dialogue. Coordinated approaches to complex cross-border challenges are developed here — issues of joint water use, ecology, climate change, and the development of border territories. This makes it possible to transfer potential points of friction into the sphere of practical interaction.
And, of course, systematic work with youth occupies a special, strategic place, because it is the new generation that will have to preserve and develop the conflict-free space that is being laid today. Continuing the logic of the Fergana Peace Forum, already in June, within the framework of the “Youth Month,” we plan to hold a large-scale International Youth Seminar on Peacebuilding in Fergana under the auspices of the UN and the OSCE.
Active youth from all over Central Asia will take part in this three-day event, but the main emphasis is on young people from the border regions of our three countries. Our task is to strengthen youth ties on the ground, teach them to find a common language, jointly implement projects, and deeply support the continuity of the culture of peaceful dialogue.
In conclusion, it can be said that by adopting this resolution, the world recognized that the joint experience of compromises in Central Asia is highly in demand at the global level as a viable matrix of preventive diplomacy that can and should be studied and scaled up. Through concrete action, our region has proved its ability to independently generate stability and bear joint responsibility for a common prosperous future.
IA Dunyo
In recent years, Uzbekistan has adopted more than 3 thousand normative acts aimed at comprehensive support for business
22.06.2024Business rights are a priority of the New Uzbekistan
Since 2017, Uzbekistan has put forward cardinal, unexpected and favorable changes for entrepreneurs. The peculiarity of these changes is that they were aimed at reducing the control functions of the state and opening the way to the free conduct of business. All barriers that hindered entrepreneurs at that time were gradually eliminated.
Liberalization of punishment against entrepreneurs, elimination of possibilities of unjustified interference in their activities, strengthening of close diplomatic ties with foreign countries, simplification of export-import procedures - all this gave a powerful impetus to the development of business environment and motivated entrepreneurs to develop and actively expand their business without obstacles.
In particular, all types of unscheduled inspections and counter-inspections of the activities of business entities, including criminal cases, were canceled. A mechanism of putting forward a moratorium on inspections conducted in the activities of entrepreneurs was introduced, which is actively used to this day.
The measure of criminal punishment in the form of deprivation of the right to carry out entrepreneurial activities was abolished.
Since 2017, the Business Ombudsman, created on the initiative of the head of state himself, has been functioning effectively. Reporting to the President, it makes proposals to improve the business environment in the country and remove various obstacles to the development of entrepreneurship.
Uzbekistan is not resting on its laurels. The country has set itself big goals - to bring the share of the private sector in GDP to 80% and the share of the private sector in exports to 60% by 2027.
The president's dialog with entrepreneurs is the key to solving many problems
It is important for every entrepreneur to be listened to in case of difficulties or obstacles in his/her activity. This is especially important if the problem requires the intervention of government officials.
Obviously, in the conditions of economic development of the state there are problems that create difficulties for business. They require prompt intervention from the highest authorities in order to prevent stagnation in the development of this or that industry, as well as to give an impetus for further development.
Such a peculiar impetus was the dialog of entrepreneurs with the President, which is held annually, and entrepreneurs have the opportunity to communicate directly with the head of state.
The opportunity to be heard is given to every entrepreneur in every region of the country through meetings. After analysis and generalization, the most relevant and justified proposals are submitted to the head of state for appropriate decisions. In addition, the proposals and complaints of hundreds of entrepreneurs are listened to on a day of open dialog.
Over the past three years, more than 33 thousand appeals and proposals were received from entrepreneurs during the open dialogs. As a result of the dialogs, more than 150 initiatives were put forward to remove obstacles in the development of entrepreneurship, as well as its further development.
In particular, if we analyze the initiatives put forward after the 2021 Dialogue, the reforms were aimed at mitigating the effects of the pandemic, extending tax and customs exemptions and granting deferral of taxes and mandatory payments.
The 2022 Dialogue stood out for the support of business representatives on various fronts, starting with tax reforms such as reducing VAT percentages to 12 percent, shortening the VAT refund period to 7 days, and introducing a flat tax rate of 4 percent instead of the current sales tax ranging from 4 percent to 25 percent.
In addition, the mechanisms for ensuring the rights of entrepreneurs have been expanded by introducing a procedure for canceling the decision to allocate land plots or property only in court.
As a result of the dialog, another problem that worried entrepreneurs was eliminated, concerning the application of higher tax rates due to the non-use of an empty building or land plot. This mechanism was not only canceled, but also debts of entrepreneurs in the amount of 2 trillion soums formed as a result of payment of taxes at the increased rate were written off.
Last year, as a result of the dialog, the mechanisms of financing entrepreneurship were radically revised, the Business Development Bank was established, and tax reforms aimed at protecting the rights of entrepreneurs were introduced.
It has become a tradition for entrepreneurs to look forward to the date "August 20 - Entrepreneurs' Day" every year. It is on the eve of this day that new initiatives to support business are announced in the course of dialog.
Digitalization of business protection as a guarantee to ensure unjustified interference in the activities of entrepreneurs
One of the topics of most concern to entrepreneurs is the topic of inspections. In this area, it is important to ensure the protection of entrepreneurs.
Digital monitoring of inspections conducted in the activities of entrepreneurs by state bodies is carried out by the Business Ombudsman.
The information system "Unified State Control" allows registering inspections carried out in the activities of entrepreneurs, their results, as well as filing complaints in case of violations by the inspecting authorities.
State bodies are prohibited from conducting inspections without registering them in this system. Otherwise, this will serve as grounds for administrative liability.
In order to ensure the transparency of inspections and the rights of business entities, the new system "Unified State Control" provides full access for business entities as well.
Thus, in the new system "Unified State Control" a number of functions have been added, such as the Electronic Book of Registration of Inspections, which provides full oversight of inspections by the Authorized Body.
In order to combat corruption and illegal inspections in the system "Unified State Control" was made an electronic database of all officials with the right to conduct inspections This in turn eliminates the possibility of falsification of data of the certificate with the right to conduct inspections. Entrepreneurs can check the data of the special license of inspectors and in case of non-compliance with the system have the right not to allow them on their territory.
Moreover, registers of state control functions and mandatory requirements have been compiled for business entities, which provides an opportunity to familiarize with the control functions of state inspections and mandatory requirements in relation to them.
As a result of the introduction of the "Unified State Control" system, it has become much easier for the Authorized Body to identify facts of offenses in the state control.
Strategy "Uzbekistan - 2030" - prospects for business development in the future
Uzbekistan does not stop at what has been achieved. Rapid steps to further support the business sphere are also enshrined in the Strategy "Uzbekistan - 2030".
Efficient use of local raw material base and development of industry based on advanced technologies, consistent transfer of monopolistic spheres to market principles, increasing the share of private sector in the economy, creating the most favorable conditions for free activity of entrepreneurs are still a hot topic.
In addition, full digitalization and simplification of the tax system is planned, as well as the creation of equal opportunities for all entrepreneurs to make the official sector preferable and more profitable than illegal activities.
For this purpose, a simplified and compact legislative system will be created, convenient for the population and business entities.
Dilmurod Kasimov,
authorized to protect the rights and legitimate interests
business entities










































