Relocating an operational office to a new jurisdiction is invariably a complex undertaking, involving unfamiliar regulatory environments and concerns regarding continuity of team management and internal processes. Uzbekistan addresses the majority of these challenges — and this article examines the factors underpinning that proposition and the reasons why more than 1,000 technology companies have chosen the country as their base of operations.

Why Companies Choose Uzbekistan

For businesses originating from CIS countries, Uzbekistan offers a familiar business culture, an established professional rhythm, and a legislative framework that is relatively straightforward to navigate. Teams integrate into operational workflows more rapidly, and founders are not forced to spend the initial months resolving administrative or logistical matters.

A further advantage is the elimination of lengthy preparation periods for basic operational setup. IT Park provides not only company registration assistance but also fully equipped, ready-to-use office infrastructure - including furniture, equipment, and communications.

All core administrative processes are handled through a single interface — the One Stop Shop — covering company registration, tax administration, bank account opening, and documentation requirements, without the need to navigate multiple institutions. A dedicated team with experience guiding hundreds of companies through this process is on hand to anticipate and resolve common complications.
For teams relocating with their families, the Softlanding Program offers assistance with housing, documentation, and post-relocation adaptation, enabling employees to settle in efficiently and transition smoothly into professional responsibilities.

Zero Risk Program: Launching Without a Cash Flow Gap

The Zero Risk Program is designed to accelerate the initial operational phase of relocation. Participating companies receive a fully furnished and equipped office, enabling near-immediate commencement of operations. The program additionally covers a portion of recruitment and staff training costs and reimburses up to 15% of payroll expenses, allowing businesses to assemble their teams and reach full operational capacity without undue financial pressure.

Tax Conditions for IT Park Residents

IT Park residents benefit from some of the most advantageous tax conditions available to technology businesses in the region: a 0% rate on corporate income tax, VAT, and social tax. Personal income tax for employees stands at 7.5% - considerably lower than prevailing rates across much of Europe.

These conditions allow companies to direct a greater proportion of resources toward team development and business growth rather than absorbing a high tax burden.

The cost of living and operational expenditure in Uzbekistan further reinforces this advantage, enabling businesses to reduce recruitment and retention costs, as well as day-to-day operating expenses, while maintaining working and living conditions conducive to international business.

IT Visa and Conditions for Teams

A three-year IT Visa is available to founders, investors, and technology specialists, allowing holders to reside and work in Uzbekistan without a separate work permit. The visa extends to family members and grants access to healthcare and education services on equivalent terms to Uzbek citizens, as well as the right to purchase real estate without value restrictions.

Uzbekistan as a Base for International Expansion

For a growing number of companies, relocation to Uzbekistan extends beyond operational transfer. The country is increasingly regarded as a strategic platform for international development. The IT and BPO sectors are expanding rapidly, with regional offices and delivery centers being established to serve clients across Europe, the CIS, Asia, and the United States. Uzbekistan's geographical position between European and Asian markets facilitates access to multiple markets simultaneously.

Over the past eight years, relations between Uzbekistan and Türkiye have undergone a profound qualitative transformation, evolving from traditionally friendly ties into a full-fledged strategic partnership with a strong economic, investment, and industrial dimension. While the period prior to 2017 was largely characterized by inertia, the launch of large-scale reforms in Uzbekistan marked a decisive shift in bilateral relations toward practical cooperation focused on trade, investment, and joint manufacturing.

A key role in this transformation has been played by the political will and personal engagement of the leaders of both countries - President of the Republic of Uzbekistan Shavkat Mirziyoyev and President of the Republic of Türkiye Recep Tayyip Erdoğan. Regular high-level dialogue has provided Uzbek-Turkish relations with stability, strategic coherence, and a long-term economic horizon.

Political Foundations as a Driver of Economic Convergence

Diplomatic relations between the two countries were established in 1992; however, a turning point came in October 2017 with the signing of the Joint Declaration on Strategic Partnership in Ankara. This step laid a solid institutional foundation for the rapid expansion of trade, economic, and investment cooperation.

In 2018, the High-Level Strategic Cooperation Council was established in Tashkent under the co-chairmanship of the two presidents. Its meetings in 2020, 2022, and 2024 became key platforms for aligning priorities in trade, investment, industry, transport, and interregional cooperation. Over time, political dialogue has evolved from declarative engagement into a practical instrument supporting concrete economic initiatives and project-based decisions.

Trade: Scale, Structure and Institutional Incentives

Türkiye is firmly among Uzbekistan’s largest trading partners. In 2020, bilateral trade turnover amounted to USD 2.1 billion, reaching USD 3.02 billion by the end of 2025.

Uzbekistan’s exports to Türkiye are predominantly industrial in nature, comprising non-ferrous metals and metal products, textiles, services, plastics, and food products. Imports from Türkiye consist mainly of mechanical and electrical equipment, chemical products, textiles, pharmaceuticals, and metal structures, reflecting Türkiye’s role as a key source of industrial technologies and equipment.

A significant qualitative step forward was the signing of the Preferential Trade Agreement in 2022, which entered into force in 2023. In 2025, the parties began expanding the list of goods covered by preferential treatment, creating additional incentives for trade diversification and deeper industrial cooperation.

Investment Cooperation: From Presence to Systemic Engagement

Investment cooperation is one of the most dynamically developing areas of bilateral relations. In 2024, the volume of Turkish investments utilized in Uzbekistan reached USD 2.2 billion, while in January-November 2025 it increased to USD 3.2 billion. A total of 2,137 enterprises with Turkish capital operate in Uzbekistan, including 496 joint ventures and 1,641 wholly Turkish-owned companies.

These enterprises are active in textiles and furniture manufacturing, construction, trade, transport, logistics, and services. Importantly, a substantial share of them is export-oriented, strengthening Uzbekistan’s integration into regional and global value chains.

Industrial Cooperation: Transition to Joint Manufacturing

In recent years, Uzbek–Turkish cooperation has increasingly shifted from traditional trade toward industrial partnership. Turkish companies are actively involved in establishing production facilities across Uzbekistan’s regions, introducing modern technologies, management standards, and export-oriented business models.

Regular meetings of the Intergovernmental Commission on Trade and Economic Cooperation, accompanied by business forums, result in detailed roadmaps comprising dozens of measures covering industry, energy, logistics, and regional projects. This approach forms a solid foundation for sustainable industrial partnership.

Interregional Cooperation: Localized Economic Engagement

Active interregional interaction has become an essential element of the new partnership model. In 2024, targeted visits by delegations from the Fergana, Khorezm, Namangan, Navoi, Samarkand, and Jizzakh regions, as well as the city of Tashkent, were held to various regions of Türkiye.

This format enables a shift from framework agreements to concrete investment projects, creates direct B2B and B2G communication channels, and contributes to a more decentralized and resilient architecture of cooperation.

Transport and Logistics as Pillars of Trade and Investment

The expansion of trade and industrial cooperation naturally increases the importance of transport and logistics interaction. Türkiye is viewed by Uzbekistan as a key logistical gateway to European and Mediterranean markets, while Uzbekistan is becoming an important hub for Türkiye’s access to Central Asia.

The development of rail and road transport, along with intensive air connectivity - up to 97 regular flights per week across eight routes - enhances business mobility, supports investment activity, and strengthens economic integration between the two countries.

Prospective Areas of Cooperation: Converging Interests

The established economic core of Uzbek–Turkish relations provides a basis for a new phase of cooperation, shifting from quantitative growth to deeper structural and technological integration.

Localization and joint development of industrial production remain key convergence points. Uzbekistan offers industrial zones, resources, and a growing domestic market, while Türkiye contributes technology, design, managerial expertise, and access to external markets.

The textile and light industry is evolving toward the production of finished branded goods and contract manufacturing for international retail chains. Mechanical engineering and electrical equipment sectors are creating prerequisites for the establishment of assembly and production facilities. The agro-industrial complex offers opportunities for deep processing and joint exports of food products.

A separate strategic direction is the joint entry into third-country markets, where the combination of Uzbekistan’s production potential and Türkiye’s trade and logistics infrastructure creates substantial competitive advantages.

Overall, over the past eight years Uzbekistan and Türkiye have built a resilient model of strategic partnership based on trade, investment, industrial cooperation, interregional engagement, and transport connectivity. Trade turnover exceeding USD 3 billion, multi-billion-dollar investments, and thousands of joint enterprises testify to the maturity and long-term nature of bilateral relations.

Mashrab Mamirov,

Esteemed Heads of Delegations!

Once again, I would like to express my gratitude to the President of the Republic of Kazakhstan, esteemed Kassym-Jomart Tokayev, for the warm welcome and excellent organization of the Summit in Astana.

We are highly estimate Kazakhstan’s effective chairmanship of the SCO, which has facilitated the expansion of multifaceted cooperation within the Organization.

It is a great honor to have with us the heads of observer-states and dialogue partners, esteemed guests.

Dear Participants of the Meeting!

I believe that a meeting in the broad format of SCO Plus is timely and necessary.

The world needs to restore trust, justice and solidarity more than ever.

The current global political and economic landscape is characterized by fractures, wars, and conflicts that are undermining the foundations and key principles of the system of international relations.

The contradictions and protectionism that have emerged are creating fragmentation of the world economy and supply chain disruptions, which are in turn creating new dividing lines that prevent countries from cooperating effectively in trade, finance and investment, technology transfer and innovation.

The only viable solution to these challenges is to consolidate efforts in the interest of global security, development, and prosperity.

The SCO has always advocated for and has been committed to a just world order based on the universally recognized principles of international law and multilateralism, with the UN playing a central coordinating role.

In this regard, our Organization continues to serve as a focal point for many countries seeking to build broad cooperation without political and ideological biases.

Concurrently, the evolving circumstances necessitate the implementation of new strategic approaches to enhance the efficacy of the Shanghai Cooperation Organization.

Today, as it stands on the threshold of its 25th anniversary, it is imperative to develop a new agenda that aligns with the Organization’s immense potential and growing role in world politics and economy.

Building on the “Shanghai Spirit” and the founding principles of the Charter, unity and cohesion within the Organization should be preserved. I propose to intensify joint efforts with the objective of strengthening the atmosphere of trust and friendship within the SCO and to remove barriers to deeper cooperation.

First of all, it is necessary to undertake a comprehensive reevaluation of the conceptual foundation underpinning the SCO’s security-related activities.

The nature and scope of contemporary challenges have undergone a significant transformation since the establishment of the Organization.

Environmental and natural disasters, water and food shortages, cyberattacks, new methods of undermining sovereignty and economic stability pose an increasing threat.

All of this should also be taken into account when considering the strengthening of the SCO's potential, including the establishment of the Universal Center for Countering Security Threats and Challenges.

In this context, I propose to hold annually SCO Plus Dialogue on Security Issues with the participation of the heads of the competent bodies and experts of all our countries.

Uzbekistan proposes to consistently “reload” trade and economic cooperation in the SCO area, which continues to be fragmented.

So far, we could not manage to create a solid foundation for multilateral trade and inter-sectoral partnership.

For a long time, no consensus has been reached on the establishment of the SCO Development Fund and the SCO Development Bank.

Today at the summit we agreed to take comprehensive measures to simplify trade procedures and develop e-commerce, stimulate technological cooperation, including in the industries of the future.

In order to create an effective platform for business dialogue with the participation of all partners, we propose the annual holding of the SCO EXPO International Industrial Exhibition in our countries.

It is also important to actively promote economic interaction and seek opportunities for linking joint initiatives with the Economic Cooperation Organization, the Gulf Cooperation Council, the Eurasian Economic Union, ASEAN and others.

The new geopolitical realities convince us of the need to build an inclusive and integrated transport and transit system to strengthen interregional connectivity.

The global problems such as climate change and environmental disasters cannot be ignored by the Organization. Our countries are increasingly facing natural disasters, land degradation, reduced agricultural yields, air pollution and water shortages.

I believe that climate cooperation should become a key element of the new SCO agenda.

We advocate for developing an Agreement on cooperation in combating climate change, with concrete measures to achieve common goals and objectives in the area of green development.

We are also proposing the establishment of the SCO Center for Innovative Climate Solutions in Tashkent. It will conduct research on environmental sustainability and “green” growth.

Improving livelihoods and social protection should be given a central place on the Organization’s agenda.

We intend to hold a Global Conference on Sustainable Social Protection in Samarkand next year, under the auspices of the United Nations, as a contribution to achieving the goals Summit of the Future.

Finally, we need to strengthen and promote together a unique model of inter-civilizational dialogue.

The rich cultural, historical and spiritual heritage, traditions, customs and ways of life of our peoples are a powerful and resilient force for building bridges of mutual trust, good-neighborliness and lasting friendship.

This is the message contained in the recent UN General Assembly resolution on the International Day of Dialogue among Civilizations, adopted at our joint initiative.

In this context, the Samarkand Solidarity Initiative for Common Security and Prosperity, which we have put forward, aimed at overcoming the trust deficit through constructive dialogue and multilateral partnership, is more relevant than ever.

The practical implementation of this initiative will contribute to strengthening inter-civilizational dialogue to overcome contradictions on the path to sustainable development.

I am confident that together we can make the Organization even more creative through the implementation of programs in the area of cultural, educational, youth and tourist exchanges.

To this end, we propose to develop a Unified Bank of SCO Humanitarian Initiatives and Programs, which will enable projects in these areas to be systematized and jointly implemented.

I am convinced that the outcomes of this meeting will give a strong impetus to the development of a multifaceted partnership within the Shanghai Cooperation Organization.

Thank you for your attention.

Given the recent geopolitical instability observed around the world, one of the top priorities for every sovereign state is to ensure the security and continuity of its foreign trade routes.

For Uzbekistan, located at the geopolitical center of Central Asia, it is strategically important to maintain the continuous and stable operation of transport and logistics corridors with European countries, which account for a significant share of its foreign trade. It should be noted that in 2025, the volume of Uzbekistan’s international freight traffic with European countries amounted to 1.5 million tons, which is 29% more than in 2024.

Today, the Middle Corridor serves as a safe and reliable transport corridor for export shipments to Europe or import shipments from Europe via land transport. Azerbaijan is one of the most important hubs of the Middle Corridor. In January–March 2026, the volume of international freight traffic between Uzbekistan and Azerbaijan amounted to 28,300 tons, which is 2.9 times more than during the same period in 2025.

Overall, over the past five years, the volume of Uzbek cargo transported via the Middle Corridor has doubled, reaching 1.2 million tons by the end of 2025. While in 2021 the share of cargo transported via this corridor with EU countries was 12%, by the end of 2025 this figure had reached 28%.

Due to its geographical location, Azerbaijan serves as a natural bridge connecting Central Asia to the Caucasus region and Turkey via the Caspian Sea. It will enable the reception of export cargo from the East (China, Central Asia, including Uzbekistan) and its direct shipment to European markets via the ports of Poti and Batumi in Georgia and Mersin and Ambarli in Turkey.

Today, bilateral and multilateral cooperation in the transport and logistics sector has been established between Uzbekistan and Azerbaijan. This cooperation makes a significant contribution not only to the development of bilateral relations but also to the development of the Middle Corridor, connecting the Central Asian region with Europe.

Recent reports by prestigious international financial institutions, such as the World Bank and the European Bank for Reconstruction and Development, dedicated to studying the potential of the “Middle Corridor,” have analyzed a number of obstacles that reduce the corridor’s effectiveness. In particular, international experts note that one of the main challenges to the corridor’s development is the disparity in digitalization levels among transit countries, the lack of a unified platform for information exchange, and the persistence of paper-based bureaucratic processes at border and customs checkpoints.

It is precisely to address these systemic challenges in practice and increase the capacity of the “Middle Corridor” between Uzbekistan and Azerbaijan that active and exemplary digital integration processes have been established. In particular, the “E-TIR” system has been successfully implemented, streamlining customs procedures between the two countries and reducing the human factor. Additionally, in the field of international road transport, efforts are actively underway to fully transition to the paperless “E-PERMIT” system.

Furthermore, Uzbekistan and Azerbaijan are implementing the necessary measures to develop freight transport within the “Asia-Pacific Region – China – Kyrgyzstan – Uzbekistan – Turkmenistan – Azerbaijan – Turkey – Europe” (CASCA+) framework for multimodal transport along the Middle Corridor. In 2025, 6,722 TEU container shipments were carried out on this international route, which is 47% more than in 2024. Preferential rates have also been established for this route for 2026, and a further increase in transport volumes is expected.

It should be noted that the railway administrations of Uzbekistan and Azerbaijan are the initiators and active participants in the implementation of a set of measures aimed at developing the “Middle Corridor” transport and logistics network. In particular, to further expand the potential of this corridor, a multilateral meeting was held in 2024 between the railway authorities of Kyrgyzstan, Uzbekistan, Turkmenistan, Azerbaijan, Georgia, Turkey, and Tajikistan. Following these negotiations, an institutional platform—the “Eurasian Transport Route” Association—was established to accelerate freight transportation processes and create a mechanism for the prompt removal of logistical barriers arising within the system.

In conclusion, it should be noted that the strategic partnership between Uzbekistan and Azerbaijan in the transport and logistics sector contributes not only to the stabilization of the two countries’ foreign trade turnover but also to the integration of the entire Central Asian region into the international supply chain. The implementation of digital solutions that eliminate bureaucratic barriers, the diversification of multimodal routes, and the strengthening of institutional mechanisms will further enhance the international transit appeal of the “Middle Corridor.” This, in turn, will increase the resilience of Uzbekistan’s economy to external shocks amid global geopolitical changes and serve as a solid guarantee for the safe and uninterrupted conduct of international transport operations.

As Serbia’s economy continues to develop and demand for skilled workers grows across a number of sectors, an emerging model of cooperation with Uzbekistan could offer a solution built on legality, orderly mobility and institutional oversight by both countries.

This is not simply about sending workers from one country to another. The new approach is based on identifying the specific needs of the Serbian labour market, selecting and preparing the required specialists in Uzbekistan, directly involving employers in the process, and ensuring that employment takes place under conditions that safeguard workers’ rights.

In this context, a new and promising dimension is emerging in relations between Tashkent and Belgrade — a partnership in orderly labour mobility and human capital.

From political trust to a practical mechanism

The political foundation for this process was laid in October 2025.

The official visit of President of the Republic of Serbia Aleksandar Vučić to Uzbekistan marked a historic milestone in relations between the two countries. Following talks between Presidents Shavkat Mirziyoyev and Aleksandar Vučić, a Joint Declaration was adopted and a package of agreements covering the economy, investment, education, technology, tourism and other areas was signed.

Among them was a Memorandum of Understanding on cooperation in the field of labour migration.

Orderly labour migration thus became one of the practical areas of high-level political dialogue between the two countries.

Seven months later, those political agreements began to take concrete institutional form.

On 18–19 May 2026, Tashkent hosted the International Migration Forum, attended by a Serbian delegation headed by Minister of Labour, Employment, Veteran and Social Affairs Milica Đurđević Stamenkovski.

One fact is particularly significant for the Serbian audience: according to the official information of the Government of Serbia, this is the first agreement of its kind on labour mobility that Serbia has begun negotiating with a foreign country. Uzbekistan was chosen as its first partner.

Legal, safe and regulated mobility

Serbia’s approach to this cooperation was clearly articulated by Minister Milica Đurđević Stamenkovski during her visit to Tashkent.

According to the Minister, the future agreement is intended to establish an effective mechanism ensuring that labour mobility takes place exclusively within a legal, safe and regulated framework, based on clear rules and full institutional oversight by the state.

As she stressed, responsible states do not leave migration flows unmanaged; rather, they manage them in the interests of their citizens, their economies and national security.

This position is closely aligned with the new model that Uzbekistan has been developing in recent years.

For Uzbekistan, the objective is likewise no longer simply to direct a citizen towards an available job abroad. The new model begins by identifying an employer’s needs, selecting suitable candidates, providing professional and language training where necessary, establishing employment conditions in advance and only then facilitating employment through legal and organised channels.

Cooperation is not starting from scratch

Uzbekistan and Serbia already have practical experience of cooperation in the employment sector.

According to Uzbekistan’s Migration Agency, 435 Uzbek citizens in 2022, 135 in 2024 and 215 in 2025 were sent to Serbia through organised channels for temporary employment in agriculture. During the first seven months of 2026, another nine citizens began working in Serbia through the same mechanism.

Today, three cooperation agreements are in place between Uzbekistan’s Migration Agency and Serbian companies for the recruitment of Uzbek citizens for temporary employment.

In 2026, cooperation began expanding beyond agriculture.

In February, Serbian partners reported demand for approximately 200 seasonal workers in selected sectors of the economy. In June, a Serbian recruitment company identified a need for another 50 specialists for façade works.

The clearest practical example of the emerging model, however, came in July.

A Serbian employer selects workers directly in Uzbekistan

From 6 to 10 July 2026, Serbian company M Enterijer Gradnja doo Beograd–Voždovac conducted direct recruitment in Uzbekistan for 120 positions in the construction sector.

The vacancies included 50 reinforcement workers, 50 carpenters, five civil engineers, five crane operators and ten special-equipment operators.

Monthly salaries were set at €1,000–€1,500. The employer covers the costs of visas and work permits, transportation, accommodation, two meals a day and medical insurance.

One hundred Uzbek citizens expressed interest in the vacancies. Of these, 74 were admitted to interviews and practical assessments. Following the selection process, 43 specialists successfully passed the recruitment process, and their documents were submitted to the Serbian employer for further processing.

This experience illustrates the essence of the emerging model.

Rather than assessing candidates solely on the basis of their CVs, the Serbian employer can evaluate their professional skills directly in Uzbekistan. Candidates, meanwhile, know before travelling to Serbia where they will work, what their duties will be, how much they will earn and what employment and living conditions will be provided.

This reduces uncertainty for both sides.

Training first, employment second

Another important change in Uzbekistan’s approach to labour mobility is that a foreign employer’s request is no longer viewed merely as a vacancy, but as a specific requirement for workforce preparation.

In May 2026, the INTIL International Centre for Foreign Language and Vocational Training opened in Tashkent. At its initial stage, the centre provides training in eight foreign languages and 12 professions, hosts international examinations and offers advisory services related to visas and documentation.

In the future, this infrastructure can also be used to prepare specialists specifically for the needs of Serbian companies.

For example, if a Serbian employer requires a certain number of welders, construction specialists, drivers or workers in other occupations, candidates can be selected in Uzbekistan, their skills upgraded to meet the employer’s requirements, and initial language training provided before departure.

This aspect is also important to the Serbian side.

Milica Đurđević Stamenkovski positively assessed Uzbekistan’s readiness to prepare citizens before they travel to Serbia for temporary employment, including by introducing them to the Serbian language. Such preparation could help workers adapt more quickly to both their workplace and everyday life in Serbia.

The prospective model of cooperation can therefore be expressed in a simple formula:

Serbia identifies the demand — Uzbekistan selects and prepares the workforce — the employer assesses their qualifications — and state institutions ensure that the process remains legal and transparent.

People at the centre

Any labour mobility model can only be sustainable if people remain at its centre.

For Uzbekistan, protecting the labour rights of citizens temporarily employed abroad, ensuring the timely payment of wages, decent living conditions and access to legal protection are therefore just as important as securing the job itself.

Dialogue with Serbia in this area is not new.

As early as 2022, an Uzbek delegation held talks with Serbia’s competent labour authorities, the Chamber of Commerce and Industry, representatives of the agriculture, construction and hospitality sectors, employers, and the International Organization for Migration’s office in Serbia. Direct meetings were also held with Uzbek citizens working in Serbia to assess their employment and living conditions.

There is now an opportunity to transform this experience into a permanent institutional mechanism between the two states.

Here again, the two sides share a common principle: labour mobility should be legal, safe and orderly.

Another step towards greater mobility

Practical steps are also being taken to facilitate movement between the two countries.

Since late April 2026, Serbia has been issuing Uzbek citizens category “C” electronic visas, allowing a single entry for stays of up to 30 days.

Looking ahead, there is scope to explore more convenient mechanisms for seasonal employment, simplify visa procedures for other categories of work, and strengthen direct cooperation between Uzbekistan’s Migration Agency and Serbia’s National Employment Service in the field of organised employment.

Importantly, this relationship is not one-way.

Serbian citizens are also legally employed in Uzbekistan. In particular, relevant work authorisations were issued to 53 Serbian citizens in 2022, 48 in 2023 and 32 in 2024.

The issue, therefore, is much broader than “sending workers from Uzbekistan to Serbia”. It is about orderly labour mobility between two countries.

Why Uzbekistan?

For a Serbian audience, this is a natural question.

The Government of Serbia itself has addressed it: Uzbekistan’s selection as Serbia’s first foreign partner for such a labour mobility agreement was linked to the country’s dynamic economic development and the rapid deepening of bilateral relations towards a strategic partnership.

Uzbekistan, for its part, has a large and young workforce while simultaneously developing a system for preparing citizens according to the specific requirements of international labour markets.

This is where the interests of the two countries complement one another: Serbia’s demand for workers and Uzbekistan’s capacity to select and prepare them.

In the future, this also creates an opportunity to expand cooperation beyond seasonal agriculture and construction. Based on the actual needs of the Serbian economy, specialists could be trained specifically for other sectors as well.

A new bridge between Tashkent and Belgrade

During the first summit between Presidents Shavkat Mirziyoyev and Aleksandar Vučić in October 2025, the importance of developing new transport corridors between Central Asia and the Balkans was highlighted.

Yet one of the most important bridges between the two regions may be built not only through railways or highways, but through human capital.

For Serbia, orderly labour mobility offers an opportunity to attract pre-selected and trained workers who match the real needs of its economy through transparent and legal mechanisms.

For Uzbekistan, it offers an opportunity to open new legal labour markets for its citizens, strengthen their professional skills and earning potential, while ensuring state-level protection of their rights and interests abroad.

For this reason, it would be too narrow to view the process now unfolding between Tashkent and Belgrade simply as another labour migration project.

Its potential is considerably broader: to build a long-term partnership model based on targeted workforce preparation, direct employer participation, legal and safe labour mobility, and investment in human capital.

Speaking in Tashkent, Serbia’s Minister of Labour, Employment, Veteran and Social Affairs Milica Đurđević Stamenkovski said that relations between Uzbekistan and Serbia were entering a “new historical phase”, with the goal of elevating ties between the two friendly countries to the level of a strategic partnership.

The practical steps taken in the field of labour mobility in recent months show that this vision is already acquiring tangible substance.

High-level political trust is in place. The legal framework is taking shape. Direct links between employers and potential employees have already begun.

The task now is to transform this opportunity into a sustainable system that serves the economies of both Serbia and Uzbekistan — and, above all, the people of both countries.

To mark Defenders of the Homeland Day and the 34th anniversary of the Armed Forces of the Republic of Uzbekistan, a number of significant state events were held. Key events included an expanded meeting of the Security Council chaired by President Shavkat Mirziyoyev, a tour of the defense industry's production facilities, and the head of state's address to military personnel and compatriots.

In this regard, a correspondent of Dunyo IA approached Akramjon Nematov, First Deputy Director of the Institute for Strategic and Regional Studies under the President of Uzbekistan, with a request to comment on the key outcomes of these events and the tasks outlined by the country’s leader:

- It's no exaggeration to say that today, the Supreme Commander-in-Chief of Uzbekistan laid the foundation for a new stage in the modernization of the national army—its high-tech transformation. I would even say that Shavkat Miromonovich's congratulations this year were not simply a tribute to tradition, but a kind of manifesto for the "New Look Army," where intelligence and technology must finally supplant outdated approaches to warfare. In the President's vision, security is not an isolated military task, but a multidimensional foundation for the sustainable development of the state in the digital age.

By analyzing the key messages of the head of state, one can trace a clear and consistent logic for the transformation of all elements of the public administration system.

The key innovation of the current stage of reforms lies in the recognition of the profound transformation of the very nature of modern warfare, in which technological superiority, rather than personnel numbers, is decisive. This is why the President of Uzbekistan has set the task of a large-scale doctrinal update: the development of a new version of the Defense Doctrine and the National Security Concept has been initiated. This is dictated by the need to adapt strategic documents to the conditions of hybrid threats while simultaneously maintaining Uzbekistan's non-aligned status and reliance on multilateral diplomacy. This sends a clear signal to the country about the predictability and sovereignty of the republic's course.

The central element of the updated strategy is the transition to a “proactive mode of operation,” in which the security system must not only respond to emerging threats, but also be capable of predicting risks in advance and neutralizing them at an early stage.

This intellectualization of security naturally requires a review of the Armed Forces' technical makeup. In this regard, the head of state initiated a thorough re-equipment of the army, prioritizing the implementation of artificial intelligence, robotic systems, and modern cybersecurity systems. It was emphasized that in modern conflicts, victory is achieved not by the number of bayonets, but by technological superiority and the speed of information processing. In this context, the digital transformation of the army becomes an undisputed priority. In other words, in modern warfare, intelligence is more important than mass, and victory is determined by the quality of technology and management.

At the same time, high technology demands a fundamentally new level of competence. Therefore, a true personnel transformation has been initiated: the army is being positioned not as a closed institution, but as a modern educational and technological platform. It is becoming a school of life and professional growth, as well as a driver of economic development. Every year, 5,000 conscripts will undergo training under the "One Million Programmers" and "Five Million AI Leaders" programs. This strategic move allows us to simultaneously address two objectives: increasing the army's cyber resilience and creating a pool of in-demand specialists for the country's economy.

Furthermore, the program provides for training soldiers in civilian professions, with the issuance of state-issued certificates upon completion of their service. For military personnel opening a business after demobilization, the state will reimburse 6% of the loan interest rate. Educational incentives are also being introduced: the opportunity to take university entrance exams directly at military units, interest-free student loans for those entering universities after service, and reimbursement of the costs of obtaining international language certificates. This approach reflects the current trend of developing "smart forces," in which the country's defenders are also qualified specialists in demand in the civilian sector.

In this way, the army is organically integrated into the civil society system, providing young people with real tools for personal and professional success.

For this model to function effectively, a solid social foundation is essential. Therefore, an unprecedented strengthening of social protection for military personnel has become a logical continuation of the reforms. The decisions to double officers' length-of-service bonuses and pay veterans pensions equal to 100% of their pay are, in my view, a strategic investment in the prestige of military service. Additionally, a 10% increase in pay for privates and contract sergeants is envisaged, as well as a 20% increase in the salaries of civilian defense personnel this year and a further 50% increase next year.

The President clearly demonstrates that the state takes full responsibility for the well-being of those who defend the Motherland, thereby raising the prestige of military service and strengthening the principle of unity between the people and the army.

The final element of this comprehensive strategy is achieving profound technological self-sufficiency. The modernization of the national defense-industrial complex, the creation of domestic military technology parks, and the development of unmanned systems production are aimed at minimizing external dependence. A visit to the Chirchik Aircraft Plant and defense technology parks clearly demonstrates that Uzbekistan is focusing on localization, a service economy, and the development of its own industrial base. The creation of a regional hub for Airbus equipment maintenance is not only a matter of prestige but also a practical step toward technological independence and integration into global production chains.

All this strengthens state sovereignty, enabling the effective protection of national interests by relying on its own innovative potential and competencies. At the same time, the military is becoming a driver of innovative development: technologies developed for defense purposes inevitably find application in civilian sectors.

In conclusion, it should be emphasized that the announced initiatives mark a definitive departure from outdated models. Essentially, we are witnessing the emergence of a new model of statehood, one in which high-tech sovereignty, intellectual capital, and social justice are integrated into a single strategy.

A highly mobile, technologically advanced army is being created, capable of effectively countering hybrid threats in the changing nature of warfare. The army serves not only as a shield for the state but also as a driver of education, the economy, and social mobility—a modern, pragmatic, and deeply national approach to development and security in the new global reality.

Dunyo IA

The text of the article is in Uzbek!

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.

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.

Just a few years ago, Central Asia and the Caucasus were rarely considered major players in the global technology landscape. Today, that perception is rapidly changing. The region is steadily strengthening its position on the global innovation map, attracting international investors, technology companies, entrepreneurs, and venture capital.

What makes this transformation particularly remarkable is that the countries of the region are not developing as competitors, but as complementary innovation ecosystems. Each country is building on its own competitive strengths while contributing to a shared environment for innovation, knowledge exchange, investment, and cross-border collaboration.

A Region Evolving into a Unified Innovation Ecosystem

The progress made by Uzbekistan and Kazakhstan over the past few years illustrates this transformation particularly well. In 2026, Uzbekistan was named Country of the Year by StartupBlink, recognizing the country's remarkable startup ecosystem growth. Venture investments increased more than fivefold, the number of startups surpassed 1,200, and the country is now home to 22 venture capital funds managing over $200 million in combined assets.

Both Uzbekistan and Kazakhstan have prioritized building long-term innovation infrastructure. Each country has established its own Fund of Funds to accelerate venture investment and help startups scale internationally, while Kazakhstan's fund has reached a total capitalization of $1 billion.

Today, both countries have produced unicorn companies, developed globally recognized innovation institutions—including IT Park Uzbekistan and Astana Hub—and continue to earn the confidence of international investors.

From Bilateral Cooperation to a Regional Alliance

A major milestone in regional integration came with the launch of the Central Asian Innovation Hubs (CAIH) initiative in 2024 by IT Park Uzbekistan and Astana Hub. In 2025, IT Park Tajikistan joined the alliance, further expanding regional collaboration.

Since its establishment, dozens of startups from across the region have gained access to international markets in Europe and Asia through participation in major global events such as London Tech Week, GITEX Kazakhstan, and Digital Kazakhstan.

The alliance also established two international innovation hubs in 2025: Khan Tengri Innovation Hub in Shanghai and Tumar Innovation Hub in Dubai. Today, these hubs actively support startups in entering the U.S., European, Chinese, and Middle Eastern markets, facilitating investment opportunities while strengthening research and development capabilities.

Another important initiative has been the launch of joint Market Entry Programs. In 2025 alone, more than 50 startups expanded into international markets, including the United States, the UAE, China, and others. More than 20 startups also joined leading global acceleration programs, including Draper University Hero Training Program (6 startups), AlchemistX (10 startups), and the Silicon Valley Residency Program (6 startups).

Expanding Toward the Caucasus

Discussions are currently underway to bring Azerbaijan into this growing regional partnership, creating an integrated innovation ecosystem that connects Central Asia with the Caucasus.

One of the platforms where this collaboration is already taking shape is the international innovation summit INMerge. Over the past five years, the forum has evolved from a relatively small corporate gathering into one of the largest technology events in Central Eurasia. Today, INMerge brings together participants from Azerbaijan, Uzbekistan, Kazakhstan, Georgia, Türkiye, and many other countries to discuss artificial intelligence, venture capital, digital infrastructure, startup development, and international cooperation.

In 2026, INMerge expanded beyond Baku for the first time by launching its regional Roadshow format across major innovation hubs. One of its flagship destinations was Tashkent, underscoring Uzbekistan's growing role as a leading innovation hub in Central Eurasia.

For startups, events like INMerge represent far more than networking opportunities—they provide direct access to international investors, strategic partners, and new global markets.

Digital Startup Awards: A Gateway to the Global Stage

Another example of the region's growing integration is the Digital Startup Awards, an initiative launched by Uzbekistan to foster a more interconnected innovation ecosystem. The program brings together startup founders from eight countries across Central Asia, the Caucasus, and Mongolia, and has become one of the region's leading platforms for identifying high-potential technology ventures.

More than a competition, the Digital Startup Awards offers a comprehensive growth platform for founders looking to scale their businesses, strengthen entrepreneurial capabilities, expand internationally, and secure investment.

Interest in the program continues to grow. In 2025, the Digital Startup Awards reached a new milestone by receiving a record 1,025 applications from startups across Central Asia, the Caucasus, and Mongolia.

The initiative aims to identify promising technology companies, connect them with investors and strategic partners, support their international expansion, and deepen collaboration among regional innovation ecosystems. Through programs like these, talented founders gain opportunities to compete on the global stage, while Central Asia, the Caucasus, and Mongolia continue to strengthen their position as one of the world's most dynamic emerging innovation regions.

IT Park Uzbekistan

There is a country in Southwest Asia that borders Syria to the north, Iraq to the east, Saudi Arabia to the south and southeast, and Israel and Palestine to the west. Its people have a deep appreciation for words and music. They are exceptionally hospitable and passionate about the arts. Have you guessed which country I am referring to? It is Jordan.

In recent years, both economic ties and cultural relations between Uzbekistan and Jordan have reached a new level. Although geographically situated in different regions, the two countries are united by shared values: respect for history, devotion to spiritual heritage, and a profound appreciation for knowledge, education and the arts.

It is no secret that cultural and artistic relations between Uzbekistan and Jordan have been developing steadily in recent years, gaining new substance and opening up fresh opportunities. In particular, the regular participation of Jordanian representatives in international forums and festivals held in our country contributes to strengthening mutual respect and trust between our two peoples.

On 3 October 2024, during our meeting with Her Royal Highness Princess Dana Firas of the Hashemite Kingdom of Jordan, we also discussed the prospects for further cooperation. Particular attention was given to joint educational programmes, projects involving tangible and intangible cultural heritage, creative exchanges and the development of creative industries. We also noted with satisfaction the growing cooperation within the framework of the Islamic World Educational, Scientific and Cultural Organization (ICESCO).

The participation of Jordanian representatives in the international cultural forum

*“Central Asia at the Crossroads of World Civilisations”*, held in Khiva on 14–16 September 2021, contributed to expanding cultural dialogue between the two regions. It would be no exaggeration to say that Khiva, which holds a special place in world civilisation thanks to its historical legacy and architectural heritage, is an ideal setting for such a dialogue.

The participation of Jordanian representatives in the International Lazgi Dance Festival, held on 25–30 April 2022, as well as in its subsequent edition in 2024,

demonstrates the continuity of our creative ties. Furthermore, the participation of Jordanian representatives in the International Maqom Art Festival, held in Zomin on 26–28 June 2024, created another opportunity for dialogue through our musical heritage. A person listening to maqom may not understand the language in which it is performed, yet they can feel the emotion, elegance and philosophy conveyed through its melodies. This is precisely where the greatness of art lies: it awakens a love of music in

the hearts of people from different nations.

The participation of a Jordanian representative in the international music festival

*“Sharq Taronalari”*, held in Samarkand on 26–30 August this year, also contributed to introducing and sharing the musical traditions of Eastern peoples.

The active participation of Jordanian journalists in the 4th International Festival of Bakhshi Art, organised in Khiva on 26–28 April 2025, revealed another important dimension of cultural dialogue. The art of bakhshi is the historical memory of our people, preserving and conveying their dreams, aspirations and spiritual values across the centuries. Journalism and information exchange also play a significant role in bringing this art to international audiences. After all, introducing one nation's artistic heritage to another is itself an important step towards cultural rapprochement.

Another significant event was the participation of a Jordanian delegation led by Minister of Culture M. Al-Rawashdeh in the opening ceremony of the events marking

*“Samarkand — Cultural Capital of the Islamic World 2025”*, held in Samarkand on 26–28 May 2025.

Indeed, we must not limit ourselves to preserving historical values merely as relics of the past. It is essential to make them meaningful, engaging and relevant to today's generation. In this regard, cooperation between specialists from Uzbekistan and Jordan could create new opportunities for innovative ideas and initiatives.

Cooperation in the fields of creative industries and cultural tourism is also particularly promising. After all, integrating culture into economic and social life further strengthens its role in the development of society.

The results of cultural cooperation cannot be measured solely by the number of festivals or meetings held. I believe its true impact becomes evident when the art of one

nation finds a place in the hearts of another, when new creative connections emerge among young people, and when the preservation of cultural heritage is recognised as a shared responsibility.

I sincerely hope that cultural relations between Uzbekistan and Jordan will continue to grow and develop in this spirit. For us, culture is not merely a means of remembering the past; it is a spiritual force that enables us to build the future together.

Geographical boundaries may determine the distance between countries, but it is culture that brings peoples closer together. And the most beautiful aspect of this closeness is that it allows one nation to understand the spiritual world of another without losing its own identity.

Ozodbek Nazarbekov Minister of Culture of the Republic of Uzbekistan

In October, the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, will pay a state visit to the Kingdom of Belgium, during which important decisions are expected to be made that will mark a qualitatively new stage in relations between Uzbekistan and the European Union. In particular, the visit will feature the signing of the Agreement on Enhanced Partnership and Cooperation.

In recent years, Uzbekistan has been actively shaping a new framework of engagement with Europe – a key pillar of stability amid current geopolitical tensions and global economic uncertainty. The ties between Uzbekistan and European countries continue to grow, and the areas of cooperation are diversifying, supported by the ongoing reforms in Uzbekistan.

Building a New Chapter in Relations

After gaining independence, Uzbekistan’s relations with the European Union developed dynamically. A Memorandum of Understanding between the Government of Uzbekistan and the European Commission was signed in 1992, followed by the establishment of diplomatic relations in 1994. The foundation of cooperation was laid by the Partnership and Cooperation Agreement (PCA) signed in June 1996 and entering into force in 1999. However, at a certain stage, cooperation faced difficulties due to the insufficient pace of democratic reforms in Uzbekistan.

With the election of Shavkat Mirziyoyev as President, the situation changed dramatically. As early as 2017, during his visit to Tashkent, Stefano Manservisi, Director-General for International Cooperation and Development of the European Commission, stated that “the EU regards Uzbekistan as a strategic partner.” The sweeping democratic and economic reforms launched in Uzbekistan helped resolve within a short period many issues that had long remained unsolved. Forced labor was completely eradicated, and reforms in the cotton sector enabled the country to abandon raw cotton exports altogether.

As reforms advanced, the legal and institutional framework of relations with Europe expanded rapidly. While previously Uzbekistan and the EU granted each other most-favored-nation treatment under the PCA, in April 2021 the EU granted Uzbekistan GSP+ beneficiary status, and in 2022 the Enhanced Partnership and Cooperation Agreement (EPCA) was initialed.

Along with internal transformation, Uzbekistan’s foreign policy architecture also changed. Priority was given to closer cooperation with neighboring Central Asian states, as well as the active expansion of ties with European countries – a vector that has strengthened steadily in recent years.

Just in the past year, Uzbekistan established strategic partnership relations with France, Italy, and Slovakia, while discussions on expanding strategic cooperation with Hungary continued. President Mirziyoyev also visited Slovenia, and Italy’s Prime Minister and Bulgaria’s President visited Uzbekistan.

A milestone in strengthening relations between Uzbekistan and Europe, and between Europe and Central Asia as a whole – was the first EU–Central Asia Summit, held in Samarkand in April 2025 under the chairmanship of Shavkat Mirziyoyev. Uzbekistan presented a broad range of initiatives to create a new model of regional cooperation between Central Asia and Europe, including: a multilateral agreement on investment protection and promotion; the launch of a Central Asia–EU Joint Chamber of Commerce; the adoption of a regional support program for SMEs and women’s entrepreneurship; the establishment of an investment platform to promote regional projects in green energy, innovation, transport, infrastructure, and agriculture.

The Samarkand Summit was highly productive. A Joint Declaration was adopted, establishing a strategic partnership between the two regions in trade, transport, energy, digital connectivity, and water management. European Commission President Ursula von der Leyen announced that the EU had prepared a €12 billion investment package for Central Asia under the Global Gateway initiative.

The Trajectory of Economic Cooperation

Uzbekistan’s deep democratic transformations have significantly improved relations with European countries. Economic reforms have enhanced the competitiveness of Uzbekistan’s economy, stimulating investor confidence and growing interest from European businesses.

The results are impressive. Over the past 8 years, Uzbekistan’s GDP has doubled, reaching $115 billion in 2024. Since 2017, investment in fixed capital has totaled $240 billion, of which foreign investment exceeded $130 billion. The country’s foreign exchange reserves surpassed $48 billion for the first time in history. Structurally, the share of industry in the economy increased from 20% to 26%, and services from 44% to 47%. Labor productivity (GDP per employed person) rose by 45%.

As a result, opportunities for mutually beneficial cooperation between Uzbek and European businesses have expanded. Between 2017 and 2024, Uzbekistan’s trade with the EU increased 2.4 times to $6.4 billion; exports grew 3.6 times to $1.7 billion, and imports 2.2 times to $4.7 billion. In 2024, the EU’s share in Uzbekistan’s total trade turnover was 9.7%, in exports 6.3%, and in imports 12%. The EU ranked third among Uzbekistan’s trade partners, after China and Russia.

The EU’s share in Uzbekistan’s total exports increased from 3.8% to 6.3% over the same period. This growth was driven by Uzbekistan’s accession to the GSP+ preferential trade system, granting duty-free access to the EU market across roughly 6,200 tariff lines. The share of Uzbekistan’s exports benefiting from GSP+ reached 59%, with a preference utilization rate of 84%, indicating efficient use of trade benefits.

In 2024, Uzbekistan’s exports to the EU were dominated by chemical products (52.1%), as well as textiles, ferrous and non-ferrous metals, minerals, and food products. Among EU members, France accounted for 47.2% of exports, Lithuania for 10%, and Latvia for 6.9%.

Uzbekistan’s imports from the EU significantly exceeded exports – a reflection of the ongoing technological modernization of the national economy. Around 16% of Uzbekistan’s total imports of machinery, equipment, and transport vehicles come from EU countries.

Investment cooperation is also expanding rapidly. In 2024, foreign investments and loans from EU countries and their financial institutions increased by 77%, reaching $4.1 billion (compared to $2.3 billion in 2023). The most active investors were Germany ($1.37 billion), the Netherlands ($1.05 billion), Cyprus ($858.9 million), the Czech Republic ($137.8 million), Italy ($99.8 million), and Sweden ($97.5 million). Today, around 1,000 enterprises with EU capital operate in Uzbekistan, with a total project portfolio of €30 billion.

A special role in recent years belongs to the EBRD, of which Uzbekistan has become one of the largest beneficiaries. The Bank’s total investments in Uzbekistan’s economy exceeded €5 billion, including around €1 billion in 2024, primarily directed toward the private sector.

Reforms in Uzbekistan have become the key driver for unlocking the significant potential of trade and economic cooperation with the European Union.

Uzbekistan–Belgium

The upcoming visit will also focus on strengthening relations between Uzbekistan and Belgium. Diplomatic relations were established following the opening of the Embassy of Uzbekistan in Brussels in 1993. In 1996, the two countries signed an Agreement on avoidance of double taxation, and in 1998 – an Agreement on mutual protection and promotion of investments, which provide legal guarantees for investors in both states.

Business contacts have intensified in parallel with Uzbekistan’s reform agenda. The visits of 2019 and 2022 set the tone for cooperation in infrastructure, energy, and the digital economy. More important than the current trade volumes has been the recognition and support of Uzbekistan’s reforms by EU partners, laying the foundation for long-term engagement.

In 2024, bilateral trade amounted to $62.3 million, including $7.3 million in Uzbek exports and $55 million in imports. Investment cooperation is gaining momentum: several dozen companies with Belgian capital now operate in Uzbekistan, including wholly owned enterprises. New technologies are being localized, for example, Jaga Climate Designers is participating in a joint venture for heating and ventilation systems, and Picanol Group is localizing the assembly of high-tech textile machinery. Belgian brands Belcolade and Prefamac are exploring opportunities to launch chocolate production with subsequent localization.

Despite modest trade volumes, there is significant potential for expanding cooperation in several areas. Given Belgium’s leading role in pharmaceuticals and biomedical research and Uzbekistan’s growing pharmaceutical market, joint ventures or industrial clusters could be developed in this sector, involving companies such as UCB and Janssen Pharmaceutica.

There is also strong potential for joint fruit and vegetable processing projects in Uzbekistan, targeting exports to the EU via Belgian logistics hubs such as the Port of Antwerp and wholesale markets. Potential partners include Greenyard and Puratos. Direct seasonal exports of fresh fruits (e.g., grapes in autumn and winter), as well as dried vegetables, spices, and organic products, could also be expanded. In light industry, there is room to increase exports of ready-made knitwear and home textiles, provided European quality and safety standards are met. The market potential is evident – Belgium imported about $7.9 billion worth of clothing in 2024.

The main challenges remain logistics and standards. Belgium functions as a major EU maritime hub centered around Antwerp, while direct routes from Uzbekistan are still limited. The near-term priority should be pilot supply chains ensuring quality and traceability, the development of cold logistics, certification under EU technical and sanitary regulations, the use of Benelux consolidation hubs, and trade finance tools for SMEs. With the gradual development of new overland routes along the Middle Corridor, Uzbekistan will gain a stronger foothold in high value-added exports without higher costs or delivery delays.

Conclusion

Uzbekistan is entering a stage of deepened economic cooperation with the European Union. During the ongoing modernization and digital transformation of its economy, European investment, technology, education, and research experience can play a key role. At the same time, Uzbekistan seeks to expand exports of industrial goods as their quality improves.

Uzbekistan is also a rapidly growing market with a young and dynamic population, now reaching 38 million people – an 18% increase since 2017. Every year, around 700,000 economically active individuals enter the labor market, forming a substantial human resource base for the economy, including joint ventures.

As a result of poverty reduction policies, living standards and household incomes have risen significantly. Whereas a third of the population once lived below the poverty line, 7.5 million people have been lifted out of poverty, and the poverty rate declined to 8.9% in 2024, with plans to reduce it further to 6% this year. These policies not only address social challenges but also expand domestic demand, increasing the interest of European businesses in entering Uzbekistan’s market.

The further deepening of Uzbekistan’s economic engagement with the EU and Belgium is an objectively mutually beneficial process – one that will define the success of the upcoming state visit of President Shavkat Mirziyoyev to Belgium.

The agreements expected to be signed will help advance joint projects in sustainable energy and infrastructure, strengthen transport and technological connectivity between Central Asia and Europe, and position Europe as a key partner in Uzbekistan’s long-term growth and modernization trajectory.

 Obid Khakimov,  

Director of the Center for
Economic Research and Reforms