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

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

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

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

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

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

Dynamics of Bilateral Trade

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

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

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

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

Investment Cooperation

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

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

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

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

Prospective Areas of Economic Cooperation

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

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

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

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

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

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

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

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

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

Conclusion

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

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

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

Edvard Romanov
Center for Economic Research and Reforms

Over the past few years, Central Asia and the Caucasus have emerged as some of the fastest-growing regions in technology and innovation. Uzbekistan, Kazakhstan, and Azerbaijan are increasingly strengthening their positions on the global startup map, attracting international investors, technology companies, and entrepreneurs. One of the key platforms bringing together the region’s innovation ecosystem has become the international INMerge summit.

What is INMerge?

INMerge is an international innovation summit that brings together startups, investors, corporations, government representatives, and technology communities from across Central Eurasia. Over the past five years, the project has evolved from a relatively small corporate gathering into one of the region’s leading technology forums.

Today, INMerge hosts participants from Azerbaijan, Uzbekistan, Kazakhstan, Georgia, Türkiye, and other countries. Discussions focus on investment, artificial intelligence, startup development, digital infrastructure, and cross-border collaboration. Most importantly, however, the forum helps transform networking opportunities and ideas into real partnerships, projects, and investment deals.

In 2026, INMerge expanded beyond a single-city format by launching a regional Roadshow initiative. Ahead of the main summit, the team is organizing a series of events across key locations in the region. One of the central stops became Tashkent — a city that clearly demonstrated how rapidly Central Asia’s role in the global technology landscape is evolving.

Today, the three countries are shaping a new regional ecosystem, where each contributes its own strategic strengths.

Uzbekistan is now considered one of the fastest-growing tech markets in the region. Over the past year, venture investment volumes increased more than fivefold, the number of startups doubled to over 950, and Tashkent entered the world’s top 100 startup ecosystems for the first time. The country is actively opening up to international investors and steadily becoming a new destination for technology-driven businesses. Uzbekistan is already home to two unicorns.

Kazakhstan continues to focus on infrastructure development and a systematic approach to building its startup ecosystem. The country is developing a large-scale $1 billion fund of funds and has spent several years consistently creating conditions that allow startups to scale not only domestically, but internationally as well. Kazakhstan has also produced two unicorns.

In 2024, IT Park Uzbekistan and Astana Hub took another important step toward regional integration by launching the Central Asian Innovation Hubs initiative. The platform opened access for Central Asian startups to joint programs, international venues, and global accelerators. Today, Azerbaijan is increasingly exploring participation in this ecosystem, gradually contributing to the formation of a unified technological space connecting Central Asia and the Caucasus.

Azerbaijan, in turn, is becoming a platform that connects different markets and innovation communities. Baku was recently named Startup City of the Year, while INMerge Ventures became one of the country’s first locally registered venture capital funds. The city is now emerging as a hub for dialogue between corporations, investors, and technology teams from across the broader region.

At INMerge, this evolving dynamic is described as an “innovation corridor.” It is not simply about neighboring countries collaborating — it is about creating a shared ecosystem where ideas, technologies, investments, and talent can move freely across borders.

From Local Startups to the Global Stage

For startups today, building a product is no longer enough. Founders also need access to investors, strategic networks, and international markets. This is why platforms like INMerge are becoming increasingly important across the region.

One of the clearest examples is the startup competition held in Tashkent. Winners receive not only visibility and recognition, but also the opportunity to present their projects at the final summit in Baku before international investors and major corporations. This model helps connect local ecosystems into a larger regional network, giving young startups a real opportunity for international growth.

The final stage of INMerge will take place on October 8–9 in Baku, bringing together startup founders, investors, corporate leaders, and government officials who are actively shaping the future of Central Eurasia’s innovation economy.

A region that until recently remained outside the global technology spotlight is steadily becoming a new center of growth. And today, INMerge is playing a key role in accelerating that transformation.

Марказий Осиё сўнгги йилларда иқлим ўзгариши оқибатларига тобора кўпроқ дуч келаётган ва дунёда ундан энг кўп зарар кўриши мумкин бўлган минтақалридан бири. Сўнгги 70 йил ичида Марказий Осиёда ҳарорат Цельсий бўйича 1,5-2 даражага кўтарилди. Бу эса экологик муаммоларнинг кескинлашувига, музликларнинг эриши ва чўлланишнинг тезлашишига таъсир кўрсатмоқда. Ушбу жараёнларнинг барчаси бир-бири билан ўзаро боғлиқ бўлиб, минтақадаги экотизимлар, иқтисодиёт ва одамлар ҳаётига салбий таъсир кўрсатмоқда.

Глобал миқёсда иқлим ўзгариши туфайли музларнинг эриш тезлиги сўнгги йилларда 65 фоизга ошди: 90-йилларнинг бошида сайёрада йилига 0,8 триллион тонна, 2000-йилларга келиб эса 1,3 триллион тонна муз эриб кетган. Марказий Осиё минтақаси учун ҳам ушбу экологик муаммо бугунги куннинг энг муҳим иқлим муаммолари қаторига киради.

Марказий Осиёда сув ресурслари тақчиллиги ортиб бормоқда. Бугунги кунда 37 миллион нафардан ортиқ киши асосан сув таъминотининг пасайиши, шунингдек, тегишли инфратузилманинг етарли даражада ривожланмаганлиги билан боғлиқ бўлган сув ресурслари кескин етишмайдиган ҳудудларда яшайди.

Евроосиё тараққиёт банки ҳисоб-китобларига кўра, 2025-2030-йилларда минтақа мамлакатлари учун сув ва иқлим инфратузилмасига зарур бўлган инвестицияларнинг умумий ҳажми қарийб 29,2 миллиард долларни ташкил этади.

Оролбўйи минтақасининг ҳолати вазиятни қийинлаштирмоқда – шамоллар Оролнинг қуриган тубидан ҳар йили тахминан 15-75 миллион тонна қум, чанг ва тузни учириб кетади. Бу эса сезиларли масофаларда ҳавонинг сифатини ёмонлаштиради ва бевосита ижтимоий-иқтисодий йўқотишларга олиб келади.

Шу сабабдан ҳам сўнгги йилларда Марказий Осиёнинг минтақавий кун тартибида экологик масалалар тобора устувор аҳамият касб этмоқда. Сув ресурслари билан боғлиқ муаммолар, ерларнинг деградацияси, иқлим ўзгариши, Оролбўйининг ҳолати эндиликда минтақа мамлакатлари томонидан алоҳида эмас, балки минтақанинг умумий барқарор ижтимоий-иқтисодий ривожланиш масалалари контекстида кўрилмоқда.

Марказий Осиё мамлакатлари давлат раҳбарларининг сиёсий иродаси туфайли экология соҳасидаги кўп томонлама ҳамкорлик янада тизимли ва мазмунли бўлиб бормоқда.

Бунда минтақавий ҳамкорликнинг институционал асосларини мустаҳкамлаш алоҳида ўрин тутди. Оролни қутқариш халқаро жамғармаси ва унинг тузилмалари амалдаги механизмлари билан бир қаторда, экологик масалалар минтақа мамлакатлари давлат раҳбарларининг маслаҳат учрашувлари, шунингдек, соҳавий идоралараро ва экспертлар мулоқоти доирасида янада изчил мустаҳкамлана бошлади.

Минтақа мамлакатларининг иқлим билан боғлиқ халқаро тадбирларда фаоллашганини ҳам таъкидлаш жоиз. Хусусан, БМТнинг Иқлим ўзгариши тўғрисидаги доиравий конвенцияси конференцияларида Марказий Осиё мамлакатлари "5 мамлакат - 1 минтақа - 1 овоз" тамойили остида чиқиш қилиб, иқлим муаммолари бўйича миллий устувор масалалар ва умумий минтақавий ёндашувларни тақдим эта бошладилар.

Марказий Осиёнинг барча мамлакатлари Париж келишуви доирасида ўзларининг миллий миқёсда белгиланган ҳиссасини тақдим этди ва иссиқхона газларини камайтириш, "яшил" энергетика қувватини ошириш ва мослашувчанлик салоҳиятини мустаҳкамлаш бўйича ўз олдига юқори мақсадларни қўйди.

Шу билан бирга, Қозоғистон 2060-йилга бориб углерод нейтраллигига эришиш йўлини белгилаб олди, Ўзбекистон эса 2035-йилга бориб ялпи ички маҳсулот бирлигига тўғри келадиган иссиқхона газлари эмиссиясини 2010-йилдагига нисбатан 50 фоизга камайтириш бўйича мақсадли кўрсаткични оширди. Қирғизистон, Тожикистон ва Туркманистон ҳам глобал иқлим мақсадларига эришиш йўлидаги интилишларини тасдиқлаб, ўз ҳиссасини доимий равишда янгилаб, ошириб келмоқда.

Орол инқирози оқибатларига мослашиш масаласида ҳам сезиларли натижаларга эришилди. Хусусан, Орол денгизининг қуриган тубида Ўзбекистон томонида сўнгги 5 йил ичида 1,7 миллион гектар ўрмонзорлар барпо этилди, Қозоғистон томонида 1 миллион гектардан ортиқ майдонда ўрмон-мелиорация ишлари олиб борилди.

Минтақавий ҳамкорликнинг яна бир ёрқин натижаларидан бири Шимолий Оролдаги вазиятнинг яхшиланиши бўлди. Сирдарё бўйидаги   сув омборларининг иш тартибини мувофиқлаштириш ва давлатлараро келишувларни бажариш ҳисобига сўнгги уч йилда денгизга 6 миллиард куб метрдан ортиқ сув келиб тушди. Натижада Шимолий Оролнинг ҳажми 2022-йил охиридаги 18,9 миллиард куб метрдан 2025-йил охирида 23 миллиард куб метргача ошди.

Билим алмашинуви ва илмий экологик экспертиза соҳасида ҳам минтақавий ҳамкорлик кенгаймоқда. Ўзбекистонда атроф-муҳит ва иқлим ўзгаришини ўрганиш бўйича Марказий Осиё университетининг ташкил этилиши ушбу ҳамкорликнинг натижаси бўлиб, минтақада шу йўналишда кадрлар тайёрлаш ва қўшма тадқиқотларни ривожлантириш учун янги майдонга айланди.

Шундай қилиб, Марказий Осиёда ўзаро минтақавий экологик ҳамкорлик аста-секин амалий аҳамият касб этмоқда. Мамлакатлар умумий халқаро позицияни шакллантириш, мувофиқлаштириш механизмларини ривожлантириш, Оролбўйи экотизимларини тиклаш бўйича чора-тадбирларни амалга ошириш ва илмий-таълим базасини яратишда сезиларли натижаларга эришди.

Шу билан бирга, минтақадаги экологик муаммолар кўлами мувофиқлаштиришни кенгайтиришни тақозо қилмоқда. Трансчегаравий сув ресурсларини бошқаришда янада ўзаро мувофиқлаштирилган ёндашувларни ишлаб чиқиш, иқлим ўзгаришининг оқибатларига мослашиш чораларини кенгайтириш, сув ва экологик инфратузилмага узоқ муддатли инвестицияларни жалб этиш, шунингдек, умумий экспертлар базаси ва таҳлилий базани мустаҳкамлаш устувор вазифалар сифатида қолмоқда.

Кейинги йилларда Марказий Осиёнинг экологик кун тартиби самарадорлиги минтақа мамлакатлари сиёсий ҳамкорлик натижаларини барқарор қўшма механизмларга қанчалик изчил трансформация қила олишига боғлиқ бўлади.

Остона шаҳрида бўлиб ўтадиган Минтақавий экологик саммит иқлим масаласида умумий мақсадига эришиш йўлидаги яна бир қадам бўлади. Иқлим ва экологик муаммоларни бартараф этиш бўйича янги ва амалий ечимларни ишлаб чиқиш нафақат Марказий Осиё мамлакатларининг глобал иқлим кун тартибига қўшган ҳиссасини оширишга, балки экотизимлар барқарорлигини таъминлаш, ҳаво ифлосланишини камайтириш, табиий ресурсларни барқарор бошқариш ва устувор равишда сув ва энергетика ресурсларини бошқариш бўйича минтақавий вазифаларни ҳал этишга ҳам хизмат қилади.

Эльвира Бикеева,

МҲТИ лойиҳа раҳбари

Малика Сапармуҳаметова,
МҲТИ етакчи мутахассиси

On August 14-15, 2025, the VIII Central Asian Expert Forum (CAEF) will be held in Tashkent under the title “Central Asia – a common space of trust, security and sustainable development”.

Established in 2018, the CAEF is held annually in the country chairing the Consultative Meeting of the Heads of State of Central Asia. The forum serves as an important platform for discussing the current state and prospects of regional cooperation, as well as developing recommendations for the further development of cooperation in Central Asia.

The Forum is organized by the Institute for Strategic and Regional Studies under the President of the Republic of Uzbekistan (ISRS). Event partners include the Regional Center for Preventive Diplomacy for Central Asia, the European Union Delegation to Uzbekistan and the Organization for Security and Cooperation in Europe (OSCE), and the Konrad Adenauer Foundation.

The Forum will traditionally bring together heads and specialists of strategic institutes, research centers, and academic institutions from across the region. For the first time, prominent experts from the EU, ASEAN, the Nordic Council, as well as researchers from the Russian Federation, the USA, Great Britain, Switzerland and Azerbaijan have been invited to participate in its work in order to exchange experience in regional studies.

The Forum’s program will focus on prospects for deepening regional cooperation and explore specific measures to promote multifaceted collaboration.

In addition, the Forum will feature separate events: a scientific-practical conference on shaping regional identity and a roundtable discussing prospects for partnership between Central Asia and Northern Europe.

The upcoming expert dialogue is expected to identify common interests and outline priorities for Central Asia’s future development. The resulting recommendations will enrich the agenda of the forthcoming Consultative Meeting of the Heads of State of Central Asia, scheduled to take place this year in Uzbekistan.

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

The relevance of transitioning to a new model

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

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

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

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

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

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

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

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

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

Infrastructure as an economic asset

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

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

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

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

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

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

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

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

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

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

Comparative advantages of mahallas

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

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

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

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

Deepening mahalla specialization

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

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

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

Comparative advantages of mahallas

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

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

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

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

Institutional changes in system governance

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

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

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

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

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

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

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

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

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

Conclusion

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

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

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

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

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

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

Today, global development is proceeding at an unprecedented pace of urbanization — by 2050, nearly 68% of the world’s population is expected to live in cities.

This process is also advancing rapidly in Uzbekistan: the country’s population has exceeded 38 million, the urbanization rate has reached 51%, and nearly 20 million people now live in urban areas.

According to economic analyses, every 1% increase in the urbanization rate grows the economy by at least 1% and accelerates investment flows and startup development — making reforms in this sector of strategic importance.

With this in mind, within the framework of Uzbekistan’s urbanization policy, the practice of “chaotic construction” has been abandoned in favor of smart and integrated territorial development — an approach recognized as essential in global best practices.

One of the most important institutional steps was the establishment of the National Committee for the Sustainable Development of Urbanization and the Housing Market. This body serves as the central “think tank” unifying architecture, economics, and social policy into a single system.

To reduce administrative barriers in the construction sector, the number of permitting stages has been cut by a factor of 3, and processing timelines by a factor of 4. Additionally, 420 outdated urban planning norms have been restructured, replaced by 140 modern regulatory documents.

Furthermore, in Uzbekistan, land ownership no longer automatically grants the right to build — the process is now based on the principle of integrated territorial development.

Most importantly, a strict principle has been enshrined in law: schools, clinics, and modern utilities must be built before or simultaneously with residential construction.

These new mechanisms provide, above all, trust and financial stability. To ensure stability in the housing market and strengthen buyer confidence, measures have been taken to fully eliminate the risk of “unfinished constructions.” To this end, a system of escrow accounts is being widely introduced in Uzbekistan for the first time.

Through this modern mechanism, citizens’ funds are securely held in banks until the keys to the property are handed over. Developers, in turn, gain access to affordable and convenient project financing. As a result, urban development has transformed from a chaotic process into a managed industry operating under transparent rules.

Development Strategy and Achievements

Over the past eight years, 120 million square meters of housing have been built across the country. The total volume of construction work grew from 30 trillion soums in 2016 to 314 trillion soums last year, and the sector now employs more than 3.5 million people.

According to the state’s long-term priority strategy, the following key targets have been set:

• Raise the urbanization rate to 60%;
• Increase housing provision from 18.9 square meters per capita to 23 square meters;
• Nearly double the annual housing construction volume to 30.3 million square meters.

Innovative Mega-Projects and an Ecological Approach

The most vivid practical expression of this strategy is the “New Tashkent” mega-project, rising across 20,000 hectares. Designed for a population of 1 million residents, this ecologically clean, high-tech metropolis implements the globally recognized “15-minute city” concept. The project includes the creation of a 420-hectare “green belt,” the planting of 200,000 trees, and a fully ecological transport system (electric buses, metro, and bicycle lanes).

These high living standards are not limited to the capital. Across the country, 56 “New Uzbekistan” residential districts, each designed for at least 70,000 residents and equipped with rich social infrastructure, are being constructed at an accelerated pace.

In conclusion, Uzbekistan has formed a sustainable and effective model for managing urbanization, encompassing the National Committee, the escrow system, and the smart “New Uzbekistan” districts. By transforming modern cities into ecologically clean, socially oriented, and livable spaces, the country is establishing a high benchmark for urbanization in the Eurasian region.

Uzbekistan's upcoming elections for the Legislative Chamber of the Oliy Majlis (Parliament) and the Councils of People's Deputies, scheduled for October 27th, are not just a routine event. They mark a significant milestone in the nation's democratic journey, introducing groundbreaking changes that promise to transform the electoral landscape. The recent meeting of the Central Election Commission unveiled several key innovations that will ensure greater efficiency, transparency, and inclusivity, making these elections a matter of global interest.

For the first time in the nation's history, the Legislative Chamber elections will employ a mixed electoral system, combining majoritarian and proportional representation. This change means that voters will elect seventy-five deputies directly, while another seventy-five will be chosen based on party votes. This system aims to create a more balanced and representative legislature, enhancing democratic legitimacy and ensuring a broader spectrum of political voices.

One of the most notable advancements in Uzbekistan's electoral system is the full digitization of election commission activities. The introduction of the 'E-Saylov' information system is a significant leap forward, revolutionizing the election process. This digital platform not only streamlines the process, reducing bureaucracy and document handling, but also ensures a smoother, more efficient, and transparent electoral experience. It automates interactions between election commissions, political parties, candidates, observers, and the media, providing real-time statistical data, candidate information, and interactive maps. This technological leap empowers voters with unprecedented access to essential election-related information, making the electoral process more inclusive and transparent.

Inclusivity is another cornerstone of these elections. New election legislation requires political parties to ensure that at least 40% of their candidates are women, a progressive move towards gender equality in political representation. This requirement not only aligns Uzbekistan with advanced democratic standards but also enriches the political discourse by incorporating diverse perspectives.

The elections are taking place in a context where the updated Constitution has significantly enhanced the powers of parliament and representative bodies. The Legislative Chamber's powers have increased from 5 to 12, and the Senate's from 12 to 18. Parliament's oversight functions over executive, judicial, law enforcement, and special services have also been expanded. Additionally, the leadership of local Councils of People's Deputies by hokims (governors) has been abolished, transferring 33 powers previously held by hokims to local Councils to increase their role in resolving critical state issues.

The slogan "My Choice—My Prosperous Homeland" not only captures the spirit of these elections but also reflects the unwavering commitment of Uzbekistan's leadership to democratic state-building and citizen empowerment. With over 120,000 election commission members, 70,000 citizens, and numerous international observers participating, the elections are set to be a transparent and inclusive process, further demonstrating this commitment.

In conclusion, Uzbekistan is setting a remarkable precedent with its upcoming elections by embracing technological innovation and inclusivity. These initiatives will undoubtedly pave the way for a more prosperous and democratic future, showcasing Uzbekistan’s dedication to advancing democratic principles and practices.

Eldor Tulyakov,

The Executive Director,

Development Strategy Centre (Uzbekistan)

Today, elections to the Legislative Chamber of Oliy Majlis and kengashes of people's deputies are being held in our country.

President of the Republic of Uzbekistan Shavkat Mirziyoyev together with his family members visited polling station No. 59 in Mirzo-Ulugbek district of the capital and took part in the voting.

Article 128 of the Constitution of our country states that citizens have the right to elect and be elected to the representative bodies of state power. The right to vote, equality and freedom of expression are guaranteed by law.

Five parties are running in the elections: the Movement of Entrepreneurs and Business People - Liberal Democratic Party of Uzbekistan, the Milliy Tiklanish Democratic Party, the Ecological Party, the People's Democratic Party and the Adolat Social Democratic Party.
This important event is taking place in the context of increased social and political activity in our country, under the slogan “My Choice - Prosperous Motherland”.
For the first time in the history of Uzbekistan, elections to the Legislative Chamber of the Oliy Majlis are held on the basis of a majoritarian-proportional, that is, mixed electoral system. 75 deputies are elected directly under the majoritarian system, i.e. by voting for their preferred candidates, and the remaining 75 - under the proportional system, when votes are cast for political parties.

Over the past period, the electoral legislation has been radically improved in line with advanced democratic standards. In particular, a new system of electoral bodies headed by the Central Electoral Commission had been introduced, and, in order to enhance the role of women in society, it had been established that the proportion of women among political party candidates should be at least 40 per cent.
Another notable aspect of the current elections was that the interaction between the participants in the process had been fully digitalized through the E-Saylov information system.
This information system has raised the openness of the elections to a higher level.

All polling stations have created conditions for voters in accordance with the law. There are 5,770 district and 11,028 precinct election commissions organized in the field, including 57 polling stations in 40 foreign countries.
More than 850 foreign and international observers from the CIS, SCO, Organization of Turkic States, as well as a full-scale mission of the OSCE Office for Democratic Institutions and Human Rights are taking part in monitoring the election process.
The head of state talked to citizens who came to the polling station. He thanked them for their active participation in the elections with a sense of involvement in the fate of their native country and their district.

A total of 537 companies and brands, 125 speakers, and more than 1,000 delegates from 31 countries have confirmed their participation in the forum

One of the most significant exhibition and conference events in the country’s fuel and energy sector - Uzbekistan Energy Week (UEW 2026) - will be held at the CAEx Uzbekistan International Exhibition Center.

Uzbekistan Energy Week is a major annual international event, traditionally supported by the Ministry of Energy of Uzbekistan and Uzbekneftegaz JSC. It brings together industry leaders, innovators and experts, along with government representatives and international businesses to shape the strategic agenda, define long-term priorities and accelerate adoption of advanced energy solutions.

The broad UEW 2026 Programme is built around the theme “New Energy: Innovation, Sustainability and Regional Cooperation” and includes a series of specialised exhibitions and conferences covering two core areas of the energy sector – hydrocarbon production and electric power. These events play a strategic role in shaping industry agenda and setting priorities for both development and regional dialogue.

The UEW 2026 Programme includes the following key industry events:

Uzbekistan International Energy Forum, comprising:

– the 28th International Conference Oil and Gas of Uzbekistan

– the 6th International Energy Conference

OGU 2026: the 28th International Oil and Gas Uzbekistan Exhibition

Power Uzbekistan 2026: the 19th International Exhibition on Energy, Energy Saving, Nuclear Energy, Alternative Energy Sources

GETCA 2026: Specialised Section on Green Energy Technologies Central Asia

Over three days, the leading companies from across the fuel and energy sector will present their advanced technologies and showcase the latest industry developments. A total of 537 companies and brands, 125 speakers, and over 1,000 delegates from 31 countries have confirmed their participation in Uzbekistan Energy Week, including Austria, Azerbaijan, Belarus, Belgium, the United Kingdom, Germany, Georgia, Denmark, Egypt, Jordan, Italy, Kazakhstan, Qatar, China, South Korea, Kyrgyz Republic, Morocco, the Netherlands, Norway, the United Arab Emirates, Poland, Russia, Saudi Arabia, Singapore, the United States, Türkiye, Uzbekistan, France, the Czech Republic, Switzerland and Japan.

National pavilions will bring together companies from the Republic of Belarus, Germany, China and Türkiye, while Italy, Republic of Korea and Russia will be represented with their collective stands.

Uzbekistan Energy Week highlights the sustained interest of international investors and technology companies in the country’s energy sector. With a strong focus on sustainable development and advanced technologies, the event continues to strengthen its role as a leading energy platform in Central Asia.

Dunyo IA

In the modern system of international relations, stable and long-term cooperation between states is based, above all, on political will and trust at the highest level. Relations between the Republic of Uzbekistan and the Republic of Turkey have consistently developed based on an open, sincere, and trusting dialogue established between the heads of state. This political trust creates a solid foundation for public diplomacy, including deepening fraternal ties between the cities.

In recent years, high-level meetings, regular political dialogue, and strategic agreements between the presidents of Uzbekistan and Turkey have elevated relations between the two countries to the level of a comprehensive strategic partnership. Mutual trust and political support from the heads of state have resulted in concrete and practical results in trade, economic, investment, cultural, humanitarian, and educational spheres.

From this perspective, public diplomacy is becoming an important component of Uzbek-Turkish relations. It strengthens official interstate agreements at the public level and deepens trust and mutual understanding between peoples. Particularly between two fraternal nations with shared historical roots, a common language, and spiritual values, public diplomacy is a natural and indispensable process.

In this context, the Uzbekistan-Turkey Friendship Society functions as an important institutional platform for the development of public diplomacy. Cultural events, scientific and educational conferences, youth and women’s initiatives organized by the society contribute to strengthening mutual trust and friendship between the two peoples. This activity promotes public support for priority areas established at the level of heads of state.

At the same time, fraternal relations between cities are one of the most effective and practical forms of public diplomacy. Fraternal relations established between the cities of Uzbekistan and Turkey strengthen political trust at the local level and create a favorable environment for economic and cultural cooperation. The Brother Cities Alliance and the Union of Municipalities of the Turkic World participate in this process as important international structures coordinating and systematically developing relations between cities. 

Brother cities cooperation, which has historical significance in Uzbek-Turkish relations, includes ties between the cities as Bukhara – Izmir, Bukhara – Malatya, Samarkand – Sakarya, Tashkent – Ankara, and Khiva – Bolu. Cultural and humanitarian projects, educational and tourism programs, as well as investment initiatives implemented within the framework of this cooperation serve to achieve the strategic goals set by the leaders of the two countries at the local level.

It should be noted that cooperation between cities has not only cultural or economic significance but also an important political content. Trust and cooperation established at the local level ensure the stability and continuity of interstate relations. This demonstrates the significant role of public diplomacy in strengthening the strategic partnership between Uzbekistan and Turkey.

In conclusion, public diplomacy in Uzbek-Turkish relations is an important factor that builds on, complements, and strengthens the trusting political dialogue between the heads of state. Within the framework of the priority areas identified by the heads of state, work carried out at the city level in cooperation with the Brother Cities Alliance and the Union of Municipalities of the Turkic World will contribute to the further strengthening of friendship, trust, and cooperation between the two fraternal peoples.

Zokir Abidov,

Chairman of the Brother Cities Alliance 

President Shavkat Mirziyoyev signed the law "On Recognition of Rights to Unauthorized Land Plots and Buildings and Structures Constructed on Them".

Many citizens of our country have been waiting for the resolution of this issue, which concerns the lives of millions of families. According to preliminary data, there are currently more than 3 million 600 thousand land plots, the legal documents for which are not formalized or incomplete.

In this regard, the head of state at a video conference call on land registration and cadastre held on November 21, 2023, noted the need for a legal solution to this issue. Accordingly, a draft law was developed with the participation of specialists in the sphere and deputies. The positive experience of Italy, Bulgaria, Croatia, the Czech Republic and other countries was taken into account. The draft was finalized and considered in the chambers of the Oliy Majlis.

The law consists of 6 chapters and 35 articles, which recognize rights to the following land plots and property:

1) land plots unauthorizedly seized by citizens before May 1, 2018 through the construction of individual housing, and buildings and structures built on them;

2) land plots occupied by citizens and organizations before May 1, 2018 in excess of the area specified in the document, as well as buildings and structures built on them;

3) land plots, the recognition of rights to which within the framework of the "one-time action" has not been completed, as well as buildings and structures constructed on them;

4) land plots allocated by decision of the regional (city) khokim until June 8, 2021, but not approved by the regional khokim or the Kengash of People's Deputies;

5) residential premises on the territory of horticultural and vine-growing associations and the land plot occupied by them;

6) land plots of entrepreneurs located in small industrial zones before March 9, 2020;

7) land plots occupied by buildings and houses privatized by state warrant;

8) land plots occupied by buildings and houses for which the ownership right has been recognized by the decision of the hokim.

The law also clearly defines the main conditions for recognizing rights. For example, the land plot should not be allocated to other persons or put up for auction; there should be no dispute over the land plot; there should be no contradiction with the general plan.

Recognition of rights is carried out step by step by region. Approval of information and documents concerning unauthorized land plots and buildings and structures built on them is carried out through the automated information system of the Cadastre Agency. The relevant information is also entered into this system by 15 authorized organizations.

Completeness and legality of the collected documents are checked by the regional justice department. The results will be announced on the website of the Cadastre Agency and in makhalla corners. Citizens who have received a positive conclusion will be sent an SMS-message, on the basis of which a one-time payment will be made. After that, the rights will be recognized quarterly by the decision of the regional Kengash of People's Deputies.

The bodies of prosecutor's office, internal affairs, agro-inspection, ecology, cadastre establish state control over the implementation of the law. The law also pays special attention to public control. Thus, public groups will be created in each mahalla by decision of district councils of people's deputies. These groups will include a deputy of the district council elected from the district where the mahalla is located, the chairman of the mahalla and active citizens.

A one-time payment is charged for the recognition of rights to land plots under residential houses, privatized or buildings and structures recognized on the right of ownership. The amount of the payment is 5 basic calculation units in the city of Tashkent, 3 BRV in the city of Nukus and regional centers, 2 BRV in cities and 1 BRV in other settlements. Persons included in the Unified Register of Social Protection and persons with disabilities are given a discount.

The one-time payment is directed to cover the costs of the cadastre and justice bodies and the Uzbekcosmos Agency. The remaining funds will be directed to the activities of the initiative budget, i.e. to the mahallas.

The law will come into force in 3 months, before that explanatory and preparatory work will be carried out on the ground. The law will be in force until January 1, 2028.

It should be noted that in the Republic of Karakalpakstan work in this direction has already begun. The Decree of the President of Uzbekistan of July 28, 2023 allowed to recognize the rights to undocumented residential houses and land plots located in the region by the decision of Jokargy Kenes of the Republic of Karakalpakstan.

After that, working groups were established in all districts and cities to examine 43,432 houses built in the Republic of Karakalpakstan without title documents. The location, condition and time of construction of the houses were verified on the basis of an analysis of land records and space images.

Following a comprehensive discussion, ownership of 27,590 residential houses and the right to lease the land on which they are located were recognized.

The results of this noble policy have had a positive impact on the lives of more than 100,000 citizens living in 27,590 houses. They now have the right to legally register their housing, sell it to another person, and put family members on permanent registration. Also, owners will now be able to receive preferential loans for repairs or additional construction, and in case of seizure of housing for public needs to demand compensation in accordance with the law.

The law "On Recognition of Rights to Unauthorized Land Plots and Buildings and Structures Constructed on Them" will expand the scope of this noble work throughout the country. If we assume that each of more than 3 million 600 thousand land plots concerns on average 3-4 citizens or entrepreneurs, this law will solve the problems of more than 10 million people and create a legal basis for their future life.

There are about a thousand manufacturing enterprises operating in the electrical engineering sector of Uzbekistan, most of them small, producing over two thousand types of products. Almost all enterprises in the industry are privately owned. The total number of people employed in the industry exceeds 35,000.

The 76 largest enterprises in the industry, which produce over 90% of all electrical engineering products, are members of the Association of Electrical Engineering Manufacturers (UzEltechSanoat). Of these, 18 enterprises manufacture electrical wires and cables, 27 enterprises manufacture household appliances, and 32 enterprises manufacture power transformers and other electrical products.

The Development Strategy of New Uzbekistan for 2022-2026 aimed to increase industrial production by 1.4 times by 2026, including doubling the production of high value-added products in the electrical engineering industry and tripling exports.

The Uzbekistan-2030 Strategy, adopted in September 2023, will ensure the achievement of all the goals outlined in the Development Strategy of New Uzbekistan. It also sets the task of increasing copper processing in the electrical engineering industry to 300,000 tons per year and raising the localization level of manufactured products to an average of 65%.

Therefore, Uzbekistan pays special attention to the development of technologically advanced industries, including electrical engineering, and provides state support.

Over the past seven years, the President of Uzbekistan has adopted several legislative acts providing customs and tax benefits to enterprises in the electrical engineering industry, as well as subsidies to cover transportation and other expenses.

Specifically, until January 1, 2027, enterprises in the electrical engineering industry have received a 50% reduction in profit and property taxes. Additionally, benefits for exemption from customs duties on imported raw materials, components, and equipment for their own production needs have been extended.

Furthermore, several programs have been approved for the implementation of investment projects in the electrical engineering industry, focusing on technical and technological upgrades of existing facilities and the creation of new production lines.

Due to these measures, over the past 7 years, the volume of attracted investments in the industry has amounted to $935 million, of which about $400 million are foreign direct investments.

Additionally, more than 260 new investment projects worth over $800 million have been launched, including 50 cable production projects worth $120 million, 115 household appliance projects worth $380 million, 40 power equipment projects worth $60 million, and 58 other electrical engineering projects worth $250 million.

As a result, over 13,000 new jobs have been created, bringing the total number of jobs in the industry to 35,000.

As a result of implementing investment projects for modernizing and creating new production facilities, the production of new types of electrical engineering products has been mastered, particularly household appliances (washing machines, electric stoves, vacuum cleaners, hoods, water heaters, new models of refrigerators and washing machines under the Samsung brand, SMART HD TVs, built-in hobs and gas stoves, etc.); industrial air conditioners; new types of electrical cables (high and low voltage, used in solar energy systems, household appliances, as well as self-supporting insulated cables); dry transformers; electronics (monoblocks, SIM cards, electronic boards for household appliances); smart meters for electricity, gas, and water consumption; parts for solar panels and renewable energy stations; elevators and escalators; water pumps, etc.

Overall, from 2017 to 2023, the production volume of the electrical engineering industry increased 7.1 times to $1.98 billion, including a 5.5-fold increase in wires, cables, and copper products to $792 million; an 8.2-fold increase in household appliances to $633 million; and a 9.3-fold increase in power and technical equipment to $567 million.

The contribution of the electrical engineering industry to the development of the economy is also growing, and although the share of the industry's value added in the economy is still less than 1%, it has grown 1.5 times in recent years.

The growth in the production of electrical engineering products has contributed to an increase in export volumes, which have grown 5.5 times to $1047 million over the specified period, including a 4-fold increase in wires, cables, and copper products to $576 million; a more than 10-fold increase in household appliances to $214 million; and a 12-fold increase in power equipment and other products to $257 million.

It should be noted that the significant growth (more than 10 times) in the export of household appliances occurred due to the creation of new production facilities in Uzbekistan by Artel Electronics. In particular, the export volume of refrigerators increased 15 times to $58 million, televisions 6 times to $52 million, electric stoves 4.5 times to $40 million, washing machines 5 times to $20 million, air conditioners 4 times to $15 million, etc.

Moreover, not only the geography of export countries has expanded, but also the range of electrical engineering products supplied to foreign markets. Currently, about 200 types of various electrical engineering products are exported to almost 70 countries. The number of exporting enterprises in the electrical engineering industry has grown to 100.

In January 2024, a Presidential Decree "On Additional Measures for Further Increasing the Production and Export Potential of the Electrical Engineering Industry" was adopted, outlining target indicators for the industry's development in the coming years.

Specifically, in 2024, the plan is to increase the volume of production by almost 30% to $2.6 billion, exports by 43% to $1.5 billion, and the volume of copper processing into finished products to 140,000 tons. In 2025, the goal is to increase production to $3.2 billion, exports to $2.0 billion, and copper processing to 160,000 tons.

To achieve these targets, the Program for Creating New Production Capacities and Diversifying Production in the Electrical Engineering Industry in 2024-2026 and Beyond has been approved. The program aims to implement a total of 294 investment projects worth over $4 billion in the coming years.

In conclusion, it should be noted that the necessary conditions have been created in Uzbekistan for enterprises in the electrical engineering industry to increase production volumes and expand the supply of their products to both domestic and foreign markets.

Therefore, goals have been set to increase exports not only to traditional but also to new markets. In particular, there are plans to increase the export of electrical engineering products to European markets, considering the GSP+ preferential trade regime granted to Uzbekistan, as well as to South Asian and Middle Eastern countries.

Yuri Kutbitdinov,

chief Research Officer of the Center for Economic Research and Reforms under the Administration of the President of the

Republic of Uzbekistan