Uzbekistan continues to strengthen its position as one of the most active hubs of cooperation between Central and South Asia. Changes in the global trade architecture, the restructuring of supply chains, and the growing importance of regional markets are increasing the significance of the South Asian direction.

South Asia, home to one of the world's largest consumer markets, substantial industrial potential, and rapidly expanding investment activity, is emerging as one of the key centers of the global economy.

Against this backdrop, Uzbekistan’s cooperation with South Asian countries is increasingly taking on a practical economic dimension. This involves the creation of sustainable mechanisms for trade, investment, and institutional cooperation capable of generating new growth opportunities for the entire region. Afghanistan occupies a special place in this process, serving as a bridge between Central and South Asia.

A practical manifestation of this transformation was the first interregional forum, the Termez Dialogue, held in May 2025 at the International Trade Center “Termez.” The forum became one of the most significant steps in implementing Uzbekistan’s initiative to strengthen connectivity between Central and South Asia, previously enshrined in a dedicated UNGA Resolution.

Discussions focused on trade and economic cooperation, investment, energy, food security, climate resilience, and Afghanistan’s integration into regional processes. The forum’s particular significance lay in its effort to establish a long-term platform for cooperation based on economic interdependence, openness, and shared development.

The decision to hold the Termez Dialogue on a regular basis effectively laid the groundwork for institutionalizing a new format of cooperation, with Termez emerging as one of the new geoeconomic platforms for engagement with South Asian countries.

Uzbekistan’s Trade with South Asia

Today, Uzbekistan is among the most active countries in the region in expanding trade, economic, and investment cooperation with South Asia.

The strengthening of interregional connectivity has been accompanied by growth in trade turnover, investment interaction, and business activity, reflecting a transition from limited cross-border cooperation to a broader model of economic integration.

Over the past 9 years (2016–2025), trade between Uzbekistan and South Asian countries increased 3.2 times, reaching $3.5 bn. Uzbekistan’s exports to the region tripled to $2 bn, while imports increased 4.1 times to $1.5 bn.

The main categories of Uzbekistan’s exports to South Asia include food products worth $976.4 mn (48.1%), mineral oils – $368 mn (18.1%), transport services – $277.8 mn (13.7%), industrial goods – $140.5 mn (6.9%), and chemical products – $134.9 mn (6.6%).

The main import categories from South Asian countries include chemical products worth $477.6 mn (32.2%), food products – $391.4 mn (26.4%), machinery and equipment – $309.1 mn (20.8%), other products – $99 mn (6.7%), and finished products – $67 mn (4.5%).

In 2025, the largest share of trade with South Asia was accounted for by Afghanistan. The predominance of Uzbek exports made Afghanistan a highly beneficial trade and economic partner, ranking first among South Asian countries in terms of Uzbekistan’s trade turnover, which reached $1.7 bn, or 47.7% of total trade with the region.

Food exports to Afghanistan amounted to $712.7 mn, while Afghanistan accounted for 75.5% of Uzbekistan’s food exports to South Asia.

Trade and economic cooperation between Uzbekistan and India has also expanded significantly in recent years. India ranked second among South Asian trading partners, with bilateral trade reaching $1.3 bn in 2025 (37.5% of total trade with the region).

India ranked second among Uzbekistan’s South Asian trading partners, with bilateral trade reaching $1.3 bn in 2025, accounting for 37.5% of Uzbekistan’s total trade with the region.

Pakistan ranked third, with trade turnover amounting to $445.9 mn, or 12.7% of Uzbekistan’s total trade with South Asia. In 2025, Uzbekistan’s exports to Pakistan consisted of food products worth $260.2 mn, industrial goods worth $21.2 mn, services worth $30.1 mn, and non-food raw materials worth $13.2 mn.

Imports from Pakistan in 2025 included food products worth $56.2 mn, chemical products worth $45.3 mn, industrial goods worth $6.4 mn, and various finished products worth $5.2 mn.

Over the past 9 years, the volume of foreign direct investment and loans attracted from South Asian countries to Uzbekistan totaled $1.3 bn, including $510 mn in 2025 alone. The largest contributions came from India ($586.7 mn) and Afghanistan ($519.2 mn).

Termez as a Hub of Interregional Connectivity

Termez occupies a special place in the development of Uzbekistan’s cooperation with South Asian countries. Located at the crossroads of Central and South Asia, the city serves as a trade, investment, and humanitarian hub connecting the two regions.

Historically, Termez played an important role in the system of interregional relations, situated at the intersection of the largest trade and civilizational spaces of Eurasia. Owing to its strategic geographic location, Termez linked India, Afghanistan, and Central Asia as early as ancient times, while during the Timurid era it was one of the region’s prominent administrative, commercial, and scientific centers.

The city’s current stage of development reflects the gradual restoration of this historical role under new geoeconomic conditions.

Since 2016, the Termez Cargo Center international logistics hub has been operating in the city, strategically located at the intersection of Afghanistan, Tajikistan, and Turkmenistan. In recent years, it has become one of the largest channels for delivering humanitarian assistance to Afghanistan through the mechanisms of the United Nations World Food Programme (WFP) and the United Nations High Commissioner for Refugees (UNHCR).

An additional impetus to regional development came with the opening of the Airitom International Trade Center in 2024, located in close proximity to the Afghan border. Today, the center is gradually evolving not only into a trading platform but also into a comprehensive geoeconomic hub bringing together logistics, business, educational, and humanitarian initiatives.

The center hosts a free trade zone with simplified business conditions for companies from South Asian countries. A visa-free regime has been introduced, transactions in foreign currencies are permitted, and entrepreneurs from Afghanistan and Pakistan have been granted the opportunity to conduct business within the complex. At the same time, social infrastructure, including educational and healthcare facilities, continues to develop.

At present, the Airitom International Trade Center covers 36 hectares, includes more than 3,000 retail outlets, and provides approximately 5,500 jobs. Since its opening, the center has been visited by more than 440,000 people, while annual exports have reached $1.2 bn.

Termez is also home to an educational institution for Afghan citizens, and a workforce development system is being expanded to support growing interregional cooperation.

In practice, Termez is becoming one of the key centers of economic interaction between Central and South Asia. The development of trade infrastructure, logistics, humanitarian projects, and business activity is strengthening economic ties between the two regions and enhancing Uzbekistan’s role in promoting interregional cooperation.

Against this backdrop, the Termez Dialogue is gaining importance as a permanent platform for aligning the long-term interests of the countries of Central and South Asia. The upcoming forum creates opportunities for advancing joint initiatives in trade, investment, food security, water resources, and sustainable development.

At the same time, the regular format of the Dialogue contributes to the development of a more sustainable model of interregional engagement based on pragmatic cooperation, economic interdependence, and the expansion of practical cooperation mechanisms between the two regions.

A New Economic Architecture of Connectivity

The significance of the Termez Dialogue extends beyond the framework of a traditional international forum. It reflects a broader transformation taking place across Eurasia, where regional connectivity, resilient supply chains, and economic cooperation are becoming increasingly important drivers of growth and stability.

For Uzbekistan, strengthening ties with South Asia represents not only an opportunity to diversify trade and investment flows but also a strategic instrument for enhancing the country’s role as a bridge between major regional markets.

The growing interconnectedness of Central and South Asia creates new opportunities for expanding trade routes, attracting investment, developing transport and logistics infrastructure, and strengthening cooperation in energy, agriculture, education, and human capital development.

Afghanistan occupies a central place within this emerging framework. Its integration into regional economic processes has the potential to transform it from a source of geopolitical uncertainty into an important transit, trade, and economic partner linking the two regions.

The development of practical cooperation mechanisms through platforms such as the Termez Dialogue may therefore contribute not only to economic growth but also to greater regional stability and long-term prosperity.

Through initiatives aimed at strengthening interregional connectivity, Uzbekistan is consistently promoting a vision of cooperation based on openness, mutual benefit, and shared development.

The experience of recent years demonstrates that expanding economic ties between Central and South Asia is no longer merely a political aspiration but an increasingly tangible economic reality supported by growing trade, rising investment flows, and expanding business engagement.

The institutionalization of the Termez Dialogue provides an important mechanism for sustaining this momentum. By bringing together governments, businesses, international organizations, and experts, the forum creates conditions for identifying common interests and developing coordinated approaches to regional challenges.

The continued development of trade infrastructure, logistics corridors, investment cooperation, and humanitarian initiatives centered around Termez further strengthens the city’s role as a gateway between Central and South Asia.

In this regard, the Termez Dialogue is evolving into a long-term platform for shaping a new model of regional cooperation – one based not on competition but on economic complementarity, interdependence, and shared prosperity.

As connectivity between the two regions deepens, Termez is increasingly positioned not only as a geographical crossroads but also as a strategic center of economic interaction capable of facilitating sustainable development across a vast part of Eurasia.

Ziyoda Rizaeva,
Center for Economic Research and Reforms

Uzbekistan and Turkey are consistently developing bilateral and multilateral cooperation in the fields of ecology and environmental protection, paying special attention to the exchange of experience, the introduction of modern technologies, and the professional development of specialists.

Representatives of the National Committee for Ecology and Climate Change of the Republic of Uzbekistan regularly participate in seminars, training courses, and other events organized by international structures in the Republic of Turkey. Such cooperation formats serve to strengthen professional ties and adopt advanced approaches in the field of environmental management.

One of the significant stages of cooperation was a meeting with a delegation from "OSTIM Energik," a company specialized in clustering technologies in renewable energy and ecology under Turkey’s Middle East Industry and Trade Center (OSTIM). During the negotiations, the parties discussed prospects for cooperation on air purification systems, the construction of water treatment facilities, the development of renewable energy sources, as well as the processing of domestic and agricultural waste.

Within the framework of developing practical cooperation, a business trip was organized for a delegation from the State Center for Ecological Expertise under the Committee. The goal was to study advanced foreign experience in the field of Environmental Impact Assessment (EIA), including modern methods of ecological expertise and monitoring.

Additionally, a joint event was held in Tashkent with the participation of the Turkish company "Cengiz Group" regarding the reduction of the number of vehicles and the strengthening of environmental control over them. This initiative was aimed at reducing pollutant emissions and increasing environmental responsibility in the transport sector.

A distinct direction of cooperation is related to the development of scientific and educational ties. Partnerships have been established between the Turkish State Meteorological Service and the Hydrometeorology Research Institute of Uzbekistan, in collaboration with the Faculty of Ecology at Ege University in Izmir and the Central Asian University for the Study of Environment and Climate Change. This cooperation is directed towards retraining specialists and enhancing their professional skills in environmental protection and climate research.

The active cooperation between the two countries continues on international platforms as well. Within the framework of the climate forum held in Samarkand on the theme "Global Climate Challenges and Central Asia – Solidarity for Common Prosperity," a youth session was held with the participation of Turkish representatives. This constituted a significant contribution to shaping a new generation of environmental leaders.

The participation of the Ecology Committee delegation, led by Aziz Abduhakimov, Advisor to the President of the Republic of Uzbekistan on Environmental Issues and Chairman of the National Committee for Ecology and Climate Change, in the "Zero Waste" international forum organized by the "Zero Waste Foundation" in Istanbul was also a significant milestone. During the forum, global approaches to waste reduction, the development of a circular economy, and the introduction of sustainable consumption principles were discussed.

Furthermore, a delegation from the Forestry Agency under the Committee visited the Mugla province and the city of Antalya to study Turkey’s best practices in forestry, sustainable forest resource management, and the prevention of ecosystem degradation.

In conclusion, the cooperation between Uzbekistan and Turkey in the field of ecology and environmental protection is of a systemic and multifaceted nature, covering technological, scientific, educational, and institutional directions. The implementation of joint initiatives serves to introduce modern environmental solutions, increase the stability of natural ecosystems, and strengthen international partnership in the interests of sustainable development.

Makhmud Khaydarov,

Chief specialist Department of international cooperation and rankings of the Ministry of Ecology, Environmental Protection and Climate Change

The text of the article is in Uzbek!

Distinguished heads of delegations!

I am sincerely glad to greet you all. I would like to echo the words of gratitude to the President of the Republic of Kazakhstan, H.E. Kassym-Jomart Tokayev, for the warm welcome and excellent organization of our meeting.

I am grateful to the distinguished Federal Chancellor of Germany, H.E. Mr. Olaf Scholz, for his commitment to expanding the multifaceted partnership with the countries of our region.

Our first meeting in Berlin and today's summit reaffirm shared intention to continue an open and constructive dialogue and our focus on achieving concrete practical results.

We are interested in holding regular meetings in this format, with setting up the mechanisms for expert review and implementation of the initiatives put forward.

Distinguished Federal Chancellor!

We highly value Germany's firm and unwavering support for the ongoing democratic transformations and socio-economic reforms in our countries, partnership and integration in Central Asia.

I would like to highlight that our multifaceted relationship has deep historical roots.

In the 18th century, the great composer of the Age of Enlightenment Handel created one of his greatest works – the opera "Tamerlane" – in just 20 days.

The great poet and philosopher Goethe dedicated a number of his famous works to our ancient cities - the centers of civilization.

I would like to mention another historical fact.

At the beginning of the 20th century, a group of talented, progressive young people from Central Asia studied at the leading German universities and subsequently made a great contribution to the promotion of the enlightenment ideas and socio-economic development of our region.

I would like to emphasize that today we see Germany as one of our important partners in achieving national goals of sustainable development.

Let me briefly highlight the profound and fundamental changes that have taken place in Central Asia in recent years.

We have established an open and productive dialogue and are independently addressing many issues related to borders, water, energy, trade and transit.

Recently, the Sixth Meeting of the Heads of State of the region was held here in Astana.

The international stance of the region is strengthening, cooperation with the leading countries via "Central Asia Plus" format is expanding.

The volumes of trade turnover, investment, freight transport and tourist travel by our citizens have increased many-fold.

We are discussing major regional projects in green energy and the development of transport communications.

We are exchanging experience and technologies, creating modern industrial and agricultural enterprises, and introducing financial instruments to stimulate cooperation projects.

Most importantly, we clearly understand that the future of our region, its security and sustainable development depends solely on our political will and efforts.

We sincerely welcome the interest of our European partners, first of all Germany, as the main initiator and driving force behind the promotion of EU strategies and multilateral cooperation programmes with our countries.

We are preparing to hold another summit in Uzbekistan in the format of "Central Asia - European Union" next year, having defined the investment in the future of the region as the main topic of the agenda of the meeting.

Dear colleagues!

Conflicts and wars, the overall global instability and unpredictability, sanctions policy, increased protectionism and many other factors are causing extremely negative impact on our countries and are becoming a serious test to the implementation of national programs and reforms.

Earlier, during our talks in Samarkand, I shared with Chancellor Scholz my high expectations from today’s meeting.

In this regard, I would like to outline our vision of the main directions for developing cooperation with Germany in Central Asia.

First. We highly value the establishment of a strategic regional partnership between Central Asia and Germany, which meets the common interests of maintaining stability, ensuring sustainability and prosperity of the region.

We consider it appropriate to adopt a long-term Concept for the development of our partnership with program activities in priority areas.

In order to develop this document, we propose to consider the possibility of establishing the “Central Asia – Germany” Forum of Analytical Centers. We are ready to hold its first meeting next year in Khiva - one of the region’s historic cities where a large community of German Mennonites used to live.

We also assign an important role to the annual meetings of the heads of the foreign ministries of our countries in preparing the agenda of our summits.

Second. Investment and technological partnership with the leading German companies.

I would like to note that the portfolio of ongoing and promising projects in Uzbekistan with the participation of German companies exceeds 20 billion Euros.

This includes energy, chemical and extractive industries, machine building, textile and food industry, agriculture, transport and logistics, production of construction materials.

The leading German companies, such as Siemens, Linde, BASF, MAN, Claas, Henkel, Knauf and many others are among our partners, which have invested about 6 billion euros into Uzbekistan’s economy in recent years.

Today we will have the opportunity to discuss long-term plans with the representatives of the German business.

In this regard, I have a number of specific proposals:

– developing a "road map" for expanding investment and technological cooperation between the Central Asian countries and Germany;

– participation of the leading German companies and banks in the implementation of joint projects in the special economic and industrial zones being created in the border areas, as well as large infrastructure projects of regional significance;

– launching of a permanent business dialogue platform – “Central Asia-Germany” Council of Investors and Entrepreneurs. We are ready to hold its first meeting next year in Uzbekistan within the Tashkent Investment Forum;

– study of the possibility of adopting a multilateral intergovernmental agreement on promotion and protection of investments.

Third. Partnership in critical raw materials based on the introduction of advanced German knowledge and technologies.

As it was mentioned our region is abundant in mineral resources.

The German Mineral Resources Agency and German companies could become our key partners in this area.

Here, we are referring to the geological survey projects, intensive exploration, processing and production of products with high added value, as well as arrangement of shipments to Germany and other EU countries.

Uzbekistan is ready to take part in the joint implementation of such projects in neighboring countries.

The technical assistance from Germany and European institutions in implementing the Digital Mapping Program of Critical Minerals and Rare Earth Metals in our region holds promising opportunities.

We also believe it is important to establish a reliable legal framework for such cooperation.

Fourth. “Green” energy. In recent years, all our countries have been actively developing solar, wind and hydropower, modernizing thermal power plants and networks, and promoting green hydrogen projects.

We propose to consider launching an Energy Dialogue between Central Asian countries and Germany, involving energy ministries, companies, operators, scientific organizations, design institutes and industry experts.

We are interested in preparing a Comprehensive Capacity Building Program for specialists in the low-carbon economy with the German technical assistance.

Fifth. Joint response to climate change.

Experts predict that the Central Asian region will remain most vulnerable to the effects of global warming. The rise in average temperatures will be twice as high as the world average.

We are grateful to the German side for launching the second phase of the “Green Central Asia” program, assistance provided for the implementation of environmental projects.

We are also interested in the following:

- implementation of joint educational programs and scientific exchanges at the Central Asian University of Environmental and Climate Change Studies;

- adoption of cooperation programs for the introduction of German water management technologies, modernization of irrigation systems, conservation of biodiversity and training of environmental specialists.

We support and are ready to take an active part in the practical implementation of the initiative of the German Chancellor to create a Central Asian Nature Partnership.

Sixth. The biggest barrier to deepening our partnership is the lack of transport connectivity, including land and air.

We count on Germany’s support in engaging European institutions in the development of alternative transportation corridors connecting Central Asia with Europe.

We propose to hold a joint Ministerial Conference next year on improving the transit capacity of such routes.

Dear heads of delegations!

The exhibition of cultural and historical heritage of our region last year at the Neues Museum in Berlin once again demonstrated the need for regular organization of such events.

Over several months, more than half a million of residents and guests of the German capital city enjoyed the exhibition.

We propose to adopt a Joint Plan for Cultural Activities in our countries, consider the possibility of holding Central Asian Art and Film Days in major cities of Germany, and establish cooperation between museums.

In the field of scientific and educational exchange, it is important to launch a platform for partnership among leading universities,
to develop programs aimed at expanding cooperation in the field of dual education, to train German language teachers with the involvement of the Goethe Institute and other German organizations.

The high interest of our youth in learning German is evidenced by the victory of an Uzbek schoolgirl at the World Olympiad held this summer in Göttingen.

Dear colleagues!

We believe it is important to continue close cooperation with Germany in the fields of combating terrorism, extremism and cybercrime, preventing radicalization of youth.

The security situation in Central Asia is inextricably linked with the processes taking place in Afghanistan.

We believe it is important to prevent the aggravation of the humanitarian crisis in this country, which is left alone with its own challenges.

In this regard, we are ready to cooperate with Germany and other European partners in the implementation of joint projects aimed at involving this country into regional economic cooperation and training personnel, including girls and women, in skills that are on-demand for the peaceful life in Afghanistan, at the Educational Center located in the border town of Termez.

In conclusion, I would like to emphasize that Uzbekistan is interested in untapping the potential of Germany’s multifaceted cooperation with the Central Asian region.

I am confident that today’s meeting will serve to further bringing our countries and peoples closer and fill our strategic partnership with concrete projects and programs.

Thank you!

President of Uzbekistan Shavkat Mirziyoyev will participate in the upcoming 13^th Summit of the Organization of Turkic States (OTS), which will be held in Ankara, Türkiye.

Ahead of the 13th Summit of the Organization of Turkic States, scheduled to be held in Ankara, economic cooperation within the OTS is acquiring new substance. Alongside trade and investment, industrial cooperation, transport corridors, digital infrastructure, artificial intelligence and co-financing mechanisms are emerging as practical areas of engagement. The preparation of the OTS Strategy for 2027–2031 further increases the economic significance of the Ankara meeting.

Today, the Organization of Turkic States covers a significant economic space connecting Central Asia, the South Caucasus and Türkiye with European markets. By the end of 2025, the combined nominal GDP of the OTS countries amounted to approximately $2.3 trillion, while their GDP at purchasing power parity exceeded $6.2 trillion. Their aggregate foreign trade turnover surpassed $1.2 trillion.

These figures indicate the presence of a large market for expanding economic cooperation. At the same time, the volume of mutual trade among the OTS countries remains limited relative to their overall economic potential. The next stage of cooperation is therefore increasingly focused on moving beyond the simple expansion of trade toward deeper industrial cooperation, lower transport costs and the financing of joint investment projects.

Differences in the economic structures of the OTS countries provide a foundation for such cooperation. Türkiye has a substantial manufacturing base in machinery, automotive production, electrical engineering, textiles and chemicals. Kazakhstan and Azerbaijan, in addition to their energy resources, hold significant positions in metallurgy and petrochemicals. Uzbekistan is developing its textile and garment industry, electrical engineering, automotive, chemical and food industries, as well as non-ferrous metallurgy. Kyrgyzstan’s capabilities in light industry and agriculture also provide an additional basis for expanding shared production chains.

In this context, the economic outcome of integration within the OTS will increasingly be determined not merely by the volume of mutual trade, but also by the extent to which enterprises in member countries become integrated into one another’s production chains.

Uzbekistan’s Trade with OTS Countries

For Uzbekistan, economic relations with the Turkic states have become an important component of foreign trade diversification.

In 2025, Uzbekistan’s total foreign trade turnover reached $81.2 billion, including $33.8 billion in exports and $47.4 billion in imports. Among the country’s major trading partners, turnover with Kazakhstan amounted to $5 billion, while trade with Türkiye reached $3 billion.

Kazakhstan and Türkiye alone account for roughly one-tenth of Uzbekistan’s total foreign trade. When economic relations with Kyrgyzstan, Turkmenistan, Azerbaijan and Hungary are also taken into account, the OTS space represents a distinct and sizeable regional market for Uzbekistan.

Exports have played an important role in recent trade growth. In 2025, Uzbekistan exported $1.5 billion worth of goods and services to Kazakhstan, $1.1 billion to Türkiye and $771.1 million to Kyrgyzstan.

The composition of trade also points to qualitative changes in economic relations. In 2025, industrial goods accounted for 28.2% of Uzbekistan’s exports to OTS countries, machinery and transport equipment for 19%, food products for 11.1%, chemical products for 10%, and services for 12.7%. On the import side, food products represented 22.8%, mineral fuels 20.3%, industrial goods 18.1%, and machinery and transport equipment 12.9%.

This structure highlights two important features. First, Uzbekistan’s exports to the OTS market are not limited to raw materials, with industrial goods, machinery and equipment accounting for a substantial share. Second, the presence of energy resources, industrial goods and equipment in imports indicates that mutual trade with OTS countries is also closely linked to domestic production processes.

For this reason, alongside trade turnover, the depth of industrial cooperation is becoming an increasingly important indicator of future economic relations.

Untapped Export Potential

Despite significant growth in trade, the available opportunities have yet to be fully utilized.

According to estimates by the Center for Economic Research and Reforms, Uzbekistan has the potential to increase exports to OTS countries by an additional $2.7 billion. The largest reserve is associated with the Turkish market, at $1.8 billion. Additional export potential is estimated at $500 million for Kazakhstan, $200 million for Hungary and $100 million for Kyrgyzstan.

Market size alone, however, is insufficient to ensure export growth. Product quality, mutual recognition of standards, certification procedures, transport costs, delivery times and access to trade finance all directly affect exporters’ competitiveness.

Opportunities are particularly substantial in agriculture and food products. The combined agricultural market of the OTS countries is estimated at around $72 billion. For Uzbekistan, promising export categories include fruit and vegetables, processed food products, textiles, electrical equipment, construction materials, mineral fertilizers, copper products and polymers.

The concentration of a large share of the export reserve in Türkiye and Kazakhstan is also economically significant. Türkiye offers both a sizeable domestic consumer market and access to European and Mediterranean markets. Kazakhstan, due to its geographical proximity, shared transport networks and production linkages within Central Asia, remains a natural partner for cooperation with Uzbek enterprises.

In this sense, realizing the $2.7 billion export reserve requires a coordinated approach across industrial, logistics and trade policies.

Investment Relations Are Becoming More Institutionalized

Alongside trade, investment flows from OTS countries into Uzbekistan have also increased substantially.

Between 2017 and 2025, investment attracted from OTS countries into Uzbekistan exceeded $11.5 billion. In 2025 alone, investment amounted to $3.8 billion. Türkiye was Uzbekistan’s largest investor among OTS countries, with $2.4 billion. Investment was concentrated primarily in manufacturing, energy, agriculture, construction and logistics.

As of April 2026, Uzbekistan was home to more than 4,500 enterprises with capital participation from OTS countries.

The growing number of such enterprises points to a qualitative shift in economic relations. A trade transaction ends once a product crosses the border, whereas direct investment creates longer-term links between economies through capital, technology, employment, local suppliers and export channels.

The expansion of joint industrial projects within the OTS can therefore provide an additional foundation for further growth in mutual trade.

For example, components produced in one country may be used to manufacture finished goods in another and subsequently exported to a third market. In such a case, trade statistics reflect an underlying integrated production chain. Differences in the specialization of the Turkic economies create opportunities for precisely this type of cooperation.

The Turkic Investment Fund as a New Financial Mechanism

One of the most significant institutional developments in the OTS economic architecture has been the transition of the Turkic Investment Fund to practical operations.

In 2025, its authorized capital was increased from $500 million to $600 million. Uzbekistan’s share amounts to $100 million.

The Fund’s economic significance is not limited to the size of its own capital. Its broader potential lies in using these resources to mobilize financing from other international financial institutions.

On 17 June 2026, the Turkic Investment Fund and the Islamic Corporation for the Development of the Private Sector, part of the Islamic Development Bank Group, signed an agreement on an Islamic co-financing program of up to $50 million. The program is intended to finance small and medium-sized enterprises through local financial institutions in Azerbaijan, Kazakhstan, Kyrgyzstan, Türkiye and Uzbekistan.

Another practical model emerged on 1 July. The Turkic Investment Fund signed an agreement to provide up to $10 million in financing to KMF Bank in Kazakhstan, while the European Bank for Reconstruction and Development committed up to $50 million. The combined resources are intended to expand lending to micro, small and medium-sized enterprises.

These two examples point to an emerging trend. Rather than functioning solely as an institution that directly allocates its own resources, the Fund could develop into a platform for mobilizing international financial resources for projects across the OTS region.

Such an approach could help mobilize investment substantially exceeding the Fund’s own $600 million capital base. This mechanism is particularly relevant for industrial cooperation, transport, energy, digital infrastructure and small business projects.

From a Transport Corridor to an Integrated Logistics System

Transport costs and delivery times remain another major factor affecting trade within the OTS region.

Because Central Asian countries lack direct access to seaports, logistics costs have a significant impact on export competitiveness. In this context, the Trans-Caspian International Transport Route — the Middle Corridor, which runs across the Caspian Sea through Azerbaijan, Georgia and Türkiye toward European markets — is becoming an important infrastructure component of economic cooperation within the OTS.

For Uzbekistan, the importance of this route is increasing with the construction of the China–Kyrgyzstan–Uzbekistan railway. Connecting the new railway with the Caspian route could expand Uzbekistan’s participation in the East–West logistics chain linking China, Central Asia, the Caucasus and Europe.

A modern transport corridor, however, consists of more than roads and railways. Border procedures, permits, customs declarations, consignment notes and cargo tracking systems also affect the time and cost of transportation.

Digitalization has therefore become an important component of OTS transport policy.

The e-Permit electronic permit system is being implemented among the organization’s member states. At the 9th Meeting of OTS Ministers of Transport, held in Bishkek on 23 April 2026, a memorandum was also signed on introducing the e-CMR electronic international consignment note.

At the May summit in Turkistan, the President of Uzbekistan noted that the E-Permit system had been fully launched with OTS member states and proposed linking the Middle Corridor with the China–Kyrgyzstan–Uzbekistan railway, developing a simplified customs corridor, and digitalizing data exchange and cargo tracking processes.

If these mechanisms are integrated into a single system, the OTS region could develop a logistics environment that facilitates both the physical movement of goods and the digital flow of accompanying documents and data.

The economic effects can be measured in concrete terms — shorter border crossing times, lower administrative costs and greater predictability of delivery schedules for exporters.

From Trade to Technological Connectivity

In 2026, another new dimension of OTS economic cooperation became increasingly visible.

On 15 May, the informal summit in Turkistan on “Artificial Intelligence and Digital Development” placed particular emphasis on digital infrastructure, innovative technologies and the practical application of artificial intelligence.

Uzbekistan proposed developing the concept of a “Digital Turkic Corridor”, aimed at connecting data centers across the region through high-speed communication channels.

Additional initiatives included the establishment of a strategic cooperation network in artificial intelligence, the organization of a Technology Forum in Tashkent and broader technological cooperation among participating countries.

There is a clear connection between transport and digital integration. While the Middle Corridor facilitates the movement of goods, the Digital Turkic Corridor could accelerate the movement of data.

As a result, two parallel types of infrastructure may develop across the OTS region — physical and digital.

The first encompasses roads and railways, ports, logistics centers and customs infrastructure. The second includes data centers, telecommunications networks, cloud computing, artificial intelligence infrastructure and digital services.

Their integration could support the expansion of e-commerce, digital logistics, fintech, cross-border services and digital production management.

The Institutional Framework for Economic Integration Is Expanding

Another feature of the changes taking place within the OTS is the emergence of permanent mechanisms for economic cooperation.

While cooperation previously relied largely on summits of heads of state, intergovernmental meetings and bilateral agreements, dedicated mechanisms are now taking shape in finance, transport and the digital economy.

The Turkic Investment Fund is establishing a mechanism for financing investment projects. E-Permit and e-CMR are digitalizing transport documentation. The Digital Turkic Corridor initiative is intended to connect information infrastructure across participating countries.

The economic value of these institutions lies primarily in their ability to complement one another.

The effectiveness of integration will therefore depend not only on reducing trade barriers, but also on developing the broader infrastructure that supports trade.

New Economic Opportunities for Uzbekistan

Developments within the OTS open several avenues for expanding Uzbekistan’s economic cooperation.

The first is access to larger export markets. The estimated $2.7 billion in additional export potential represents a significant reserve relative to existing trade flows.

The second is industrial cooperation. Türkiye’s industrial and technological base, the resources of Kazakhstan and Azerbaijan, and Uzbekistan’s labor resources and expanding manufacturing sector provide conditions for developing complementary production chains.

The third is transport geography. Connecting the China–Kyrgyzstan–Uzbekistan railway with the Middle Corridor could expand Uzbekistan’s transit and logistics opportunities along the East–West axis.

The fourth is access to capital. Co-financing mechanisms involving the Turkic Investment Fund and international financial institutions could provide new sources of financing for the private sector.

The fifth is the digital economy. Integration of data centers, artificial intelligence, e-commerce and digital transport documentation could create conditions for faster growth in trade in services.

At the same time, these opportunities will not automatically translate into economic outcomes. Turning the $2.7 billion export potential into actual exports requires addressing product standards, certification, logistics costs, financing and market access at the level of specific product categories.

Likewise, the economic efficiency of transport corridors should be assessed not by their length or the number of participating countries, but by indicators such as cargo delivery times, transport costs per tonne and waiting times at border crossings.

In investment cooperation, the volume of capital attracted should be considered alongside localization levels, the participation of domestic companies in supply chains, job creation and export revenues.

Ahead of the Ankara Summit

As of September 2026, preparations are under way for the 13th OTS Summit in Ankara. On 8 September, OTS Secretary General Kubanychbek Omuraliev and Turkish Foreign Minister Hakan Fidan discussed the organizational and substantive aspects of the summit as well as its expected outcomes.

The discussions also covered another important document — the OTS Strategy for 2027–2031, which is expected to define the organization’s strategic framework and priority areas for the coming period.

In this context, the Ankara Summit may become an important milestone for the next stage of economic cooperation within the OTS.

The trend of recent years is increasingly clear. While the initial emphasis was largely on expanding trade volumes, economic relations are now becoming more closely linked to investment, transport infrastructure, financial institutions and digital technologies.

For Uzbekistan, the next task is to translate the existing $2.7 billion in additional export potential into actual trade, expand joint production chains with OTS countries, reduce transport costs and use new financial mechanisms to support private-sector projects.

Accordingly, the criteria for assessing economic integration within the OTS are also evolving. Trade turnover and investment volumes remain important indicators, but they are increasingly complemented by delivery times, logistics costs, industrial cooperation, joint projects, digital services and mobilized private capital.

It is this transition — from trade in goods toward an interconnected system of production, transport, finance and digital infrastructure — that increasingly defines the new economic substance of cooperation among the Turkic states.

Latofat Burieva

Center for Economic Research and Reforms

President of Uzbekistan Shavkat Mirziyoyev arrived in the Azerbaijani city of Gabala to participate in the summit of the Organization of Turkic States (OTS).

Due to its geographical position, historical ties, and natural resources, the Organization of Turkic States is becoming an increasingly significant platform for cooperation at this new stage of development. At the same time, OTS serves as a cultural bridge, fostering closer ties between the peoples of its member countries.

The Organization is based on the principles of equality and mutual interest, non-interference in internal affairs, and respect for the sovereignty of states - principles widely recognized by the international community.

The OTS comprises five member states: Azerbaijan, Kazakhstan, Kyrgyzstan, Turkiye, and Uzbekistan. Hungary, Turkmenistan, and the Economic Cooperation Organization hold observer status.

The current name of the Organization was introduced on November 12, 2021, at the initiative of the President of Uzbekistan. Previously, it was known as the Cooperation Council of Turkic Speaking States.

The primary goal of the OTS is to strengthen trust and multifaceted ties among the brotherly nations, to promote cooperation in trade, economy, energy, transport, tourism, cultural and humanitarian spheres, and to coordinate efforts to ensure peace and security in the region.

The conceptual foundation for achieving these objectives is the “Turkic Vision – 2040” program, adopted following the Eighth Summit of Heads of State held in Istanbul in November 2021.

For Uzbekistan, which joined the Organization in 2019, participation has become an important step not only in strengthening economic and political ties but also in preserving and developing the shared cultural identity of the Turkic world.

Uzbekistan chaired the OTS in 2022–2023, beginning with the Samarkand Summit in November 2022 under the motto “A New Era of Turkic Civilization: Towards Common Development and Prosperity”.

During its chairmanship, more than 100 events were held, and new platforms for practical cooperation were created. Uzbekistan pursued an open, inclusive, and diverse model of interaction, embracing various regions and civilizations.

The adoption of the “OTS Strategy for 2022–2026” at the Samarkand Summit became a major milestone. This document marked the first roadmap for the implementation of the “Turkic Vision – 2040” concept.

President Shavkat Mirziyoyev has actively participated in OTS summits since Uzbekistan joined the Organization. In particular, he took part in the meetings of the Council of Heads of State on November 6, 2024, in Bishkek and May 21, 2025, in Budapest.

These meetings focused on the current state and future prospects of multilateral cooperation, as well as key issues of practical partnership.

In his address at the informal summit in Budapest, the President emphasized the complexity of today’s geopolitical and geo-economic situation, the intensification of regional conflicts, and the impact of climate change.

He stressed the importance of resolving international issues based on international law and the UN Charter, and the need for common positions and coordinated approaches among member states.

Speaking about the development of practical cooperation within the OTS, the President noted the enormous untapped potential and put forward several new initiatives.

Particular importance is attached to Uzbekistan’s proposal to sign a Treaty on Strategic Partnership, Eternal Friendship, and Brotherhood among the Turkic States, which would represent a significant step toward deeper unity and the creation of a long-term legal foundation for multilateral cooperation.

“Last year, we proposed developing a treaty on strategic partnership, eternal friendship, and brotherhood among the Turkic states. Today, the significance of this document is growing. Undoubtedly, it will promote further unity among our peoples and solidify the long-term legal framework for multilateral cooperation. I propose signing this document at the summit in Baku”, - the President stated.

Since 2019, President Shavkat Mirziyoyev has put forward 98 practical initiatives at OTS summits aimed at advancing multilateral cooperation. More than 70 have already been implemented, and about 30 are in the process of realization.

For Uzbekistan, the main priority within the OTS is the economy. The country is currently focused on boosting exports, attracting investment, creating jobs, addressing unemployment, and reducing poverty. All these goals are closely tied to global economic integration, where the OTS format can support further coordination and development of production chains.

The total area of the OTS member states is approximately 4.2 million square kilometers, with a combined population of over 170 million - representing vast opportunities and a substantial market.

Under existing agreements, the OTS is viewed as an effective mechanism for regional cooperation with great integrative potential. Trade and economic indicators between member states are growing every year.

Today, OTS countries collectively rank third - after China and Russia - among Uzbekistan’s external trade partners. In 2024, mutual trade volume reached nearly $10 billion, accounting for about 15% of the country's total foreign trade.

Trade relations with Kazakhstan - Uzbekistan’s largest trade partner within the OTS - and Turkiye - the second largest - are showing particularly strong growth. By the end of 2024, trade turnover with Kazakhstan reached $4.28 billion, and with Turkiye, $2.9 billion.

Trade with Azerbaijan also continues to show positive dynamics. Notably, mutual trade volumes with OTS partners are setting new records each year.

Uzbekistan’s key exports to OTS markets include textiles, electrical products, automobiles, fruits and vegetables, and non-ferrous metals. Imports from OTS countries consist of rolled metal, aluminum, mechanical tools, construction materials, petroleum products, and a significant portion of grain and other food items.

To maintain and accelerate this positive trend, it is crucial to implement President Shavkat Mirziyoyev’s initiatives, including the creation of the “TURK-TRADE” online platform to facilitate and speed up trade operations, and the adoption of a Program of Practical Measures to Expand Trade aimed at increasing mutual trade volumes.

Industrial cooperation is also a vital area. Uzbekistan is actively supporting the development of this sector and promoting the establishment of new enterprises with capital from OTS countries. This year, the number of such enterprises is expected to reach approximately 4 thousand, representing a 60% increase compared to 2019. Their share in the total number of foreign-capital enterprises in Uzbekistan is projected to reach approximately 20%.

Transport cooperation is receiving special attention. OTS countries are steadily increasing their role in global transit. In 2024, freight traffic through the Middle Corridor reached 4.5 million tons - almost six times more than in 2020. This growth underscores the strategic importance of infrastructure projects like the China–Kyrgyzstan–Uzbekistan railway.

Member countries are also working to ensure secure and reliable transport and energy corridors across the Caucasus and Central Asia. These efforts not only facilitate trade expansion but also contribute to economic independence and regional prosperity.

Uzbekistan is actively involved in cultural and historical heritage preservation and promotion. In education, the country supports student and scholar exchange programs, strengthens cooperation between universities and research centers of Turkic states, and promotes joint academic initiatives and knowledge-sharing platforms. Key areas of Uzbekistan’s proposals also include projects in energy and environmental protection.

In conclusion, President Shavkat Mirziyoyev's participation in the OTS summit in Azerbaijan will be another important step in advancing forward-looking initiatives for the development of the Turkic world and strengthening peace and stability in the region. This visit will also serve as a new impetus for the consolidation of unity and the enhancement of the well-being of the peoples of the Turkic states.

Sadriddin Suyarov,

Journalist

A Tashkent evening in midsummer can resemble a vibrant Mediterranean metropolis transplanted into the heart of Central Asia.

On a summer terrace in the city center, young people move effortlessly between Uzbek and English while discussing a new fintech startup. A few kilometers away, their peers are presenting an exhibition where traditional Uzbek ikat textiles meet digital art.

This is more than a snapshot of modern Tashkent. It is the face of Uzbekistan in 2026, a country marking the 35th anniversary of its independence.

Three and a half decades may be a brief moment in history, but for Uzbekistan, the anniversary carries a particular meaning. More than 60 percent of the population is under 30. Those turning 35 today are, in a sense, the same age as the independent Uzbek state itself. They are known as the ‘Mustaqillik Generation’ - Generation of Independence.

They have no personal memory of shortages, the Iron Curtain or a centrally planned economy. Their worldview was shaped instead by global connectivity, increasingly open borders and sweeping reforms of the past decade. Today, this generation is increasingly taking the helm and helping define Uzbekistan’s future.

From Caravans to Code

For centuries, the Silk Road connected East and West through Samarkand, Bukhara, Khiva and Shakhrisabz. Today, that historic exchange is taking on a new form.

Caravans have given way to fiber-optic networks, while technology hubs are emerging where caravanserais once stood. The most valuable resources of the new Silk Road are no longer silk and spices, but data, technology and human capital.

Over the past several years, Uzbekistan has made a significant leap in the IT sector, moving from a regional consumer of technology toward an exporter of digital services. At the center of this transformation is IT Park Uzbekistan, which has created an ecosystem for technology companies and helped connect them with international markets. Uzbek digital services are increasingly reaching clients in the United States, the United Kingdom, Germany, the UAE, and beyond.

Behind these figures are individual stories. Young programmer and entrepreneur Ziyobek Turdiev, drawing on his experience in a U.S.-based logistics company specializing in vehicle transportation, founded TheCarGo, an AI-powered platform designed for American auto-transport brokers. Today, the company serves the US market and continues to expand.

His experience reflects a broader transformation: for a growing number of young Uzbeks, global markets can be reached from Tashkent itself.

This transformation has been supported by economic liberalization and a strong emphasis on education. Programs such as ‘One Million Uzbek Coders’ opening of branches of leading foreign universities and tax incentives for the IT sector have helped create an environment where entrepreneurship and innovation can flourish.

A New Diplomacy of Openness

Historic Silk Road prospered when trade routes were open and travelers could move freely between its cities. Uzbekistan’s recent transformation has increasingly revived this principle.

Introduction of visa-free travel for citizens of more than 90 countries has helped turn Uzbekistan from one of the region’s more difficult destinations to access into an increasingly attractive tourism and business hub.

But the change goes deeper than mobility. Over the past decade, constitutional reform, stronger protection of human rights, the ban on forced labor and a greater role for civil society have contributed to a broader transformation of Uzbekistan’s social and political landscape.

A younger generation of lawyers, diplomats, civil servants and entrepreneurs, many educated at universities in Europe, the United States and Asia, is bringing international experience into national practice.

Their growing engagement is also visible on the global stage. The 14th UNESCO Youth Forum, held in Samarkand in October 2025, brought together 145 young leaders from 135 UNESCO Member States and Associate Members. Held for the first time in Central Asia, the forum focused on climate action and its social impact on young people, while Uzbek participants contributed to discussions on climate and cultural heritage.

A More Connected Central Asia

This opening has also changed Uzbekistan’s role in Central Asia.

Rather than being defined by the rivalries of the past, the region is increasingly becoming a space for cooperation, connectivity and shared economic opportunity. Young entrepreneurs and activists from Uzbekistan, Kazakhstan and Kyrgyzstan are increasingly working together across borders, seeing Central Asia less as a geopolitical fault line and more as a shared home.

Recent youth initiatives illustrate this shift. The international ‘Eco-Zakovat’ intellectual tournament in Samarkand brought together around 150 young participants from Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Azerbaijan.

Eco-Camp 2026 in Tashkent Region brought together around 300 young environmental activists for discussions, competitions and practical initiatives focused on environmental protection.

For this generation, regional cooperation is becoming less a diplomatic slogan and more a natural way of thinking and acting.

Tradition Reimagined

‘Mustaqillik Generation’ is also redefining how Uzbekistan presents its cultural identity to the world.

Traditional textiles such as adras and khan-atlas, produced through the distinctive ikat technique, are being reimagined by young designers and combined with contemporary fashion. Uzbek patterns and craftsmanship are increasingly appearing in collections aimed at audiences in Paris, Milan, New York and other global cultural centers.

Young designers such as Nigora Hashimova and Marjona Sadinova illustrate this new creative confidence, bringing Uzbek-inspired designs to international platforms.

Country’s participation in the 2026 Venice Biennale, through its national pavilion The Aural Sea, offers another example. Bringing together Uzbek artists, young creatives and international collaborators, the pavilion explores the ecological transformation of the Aral Sea through contemporary art and storytelling.

Cultural revival is not simply about preserving the past. Traditional crafts, from Rishtan ceramics to Bukhara gold embroidery, are also supporting local communities, creating economic opportunities and sustaining environmentally responsible production.

For international audiences, this creates a different image of Uzbekistan: not a country frozen in its historical heritage, but a living cultural space where tradition and innovation coexist.

The Age of Conscious Maturity

For an individual, 35 can mark the transition from youthful ambition to greater maturity and a clearer understanding of one’s place in the world. For a state, meaning can be much the same.

As Uzbekistan marks 35 years of independence, its transformation is increasingly becoming more than a government-led process. It is being reinforced by a generation that has grown up with greater access to information, greater mobility and a stronger connection to the outside world.

This generation may ultimately prove to be the most important guarantee that Uzbekistan’s opening to the world will continue.

Modern Uzbekistan is therefore revealing itself in a new light. It is no longer simply viewed through the prism of its Soviet past or as an exotic destination along the old Silk Road. It is emerging as a dynamic, increasingly open and future-oriented state, with an expanding role in the economic and diplomatic architecture of Central Asia.

The great legacy of the Silk Road was never only about trade. At its heart was the movement of people, ideas, knowledge and cultures.

Today, a new generation of Uzbeks is carrying that legacy forward - not with caravans, but with technology, entrepreneurship, diplomacy and creativity.

As Uzbekistan celebrates the 35^th Anniversary of its Independence, it is not merely commemorating its past. It is writing a new chapter in its global story.

On November 6, 2026, Astana will host an international conference on “Artificial Intelligence Safety.” The importance of this issue for Uzbekistan’s development is reflected in the planned participation of President Shavkat Mirziyoyev.

The introduction of artificial intelligence (AI) technologies creates new opportunities for economic development and many other areas of society. Their potential benefits are already widely recognized.

The economic impact of AI is primarily reflected in higher labor productivity, as software systems increasingly perform routine and repetitive tasks. This allows enterprises to accomplish more at lower costs, while government agencies can provide public services more quickly and efficiently, improving their quality and reducing budget expenditures.

The high efficiency of AI technologies has triggered an investment boom in the sector. According to the International Monetary Fund (IMF), investment in AI infrastructure is helping sustain global economic growth at around 3%, while contributing an additional 0.2–0.8 percentage points to growth in developing Asian economies. At the beginning of 2025, the global AI market was projected to reach $15 trillion by 2030. More recent estimates exceed $20 trillion. In Uzbekistan, the market for AI-based services could reach $10 billion by 2030.

According to McKinsey, global investment in AI totaled $167.7 billion in 2025. Most of this funding was directed toward data centers, cloud platforms and the development of new AI models. The number of job vacancies related to agentic AI increased more than tenfold over the year, while employees with AI skills earned, on average, 56% more than other workers.

Uzbekistan’s AI Development Strategy

The development of AI technologies has become one of Uzbekistan’s key priorities. Importantly, technological development and the establishment of a regulatory framework are progressing in parallel. In October 2024, Uzbekistan approved its Strategy for the Development of Artificial Intelligence Technologies through 2030.

The strategy envisages increasing the value of AI-based software products and services to $1.5 billion, establishing research laboratories and placing Uzbekistan among the world’s top 50 countries in the AI Readiness Index. A presidential decree issued in October 2025 set the objective of opening 15 AI laboratories at higher education institutions by the end of 2026. In 2026, Uzbekistan joined the World Artificial Intelligence Cooperation Organization (WAICO).

The legal framework for AI development was established in January 2026, when legislation introduced a formal definition of artificial intelligence for the first time. The law also established mandatory human oversight of decisions affecting citizens’ rights and introduced administrative liability for the unlawful processing of personal data using AI. In March 2026, ethical rules governing the use of AI technologies were approved.

At the same time, Uzbekistan is developing the computing infrastructure required for AI applications. Since January 1, 2026, government agencies and enterprises have been permitted to purchase graphics processing units (GPUs) directly from manufacturers’ authorized distributors. A modular AI computing center is scheduled to be established in the Republic of Karakalpakstan by 2027. Under a government resolution dated October 20, 2026, universities, research institutions and startups have been granted access to the AI infrastructure of the Ministry of Digital Technologies free of charge or on preferential terms for up to six months.

AI adoption in Uzbekistan is now moving from individual projects toward systematic implementation. In July 2026, the country’s first NVIDIA-based supercomputer was commissioned at the Digital Government data center, ranking 321st globally in computing performance. During its first month of operation, the computing cluster reached 90% utilization, indicating strong demand for AI computing capacity. Plans call for a threefold expansion of this capacity within the following year.

AI technologies are also gradually becoming part of widely used public services. Taxpayers can receive interactive assistance through the Tax Committee’s ai.soliq.uz portal. Justice authorities provide round-the-clock consultations, while the Customs Committee uses AI to assess risks associated with shipments and customs declarations. By the end of 2026, at least 100 AI-based projects are expected to be implemented in healthcare, energy, banking, transport and agriculture.

Uzbekistan has climbed 25 positions to 62nd place in the international AI Readiness Index, reflecting the progress achieved in this area. The country aims to enter the world’s top 50 by 2030.

Cybersecurity Threats

The development of AI technologies creates not only new opportunities but also additional risks. These are particularly evident in cybersecurity, where AI tools can be used both by law enforcement agencies to strengthen protection and by criminals to conduct illegal activities.

AI systems can analyze millions of operations in real time and operate considerably faster than humans. However, cybercriminals are increasingly exploiting the same capabilities. Fraudulent messages are becoming more convincing, while malicious software can be developed more rapidly. Traditional security measures are proving insufficient against such threats. As a result, global investment in cybersecurity and the resilience of digital systems reached $77.5 billion in 2025.

Combating cybercrime has therefore become a separate priority of Uzbekistan’s public policy. Over the past six years, the number of reported cybercrime incidents has increased 48-fold, while 82% of fraud cases in 2025 occurred in the digital environment.

To counter these threats, Uzbekistan’s Ministry of Internal Affairs, together with the Central Bank, developed an AI-based system that prevented the illegal transfer of 29 trillion sums and blocked more than 18,800 suspicious bank cards during the first half of 2026.

Furthermore, 2026 has been declared the Year of Combating Cybercrime within the Ministry of Internal Affairs. Since the beginning of the year, 17,500 cybercrimes have been solved, while more than 19,000 citizens have recovered losses totaling over 209.9 billion sums. The APK Qo'riqchi platform and the CyberWeek public awareness program have also been launched.

Pressure on Energy, Water Resources and the Labor Market

Beyond cybersecurity threats, the rapid expansion of AI is creating substantial additional pressure on energy systems, water resources and labor markets. These challenges are particularly relevant to Uzbekistan, given its growing electricity demand, limited water resources and young population. Accordingly, special attention is being paid to measures aimed at mitigating these risks.

Energy. Training and operating AI models require large data centers that consume considerable amounts of electricity. Consequently, AI development must be accompanied by a corresponding expansion of electricity generation capacity.

According to the International Energy Agency (IEA), data centers accounted for approximately 1.5% of global electricity consumption in 2024. By 2030, their electricity demand is expected to more than double, reaching 945 terawatt-hours (TWh). Countries that incorporate rising electricity requirements into their AI development plans at an early stage will have an advantage over those that encounter power shortages after launching major projects.

Uzbekistan is pursuing the former approach. The combined planned capacity of the country’s data center projects is approximately 1.4 GW. At full utilization, these facilities would consume around 12.2 billion kWh of electricity annually, equivalent to 14.1% of Uzbekistan’s total electricity generation in 2025.

Four major data centers are planned for Tashkent (500 MW), Bukhara Region (300 MW), Surkhandarya Region (300 MW) and Karakalpakstan (300 MW).

By 2030, national electricity generation is expected to increase from 86.7 billion to 125.8 billion kWh. As a result, the share of electricity consumed by these data centers would decline to 9.7% of total generation.

To meet growing demand, Uzbekistan plans to double its installed power generation capacity from 25.8 GW to 51.6 GW. This expansion will include more than 17 GW of renewable energy capacity and a nuclear power plant in Jizzakh Region.

Water resources. The expansion of data centers also increases demand for water used to cool servers and computing equipment.

Evaporative cooling systems consume approximately 1.8 liters of water per kilowatt-hour. At a continuous load of 1.4 GW, this would correspond to roughly 60,000 cubic meters of water per day.

Given Uzbekistan’s existing water constraints, water consumption is being considered at the planning stage of AI infrastructure development. Air cooling, direct liquid cooling and the use of industrial water can reduce freshwater consumption severalfold.

Incorporating these requirements into projects from the outset would allow Uzbekistan to develop its data center infrastructure while minimizing competition with agriculture for limited water resources.

Labor market. According to IMF estimates, AI could partially or fully automate tasks associated with approximately 40% of jobs worldwide.

Occupations involving repetitive activities, including accountants, call center operators, administrative staff and entry-level programmers, are among those most exposed to automation. At the same time, demand is increasing for specialists capable of developing and implementing AI systems.

These trends make AI-related training and the development of complementary professional skills increasingly important priorities for the education system.

Beginning with the 2026–2027 academic year, topics related to the practical application of AI technologies are being incorporated into general secondary and higher education curricula.

More than 1.5 million users have already obtained AI-related certificates. Specialized training programs have been completed by 900 managers, more than 3,000 civil servants, 1,000 banking employees and 200 advisers.

By the end of 2026, the number of resident companies operating in this sector is expected to reach 300, with their services totaling 2 trillion sums and exports reaching $160 million.

Sector-specific hackathons and competitions have been held in Nukus, Samarkand, Termez, Bukhara, Fergana, Andijan, Gulistan and Jizzakh. In addition, a national hackathon with a prize fund of 2 billion sums is organized annually.

The government has also set the objective of fully implementing the “Five Million AI Leaders” initiative over the next two years.

Thus, Uzbekistan is undertaking large-scale efforts to develop the human resources required for the expansion and effective application of AI technologies.

The Need for International Cooperation

As AI-related cybersecurity threats extend beyond national borders, ensuring AI safety requires international cooperation and coordination.

Kazakhstan is one of Uzbekistan’s closest partners in this field. The country has declared 2026 the Year of Digitalization and Artificial Intelligence, established the Ministry of Artificial Intelligence and Digital Development, and launched the international Alem.AI center. Its national supercomputer, Alem.Cloud, ranks 86th globally in computing performance.

Moreover, Uzbekistan’s IT Park and Kazakhstan’s Astana Hub have signed a memorandum on organizing joint technology forums, webinars, business missions and B2B meetings, as well as strengthening cooperation between the two countries’ startup ecosystems.

The challenges associated with AI development extend beyond cybercrime to energy supply, water resources and labor market transformation. These challenges are highly relevant to both Uzbekistan and Kazakhstan, given the similarities in their climatic and demographic conditions.

This creates a strong basis for closer bilateral cooperation and coordination in addressing the risks accompanying the development and widespread adoption of AI technologies.

Against this background, the international conference on “Artificial Intelligence Safety” in Astana is particularly timely and relevant not only for Uzbekistan and Kazakhstan but also for other countries.

The conference is expected to provide an opportunity to discuss practical solutions to existing challenges and develop new forms of interstate cooperation aimed at addressing them.

Drawing on its accumulated experience in AI development, regulation and cybersecurity, Uzbekistan can make a meaningful contribution to the discussions and to the formulation of joint approaches for ensuring the safe and sustainable development of artificial intelligence.

Farkhad Tutkabaev,

Center for Economic Research and Reforms

The second day of the visit of the Head of our state to Navoi region began with a joyful event. A ceremony dedicated to new projects was held with the participation of representatives of the public.

In recent years, entrepreneurship in Navoi region has been actively developing, and the interest of investors in the region continues to grow. In 2023 alone, the region produced more than 101 trillion soums worth of industrial products and exported $648 million. Foreign investments worth about $478 million were also absorbed, and the foreign trade turnover of the region amounted to about $1.3 billion. More than 300 foreign enterprises operate in the region, and their number will continue to increase.

Fifteen new projects were announced at the ceremony.

In particular, the projects on extraction and processing of oil shale in Kanimekh district, construction of a 300 megawatt solar photovoltaic station and a 75 megawatt electricity storage system in Karmana district, production of technical gases in Navoi city, processing of marble in Gazgan and granite in Zarafshan, extraction and enrichment of kaolin in Uchkuduk district, and production of fish feed in Khatyrchi district were launched. 

Enterprises were launched to produce potassium sulfate and sulfuric acid in Karmana district, cotton pulp in Navoi city, and granite processing in Nurata district.

The total cost of the 15 projects is $3.6 billion. More than 7 thousand jobs will be created.

President Shavkat Mirziyoyev pressed a symbolic button and gave start to the construction and operation of the new projects.

The text of the article is in Uzbek language!

Cooperation between the Republic of Uzbekistan and the Republic of Korea has been developing consistently in recent years, acquiring new substance in such priority areas as the economy, investment, advanced technologies, digitalization, and public financial management. Relations aimed at further expanding practical cooperation between the two countries, studying advanced experience, and introducing modern technologies are becoming particularly important.

Within the framework of the Central Asia–Republic of Korea Cooperation Forum, particular attention is being paid to identifying new areas of regional and bilateral cooperation, implementing joint projects in innovative and high-tech sectors, as well as developing human capital.

This process is becoming even more relevant ahead of the high-level visit of the President of the Republic of Uzbekistan to the Republic of Korea on September 14–17. The visit will create important opportunities for bringing the strategic partnership between the two countries to a new level, expanding investment and technological cooperation, as well as reaching new agreements on the implementation of promising projects.

In particular, cooperation between the Republic of Uzbekistan and the Republic of Korea in the area of public financial management and modernization of the treasury system is also developing steadily. In this regard, the Republic of Korea’s advanced experience is being studied as part of the modernization of the treasury system and the gradual transition to a “Digital Treasury” system.

From April 5 to 10, 2026, the Korea Fiscal Information Service (KFIS) organized a training and practical seminar in the Republic of Korea dedicated to public financial management information systems and the introduction of artificial intelligence technologies. The delegation of the Treasury Service Committee under the Ministry of Economy and Finance of the Republic of Uzbekistan took part in the seminar.

During the visit, the advanced information systems used in the Republic of Korea in the field of public financial management were studied in detail, including the operating mechanisms, functional capabilities, and role of the dBrain+, e-Naradoum, and e-Hojo systems in the digitalization of public financial management processes.

In addition, a Memorandum of Understanding was signed between the Treasury Service Committee and the Korea Fiscal Information Service. This document will contribute to further strengthening bilateral cooperation at the institutional level, expanding the exchange of experience, and developing practical cooperation aimed at improving public financial management information systems.

Furthermore, during meetings with the leadership of the Korea Fiscal Information Service, an agreement was reached on the engagement of a highly qualified expert from the Republic of Korea in the process of modernizing Uzbekistan’s public financial management information systems.

There are also prospects for establishing cooperation with the Republic of Korea in developing a semiconductor ecosystem, as well as implementing “OSAT” (the process of chip packaging and testing) and “IC Design” projects.

One of the key areas being identified is the exploration of opportunities to attract the Republic of Korea’s advanced technologies to Uzbekistan in the production of raw materials and high-purity chemical materials for semiconductors, train local specialists, establish cooperation in research and develop a semiconductor materials base in the country.

Within the framework of developing cooperation in the semiconductor sector with “SK Group,” particularly “SK Hynix,” prospects are being considered for technology transfer, the establishment of educational programs in “IC Design,” the training of local engineers and specialists in chip design, the implementation of joint educational programs, including grant-based projects, as well as the establishment of research and development centers.

The implementation of these initiatives will create an important foundation for developing the modern electronics and semiconductor industry in Uzbekistan, training highly qualified engineering professionals, localizing advanced technologies, and establishing new high-value-added manufacturing industries.

Initiatives aimed at applying the Republic of Korea’s advanced technological and institutional experience in Uzbekistan, expanding mutually beneficial investment projects, and training modern specialists will contribute to bringing the strategic partnership between the two countries to a new level.

In this regard, the initiatives being put forward within the framework of the Central Asia–Republic of Korea Cooperation Forum and the high-level visit will serve as an important foundation for further deepening multifaceted cooperation between the Republic of Uzbekistan and the Republic of Korea, implementing new technological projects, and developing high-value-added sectors in the long term.