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Urbanization Processes in Uzbekistan: Legal Foundations, New Mechanisms, and Development Strategy
Urbanization Processes in Uzbekistan: Legal Foundations, New Mechanisms, and Development Strategy

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 Additionally, 420 outdated urban planning norms have been restructured, replaced by 140 modern regulatory documents.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.

Aquatherm Tashkent 2026 to Showcase Latest Technologies for Construction and Utility Infrastructure
Aquatherm Tashkent 2026 to Showcase Latest Technologies for Construction and Utility Infrastructure

More than 200 companies and brands from 11 countries to participate

 

14th International Exhibition for Heating, Ventilation, Air Conditioning, Water Supply, Plumbing, Swimming Pools, Environment and Renewable Energy – Aquatherm Tashkent 2026 will be held from October 6 to 8, 2026, at the Uzexpocentre National Exhibition Complex in Tashkent.

The event will bring together equipment manufacturers and suppliers, distributors and dealers, as well as key market professionals, including installers, developers and engineering systems designers, representatives of construction and utility organizations, industry experts and professional associations.

The organizers are international exhibition company “Iteca Exhibitions” and its partner “ICA Eurasia Group.” The exhibition is held with the official support of the Ministry of Construction and Housing and Communal Services of Uzbekistan.

“Aquatherm Tashkent” is the leading specialized exhibition in Uzbekistan showcasing the latest developments and comprehensive solutions in the fields of HVAC, water supply, plumbing and related sectors. For 14 years, it has remained a key platform for demonstrating modern equipment, exchanging professional expertise and developing business cooperation.

In Uzbekistan, it is the only specialized exhibition that comprehensively presents all types of engineering solutions, including equipment for heating and hot water supply, ventilation, air conditioning and refrigeration, water treatment systems, wastewater and sewage systems, gas supply, pipes, fittings and valves, plumbing equipment, solutions for swimming pools, saunas and spas, as well as instrumentation and control systems, automation, tools and installation technologies.

This year, the exhibition will feature more than 200 companies and brands from 11 countries, including Belarus, Germany, Iran, Italy, Kazakhstan, China, the Republic of Korea, Poland, Russia, Türkiye and Uzbekistan.

Among the participants are Climadens Pro, Akfa, Bosch, Buderus, Besterm Itermic, Tepliy Vozdukh, Format, Rols Isomarket, Termaflex Izolyatsiya, Daikin, Haier, Thaicon, Hitium, Lesso, Tokamnet, Newterm, Akvadis, PK Kontur, Craft, Zip24, Nimbus, Santim, Ostendorf Rus and Edelweiss.

The exhibition will offer solutions across different price segments, including affordable options for a wide range of consumers.

A new area at this year’s exhibition will be wastewater treatment, which is particularly relevant for Uzbekistan amid water resource shortages, population growth, aging infrastructure and the pollution of water bodies by industrial and municipal wastewater.

The exhibition program will include expert presentations, professional skills competitions and practical master classes.

Aquatherm Tashkent 2026 is of practical interest to international manufacturers of equipment and raw materials, chambers of commerce and industry, and specialized associations that view Uzbekistan as a promising market for developing business ties and establishing new partnerships.

The exhibition will also serve as a networking platform for official delegations, representatives of the construction industry and utility companies seeking modern solutions for engineering infrastructure, water supply, water treatment, heating, ventilation and more efficient use of resources.

Every year, Aquatherm Tashkent brings together the professional community, providing an opportunity to see new technologies and equipment in operation, receive consultations, establish direct business contacts, discuss prospective projects and find solutions for construction and infrastructure facilities.

Visitors from across Uzbekistan and abroad attend Aquatherm Tashkent to see what the market has to offer, compare available technologies and equipment, find reliable suppliers and identify suitable solutions for their specific needs.

As a result, the exhibition serves as a starting point for a new stage in the development of the engineering market for the following year – a place where new business relationships are established, priorities for further work emerge and the foundations for future projects are laid.

Visitors are encouraged to register in advance and obtain an online badge at: https://bit.ly/ATT_Dunyo_ru

More information is available at www.aquatherm-tashkent.uz or by phone at +998 71 205 14 14.

“Aquatherm Tashkent” is held under the internationally recognized Aquatherm® exhibition brand in the HVAC sector, owned by Austrian company Wiener Messe und Congress GmbH.

 

Dunyo IA

Representatives of foreign organizations were accredited to observe the elections
Representatives of foreign organizations were accredited to observe the elections

On 23 September this year, a regular meeting of the Central Election Commission was held to discuss the accreditation of observers from abroad and from international organizations, as well as the organization of the activities of the Instant Information Center.

The interest of foreign countries and international organizations in the elections to the representative bodies of state power, which will be held this year in accordance with the updated electoral legislation, is extremely high.

In particular, it is expected that more than 1,000 international and foreign observers will participate in observing the elections, particularly about 400 from 50 countries, about 500 from 21 international organizations such as the Commonwealth of Independent States, the Office for Democratic Institutions and Human Rights of the Organization for Security and Cooperation in Europe, the Shanghai Cooperation Organization, the Organization of Turkic States and another 60 from the election commissions of 26 foreign countries.

 

 

It should be noted that the Office for Democratic Institutions and Human Rights of the Organization for Security and Cooperation in Europe intends to participate in the observation of the elections in Uzbekistan with a comprehensive mission consisting of a core group, long-term and short-term observers, about 350 observers in total.

The great interest of foreign states and international organizations in the elections in Uzbekistan testifies to the international community's recognition of the democratic reforms being carried out in our country.

 

 

Accordingly, it was decided at the Central Election Commission meeting to accredit observers from international organizations who will participate in the elections to the Legislative Chamber of the Oliy Majlis and the local Councils (Kengashes), and some observers from international organizations such as the Commonwealth of Independent States, the CIS Inter-parliamentary Assembly and the Office for Democratic Institutions and Human Rights of the Organization for Security and Cooperation in Europe were accredited.

As of today, foreign and international organizations wishing to accredit observers can log into the “E-Saylov” information system in their country and enter data electronically in a specific format and submit it for review.

Another notable aspect of this process is that new samples of mandates of accredited foreign observers are automatically generated electronically through this system.

 

 

Also at the meeting of the Central Election Commission, the relevant decision was taken on the establishment of the Instant Information Center – “Call Center” - and the approval of its statutes. The “Call Center” will receive citizens' complaints centrally and provide them with legal explanations and consultations in real time.

The main objectives of the “Call Center” are to establish a dialog with citizens in real time during the election campaign, to provide the population with complete and reliable information on the activities of the commissions, the stages of the electoral process, to create the necessary conditions for the unconditional realization of citizens' rights to vote and appeal, and to strengthen their awareness of electoral legislation and processes.

 

Central Election Commission Press Service

Center of Islamic Civilization of Uzbekistan recovers stolen artefacts from abroad
Center of Islamic Civilization of Uzbekistan recovers stolen artefacts from abroad

Stolen cultural property dating back to the 2nd and 3rd centuries AD has been returned to Uzbekistan following a large-scale investigation involving law enforcement agencies and scholars from across Europe.

A number of artefacts, illegally smuggled from the Central Asian republic that was once the heart of the Bactrian and Kushan empires, were presented by the Metropolitan Police's Art and Antiquities Unit at the Embassy of Uzbekistan. They will subsequently be transported back to their homeland, where they will take a prominent place in the exhibition of the recently opened Center of Islamic Civilization in Tashkent.

The event serves as vivid evidence of Uzbekistan's consistent policy regarding the repatriation of national cultural heritage and highlights the growing global trend toward the protection of cultural values.

“This event is a compelling confirmation of the broad international support for the consistent course of the President of Uzbekistan Shavkat Mirziyoyev, aimed at returning cultural treasures to their homeland, - noted Firdavs Abdukhalikov, Director of the Center of Islamic Civilization in Tashkent and Chairman of the Board of the World Society for the Study, Preservation and Popularization of the Cultural Legacy of Uzbekistan (WOSCU). - We are deeply grateful to our partners and law enforcement representatives from European countries for their support and look forward to further cooperation in preserving and restoring our cultural heritage”.

Detective Sophie Hayes of the Metropolitan Police, addressing a gathering of prominent scholars and officials, emphasized that the recovered artefacts are the heritage not only of Uzbekistan but of all humanity. According to her, the investigation was conducted with the assistance of both national and international specialists, as well as the Organization for Security and Co-operation in Europe (OSCE), with the support of the World Society for the Study, Preservation and Popularization of the Cultural Legacy of Uzbekistan (WOSCU).

The items presented at the exhibition are among the findings discovered in November 2025 during an investigation codenamed Operation Inherent Vice by the police.

A total of nine artefacts were on display, including statue heads and fragments of gypsum frescoes. These monuments date from the 2nd-3rd to the 7th century AD and hold exceptional historical significance for both Uzbekistan and the broader Islamic world.

“The return of these priceless artefacts is not only a victory for New Uzbekistan but also a compelling testament to the power of international cooperation in preserving the country's historical heritage, - added Mr. Abdukhalikov, noting that cultural organizations, legal institutions and diplomatic missions have confirmed their readiness to assist Uzbekistan in recovering its lost treasures”.

The ceremony reflected a broader trend toward strengthening global interaction in the field of cultural heritage protection, with a particular focus on increasing transparency and adhering to ethical standards in the art and antiquities market.

The Center of Islamic Civilization also announced its intention to participate in the upcoming Sotheby’s and Christie’s auctions and to visit art galleries in London. These initiatives are aimed at acquiring new items of Uzbek cultural heritage for the purpose of their preservation and return to the homeland.

“Uzbekistan's efforts to return and protect its cultural heritage continue to attract the attention and support of the international community. We are setting a powerful example of coordinated action in the field of restitution of cultural property”, - emphasized Mr. Abdukhalikov.

“The returned items possess exceptional historical and scientific value, as they belong to various eras of the ancient history of the territory of modern Uzbekistan and reflect the diversity of civilizational processes that have occurred in Central Asia over the centuries”, - noted Dr. Farhod Maksudov, Director of the National Center of Archaeology (Institute of Archaeology) of the Republic of Uzbekistan.

 

IA “Dunyo”

Uzbekistan and Azerbaijan: stable friendship and reliable partnership
Uzbekistan and Azerbaijan: stable friendship and reliable partnership

       The modern relations between Uzbekistan and Azerbaijan represent an example of a dynamically developing strategic partnership based on a solid historical foundation, spiritual closeness and mutual political will to deepen comprehensive cooperation.
For centuries, the Uzbek and Azerbaijani nations have been closely linked by historical and cultural ties, common Turkic roots, similar traditions, language, customs and values. These factors serve as the foundation for sustainable dialogue and comprehensive mutual understanding between the two countries, strengthening the atmosphere of trust and good neighborliness.
      This year, two countries celebrate the 30th anniversary of the establishment of diplomatic relations. Nowadays, the relations between Tashkent and Baku clearly demonstrate an illustrative example of cooperation between the two fraternal countries. Moreover, with the signing of the Treaty on Allied Relations in 2024, they rapidly reached the highest level of interstate cooperation.
       This was a logical continuation of a long-term path, during which both countries managed to lay a constant foundation for a long-term and mutually beneficial partnership, and adoption of over 200 interstate, intergovernmental and interdepartmental deals. Among the key ones are the Friendship and Cooperation Treaty, the Declaration on Deepening Strategic Partnership and Enhancing Comprehensive Cooperation, along with the Agreement on the Establishment of the Supreme Interstate Council.
       Undoubtedly, these achievements are based on the political determination and will of our leaders, who have raised the evaluation of bilateral cooperation year by year. Their regular official contacts and honest relationship have become a powerful catalyst for the dynamic and progressive development of dialogue at all levels. Since 2017, the leaders of the two countries have held 12 meetings, and the number of high-level visits has exceeded 150.
       Such intensive and coordinated communication gave a truly breakthrough impetus to joint work in a wide range of realms and allowed to achieve breakthrough outcomes in all core areas of cooperation.
       Today, Uzbekistan and Azerbaijan continue to consistently strengthen an economic partnership that demonstrates stable and sustainable growth dynamics. Over a decade years, the trade turnover has increased 8-fold from $32 million to $253 million. The target has been set to bring this figure to $1 billion. In order to achieve this aim, systematic efforts are being made to enlarge mutual trade and investments, as well as to enhance industrial cooperation.
       Representatives of the business circles of the two countries are showing a growing in establishing close economic ties. In recent years, the number of joint ventures has increased 5-fold. At present more than 240 companies with the participation of Azerbaijani capital are activate in Uzbekistan. Reciprocally, the number of Uzbek companies operating in the Azerbaijani market has reached 70.
       Cooperation in the automotive industry has become one of the core areas of bilateral cooperation. As part of a joint project of Uzavtosanoat and Azermash companies, Chevrolet cars have been manufactured on the basis of the Hajigabul Industrial Park. At present, about 9,000 cars have been produced.
In order to boost production capacities and taking into account the dynamic growth in demand for manufactured products, construction of a second plant has begun. The launch of the new plant will increase production to 30,000 units per year and create over 1,200 new jobs. Deliveries are planned to both the domestic and foreign markets of Azerbaijan.
       Using their resources and accumulated experience, Tashkent and Baku have also launched projects for textile and sericulture clusters. In Azerbaijan, they will be built on the principle of a full production cycle – from the cultivation of raw materials to deep processing and the production of final products.
In the same strategic area, joint initiatives are being actively implemented to create cotton and dairy agro-industrial complexes, build residential and tourist facilities, develop modern logistics centers and implement energy projects with an emphasis on "green" transformation.
       An important tool for ensuring sustainability and the scalability of such joint work has become an established Uzbek-Azerbaijani investment company with a total capital of $500 million. These days, with the help of this investment company, are being implemented 15 major projects worth over $360 million.
Such dynamics of economic cooperation has become possible due to the consistent enhancement of interregional ties, which are becoming stable and systematized. A vivid confirmation of this is the annual Uzbek-Azerbaijani interregional forum, which opened a wide path for establishing twinning relations between the major cities of the two countries, such as Bukhara and Lankaran, Termez and Bilasuvar, Namangan and Mingachevir, etc.
      Currently, 11 cities of Azerbaijan and Uzbekistan have already signed deals on mutual cooperation. Thus, it can be confidently stated that nowadays the interregional partnership executes not only a supporting role, but also acts as an independent mechanism for promoting direct bilateral relations.
One of the core areas in Uzbek-Azerbaijani cooperation is development of energy relations between Uzbekneftegaz and SOCAR in the development of oil fields in Azerbaijan and Uzbekistan.
      At the same time, the parties have begun practical implementation of the Strategic Partnership Agreement among Uzbekistan, Azerbaijan and Kazakhstan in the field of "green energy", which provides for the creation of an international energy corridor. In the future it will connect Central Asia with Europe through the territory of Azerbaijan. As part of this project, Uzbekistan plans to export up to 5GW of green energy to European countries through Azerbaijan by 2030.
      Currently, the focus may be not only on the transfer of "green" electricity, but also on establishing joint cooperation in the building of solar power plants and the production of components for renewable energy sources.
Uzbekistan and Azerbaijan also share similar views on the creation of an extensive system of transport and logistics corridors. This is due to the general desire to convert a strategic location into a long-term economic benefit.
      In this regard, joint participation in the implementation of logistics projects is considered by the two countries as a main factor in the growth of their economies. The global trend towards the diversification of transport routes reinforces the unifying role of Azerbaijan between Central Asia and Europe. These days,        Uzbekistan is actively increasing cargo transportation through the Azerbaijani infrastructure. For the last over the past 4 years, they have shown a 5-fold increase and by the end of 2024 amounted to more than 1 million tons of cargo.
At the same time, Uzbekistan's initiatives to develop transport connectivity, including the construction of the Uzbekistan–Kyrgyzstan–China railway, are capable of connecting Azerbaijan with China and the South Asian region.
     Broad cultural and humanitarian ties are an important component of Uzbekistan's bilateral cooperation and Azerbaijan. And, it is not a coincidence. The diversity of Uzbek-Azerbaijani relations that has developed today is predetermined by the intersection of historical processes that have played a decisive role in the mutual enrichment of the two cultures and the socio-economic symbiosis of the two nations.
     Day for Culture and movies, dialogs of creative and scientific intelligentsia in both countries play a special role in strengthening humanitarian ties. Mutual respect for cultures and traditions, as well as the desire to understand the spiritual essence and mentality of each other is of great importance in Uzbek-Azerbaijani relations. The mutual interest in the study of cultures is obvious. A monument of the great Uzbek poet and the thinker Alisher Navoi was erected in Baku. In Tashkent, the square where the monument to the famous poet, classic of Persian poetry Nizami Ganjavi stands is one of the favorite places of residents and foreign tourists. The large memorial complex of the national leader of the Azerbaijani people, Heydar Aliyev, established in 2022 in Tashkent, has also become a vivid symbol of the robust friendship of our fraternal peoples.
      Both countries, located on the historical route of the Great Silk Road, have all the favorable conditions for flourishing tourism industry. Both sides have been making significant efforts in this direction. Last year, amendments were made to the Visa-free travel of citizens Agreement of 1997, which made it possible to increase the duration of stay in both countries without registration from 7 to 15 days.
      Thanks to these advantages, the number of Azerbaijani guests who visited Uzbekistan increased from 10,000 in 2022 to 18,000 in 2024. At the same time, the number of tourists from Uzbekistan to Azerbaijan has increased significantly from 11,000 to 16,000 visitors.
      The achieved level of bilateral cooperation in the field of education and vocational training of young personnel deserves special attention. There are more than 40 cooperation deals under which scientific research is conducted and experience is exchanged.
      In particular, agreements were reached on the opening of a representative office of Samarkand State Medical University on the basis of Nakhchivan University. It is anticipated to launch joint master's degree programs in the field of oil and gas refining between Tashkent Institute of Chemical Technology and Baku Higher Oil School, as well as in finance and business analysis between Tashkent State University of Economics and Azerbaijan State University of Economics.
      An indicator of fruitful cooperation between the two states in the field of education and science is the first Uzbekistan-Azerbaijan Rectors' Forum of higher educational institutions which was held in Andijan this year. More than 70 representatives of Azerbaijani and Uzbek universities discussed core issues of the strengthening of higher education systems in the two countries. As a result of the conference, over 60 interuniversity deals were reached.
      In general, both countries are undoubtedly interested in further comprehensive promotion of mutually beneficial cooperation, strengthening coordination and interaction within international and regional organizations in order to contribute to the consistent and dynamic development of Uzbek-Azerbaijani relations.
      In this regard, assessing the path we have taken, we can be optimistic about the future of Uzbek-Azerbaijani relations. This applies to the entire spectrum of interaction – political dialogue, economic ties, humanitarian and scientific cooperation.

 

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

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
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

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".

Central Asia and Azerbaijan: Strategic Partners Building a Green Energy Hub Together
Central Asia and Azerbaijan: Strategic Partners Building a Green Energy Hub Together

In recent years, cooperation between Central Asia and Azerbaijan in the energy sector has entered an entirely new phase. This progress is primarily the result of the wise policies pursued by the countries’ leaders, based on mutual trust, friendship, and good-neighborly relations. Thanks to this strong political will, major energy initiatives that were once viewed only as future prospects have now moved into the implementation stage, becoming important projects serving Central Asia’s sustainable development and contributing to the global green transformation.

Today, Central Asia is no longer a field of competition in the energy sector; rather, it is increasingly becoming a space for cooperation based on mutual trust, shared interests, and the principles of sustainable development. This process is gaining practical significance thanks to the forward-looking policies, open dialogue, and constructive approach of the countries’ leaders.

Energy security, the rational use of water and energy resources, coordination of electricity systems, and the rapid development of renewable energy sources have become key priorities of regional cooperation. The emerging regional architecture is creating new opportunities not only for meeting domestic demand but also for participation in international energy markets.

The countries of Central Asia have established mechanisms for continuous dialogue in the fields of energy and water management. Regular working meetings among the ministries of energy and water resources of Uzbekistan, Kazakhstan, Kyrgyzstan, and Tajikistan play an important role in ensuring the stable operation of electricity systems, the efficient use of water resources, the coordination of seasonal loads, and the uninterrupted supply of energy to households and industry.

Within this framework, the strategic partnership between Uzbekistan and Kazakhstan occupies a special place. The national energy systems of the two countries are closely interconnected, and practical cooperation in coordinating electricity flows, maintaining capacity balances, and ensuring the reliable operation of the unified energy system continues to develop steadily. Regular dialogue at the level of heads of state has further strengthened this cooperation and transformed it into an important integration factor for the entire region.

The countries’ goals in the field of renewable energy are also closely aligned. In recent years, Uzbekistan has accelerated the development of green energy, implementing large-scale programs to build solar and wind power plants, energy storage systems, and modern electricity networks. Kazakhstan is likewise consistently advancing reforms aimed at developing a green economy and reducing carbon emissions. Kyrgyzstan and Tajikistan, with their substantial hydropower potential, make a significant contribution to regional energy security. Meanwhile, Turkmenistan is implementing important initiatives to modernize its energy infrastructure and expand electricity exports.

Today, the common objective of the Central Asian countries extends beyond the development of their national energy systems. The primary task is to establish a single regional energy space that is interconnected, competitive, environmentally sustainable, and open to external markets. In this context, Azerbaijan’s participation broadens the geographic scope of cooperation and creates a strategic corridor linking Central Asia with Europe.

 

The Green Corridor: A Strategic Bridge Linking
Central  Asia and Europe

The high level of political trust achieved among the Central Asian countries is now being translated into practice through major transnational energy projects. Among the most significant is the Green Corridor initiative, being implemented by Uzbekistan, Kazakhstan, and Azerbaijan.

This project will elevate regional energy cooperation to an entirely new level by connecting Central Asia to the European energy system through the Caspian Sea. It will create opportunities to export environmentally friendly electricity generated in the region to international markets.

The strategic partnership agreement signed in Baku during COP29 in November 2024 provided a solid legal foundation for this initiative. Subsequently, cooperation among national electricity grid operators was established, and the Green Corridor Alliance LLC was created. Currently, the Italian company CESI is conducting the project’s feasibility study.

The Green Corridor is not merely an export route; it is a strategic platform for creating an integrated electricity market in Central Asia. The project will strengthen interconnections among national power systems, facilitate more efficient use of renewable energy resources, and create new opportunities for attracting investment.

This initiative is a practical expression of the strategic partnership between Uzbekistan, Kazakhstan, and Azerbaijan and will help transform Central Asia into an important link in the global green energy value chain.

 

Kambarata HPP-1: A Project for Regional Energy Security

Another important example of energy integration in Central Asia is the construction of Kambarata HPP-1.

Thanks to the political support of the Presidents of Uzbekistan, Kazakhstan, and Kyrgyzstan, as well as the coordinated efforts of the governments of the three countries, this project has finally moved from decades of discussion to practical implementation.

With a planned capacity of 1,880 MW, the hydropower plant is not merely a major energy facility. It will contribute to maintaining the water-energy balance in Central Asia, improving the reliability of electricity supply, managing seasonal demand more effectively, and ensuring the rational use of water resources in the context of climate change.

The project will also bring new investment, modern infrastructure, and thousands of jobs to the economies of the three participating countries. The involvement of the World Bank further confirms the project’s international significance and economic viability.

 

Central Asia: A New Global Hub for Green Energy

Today, the countries of Central Asia are demonstrating an entirely new model of development in the energy sector. Competition is being replaced by trusted cooperation, while rivalry over resources is giving way to integration based on shared interests.

Regular dialogue among Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan, and Turkmenistan is helping to ensure the stable functioning of the unified energy system, coordinate water and energy resources, and improve mechanisms for mutual support in emergency situations.

At the same time, the large-scale reforms being implemented by Uzbekistan in the development of renewable energy have become an important driver of the region’s transition to a green economy. The rapid construction of solar and wind power plants, energy storage facilities, and modern electricity grids is significantly increasing Central Asia’s overall energy potential.

Today, the countries of the region are pursuing a long-term strategy aimed not only at meeting domestic energy demand but also at supplying environmentally friendly electricity to Europe and other international markets.

In conclusion, the strategic partnership in the energy sector between Central Asia and Azerbaijan is a practical result of the policies pursued by the countries’ leaders, which are based on mutual trust, friendship, and good-neighborly relations.

Major initiatives such as the Green Corridor and Kambarata HPP-1 clearly demonstrate that the countries of the region are capable of jointly addressing complex challenges. This cooperation not only strengthens energy security but also lays a solid foundation for transforming Central Asia into a strategic green energy hub connecting Europe and Asia.

The President of Uzbekistan noted the importance of adopting a long-term program of strategic partnership with FAO
The President of Uzbekistan noted the importance of adopting a long-term program of strategic partnership with FAO

President of the Republic of Uzbekistan Shavkat Mirziyoyev met with Director General of the Food and Agriculture Organization of the United Nations (FAO) Qiu Dongyu on September 5.

The head of the authoritative branch structure of the United Nations system is in Tashkent within the framework of the ongoing International Forum on Food Security and Sustainable Development Goals for Landlocked Countries.

At the beginning of the meeting, the UN High Representative expressed his deep gratitude to the head of our state for supporting the successful holding of the forum, which is attended by representative delegations from more than 30 countries of the world.

In the course of the conversation, the sides considered issues of further expanding the strategic partnership between Uzbekistan and FAO in effectively responding to contemporary challenges and threats.

The sides noted with satisfaction the fruitful results of practical interaction achieved in recent years. Thus, the qualitative indicators of implementation of the country cooperation program for the period until 2025 have doubled.

There are 34 projects in the active phase of implementation. Over the last year, 7 new projects were launched, including in the field of agriculture, school feeding, veterinary medicine, agrochemistry and other spheres.

The importance of preparation and adoption of a new five-year partnership program was emphasized.

Special attention was paid to promising joint projects and activities in the field of digitalization of the agro-industrial complex, exchange of advanced knowledge and experience, attraction of innovations and investments in improving the fertility of the land fund, cultivation and processing of organic agricultural products, modernization of irrigation systems, creation of modern clusters and logistics centers, research and development.

There was also an exchange of views on the global and regional situation related to food security.

Business Climate Analysis of Uzbekistan – CERR Survey
Business Climate Analysis of Uzbekistan – CERR Survey

In January, growth in the business climate was mainly driven by an outpacing increase in the expectations component. The agricultural sector and services became the key drivers of business confidence.

The Center for Economic Research and Reforms (CERR) presented the results of its business climate analysis based on monthly surveys of entrepreneurs across the republic. Based on the collected data, a composite Business Climate Indicator was formed, reflecting both current assessments of business conditions and expectations for the next 3 months.

Dynamics of Uzbekistan’s Composite Business Climate

In January of the current year, Uzbekistan’s composite Business Climate Index stood at 64 points (on a scale from −100 to +100), which is 23% higher than the level of 2025.

The improvement in the business climate was primarily driven by stronger assessments of the current business situation, which increased by 28%.

An additional contribution came from improved optimism regarding short-term business prospects. In particular, business expectations rose by 20%.

According to the survey, 22% of enterprises increased their number of employees. At the same time, 71% of respondents expect demand for their products to grow over the next three months, compared to about 60% in the same period last year.

The share of enterprises forecasting an increase in employment in the coming quarter rose to 65%, up from 58% a year earlier.

Sectoral Dynamics of the Business Climate Index

In sectoral terms, an improvement in the business climate compared to last year was observed in construction, agriculture, and services.

In agriculture, the Business Climate Index increased by 62% year-on-year and reached 77 points, compared to 48 points in January 2025.

Growth was mainly supported by a significant improvement in assessments of current conditions and more favorable expectations. The current situation indicator in the sector increased 2.7 times from 27 to 72 points, while expectations grew by 17% to reach 82 points.

44% of entrepreneurs assessed the condition of their business in the sector as “good,” compared to 39% a year earlier. Growth in demand for products over the past three months was reported by 46% of enterprises versus 39% in January last year. Expectations for further demand growth in the near term remain high at 71%, compared to 68% a year earlier.

In the services sector, the business climate increased by 25% compared to January last year, reaching 65 points versus 52 points a year earlier.

Growth was driven by a gradual improvement in current business conditions. Current assessments in services rose by 18% to 52 points. At the same time, a more pronounced increase was observed in the expectations component, which grew by 32% to 79 points, indicating a substantial strengthening of companies’ confidence in short-term prospects.

70% of entrepreneurs expect demand for their services to grow over the next three months, compared to 58% in January 2025. The share of enterprises expecting to increase employment in the coming quarter amounted to 61%, up from 54% a year earlier.

In the construction sector, the business climate increased by 13% to 61 points, compared to 54 points a year earlier. The current situation indicator improved by 43% to 57 points. Expectations were formed at the level of 66 points, showing a decline of 4%.

38% of respondents reported that business conditions in construction had improved over the past three months, compared to 35% a year earlier. The share of enterprises reporting workforce growth rose to 38% from 22% a year earlier. Expectations of demand growth over the next three months were expressed by 77% of entrepreneurs, compared to 61% in January last year.

In industry, the business climate slightly declined by 5% compared to last year, while remaining at a sufficiently high level of 54 points.

At the same time, optimism among industrial enterprises remains steadily high. In January, expectations increased by 10%, reaching 78 points, indicating a continued positive outlook regarding development prospects.

According to the survey, the share of respondents reporting an improvement in business conditions over the past three months reached 32%, compared to 30% a year earlier. Demand growth over the same period was noted by 38% of industrial enterprises versus 36% in January last year. Meanwhile, employment expansion plans strengthened — 69% of entrepreneurs expect to increase their workforce in the next three months, compared to 62% a year earlier.

Barriers to Entrepreneurial Activity

According to the survey, more than half (57%) of entrepreneurs see no barriers in their activities. Among the problems cited, the most frequent are taxation (11%), utilities (9%), and access to credit (8%).

 

CERR Sector for the Study of Sectoral Competitiveness and Investment Activity

Tel: (78) 150 02 02 (441)

CERR Public Relations and Media Sector

Tel: (78) 150 02 02 (417)


 

SCO AND WATER DIPLOMACY: IN PURSUIT OF COMMON INTERESTS
SCO AND WATER DIPLOMACY: IN PURSUIT OF COMMON INTERESTS

Transforming water from an object of competition into a factor of cooperation is a vital condition for regional stability.

 

Water is a precious resource and a source of life. It is not merely a natural resource but also a strategic factor that determines a country's food and energy security, economic development, environmental stability, and the well-being of its people.

Against this backdrop, there is a growing need for political dialogue and practical cooperation aimed at the rational, equitable, and mutually beneficial use of transboundary rivers and shared water resources. In other words, water diplomacy is needed to turn water into a tool of cooperation that brings states together rather than a source of conflict.

The founding documents of the Shanghai Cooperation Organization list the rational use of natural resources, including water, environmental protection, and the implementation of joint ecological programs as main areas of cooperation. Therefore, the issue of water is not a topic that was later added to the SCO agenda, but one of the organization's initial priorities.

In recent years, the political and legal foundations of this area have been further strengthened. The SCO's Dushanbe and Samarkand Declarations identified access to safe drinking water and the integrated, rational management of water resources as important conditions for sustainable development.

At the seventh meeting of the heads of ministries and agencies of SCO member states responsible for environmental protection, held in Bishkek on April 3, 2026, issues of climate change adaptation, glacier preservation, and water resource management were discussed. This indicates that the topic of water is taking on an increasingly important role in the organization's practical agenda.

At the same time, representatives of the SCO member states are seeking practical solutions to water-related issues through meetings, consultations, and negotiations in various formats. On August 7, 2026, the 94th meeting of the Interstate Commission for Water Coordination (ICWC) was held in the city of Turkestan, Republic of Kazakhstan.

The water management ministers and officials from Kazakhstan, Tajikistan, Turkmenistan, and Uzbekistan reviewed proposals for water limits and operating regimes for reservoirs in the Syr Darya and Amu Darya basins for the 2026 growing season, as well as a plan to introduce an automated water accounting system in the Syr Darya basin. The development of the document was approved, and special working group is expected to be established by September of this year.

Furthermore, the parties discussed the implementation of the $20 million Regional Cooperation for Improving the Efficiency of Water Resources Use in Central Asian Countries (CAWEC) grant project, in partnership with the World Bank, as well as the execution of tasks stemming from the decisions of the Council of Heads of the Founding States of the International Fund for Saving the Aral Sea.

With the support of the German Agency for International Cooperation (GIZ), measures are being taken to implement a pilot project to automate the water resources monitoring and accounting system at transboundary water facilities between Kazakhstan and Uzbekistan.

From August 10-12, 2026, a three-day regional training was held in Tashkent on the topic "Introduction of Water-Saving Irrigation Technologies and Digital Solutions in the Water Management Sector of Central Asia under Climate Change."

The training was organized at the initiative of the Ministry of Water Resources of the Republic of Uzbekistan, within the framework of the National Water Resources Management Project in Uzbekistan and the Blue Peace Central Asia (BPCA) project, with the participation of the "Suvchilar maktabi" (School of Water Professionals).

Water management specialists from Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan participated in the event.

The primary objective of the event was to enhance the professional capacity of water management specialists from Central Asian countries, expand the mutual exchange of experience, and strengthen practical cooperation in the efficient use of water resources, the introduction of modern irrigation technologies, and the digitalization of the sector, as well as to familiarize them with the advanced solutions being implemented in Uzbekistan.

It is important to emphasize that Uzbekistan views water diplomacy not only as an instrument of foreign policy but also as a logical continuation of the large-scale reforms being implemented domestically. Indeed, to promote the idea of efficient water use in regional dialogue, each state must first reduce water waste within its own territory and establish a modern management system.

In his Address to the Oliy Majlis and the people of Uzbekistan, President Shavkat Mirziyoyev noted that water scarcity is becoming an increasingly urgent global issue; for this reason, the rational use of water was elevated to the level of state policy from the very first days of the reforms.

The results achieved in the sector in recent years are reflected in the figures . In 2025, construction and reconstruction work was carried out at 258 irrigation and melioration facilities, and 723 kilometers of canals were lined with concrete. Additionally, 158 kilometers of irrigation and 303 kilometers of collector-drainage networks were built or reconstructed. As a result, the water supply for 364,000 hectares of land was improved, and the loss of more than 500 million cubic meters of water was prevented.

In 2026, a total of 2 trillion 199 billion soums were allocated from the state budget for construction and reconstruction work under 308 irrigation and melioration projects.

As of August 1 of the current year, construction work worth 1.3 trillion soums has been completed, which constitutes 59% of the established annual plan. Specifically, 637 kilometers of canals were lined with concrete and reconstructed. Furthermore, 52 kilometers of irrigation networks—flumes and pipes—and 27 hydraulic structures were built and reconstructed. To increase the energy efficiency of water management facilities and ensure uninterrupted water supply, pumping stations with a capacity of 13 m3/sec, 31 irrigation wells, 33 kilometers of pressure pipelines for pumping stations, and 268 kilometers of collector-drainage networks were built and reconstructed.

Significant progress is also being made in the introduction of water-saving technologies. By the end of 2025, the coverage of such technologies reached 2.6 million hectares, or 61% of irrigated areas. Of this, drip irrigation technology was introduced on 664,000 hectares. Thanks to these technologies, 3 billion cubic meters of water were saved. By the end of 2026, the goal is to increase the coverage of water-saving technologies to 3.1 million hectares and save 5 billion cubic meters of water. To date, water-saving technologies have been implemented on a total of 638,000 hectares across the republic.

These figures are significant not only for the national economy but also for the regional water balance. Every cubic meter of water saved in one country reduces the pressure on the entire basin. In this sense, lining irrigation canals with concrete and implementing water-saving technologies are not only national-level initiatives but also diplomatic contributions that strengthen regional trust.

To manage water effectively, it must be accurately measured. Where there is no accounting, it is difficult to assess savings, identify losses, and ensure fair distribution.

From this perspective, the digitalization efforts underway in Uzbekistan's water management sector not only increase the efficiency of domestic management but also create a technological foundation for the reliable exchange of transboundary water data in the future.

In 2025, the Center for Digitalization and Monitoring of Water Management was established, and a modern Situational Center was launched to consolidate industry data at a single point. Ten information systems were introduced. The "State Water Cadastre" and "Melioration" information systems were enhanced with the capability to analyze data, generate forecasts, and develop recommendations using artificial intelligence.

Forty-four sensors were installed in reservoirs, enabling remote monitoring of water levels and volumes. A design organization is conducting nationwide studies for the installation of 272 devices to measure water intake across the state border in real time, as well as for the installation of specialized equipment at 1,895 points for the online management and monitoring of inter-district water resources.

The significance of such projects goes beyond technical convenience. Reliable real-time data increases transparency in water distribution, reduces the human factor, and prevents contentious situations.

In the future, it may be possible to coordinate the national information systems of the SCO member states. This does not mean transferring all data to a single center. On the contrary, it envisions the formation of a mechanism for exchanging necessary hydrological indicators in an agreed-upon format, while respecting the sovereignty and national legislation of each state.

The water-energy-food nexus is a prerequisite for sustainable development. Within the framework of the SCO, it is advisable to form a permanent mechanism that integrates cooperation between water, energy, and agriculture agencies. Such a mechanism would enable the joint analysis of seasonal reservoir operation, electricity exchange, irrigation needs, and ecological flows.

The SCO region has accumulated extensive experience in using drip and sprinkler irrigation, canal lining, closed pipeline networks, smart water meters, energy-efficient pumps, and forecasting systems based on artificial intelligence.

By consolidating this experience, it is possible to implement model projects adapted to various climatic conditions. For example, within the SCO, it would be beneficial to establish pilot zones to demonstrate water-saving technologies, train specialists and farmers, and evaluate the results based on a unified methodology.

Sound decisions on water issues must be based on scientific research. Therefore, it is important to implement joint scientific programs among the research institutes, universities, and water management organizations of the SCO countries.

When managing water resources, considering only today's needs is insufficient. The impact of every decision on future generations, natural ecosystems, and the interests of neighboring states must also be thoroughly assessed.

Today, it is not enough to view water diplomacy solely as a means of preventing conflict. It must also stimulate economic development, attract investment, accelerate the exchange of technologies, and strengthen food and energy security.

The SCO is a major regional structure capable of uniting these opportunities. Cooperation within the Organization must transition from negotiations over water distribution to the stage of creating common economic benefits and ensuring sustainable development through water.

Indeed, water does not recognize state borders. Its flow interconnects the destinies, well-being, and futures of peoples.

The rational use of water is economic development, its just management is good neighborliness, and conserving every drop is our shared responsibility for the future.

 

Zokir Ishpulatov,

First Deputy Minister of Water Management of the

Republic of Uzbekistan

New approaches in poverty reduction presented
New approaches in poverty reduction presented

President Shavkat Mirziyoyev reviewed a presentation on measures for ensuring population’s employment and poverty reduction based on new approaches.

This year it’s planned to ensure employment of 5.2 million citizens and bring out of poverty 1.5 million people. For the first time 60 districts and cities will become territories free of poverty and unemployment. 

Jointly with mahalla bankers it’s planned to ensure constant employment for 1.5 million people and attract more than 2 million citizens to businesses. For this purpose it’s planned to allocate a total of 120 trillion soum of credit resources for small business projects. 

Based on best foreign practices, new approaches to poverty reduction will be introduced in 32 areas. In particular, solar power plants with a total capacity of 107 megawatts will be built in 300 complex mahallas, and members of low-income families will be hired to operate them on a cooperative basis.

In 123 districts, low-income citizens will be offered work on the creation of forest and nursery lands on 20 thousand hectares, as well as the cultivation of medicinal plants. They will be paid a subsidy of 375 thousand soums for every 100 trees planted.

In places with tourism potential it is planned to open guest houses and catering outlets, and at a number of post offices - e-commerce centers, where representatives of low-income families will also get jobs.

A total of 6.472 mahallas in 2025 will implement projects based on new approaches, which will help lift 210 thousand people out of poverty.

Special attention will be paid to remote villages with particularly difficult conditions. In them, the Association of Mahallas of Uzbekistan will take measures to foster a spirit of entrepreneurship, reduce dependency and support labor activity of low-income families.

The Head of State reiterated that 2025 will be decisive in reducing unemployment and poverty, and gave instructions to ensure a systematic and targeted approach to the implementation of the presented measures.

The Ministry of Employment and Poverty Reduction is tasked with strictly monitoring the implementation of these tasks. Each initiative and each activity will be entered into an electronic platform with subsequent verification of the created jobs on the tax base.

The importance of organizing training for the staff of local khokimiyats and “ mahalla seven”, as well as promotion of best practices was also noted.

Three enterprises launched, twelve enterprises starting construction
Three enterprises launched, twelve enterprises starting construction

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.