Business Climate Improved Across All Key Sectors of the Economy – CERR Survey

📅 19.03.2026

According to the survey results, entrepreneurs are increasingly reporting higher demand, employment growth, and an overall improvement in business conditions.

The Center for Economic Research and Reforms (CERR) presented the results of its business climate analysis based on monthly surveys of entrepreneurs across the country.

Based on the collected data, a composite Business Climate Index has been developed, reflecting both current business conditions and expectations for the next three months.

Business Climate Dynamics in Uzbekistan

As of February 2026, the composite Business Climate Index reached 65 points (on a scale from −100 to +100), which is 11 points higher than in the same period last year.

The improvement in the business climate was primarily driven by rising business expectations, which increased by 13 points to 81. Additional support came from improved assessments of current business conditions, which rose by 10 points to 51.

The survey indicates positive trends across key business activity indicators. The share of entrepreneurs assessing the current business situation as “good” increased to 44%, compared to 38% in February of the previous year.

The proportion of enterprises that increased their workforce rose to 19%, up from 12% a year earlier. Meanwhile, 34% of respondents reported an improvement in business conditions over the past three months, compared to 28% last year.

In addition, 39% of respondents reported increased demand for their products, up from 22% in the same period last year.

Sectoral Dynamics of the Business Climate Index

In a sectoral breakdown, improvements in the business climate were observed across all major sectors of the economy compared to the previous year.

The most significant improvement was recorded in agriculture, where the index increased by 29 points to reach 73. This growth was driven by both improved current conditions and a substantial rise in expectations.

The share of entrepreneurs assessing conditions as “good” rose to 56%, compared to 41% a year earlier. Meanwhile, 52% reported increased demand (35% previously), and 49% noted an improvement in the business environment over the past three months (32% previously).

In the services sector, the business climate index increased by 8 points to 61. While assessments of current conditions remained relatively stable, expectations improved.

Entrepreneurs maintain strong expectations regarding demand in the coming three months, with 72% reporting anticipated growth, close to last year’s level (71%). At the same time, employment has been gradually increasing, with the share of firms expanding their workforce rising to 16%, compared to 12% previously.

In the construction sector, the business climate index rose by 8 points to 69. Improvements were observed in both current assessments and expectations. Entrepreneurs are increasingly reporting higher employment and demand, reflecting stable sectoral dynamics.

The share of respondents reporting improved business conditions over the past three months increased to 34%, compared to 26% a year earlier. Meanwhile, 27% reported workforce expansion (15% previously), and 80% expect demand to increase in the next three months, up from 77% last year.

In industry, business climate growth was more moderate, increasing by 2 points to 67. At the same time, business expectations remain high, with continued growth in demand and gradual employment expansion.

Over the past three months, 32% of entrepreneurs reported increased demand, compared to 29% a year earlier. Workforce expansion was noted by 22% (13% previously), while 77% expect further demand growth in the next three months, also exceeding last year’s level.

Barriers to Business Activity

According to the survey, 61% of entrepreneurs reported no constraints in their operations, up from 57% in the previous month, indicating an overall improvement in the business environment.

Compared to the previous month, the share of respondents reporting difficulties related to access to credit, electricity supply, transport, and logistics has declined. At the same time, there has been a moderate increase in concerns related to access to land resources, utility costs, and tax rates.

CERR Sector for Competitiveness and Investment Activity Analysis

Tel: (78) 150 02 02 (441)

CERR Public Relations and Media Sector

Tel: (78) 150 02 02 (417)

Uzbekistan: An Open and Safe Destination Recognized by the International Community

📅 15.07.2026

In today's interconnected world, a country's attractiveness is measured not only by its economic potential or cultural heritage, but also by how safe people feel in their daily lives. Public safety has become one of the key factors influencing tourism, investment and international cooperation.

According to the Safety Perceptions Index 2023, published by the Institute for Economics & Peace (Vision of Humanity), Uzbekistan ranks first among 121 countries worldwide in perceived personal safety.

The index is based on data from the World Risk Poll and measures people's perception of safety in everyday life rather than official crime statistics.

This achievement reflects the effectiveness of Uzbekistan's ongoing reforms aimed at strengthening public security, modernizing infrastructure, expanding digital public services and pursuing a policy of openness.

Today, Uzbekistan continues to strengthen its position as one of Central Asia's most attractive destinations for tourism, investment and international partnership. Visa liberalization, improved connectivity, modern infrastructure and the country's renowned hospitality have created a welcoming environment for visitors from around the world.

International experts increasingly recognize that the perception of safety has become one of the most important factors shaping travel decisions. In this context, Uzbekistan's leading position in the Safety Perceptions Index 2023 reinforces the country's reputation as a reliable, secure and welcoming destination.

Combining the legacy of the ancient Silk Road with modern development, openness and social stability, Uzbekistan offers a unique environment where history, innovation and security come together.

Uzbekistan — a country of trust, stability and opportunity.

Uzbekistan–Czech Republic: A Strategic Partnership at a New Stage of Development

📅 27.04.2026

Uzbekistan and the Czech Republic are entering a new phase in their relationship, building on the strong foundation laid over more than three decades. During this period, Uzbek-Czech ties have evolved from largely ceremonial contacts into a system of substantive engagement spanning political dialogue, trade, investment, and cultural and humanitarian exchange. Today, as Uzbekistan deepens its connections across Europe, the Czech Republic stands out as one of its most prominent partners in Central Europe.

The framework of the current relationship took shape from the first years of independence. The two countries established diplomatic relations on January 1, 1993, and the Czech Republic moved quickly to open a trade mission in Tashkent – one of the first to do so – which it converted into a full embassy in November 1994. Over the following decades, both sides steadily built out the treaty and legal framework, developed inter-parliamentary ties, and established intergovernmental communication channels, creating the infrastructure for genuine cooperation.

The year 2023 marked a qualitative turning point. Reciprocal visits at the prime ministerial level – Czech Prime Minister Petr Fiala’s visit to Tashkent in April and Uzbek Prime Minister Abdulla Aripov’s visit to Prague in October – infused the relationship with new content and momentum. The talks produced the Interstate Joint Declaration “On Enhanced Cooperation”, which set the direction for the partnership in the years ahead.

The pace of engagement has not slowed since. Czech Foreign Minister Jan Lipavský visited Tashkent in October 2024, and in September 2025 President Shavkat Mirziyoyev and President Petr Pavel met on the sidelines of the 80th UN General Assembly. Both sides have concentrated on expanding ties in investment, transport, innovation, and agriculture – a focus that reflects the practical, results-oriented character of the bilateral dialogue.

An important institutional development came in February 2025, when both chambers of the Oliy Majlis established Uzbek-Czech inter-parliamentary groups. These structures sustain continuous dialogue at the parliamentary level and create conditions for strengthening the legislative relationship and broadening the treaty and legal framework.

This political activity has created fertile ground for trade and economic engagement, which is showing positive momentum. Bilateral trade reached $189.7million in 2025. Although this represents a slight decline from 2024, the figure is three times higher than the 2018 level, reflecting the broader long-term upward trend. The Joint Intergovernmental Commission on Economic, Industrial and Scientific-Technical Cooperation serves as the structural instrument for sustaining this trajectory; its tenth session took place in Prague in March 2025. Through this mechanism, both sides are steadily expanding their business presence.

More than 40 companies with Czech capital now operate in Uzbekistan, and that number continues to grow. A vivid example of Czech business interest is Škoda Group’s intention to launch a joint venture in Uzbekistan for the local assembly and maintenance of railway rolling stock, as well as to establish a Škoda Academy for the training of industry specialists.

Beyond manufacturing and trade, Czech business is also making inroads in healthcare. Contacts with Czech pharmaceutical companies are becoming more regular, and Czech medicines and modern medical equipment have gained a solid presence on the Uzbek market.

Czech business interest is underpinned by active government support: the Czech Republic is actively backing Uzbekistan’s accession to the WTO, which is expected this year. Membership in the organization will open new opportunities for foreign investors and create additional conditions for expanding trade.

The humanitarian dimension of the partnership has taken the longest to develop and is, for that reason, the most durable. As far back as 2003, Termez State University and Charles University launched a joint archaeological expedition in the Surkhandarya region. Over twenty years of fieldwork, the project has uncovered previously unknown monuments from the Bronze and Iron Ages. The exceptional finds gathered over the years of research formed the basis of the exhibition “From Zarathustra to Genghis Khan”, which opened in Tashkent in April 2023 on the occasion of Prime Minister Fiala's visit.

The cultural agenda continues to grow. Czech musical ensembles regularly participate in the Sharq Taronalari festival in Samarkand, while the Czech-Uzbek Friendship Society in Prague has for many years served as a living platform for people-to-people diplomacy.

Academic and scientific cooperation is also advancing. The National University of Uzbekistan named after Mirzo Ulugbek, the Tashkent Medical Academy, and a number of other universities are running joint programmes with Charles University, Comenius University, the Czech University of Life Sciences Prague, and Mendel University.

Student interest in Czech education continues to grow steadily: over the past five years, the number of students from Uzbekistan studying in the Czech Republic has doubled, approaching 700. The annual Czech government scholarship programme, which gives Uzbek citizens access to undergraduate, master’s and doctoral study, has contributed significantly to this growth.

Labour mobility between the two countries is also developing. Around 3,000 Uzbek citizens currently work in the Czech Republic in industry, construction, trade, and services, and an annual quota of 150 labour visas reflects both sides’ structured approach to organising labour mobility.

All of this sustains a steady flow of mutual travel, supported by a direct weekly air service between Tashkent and Karlovy Vary that makes the Czech Republic a readily accessible destination.

The breadth and depth of this engagement naturally raises the question of priorities for the bilateral dialogue going forward.

First, opening an Embassy of the Republic of Uzbekistan in Prague would improve the speed of contacts, expand Uzbekistan’s diplomatic presence, and allow more effective support for joint projects.

Second, despite the temporary decline in trade volumes in 2025, the potential for recovery is considerable. The Czech Republic’s high standing in the Prosperity Index, 8th in the EU in 2026, confirms its status as a key technology and investment partner for Uzbekistan.

Third, particular promise lies in mechanical engineering, machine-tool manufacturing, and industrial automation. According to Harvard University’s Economic Complexity Index, the Czech Republic has held 7th place globally for a decade in its capacity to produce and export technologically sophisticated goods – precisely the kind of partnership Uzbekistan needs for its industrial modernisation agenda.

Overall, the Czech Republic is consolidating its role as one of the strategic anchors in Uzbekistan’s European partnership network. The convergence of Czech industrial capacity and Uzbekistan’s dynamic, fast-growing economy lays the foundation not merely for an exchange of goods, but for deep technological integration and large-scale industrial projects designed to last for decades.

Kayumova Madinabonu,

Leading Researcher of the Institute for Strategic and Regional Studies under the President of the Republic of Uzbekistan

Uzbekistan in the “C5+1” Platform: Strengthening the Strategic Dialogue with the United States and Central Asian Countries

📅 10.11.2025

Modern Central Asia is becoming a space of sustainable growth and mutual trust. The countries of the region demonstrate a strong commitment to building balanced relations with global partners, prioritizing practical initiatives in trade, energy, transport, and innovation. One of the key formats shaping this new architecture is the “C5+1” platform, which unites the Central Asian states and the United States.

Regional Consolidation: Dialogue Based on Equality and Pragmatism

In recent years, the “C5+1” format has evolved from a diplomatic mechanism into an effective platform for coordination and implementation of joint projects. The latest ministerial meeting in Samarkand, attended by the Minister of Investment, Industry and Trade of the Republic of Uzbekistan, Laziz Kudratov, demonstrated a high level of trust and a shared focus on tangible results.

Key topics on the Samarkand agenda included food security, climate resilience, development of green and digital economies, diversification of transport corridors, and deepening industrial cooperation.

Following the meeting, memorandums were signed on decarbonization and digitalization of customs procedures - a step that paves the way for harmonized trade rules, easier exports, and increased investment inflows into the region.

Central Asia: From Fragmentation to an Integrated Economic Space

The figures speak for themselves: the total foreign trade turnover of Central Asian countries has reached $220 billion, almost doubling since 2017, while mutual investments have grown 5.6 times. The region’s combined GDP increased by 40% over the past five years to exceed $406 billion.

These indicators reflect not only growth but also a qualitative shift - from isolated initiatives to a coordinated regional development strategy.

Uzbekistan - Kazakhstan: Industrial and Logistics Core

The Uzbekistan - Kazakhstan partnership exemplifies a new model of integration. Between January and August 2025, mutual trade reached $3.03 billion, up by 15%. Projects exceeding $7 billion are under implementation across engineering, agriculture, construction, and energy sectors. Over 1,100 enterprises with Kazakh capital operate in Uzbekistan, creating jobs and new export niches.

Uzbekistan - Tajikistan: Transport and Energy Bridge

Tajikistan and Uzbekistan are rapidly strengthening railway and energy cooperation. In 2024, cargo traffic between the two countries reached 10 million tons, while regular passenger flights and a joint investment company with a $100 million capital were launched. These are not just numbers - they represent an architecture of trust that enables joint industrial and agricultural clusters.

Uzbekistan - Turkmenistan: Corridors of Growth

Cooperation with Turkmenistan is expanding in energy, logistics, and industry. In 2024, bilateral trade exceeded $1.14 billion, and the Shavat - Dashoguz border zone is evolving into a hub of trade and joint manufacturing. A localization project for repairing Turkmen wagons in Andijan is a vivid example of practical industrial integration.

Uzbekistan–Kyrgyzstan: A “Roadmap” for the Future

The interstate program until 2030 and the Border Regions Council ensure steady progress. From January to August 2025, trade turnover approached $600 million, while Uzbekistan’s exports grew by nearly 80%. New logistics routes are being developed to reduce transport costs and enhance business competitiveness.

“C5+1” as a Catalyst for Development

Participation in the “C5+1” framework gives regional integration new depth - aligning national interests with global sustainability trends.

The United States and regional partners are building long-term cooperation in green energy, resilient supply chains, infrastructure modernization, and human-capital development.

Special attention is given to unified standards for digital trade, environmental management, and logistics technologies, making Central Asia a vital link in Eurasian value chains.

Benefits for the Region and Uzbekistan

For Central Asia, the “C5+1” format provides:

• Investment and technology: opportunities to attract foreign partners for renewable energy, raw-material processing, and digital transformation;
• New markets: expanded export opportunities through unified customs and trade standards;
• Energy security: development of interconnected grids and energy-storage infrastructure;
• Human capital: education, internships, and exchanges with leading global companies.

For Uzbekistan, the advantages are clear:

• Expanded export potential through access to new transport routes;
• Technology localization and industrial partnerships with neighbors;
• Institutional stability and strengthened position as a regional integrator;
• Inflow of direct investment supported by uniform rules and a stable macroeconomic environment.

Conclusion: From Geography to the Economy of the Future

Central Asia is steadily transforming from a “crossroads of geography” into a region of synergy. The “C5+1” format has become a framework connecting the efforts of regional and global partners into a unified development strategy - based on trust, mutual benefit, and sustainable growth.

For Uzbekistan, participation in this platform is not merely a foreign-policy choice, but a practical instrument for achieving its long-term national goals - industrialization, export growth, and improved living standards.

How candidates are selected in Uzbekistan through a single portal of vacancies of state bodies and organizations

📅 31.07.2024

How candidates are selected in Uzbekistan through a single portal of vacancies of state bodies and organizations
In Uzbekistan, electronic document management systems are being implemented, the range of public services is expanding, human resource management processes are being optimized, and a unified public sector ecosystem is being developed through integration and other measures.
In recent years we have seen the adoption of several key strategies, including the National Strategy of Action on Five Priority Directions of Development of Uzbekistan for 2017-2021, the "Digital Uzbekistan - 2030" Strategy, the "New Uzbekistan Development Strategy for 2022-2026," and the "Uzbekistan - 2030" Strategy. These strategies aim to drive digital transformation across the national economy, industry, and society as a whole.
Digitalization has also impacted the public civil service. Notably, the decree of the President of Uzbekistan "On measures for the radical improvement of personnel policy and the system of public civil service in the Republic of Uzbekistan" dated October 3, 2019, established the Agency for the Development of Public Service under the President of the Republic of Uzbekistan (ARGOS). ARGOS is responsible for implementing a unified state policy in personnel management and human resource development within state bodies and organizations.
ARGOS was tasked with implementing innovative personnel management and human resource development methods based on principles of openness, professionalism, and accountability. This includes introducing a system of measurable indicators (key performance indicators) for evaluating public civil servants and analyzing their performance, systematically identifying and attracting qualified specialists (including those abroad), and widely involving talented youth and women in public service. Additionally, ARGOS organizes an open, competitive selection process for the most promising personnel in public service.
Including the implementation of an open, independent competitive selection system announced through a single portal for public vacancies (vacancy.argos.uz). Previously, entering public service required visiting various agencies, submitting resumes, and waiting for responses.
Today, candidates can log into their personal account on the vacancies portal, select a suitable position, and submit an application. The platform provides information on the candidate's status and upcoming selection stages. The open competitive selection involves stages such as application acceptance, verification of qualification requirements, testing, and interviews. Not all candidates pass all stages on their first attempt.
The competitive selection process is based on meritocracy, ensuring that only the most deserving candidates are chosen, thus promoting transparency and fairness.
As of now, more than 188,000 competitive selections have been announced on the vacancy.argos.uz platform, with over 2.9 million applications submitted and 69,163 candidates successfully hired.
Another significant change in state personnel administration is the formation and management of the National Personnel Reserve using modern information systems. ARGOS is responsible for this task, and continuous work is underway to develop and enrich the National Personnel Reserve.
Managing the National Personnel Reserve involves more than just record-keeping; it includes comprehensive measures to prepare personnel for managerial roles. Each person in the Reserve receives an individual development plan for the certain period of time, which includes professional development courses and internships in public bodies. Candidates should regularly report on their progress, providing additional insights into their suitability for managerial positions.
All these activities are managed through the unified information portals: my.argos.uz for personal users, hrm.argos.uz for personnel departments of ministries and agencies, kadrlar.argos.uz for ARGOS performance monitoring, and zaxira.argos.uz for individual performance data and activities.
A third key change is reflected in the resolution of the Cabinet of Ministers of the Republic of Uzbekistan "On measures to improve the human resource management system in Republican and local executive bodies" dated September 22, 2023. It stipulates that from November 1, 2023, all information and documents related to human resource management in these bodies will be maintained on the electronic platform hrm.argos.uz.
Starting from this date, all ministries and agencies are required to conduct personnel administration documentation exclusively on hrm.argos.uz. This new system enables comprehensive monitoring and analysis of personnel management, providing accurate information on vacancies, employee numbers, career movements, and compliance with public service legislation.
Ultimately, this platform acts as a mirror, reflecting both the successes and shortcomings of personnel management departments, allowing ARGOS to respond promptly, prevent, and address issues in public civil service.
In conclusion, digital technologies play a crucial role in development and should be a primary focus for building a sustainable economic and public sector. Expanded digitalization and digital transformation, along with investments in the digital ecosystem, IT infrastructure, and electronic services, will drive further modernization of the national public service system and accelerate growth in various sectors.

Ministers of Foreign Affairs of Uzbekistan and Latvia discussed issues on transport connectivity and logistics, IT and digital technologies, trade, and investments during their meeting in New York

📅 02.10.2024

TASHKENT, September 24. /Dunyo IA/. The Minister of Foreign Affairs of Uzbekistan Bakhtiyor Saidov held negotiations in New York City with the Minister of Foreign Affairs of Latvia Baiba Braže, reports Dunyo IA correspondent.
"Had a productive meeting with H.E. Baiba Braže, Foreign Minister of Latvia, – the head of the Ministry of Foreign Affairs of Uzbekistan wrote in his telegram channel. – We highly value the opening of the office of the Investment and Development Agency of Latvia in Tashkent. Transport connectivity and logistics, IT and digital technologies, trade and investments were on the focus of our meeting".

February demonstrated a noticeable acceleration in business activity in Uzbekistan

📅 18.03.2026

The Business Activity Index (BAI), estimated by the Center for Economic Research and Reforms, reached 1124 points in February 2026, increasing by 12.4% compared with the previous month (and by 24.2% compared with the same period last year, Chart No.1).

In February of the current year, the following changes were observed across the BAI components:

• the component reflecting the number of transactions on business entities’ bank accounts increased by 22%;
• the intensity of raw material purchases on the commodity exchange rose by 10.6%;
• the component reflecting active business entities increased by 0.9%;
• the trademark component grew by 9.4%.

In February 2026, the BAI also increased in 13 regions compared with the previous month (Chart No.2).

 

In particular, notable growth was observed in Andijan region (44.8%), Syrdarya region (41.7%), Tashkent region (33.3%), and Kashkadarya region (28.2%).

At the same time, in the Republic of Karakalpakstan the indicator slightly declined by 0.5%, remaining at a moderate level.

Banking operations

 

During the reporting period, the number of interbank payment transactions reached 6,760.3 thousand, increasing by 1,220.5 thousand transactions (22%) compared with January 2026.

An increase in interbank payment operations was recorded in 12 regions. In particular, a significant rise in banking operations between legal entities compared with the previous month was observed in Tashkent city (24.1%), Surkhandarya region (23.3%), Samarkand region (21.4%), and Navoi region (17.7%).

At the same time, this indicator declined in Syrdarya region (8.1%) and the Republic of Karakalpakstan (1.6%).

Exchange component

 

In February of the current year, the exchange component of the BAI reached 1.1058 points, increasing by 10.6% compared with the previous month.

This reflected a 36.2% increase in the number of transactions concluded, while the average volume of goods purchased per transaction declined by 15.1%.

The total turnover of goods traded on the UzEx amounted to 6,296 billion soums in February 2026, which is 6.5% higher than in the previous month.

Component of active business entities

 

During the reporting period, this component amounted to 1.0088 points, increasing by 0.9% compared with the previous month.

At the same time, the total number of operating business entities increased by 4,079 units, reaching 508.5 thousand.

The number of large enterprises increased by 51 units, reaching 4,161.
The number of small enterprises rose by 3.9 thousand, reaching 415.1 thousand.
The number of farms increased by 36, reaching 89.2 thousand.

Trademark component

 

In February 2026, the trademark component reached 1.0641 points, increasing by 9.4% compared with the previous month.

During this period, 430 trademarks and product names were registered by legal entities.

Islombek Saparmatov, CERR

 

Changing economic priorities of Uzbekistan reshape its engagement with the CIS

📅 22.09.2026

For Uzbekistan, Commonwealth of Independent States primarily represent a set of practical mechanisms, including the free trade regime, mutual recognition of documents and standards, visa-free movement of citizens, and agreements on transit and transportation. These mechanisms have a direct, everyday impact on business operations and household incomes.

Speaking at the CIS Summit in Dushanbe in October 2025, President Shavkat Mirziyoyev described the member states as “our natural partners.” In this context, cooperation within the CIS is not viewed as an alternative to other foreign policy priorities, but rather as one of the pillars of the country’s economic diplomacy.

In 2025, Uzbekistan’s GDP grew by 7.7%, while exports reached $33.8 billion, an increase of 24%. CIS countries accounted for approximately one-third of Uzbekistan’s foreign trade. This share has remained broadly unchanged for several years, despite the rapid expansion of economic ties with other regions.

In October 2024, trade turnover within the Commonwealth was reported to have increased by 16%. By the end of the year, it had grown by a further 11%. In 2025, it reached $27.4 billion, representing an increase of more than 20%.

This stability is driven not by the inertia of established ties, but by rational economic considerations. CIS markets are familiar to Uzbek businesses: standards are broadly comparable, language barriers are limited, logistics networks are well established, and goods enjoy duty-free access. With a combined population of approximately 250 million, the Commonwealth generates sustained demand for fruit and vegetables, textiles, automobiles, electrical equipment, chemicals and services. For companies entering foreign markets for the first time, the CIS represents the least risky destination.

This is precisely why the Commonwealth serves as a launchpad for Uzbek businesses. Having gained export experience in neighbouring countries, companies are better positioned to enter more complex markets. Russia and Kazakhstan remain Uzbekistan’s principal partners within the CIS, followed by Kyrgyzstan, Tajikistan, Turkmenistan and Belarus. At the same time, China - which has become Uzbekistan’s largest trading partner - Türkiye and the Republic of Korea are also among the country’s top five trading partners, confirming the multi-vector nature of Uzbekistan’s foreign economic policy.

Importantly, Uzbekistan ceased to be a passive participant in the Commonwealth long ago. Since 2017, it has restored its active presence within CIS institutions, joined more than twenty sectoral bodies and signed 24 multilateral agreements.

This policy culminated in Uzbekistan’s first chairmanship of the CIS in 2020. The guiding objective established at the time to “gradually advance cooperation to a qualitatively new level” - has shaped the country’s subsequent engagement within the Commonwealth.

At CIS summits, the President of Uzbekistan has put forward more than one hundred initiatives, most of them designed to address specific barriers. Tashkent has consistently advocated the operation of the free trade area “without exemptions or restrictions,” the expansion of green corridors, the development of e-commerce and broader access to public procurement.

In 2025, the President stressed that “it is important to expand mutual market access in our countries.” He proposed establishing a rapid-response mechanism under the CIS Economic Council to address changes in market conditions and called for the accelerated removal of technical barriers.

This is directly linked to Uzbekistan’s national objective of increasing exports to $67 billion by 2030. Harmonised requirements, digital document exchange, mutual recognition of certificates and faster border clearance can transform geographical proximity into a sustainable competitive advantage for Uzbek goods. This is particularly important for small businesses, for which the cost of administrative procedures often exceeds the tariffs themselves.

The significance of the Commonwealth, however, extends beyond trade flows to include labour migration. Remittances, which amounted to approximately $18.9 billion in 2025, account for a substantial share of household incomes. Their geographical distribution is becoming more diversified: between 2022 and 2025, remittances from Kazakhstan increased by 24.5%, from the United States by 50%, from the Republic of Korea by 2.1 times, from Türkiye by 2.5 times and from the European Union by 2.4 times. As a result, migration-related income is becoming more resilient to fluctuations in individual labour markets.

The quality of this process depends on an effective legal framework. As early as 2020, Shavkat Mirziyoyev proposed creating a unified mechanism for recognising migrant workers’ documents and developing a programme for their social and legal protection. The economic rationale is clear: recognised qualifications and transparent employment arrangements increase workers’ earnings and allow them to bring accumulated skills and expertise back into the national economy.

These efforts are complemented by humanitarian cooperation, which helps build the human capital required for future development. In 2025, Uzbekistan initiated a new agreement on the recognition of diplomas and proposed holding a CIS Youth Forum in Khiva, together with the establishment of a Youth Innovation Laboratory. For a country where the average age of the population is approximately 30 and the population increases by around 750,000 people annually, access to educational and professional opportunities has direct economic significance.

The physical connectivity of markets is equally important. Uzbekistan is landlocked and separated from seaports by the territory of at least two countries. Logistics costs therefore have a direct impact on the competitiveness of its exports. Since most traditional transport routes pass through CIS countries, simplifying transit and harmonising customs procedures is not a matter of protocol, but a practical necessity measured in delivery times and production costs.

This issue has been a consistent feature of Tashkent’s proposals since 2020. In 2025, the President proposed establishing information and logistics centres integrated with all modes of transport, called for greater private investment in infrastructure and suggested holding a CIS Conference on Public-Private Partnerships in Transport in Uzbekistan.

The benefits of these measures extend beyond transit revenues. Linking the North–South and East–West corridors and securing access to ports on the Baltic, Black and Caspian seas would diversify transport routes and transform Uzbekistan into a connecting hub between Eurasian markets.

Reliable logistics also attracts warehouses, dry ports and export-oriented production facilities along major transport routes, thereby contributing to the development of the country’s regions.

Energy cooperation also deserves particular attention. CIS countries are connected through shared gas and electricity networks. For an economy with rapidly growing demand, this provides greater energy security and access to infrastructure whose reconstruction from scratch would require enormous investment. Uzbekistan is implementing programmes with its partners in conventional and renewable power generation, including the construction of a nuclear power plant. In 2025, it also proposed a Programme for the Innovative Development of the CIS Energy Sector. Similar considerations apply to food security, as a common market helps mitigate seasonal fluctuations in supply.

The existing foundation creates opportunities for more advanced forms of cooperation. The principal source of future growth lies in moving beyond a predominantly trade-based model towards deeper industrial cooperation, since Uzbekistan’s exports to CIS countries still largely consist of primary processed goods.

The objective of the next stage is to create greater added value within Uzbekistan—that is, to transform the nature of economic relations. Several of Tashkent’s proposals serve this purpose, including a Comprehensive Programme of Industrial Cooperation, the idea of placing joint production at the centre of the Commonwealth’s agenda, measures to encourage mutual investment, and a CIS Innovative Industry Forum to be held alongside INNOPROM. The President of Uzbekistan has noted the existence of “numerous examples of successful industrial cooperation.” The main task now is to replicate these successes on a broader scale.

Several promising areas are already apparent.

First, the agro-industrial sector: deep processing of fruit and vegetables, storage facilities, and cooperation in seed production and veterinary services. Uzbekistan possesses a substantial raw material base, while its partners have processing and packaging technologies that can increase the final value of products.

Second, mechanical engineering, electrical equipment and construction materials. Uzbekistan is interested not so much in importing finished products as in establishing highly localised joint ventures. This format facilitates technology transfer, engineering skills development and job creation—benefits that cannot be achieved through conventional supply arrangements alone. Promising areas include components for transport equipment and agricultural machinery, pharmaceuticals, chemicals and advanced materials.

Third, digital solutions and payment infrastructure capable of reducing the costs of cross-border trade. Following the Artificial Intelligence Forum held in Samarkand in August 2025, Uzbekistan proposed an action plan to deepen cooperation on digitalisation and establish a CIS Venture Platform.

The necessary financial resources are available. According to the CIS Executive Committee, citing UNCTAD data, foreign direct investment inflows into CIS countries amounted to $23.2 billion in 2023, while outward investment reached almost $32.5 billion. To channel these resources into production, Uzbekistan proposed a roadmap to support special economic and industrial zones, along with measures to facilitate industrial cooperation projects. The interregional level is particularly promising, as it allows the practical needs of businesses to be identified more quickly.

It is also important that such projects extend beyond the bilateral dimension. Uzbekistan is located at the heart of Central Asia and maintains well-established ties with all its neighbours. A joint venture based in Uzbekistan gains direct access to a rapidly growing regional market of approximately 85 million people—a compelling argument in favour of localising production in the country.

Such cooperation is becoming a natural driver of the objectives set out in the Uzbekistan–2030 Strategy: accelerated industrialisation, export growth and higher household incomes. The Commonwealth remains one of the practical instruments for achieving these goals—not the only one, but one that is operational and well established. As Uzbekistan’s economy becomes more sophisticated, its expectations of the CIS are also evolving—from basic market access to the development of integrated production chains.

This transition represents the principal opportunity for future cooperation. Dynamic economic growth, an expanding domestic market and an active investment policy provide a solid foundation for a new quality of engagement. As President of Uzbekistan Shavkat Mirziyoyev has emphasised, the decisions being taken should serve “the well-being and prosperity of our countries and peoples.” This remains the key measure of the effectiveness of multilateral partnership.

 

Alexey Kustov,

Chief Research Fellow
Institute for Strategic and Regional Studies
under the President of the Republic of Uzbekistan

The President of Uzbekistan’s Visit to Serbia: A New Stage in Economic Partnership Between Central Asia and the Balkans

📅 05.09.2026

The globalization of today’s economy, together with the current geopolitical and geo-economic situation in the world, is shaping economic cooperation between states not only on the basis of geographical proximity, but also through the convergence of mutual interests.

Uzbekistan’s independent and balanced foreign policy is contributing to a steady annual increase in the number of its partner countries. While preserving cooperation with its immediate neighbours, this multifaceted foreign policy primarily serves to strengthen mutually beneficial relations with countries in different regions of the world. In particular, Uzbekistan’s relations with the Balkan states have developed across various fields in recent years. Cooperation with Serbia deserves special mention in this regard.

Diplomatic relations between Uzbekistan and Serbia were established on 18 January 1995. Since then, cooperation between the two countries has developed steadily at various levels. Although the pace of bilateral cooperation was relatively modest in certain years, Uzbekistan’s increasingly proactive foreign policy and its reforms aimed at diversifying international relations have significantly strengthened Uzbek–Serbian relations in recent years.

Over the past three to four years, mutually beneficial cooperation and political and economic dialogue between official Tashkent and Belgrade have reached a qualitatively new level. Exchanges between the two heads of state have consequently become important milestones in bilateral relations. In particular, the meeting between President of Uzbekistan Shavkat Mirziyoyev and President of Serbia Aleksandar Vučić, held on 20 August 2023 on the sidelines of the World Athletics Championships in Budapest, gave fresh impetus to cooperation between the two countries. The two leaders held their next meeting in Beijing on 3 September 2025. These meetings reaffirmed the parties’ interest in further expanding cooperation, particularly in trade, investment, industry, mechanical engineering, pharmaceuticals, agriculture, information technology, artificial intelligence, tourism, education and transport, as well as in intensifying interstate dialogue.

The fundamental principles of Uzbekistan’s foreign policy include, first and foremost, adherence to international law and the Charter of the United Nations, respect for state sovereignty and the inviolability of borders, friendship and mutually beneficial cooperation, non-interference in internal affairs, and the peaceful settlement of international disputes. From this perspective, the foreign ministries of the two countries are also conducting consultations on an equal footing and implementing measures aimed at advancing bilateral cooperation.

In August 2017, the Political Director of the Serbian Ministry of Foreign Affairs and the President’s Special Envoy for Kosovo, Zoran Vujić, visited Tashkent. During the visit, prospects for political dialogue and cooperation with international organizations such as the United Nations, the OSCE and UNESCO were discussed with his participation.

In 2021, political consultations were held in Tashkent with the participation of Serbian Ministry of Foreign Affairs State Secretary Nemanja Starović. On 9 October 2025, the second round of political consultations between the foreign ministries of Uzbekistan and Serbia was held by videoconference.

The signing in 2022 of the Protocol on Cooperation and Interministerial Consultations between the two countries’ foreign ministries marked the beginning of a new period in Uzbek–Serbian relations. The document established a legal basis for the parties’ strategic plans to hold regular consultations, broaden cultural and humanitarian dialogue, and strengthen political cooperation in order to further develop relations between the two states.

In September 2025, the foreign ministers of the two countries met on the sidelines of the United Nations General Assembly in New York. These engagements represented an important step towards establishing a new architecture of dialogue at various levels between Tashkent and Belgrade. As a result of these efforts, Uzbekistan appointed its first ambassador to Serbia in 2025, marking another important milestone in the further development of bilateral relations.

Although trade and economic cooperation between Uzbekistan and Serbia currently remains modest in scale, it is important to emphasize that the area holds considerable potential. Through Serbia, Uzbekistan has the capacity to expand its relations with other Balkan countries, including Croatia, Albania, North Macedonia, Montenegro and Slovenia.

A number of measures are being developed to increase Uzbekistan’s trade with the Balkan states and to prepare extensive cooperation programmes in mechanical engineering, pharmaceuticals, agriculture, the chemical industry, information technology and digitalization, the agro-industrial sector, tourism and many other important industries.

The geopolitical and geo-economic instability witnessed worldwide in recent years has also prompted Uzbekistan to further develop international transport corridors. Uzbekistan, which has direct access to every Central Asian country, is recognized as being favourably located for expanding links between China, India, Europe and other countries. In order to capitalize on these opportunities, the country is seeking to open new transport corridors along the Central Asia–Balkans route. For Uzbekistan, the comprehensive development of trade and economic relations with the Balkan states within the framework of the Trans-Caspian Corridor is of strategic importance.

There are currently around ten enterprises with Serbian capital operating in Uzbekistan, including two joint ventures, while the remainder operate as individually owned business entities. Although bilateral trade amounts to approximately USD 12 million per year, there is substantial untapped potential for developing economic, investment and trade relations.

An examination of the priority areas, agreements and contracts identified during official negotiations and business forums held between the two countries in 2023–2026 shows that imports of industrial equipment, machinery and mechanisms from Serbia are of particular importance to Uzbekistan. Key priorities include introducing Serbian technologies into Uzbekistan, establishing joint ventures, launching the production of automotive components in the country, localizing selected manufacturing industries, and turning Uzbekistan into a production base serving not only the Central Asian market but also European markets.

For Serbia, investment projects in Uzbekistan’s agriculture, food industry, food-processing equipment, digitalization, artificial intelligence, pharmaceuticals, textiles and automotive sectors are particularly relevant. These include introducing European technologies into Uzbekistan, applying European know-how and experience across sectors and industries, and contributing to regional development. This would enable the two countries to further advance industrial cooperation and implement promising joint projects in light industry, textiles, pharmaceuticals, automotive manufacturing and agriculture.

In conclusion, although political agreements between the two countries are important, the first essential factor in translating them into tangible economic results is the launch of transport corridors, while the second essential factor is creating broad opportunities for business. To make effective use of these factors, the following steps should be taken:

First, the transport corridor between the two countries should become more than merely a “freight route”; it should provide Uzbekistan with access to European global value chains through the Balkans.

Second, alongside increasing the volume of mutual trade, serious attention should be paid to its quality. Priority should be given to exports of high value-added goods rather than raw materials, semi-finished goods or basic products.

Third, mechanisms to promote investment between the two countries should be developed. Attracting Serbian capital and technologies to Uzbekistan’s economy, while expanding the presence of Uzbek businesses in Balkan markets, would generate significant benefits for both economies.

Fourth, joint production should be introduced through the establishment of industrial cooperation between the two countries. Rather than manufacturing a product in one country and exporting it to the market of the other, combining the resources and capabilities of both states to enter third-country markets would be more economically advantageous.

Fifth, transport and logistics integration between the two countries should be established. In the future, such integration would not only reduce transport costs but also facilitate the development of new transit routes, thereby expanding trade opportunities.

Sixth, efforts to develop human capital and introduce technologies into production should be intensified. In this context, economic cooperation would extend beyond the exchange of goods and further strengthen ties among specialists, researchers, engineers and entrepreneurs.

In summary, the new economic bridge between Uzbekistan and Serbia can serve as an important pillar of economic growth for the countries of Central Asia and the Balkans. As a result, Uzbekistan will gain opportunities to develop international transport corridors, improve the efficiency of transport and logistics processes, reduce cargo delivery times by two to three times, establish a dry port, and enhance its international trade and transit potential.

Nodirbek Rasulov,

Doctor of Economics, Professor,

Project Manager at the Institute for Macroeconomic and Regional Studies

Festive greetings to the youth of Uzbekistan

📅 30.06.2024

Sincerely, from the bottom of my heart, I congratulate you on this wonderful holiday celebrated in our country - Youth Day.

We rely on all our people, including you - courageous and purposeful young men and women - to achieve the lofty goals of building a new Uzbekistan. Therefore, ensuring the rights and interests of young people, raising the younger generation as harmoniously developed individuals is in the center of our attention as one of the priority directions of the state policy.

In recent years, our country has created a unique vertical management system in work with young people. It makes it possible to solve many issues of youth related to training, employment, meaningful leisure and social support through youth leaders - representatives of the President in the mahallas - at the lower level.

Our young men and women are experiencing in their lives the real results of the large-scale work carried out on the basis of the "Youth Notebook" and the "Youth Balance" platform.

Thanks to the introduction of a new system that promotes the increase of youth income through allocation of land plots, this year alone, based on the recommendations of the "Makhalla Seven" 156 thousand young men and girls were given 60 thousand hectares of land on lease for a period of 30 years, which was an important step in this direction.

All of us, undoubtedly, are happy that young people effectively use the created opportunities and achieve great success in different spheres. At the prestigious international Olympiads in mathematics, chemistry, biology, physics and informatics in the past academic year alone, 55 of our schoolchildren won 8 gold, 15 silver, 32 bronze medals, 383 were awarded the Grand Prix and 1,359 were awarded 1st place in prestigious international competitions in the field of culture and art.

We experienced great joy and pride when at the recent Asian Football Cup in Qatar, Uzbekistan's Olympic team won a ticket to the Olympics for the first time in the country's history.

Such are our talented, educated and courageous young people! These young men and women are worthy representatives of the New Uzbekistan, our priceless wealth and golden fund.

My dear young friends!

The colossal work carried out in Uzbekistan in the field of youth policy is now being recognized in the global arena. Thus, last year, according to the Youth Development Index, Uzbekistan was recognized as one of the fastest developing countries in the field of youth policy. Also, Uzbekistan was included by the UN among 10 countries of the world on the exemplary realization of the "Youth Strategy - 2030". In 2022 the city of Bukhara was declared the Youth Capital of the Turkic World, and in 2024 our city of Tashkent became the first youth capital of the Commonwealth of Independent States.

It will be right to say that the World Youth Festival, which is taking place in our country for the first time these days, is another vivid confirmation of Uzbekistan's high recognition. More than 700 young men and women from 92 countries, heads and officials of more than 20 authoritative international organizations, ministries and departments of foreign countries are taking part in this forum. Most importantly, our youth are gaining more and more friends and partners around the world, their opportunities in gaining knowledge and professions, participating in global dialog and cooperation are expanding.

Dear young men and women!

A nation and state in which children are talented, educated, confident in their abilities and potential, eager to learn new things, will undoubtedly have a wonderful future. We will mobilize all our capabilities to nurture such youth of Uzbekistan.

Always remember, if you cherish your every moment, live with creativity and creation, love your Motherland without limits, you will surely reach high milestones.

I once again congratulate you all on today's holiday, wish you health, happiness and success on the way to your goals.

President of Uzbekistan points to the need of enriching partnership with the UAE

📅 16.12.2024

The issues of further expansion of practical interaction and promotion of investment cooperation projects were discussed at the meeting between President of the Republic of Uzbekistan Shavkat Mirziyoyev and the delegation of the United Arab Emirates comprising Minister of Industry and Advanced Technologies Sultan Ahmed Al Jaber and Minister of Energy and Infrastructure Suhail Mohammed Al Mazroui.

At the beginning of the conversation, Sultan Al Jaber conveyed to the Head of our State sincere greetings and best wishes from the President of the Emirates Sheikh Mohamed Al Nahyan, Prime Minister of the country, Emir of Dubai Sheikh Mohammed Al Maktoum and Vice President Sheikh Mansour Al Nahyan.

In the course of the meeting, the current highest level of Uzbek-Emirati multifaceted relations was noted with special satisfaction. The volumes of mutual trade turnover, the number of joint ventures and the frequency of flights are growing. The portfolio of ongoing and promising projects with the participation of leading Emirati companies in Uzbekistan reaches $20 billion.

Green energy is the driving force behind bilateral cooperation. Today, a 500 megawatt wind farm was commissioned in Navoi region, a project implemented by Masdar.

In general, in recent years with the participation of this company power generation facilities with total capacity of 1.5 gigawatts have been commissioned in our country.

Particular attention was paid to the early preparation and implementation of major investment projects in the energy, oil and gas and chemical industries, mining, water supply, household waste processing and other fields.

The importance of continuing productive contacts at all levels and careful preparation for the upcoming high-level events was noted.

Uzbekistan and the Republic of Korea in the Emerging Framework for Cooperation with Central Asia

📅 12.09.2026

Three decades of dialogue between Uzbekistan and the Republic of Korea have built a strong foundation of trust, supported by cooperation ranging from major industrial facilities and modern healthcare to education programs and digital government. Today, this partnership is moving to the next level.

The Central Asia–Republic of Korea format offers an opportunity to combine bilateral achievements with the scale of the five countries’ collective market, moving from individual projects toward integrated technology value chains, joint raw material processing, and workforce development for the new economy.

A Partnership That Has Stood the Test of Time

Uzbekistan and the Republic of Korea established diplomatic relations in January 1992. From the outset, ties developed through regular political dialogue at the highest level. A series of reciprocal presidential visits in the 1990s and 2000s established the legal framework for cooperation, opened the door to Korean investment, and strengthened cultural and people-to-people ties. Relations were elevated to a strategic partnership in 2006, and in 2014 the two countries reaffirmed their commitment to further developing and deepening that partnership.

This foundation gave rise to projects that became symbols of bilateral cooperation. One of the most prominent is the Ustyurt Gas Chemical Complex, an approximately $4 billion facility commissioned in 2016. It demonstrated the ability of Uzbekistan and Korean companies to jointly deliver capital-intensive, technologically complex projects, extending cooperation beyond equipment supplies and trade in finished goods.

A new phase began with President Shavkat Mirziyoyev’s state visit to Seoul in November 2017. The visit resulted in a Joint Declaration on the Comprehensive Deepening of the Strategic Partnership and more than 60 documents. The agenda covered e-commerce, support for Uzbekistan’s accession to the World Trade Organization, a knowledge-sharing program, financing from the Export-Import Bank of Korea, and cooperation with Uzbekistan’s Fund for Reconstruction and Development.

The President of Uzbekistan proposed establishing a Korean Business Center as a permanent platform to support businesses and investment projects. Even then, it was clear that relations needed to rest not only on government contacts but also on lasting institutional support for business cooperation.

President Moon Jae-in’s reciprocal state visit to Tashkent in April 2019 marked a major step forward, as the two countries announced a special strategic partnership. The package of agreements and projects exceeded $12 billion, covering investment protection, science and innovation, the peaceful use of outer space, healthcare, energy, mechanical engineering, textiles, and pharmaceuticals.

During President Shavkat Mirziyoyev’s next state visit to the Republic of Korea in December 2021, the agenda centered on three priorities: green development, digitalization, and stronger social protection. His initiatives included establishing an Uzbek–Korean semiconductor and electronics cluster in Tashkent Region that would combine manufacturing, research, and specialist training; creating a regular dialogue between universities and a forum of rectors; and expanding programs run by the Korea International Cooperation Agency (KOICA).

The lending ceiling under the Economic Development Cooperation Fund (EDCF) was increased to $1 billion for the period through 2023.

The state visit of President Yoon Suk Yeol of the Republic of Korea in June 2024 brought the partnership’s technological focus into sharper relief. The two sides agreed to develop strategic cooperation in critical minerals, renewable energy, transport, agriculture, healthcare, pharmaceuticals, and education. A new package of investment agreements worth $9.6 billion was assembled, while the EDCF lending ceiling for 2024–2027 was raised to $2 billion.

At their meeting in New York in September 2025, President Shavkat Mirziyoyev and President Lee Jae Myung of the Republic of Korea agreed to prepare a long-term program for technological and industrial partnership. Building on earlier cooperation, the proposed program would cover advanced processing of critical raw materials, chemicals, mechanical engineering, agriculture, transport, aviation, and biotechnology.

The Evolution of the Central Asia Plus Format

Today’s challenges increasingly require solutions that extend beyond national borders. Transport corridors do not end at border checkpoints, resilient supply chains depend on multiple interconnected links, and major investors need market scale and compatible regulatory frameworks. The Central Asia Plus format is therefore becoming an increasingly practical tool for development.

This trend has already taken shape as an established framework for cooperation. The C5+1 dialogue between the United States and the five Central Asian countries has operated since 2015 and reached the leaders’ level for the first time in September 2023. In April 2025, Samarkand hosted the first Central Asia–European Union summit, where relations were elevated to a strategic partnership and a €12 billion Global Gateway investment package was announced.

In December 2025, Tokyo hosted the first Central Asia Plus Japan leaders’ summit, although the dialogue itself dates back to 2004. The Republic of Korea has engaged with the region through a multilateral format since 2007. This mechanism is now also being elevated to the highest political level.

The first Central Asia–Republic of Korea summit is scheduled for September 16, 2026, in Seoul. The five countries of the region offer an interconnected market, shared transport routes, and complementary industrial capabilities. Four areas are of particular interest for bilateral discussions: transport and logistics; water, energy, and climate; critical minerals; and digital standards, education, and the mobility of skilled professionals.

The forthcoming summit’s agenda already reflects this logic. Discussions are being prepared on industrial cooperation, critical minerals, artificial intelligence, digital manufacturing, energy, and supply chain resilience. The Republic of Korea has also proposed regular C5+Korea meetings of industry ministers and a business summit.

Central Asia’s Trade with the Republic of Korea

The economic foundations for taking trade to the next level are already in place. According to calculations by the Center for Economic Research and Reforms (CERR), trade between Central Asian countries and the Republic of Korea grew by a factor of 1.7 between 2017 and 2025, reaching $5.7 billion. The region’s exports totaled approximately $1 billion, while imports amounted to $4.7 billion.

Trade has expanded considerably but remains uneven. Central Asia mainly purchases Korean machinery, equipment, vehicles, electronics, chemicals, and pharmaceuticals, while its own presence in the Korean market remains limited.

Kazakhstan accounted for $3.2 billion, or approximately 56% of the region’s trade with Korea, and Uzbekistan for $1.7 billion, or just over 30%. Together, the two countries represented approximately 87% of Central Asia’s trade with Korea. Trade with Kyrgyzstan, Tajikistan, and Turkmenistan amounted to $508 million, $196 million, and $45.2 million, respectively.

Investment flows also point to the availability of capital for the next stage of cooperation. In 2025, total direct investment and loans from the Republic of Korea to the region exceeded $1.5 billion. Kazakhstan received approximately $1 billion and Uzbekistan $474.5 million. More than 1,700 enterprises with Korean capital operate across Central Asia.

Uzbekistan’s Trade with the Republic of Korea

In 2025, trade between Uzbekistan and the Republic of Korea totaled $1.7 billion. Korea ranked fifth among Uzbekistan’s trading partners in both total trade and imports. Since 2017, bilateral trade has increased by 25.2%, or $350.2 million.

Exports and imports, however, moved in opposite directions. Uzbekistan’s exports declined from $143.3 million to $61.7 million, while imports from Korea rose from $1.2 billion to $1.68 billion. This gap largely reflects the investment-driven nature of the relationship: Uzbekistan imports equipment and production lines to modernize its industries. In 2025, machinery and transport equipment accounted for 60.7% of imports from Korea, chemicals for 12.8%, and manufactured goods and finished products for more than 16%. In other words, a substantial share of the trade deficit is associated with upgrading production capacity rather than importing consumer goods.

Services accounted for 67.6% of Uzbekistan’s exports to Korea in 2025, followed by raw materials at 13.6%, food products at 5.3%, and finished goods, including textiles, at 3.7%.

Meanwhile, preliminary figures for the first half of 2026 show that bilateral trade increased by 11.5% to $940 million. Exports rose by 21.6% to $33.3 million, while imports grew by 11.2% to $906.8 million.

The potential to expand exports is substantial. The Republic of Korea imports hundreds of billions of dollars’ worth of goods each year, including clothing, cables and wires, footwear, jewelry, polymers, plastics, fertilizers, cotton fabrics, copper pipes, home textiles, nuts, and fresh fruit. Uzbekistan already has an established production base in many of these categories. The constraints often lie in meeting quality certification requirements, order volumes, packaging standards, and delivery schedules. These factors need to be taken into account when developing future export strategies.

Investment with Room to Grow

As of August 1, 2026, Uzbekistan was home to 730 enterprises with Korean capital, including 186 joint ventures and 544 wholly Korean-owned companies. Between 2016 and 2025, direct investment and loans from Korea approached $2 billion, with $474.5 million received in 2025 alone.

Korean investors are active in oil and gas, chemicals, automotive manufacturing, textiles, pharmaceuticals, agriculture, energy, healthcare, transport, construction, and services.

The next phase of investment could build on this foundation by expanding local production, training engineers, and developing industrial clusters. Korean expertise can help establish standards, while the regional market provides the scale needed to launch major new industrial projects and joint production initiatives.

Artificial intelligence could play a particularly important role. Joint pilot projects between Korean technology companies and Uzbek enterprises could quickly demonstrate measurable economic benefits and subsequently be scaled up across other Central Asian countries.

The same logic applies to critical minerals. Central Asia needs to move beyond raw material supplies by developing geological exploration, mineral processing, and the production of high-purity materials and components. Joint projects could combine Korean technology and financing with the region’s resource base.

Bilateral and regional cooperation should be deliberately developed as complementary tracks. The Uzbekistan–Republic of Korea format is well suited to launching targeted local projects, while the Central Asia–Republic of Korea format offers a more effective platform for coordinating transport corridors, supply chains, cross-border standards, and projects that require access to all five markets.

Success at either level reinforces the other: strong national projects can serve as models for the wider region, while regional scale enhances their commercial appeal.

Conclusion

Relations between Uzbekistan and the Republic of Korea are entering a phase in which accumulated trust must translate into a more technologically advanced and diversified economy. Over three decades, the two countries have progressed from establishing diplomatic relations to building a special strategic partnership, delivering major industrial and social infrastructure projects and fostering trust at the highest political level.

The forthcoming Central Asia–Republic of Korea summit could bring regional scale to this progress. It offers an opportunity to turn natural resources into advanced materials, a strategic transit location into efficient logistics services, and a young population into a strong base of human capital. With the region’s most extensive history of cooperation with Korea, Uzbekistan can both benefit from the new format and help shape its agenda and serve as a major center for its implementation.

Developing transport services, industrial zones, and export infrastructure will enable Korean companies to operate across several countries in the region, while helping Uzbek enterprises join international supply chains and enter new markets.

Edvard Romanov
Center for Economic Research and Reforms