Today, global demand for water resources is steadily increasing. In this context, the rational use of shared water resources in Central Asia is one of the key factors in ensuring regional security, stability, and sustainable development.

The constructive proposals and practical initiatives put forward by the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, aimed at addressing global environmental challenges—particularly water security—are widely supported by countries across the region. In this regard, the introduction of modern irrigation technologies is considered the most effective solution for improving water-use efficiency in agriculture. These technologies not only help conserve water but also reduce costs related to fertilizers, fuel, and labor, while increasing agricultural productivity.

From the early stages of reforms in New Uzbekistan, enhancing the culture of water use has been elevated to the level of state policy. The “Uzbekistan–2030” Development Strategy identifies the widespread introduction of water-saving technologies across all irrigated lands as a top priority.

In his Address to the Oliy Majlis and the people of Uzbekistan, the President emphasized the importance of this issue, noting that a total of 3.3 trillion UZS will be allocated in 2026 for the implementation of water-saving technologies (approximately $275 million).

Analysis shows that since 2019, the state support mechanism—including subsidies for the adoption of water-saving technologies—has proven effective and has significantly encouraged clusters and farmers.

As a result, between 2019 and 2025:

• drip irrigation was introduced on 664,000 hectares,
• sprinkler irrigation on 124,000 hectares,
• other modern irrigation methods on 73,000 hectares,
• water-saving irrigation using flexible pipes and film-lined furrows on 124,000 hectares,
• and 1.6 million hectares were laser-leveled.

As a specialist in this field, I can confidently say that water-saving irrigation methods—particularly drip and sprinkler systems—are becoming increasingly popular among farmers.

On February 3 of this year, a presentation was held before the President focusing on improving water efficiency and expanding the use of water-saving technologies. Additional measures to scale up these efforts were discussed.

In particular, by 2028 it is planned to introduce water-saving technologies on an additional 930,000 hectares, increasing the total coverage to 3.5 million hectares, or approximately 80% of all irrigated land.

The adoption of these technologies will ensure more reliable water supply, especially for regions facing water scarcity. Reforms aimed at strengthening state support in this area are being consistently advanced.

In accordance with the Presidential Resolution dated February 5, 2026, new incentive mechanisms are being introduced for agricultural producers.

Specifically:

• the target is to expand water-saving technologies to 3.5 million hectares by 2028;
• drip irrigation will be introduced on 220,000 hectares,
• sprinkler irrigation on 110,000 hectares,
• and laser land leveling will be carried out on 600,000 hectares.

In 2026, commercial banks will allocate 2.6 trillion UZS in loans, while 800 billion UZS will be provided as subsidies.

A system for continuous professional development based on the experience of Xinjiang (China) will also be introduced.

Starting from 2027:

• water-use tax rates and subsidies will be differentiated based on water availability;
• a 1.25 coefficient will be applied for subsidies in water-scarce regions;
• and a doubled tax rate will apply where water-saving technologies are not implemented despite stable water supply.

From April 1, 2026, the use of traditional irrigation methods on subsidized lands where water-saving technologies have already been introduced will be considered unauthorized water use and will result in financial penalties.

In Uzbekistan, human capital development remains a priority. Under the “School of Water Specialists” initiative, 10,000 agricultural workers will be trained this year, and 358 specialists will undergo training abroad.

In addition, starting from the 2026/2027 academic year, higher education institutions will enhance training programs in this field, incorporating international best practices.

In conclusion, efforts to ensure the rational use of water resources, expand the adoption of water-saving technologies, and deepen sectoral reforms are reaching a new level.

Today, the time has come to elevate water conservation into a true nationwide value.

Dauranbek Kdirbaev,
Ministry of Water Resources

Head of the Department for the Implementation

The crises observed today in the system of international relations once again testify to the growing need for mutual understanding, unity, and the achievement of common goals for the states of Central and South Asia. In this regard, dialogue platforms that contribute to strengthening mutual understanding and trust are of particular importance. In this context, the Termez Dialogue serves as a platform for developing interregional cooperation. Its first meeting took place on May 19, 2025, aimed at strengthening regional connectivity and elevating cooperation to a new level.

The growing demand for this platform was reflected in the organization of a separate session dedicated to the Termez Dialogue within the framework of the Doha Forum in December 2025. The discussions highlighted the importance of practical approaches to enhancing interregional cooperation.

The current meeting of the Termez Dialogue is aimed at defining a new stage in the development of the platform - the transition from conceptual discussions to defining priority areas and practical mechanisms for realizing the potential of interregional cooperation.  During the Termez Dialogue, special emphasis is expected to be placed on strengthening cultural ties.

This is relevant because interdependence must be understood more broadly than just trade, infrastructure, and transport corridors. It includes social, intellectual, and cultural ties that unite the communities of the region. Revisiting this history creates an important conceptual foundation for modern regional cooperation.

It is noteworthy that even in the past, Termez, a city located between the Greco-Bactrian, Kushan kingdoms, and other ancient states where Zoroastrianism, Buddhism, Christianity, and Islamic traditions emerged and developed as a center of intercultural and religious dialogue, flourished during the Timurid era and became a major center of trade, crafts, and science^[1]. Indeed, if we look at our history, the countries of Central Asia and the South Asian region have always developed harmoniously as a single space, closely cooperating in all spheres. The works of the great thinker Abu Rayhan Beruni “India,” Zahiriddin Muhammad Babur “Baburnama” and other historical sources are clear evidence of these close ties.

Furthermore, the following remarks by Muhammad Sobir Turkestani, Deputy Ambassador of Afghanistan to Uzbekistan, deserve attention: “Both Uzbekistan and Afghanistan are located on the land between two rivers, which was once called Mawarannahr.” There are many similarities in our cultures.  The cultural heritage of Alisher Navoi is the wealth of the peoples of Uzbekistan and Afghanistan. The remains of our ancestor Alisher Navoi are in the Herat region. All the minarets built in Herat during the reign of Sultan Husayn Bayqara stand as a single complex. Zahiriddin Muhammad Babur was buried in Kabul. In a complex called Babur's Garden. There are also large cultural museums in Afghanistan. Our antiquities are kept in our museums in Kabul, Herat, and Mazar-i-Sharif.”^[2] Of course, the main goal of our efforts today is not to develop these historical ties, but to restore them, and to further strengthen the bonds of friendship and brotherhood between our peoples.

To this end, in recent years, Uzbekistan has been increasingly developing ties with the countries of South Asia.

At the same time, special attention is paid to the development of cultural ties and people-to-people contacts, which contributes to strengthening economic ties and realizing untapped potential.

This approach is relevant given the ineffectiveness of using only military-political means to ensure security. For example, the failure to achieve positive results was once again confirmed by the withdrawal of US troops from Afghanistan in 2021, which was carried out with the help of weapons and military to establish peace and stability on Afghan soil. In this context, Uzbekistan's economic ties with Afghanistan today serve as one of the important factors in establishing peace in the country and restoring its economy.

According to estimates by the Statistics Agency of Uzbekistan, mutual trade turnover amounted to $653 million in 2021, $688.8 million in 2022, $784.1 million in 2023, and $999.9 million in January-November 2024^[3]. Over the past five years, trade turnover has increased 2.5 times, reaching $1.68 billion in 2025, while Uzbekistan's exports amounted to approximately $1.5 billion. The parties set a new medium-term goal to increase trade turnover to $5 billion. Therefore, today Uzbekistan is becoming one of the important investors in Afghanistan. Specifically, according to a $1 billion agreement signed between Uzbekistan and Afghanistan, Uzbekistan will participate in the development of the Tuti Maidan gas field in the Jauzjan and Faryab regions for 10 years.

The Termez International Trade Center, established in the Surkhandarya region, plays a very important role in implementing such trade and economic instruments. This shopping center is the first trade zone in Central Asia serving various entrepreneurs, especially Afghan entrepreneurs, who cooperate with Afghanistan. The shopping center features permanent exhibitions and fairs, an Uzbek-Afghan business school, a medical clinic for the treatment and provision of medical care to patients who are citizens of Afghanistan, a hotel, enterprises specializing in the production of precious metal jewelry, a multi-currency system, and other conditions that allow entrepreneurs to trade freely.

According to analytical data, 60% of Uzbekistan's total international transport passes through the transit routes of Central Asian countries and Afghanistan. Uzbekistan's access to seaports through Afghanistan is 2-3 times shorter than the access to the Black and Baltic Seas, and 5 times shorter than the route to the Pacific ports^[4]. According to economic analysts, the cost of delivering one container from Central Asia to South Asia through Afghanistan to seaports will decrease from $900 to $286. In addition, transportation time will be reduced from 35 days to 3-5 days. At the same time, export potential will also increase sharply. Improving transport and infrastructure communications and attracting international transit carriers to Central Asia is one of the most important tasks uniting the countries of the region. Its resolution is determined by the need to improve the socio-economic situation in the region.

In conclusion, interdependence is the most important task for the countries of Central and South Asia in terms of ensuring stability and sustainable development. In this sense, the Termez Dialogue, as a prestigious international forum, will be effective in further expanding ties between our regions, opening new horizons for cooperation, and moving confidently along the path of peace and development.

Furthermore, the Termez Dialogue, as a platform for strengthening interregional connectivity and restoring common historical, cultural, and civilizational ties, opens opportunities for the development of new international transport and logistics corridors through Afghanistan. In the current difficult conditions of growing mutual trust and conflict of interests, such a format of cooperation as the Termez Dialogue is of great importance.

Tashkent State University of Oriental Studies, Foreign policy and international economic relations Deputy Director of the Institute PhD., O. Abdurakhmonov

Eldor Aripov: "Termiz muloqoti Markaziy va Janubiy Osiyo o‘rtasidagi o‘zaro bog‘liqlikni mustahkamlashda muhim ahamiyatga ega". (21.05.2025), https://daryo.uz/2025/05/21/eldor-aripov-termiz-muloqoti-markaziy-va-janubiy-osiyo-ortasidagi-ozaro-bogliqlikni-mustahkamlashda-muhim-ahamiyatga-ega

Afg‘onistonda O‘zbekistonga aloqador madaniy boyliklar kam emas. (07.11.2023). https://xabar.uz/uz/madaniyat/afgonistonda-ozbekistonga-aloqador-madaniy-boyliklar-kam-emas

O‘zbekiston Respublikasi Tashqi savdo aylanmasi. 2024-yil yanvar-noyabr oylari uchun dastlabki ma’lumot // O‘zbekiston Respublikasi huzuridagi Statistika agentligi. – B.4.

Akmalov Sh. O‘zbekiston va Afg‘oniston: o‘tmishdan hozirgacha. Monografiya. – T.: “Zamon poligraf”, 2023. – B. 70.

On the eve of the 34th anniversary of our country's independence, the Executive Board of the International Monetary Fund has finalised the 2025 consultations in accordance with Article IV of the IMF Agreement. The main conclusion on the essence of the ongoing reforms is positive prospects for Uzbekistan's economic development against the backdrop of continued progress in the transition to a market economy. According to the published document, economic indicators remain strong, including sustainable growth rates, reduction of the consolidated budget deficit, current account deficit and sufficient level of international reserves.

Successful and effective implementation of structural reforms, according to the Fund's specialists, allows us to conclude that the prospects are favourable. Against the background of a high degree of uncertainty in global trade policy, the IMF baseline scenario predicts that real GDP growth will remain stably high in the coming years. Such trends are the result of economic openness, industrialisation, active investment policy and support for the formation of export potential of promising industries.

The set of reforms and effectively implemented decisions is consistent with available internal resources and reserves for long-term sustainable development of the country and regions. The course towards irreversible market transformations makes it possible to skilfully combine the instruments of targeted state support and opportunities for entrepreneurial initiative on the way to building a New Uzbekistan.

In recent years, as a result of openness and growing confidence in our country, there has been a progressive increase in capital investment. In 2017-2024, the total volume of foreign investment absorbed exceeded $113 billion. Foreign direct investment and loans account for more than 80 per cent of them. Activity in attracting finance is observed in the leading industries and the fuel and energy complex, which has a corresponding impact on the acceleration of industrialisation processes in almost all regions.

Increasing investment cooperation with China, Russia, Germany, Turkey, Saudi Arabia, the Netherlands, the USA, the UK and other countries is becoming a source of attraction of advanced technological solutions and expertise, management methods, localisation of production and strengthening the export potential of promising industries and regions of Uzbekistan. Attracted resources are mainly invested in the technological re-equipment and modernisation of existing production facilities and the creation of new production facilities that did not exist before.

Over the past eight years, investment programmes have launched more than 96,000 projects worth about $100 billion, creating 1.8 million jobs. In 2024, compared to 2017, the value of investment projects put into operation increased almost eightfold, and the number of jobs grew 2.6 times.

We emphasise the factor of active involvement of our Head of State in this process. As a result of visits and top-level events, 366 investment agreements worth $75 billion have been reached since the beginning of this year. In particular, this year road maps have been approved for 222 investment projects worth about $45 billion.

Within the framework of the IV Tashkent International Investment Forum (June this year), agreements were reached on investments worth more than $30 billion (for the implementation of 144 joint projects). In April 2025, on the margins of the 5th International Industrial Exhibition "INNOPROM. Central Asia", held in Tashkent, within the framework of the 43 investment agreements reached, it is planned to attract an additional billion dollars to the industrial sector of the country.

In recent years, there has been an active practice of holding events to inform the international community about opportunities for the implementation of joint projects. Thus, this year, forums were held in 13 foreign countries as part of the Investors' Day of Uzbekistan, attended by representatives of 700 well-known foreign companies. More than 200 investment projects worth six billion dollars were presented to potential partners.

Among the important elements of Uzbekistan's modern industrial policy is localisation of production of high quality and competitive products, reduction of imports of finished goods and components. In accordance with the Localisation Programme, which included about 10 thousand projects, almost 300 trillion soums worth of products have been produced over the period 2020-2024. This led to import substitution in the amount of about $25 billion. The Localisation Programme allowed the creation of new production facilities for previously imported goods, contributed to changing the sectoral structure of industry and reducing dependence on external supplies by expanding the range of products and services.

THE NUMBER OF EXPORTERS IS GROWING

The formation of an export orientation has become one of the main conditions for success in implementing the plans outlined for Uzbekistan's industrialisation. Over 2017-2024, the total volume of exports exceeded $132 billion. It is noteworthy that the average annual growth rate of the country's exports over the period was 12-23 per cent. As a result of systematic and targeted support for exporters, the geography of exports of domestic products expanded by 55 states in 2024 and reached 186 countries over the past eight years. Last year, the number of exporting enterprises increased by 3,143 and their total number totalled 7,343.

Only due to the increase in the share of exports of higher value-added products in 2024, shipments to foreign markets increased by a billion dollars. Entering new promising markets, in turn, requires a significant improvement in the quality of manufactured products and their compliance with international standards. As part of the GSP+ programme, we implemented a set of organisational and technical measures to obtain Global G.A.P., Organic, OEKO-Tex, BSCI, CE marking certificates for our products and transition to ISO standards at more than five thousand enterprises. This made it possible last year alone to provide additional exports of 617 types of products worth $1.4 billion to the European Union.

Transition to more demanding standards and technological processes makes it possible to achieve the goals of producing and selling products of a completely different quality in new markets. Export supplies of goods to developed countries confirm the correctness of the chosen strategy, demonstrating its undeniable results. For example, due to the expansion of export geography and correct response to the conjuncture, the selling prices of Uzbekistan's fruit and vegetable products last year increased by an average of 14 per cent.

The industrial trend of economic development, having ensured a technological leap in a number of sectors, has had a significant impact on the evolution of the commodity nomenclature of exports. Quite recently, Uzbekistan was associated as a country with a monoculture of cotton, and its products were practically the sole leader of exports with absolute dominance of raw materials. In this regard, according to IMF experts, there is a decline in the share of cotton fibre exports from 0.2 per cent of GDP to zero from 2021 in the long term. Today Uzbekistan exports more and more high-tech products, and by 2024 its nomenclature has reached four thousand items.

For example, compared to 2017, exports of primary goods fell by 22 per cent last year, while the share of exports of finished goods increased 3.3 times, semi-finished goods - 4.4 times, and exports of services increased 2.9 times. At the same time, the transition to advanced processing of cotton contributed to the doubling of exports of garment and knitwear products to one billion dollars. This allowed our country to become the second supplier of textile products in the Russian market.

Domestic products are becoming a recognisable national brand, enjoying trust and popularity among foreign consumers. Last year, the goods of about 300 Uzbek enterprises received registration on the well-known electronic commercial platforms Alibaba, Wildberries and Ozon. As a result, sales of our companies reached $680 million.

At the end of the first half of 2025, the volume of exports grew by 33 per cent year-on-year and approached $17 billion. Since the beginning of the year, 1,557 domestic companies have been added to the exporters, accounting for $650 million in shipments.

The steady trend away from raw material exports towards finished high-tech products and services (tourism, transport, construction, IT and others) continues.

INVESTMENT DIALOGUE

It should be noted that our country is building and effectively operating an institutional environment to address strategically important issues of industrial development with a clear export orientation by attracting foreign capital. For this purpose, the relevant ministry and state agencies responsible for this complex of issues, as well as organisations promoting interaction between the state and the private sector have been established.

The Council of Foreign Investors under the President of the Republic of Uzbekistan is an institutional platform for direct dialogue between the government and investors (including international financial institutions). The Council's work as an advisory and consultative body effectively promotes the attraction of foreign direct investment in priority sectors of the economy and the organization of quality business dialogue, taking into account international best practices.

The Council operates under the patronage of the President of Uzbekistan, who personally attends meetings of this body. In order to organise systematic work on attracting investments, the relevant decree of the leader of the country was adopted to implement the agreements reached at the last meeting of the Council. The document also implies ensuring the systematic implementation of initiatives and proposals put forward by the participants of the meeting, as well as measures to improve the activities of the Secretariat of the Council of Foreign Investors.

In parallel with the formation of an effective institutional environment, consistent work is being done to improve the legislative framework to ensure advanced industrial development, intensify investment processes and expand the export potential of industries and regions of the country. This process is under the close attention and direct involvement of Uzbek parliamentarians. As a result, in recent years more than 500 functions of the State in regulating business have been abolished, and about 70 functions have been transferred to public-private partnerships and outsourced to the private sector. Seventy-two types of licensed activities and 40 permits have been legally abolished to improve the business climate and simplify the business environment.

POSITIVE ASSESSMENT

These transformations are positively assessed by foreign rating agencies and organisations. Thus, according to the Index of Regulatory Restrictions on Foreign Direct Investment (Organisation for Economic Development and Cooperation), our country has the best rating among the Central Asian region. This year, the country's performance on the Heritage Foundation's Index of Economic Freedom, the indicators ‘Freedom of Trade’ and ‘Freedom of Investment’ has improved considerably.

Let us return to the assessment of the prospects of dynamics and effectiveness of reforms based on the results of the recent IMF consultations with Uzbekistan in accordance with Article IV of the IMF Agreement. According to the Fund's outcome document, the opportunities arising from accelerated structural reforms, increased income and capital inflows, and favourable commodity price dynamics are positive for Uzbekistan's sustainable development.

Analysis of industrialisation indicators, investment activity and expansion of export indicators testifies to the real effectiveness of the ‘Uzbekistan - 2030’ Strategy and a set of accompanying measures to strengthen the country's economic potential and international standing. This, in turn, becomes a demonstration of the irreversibility of reforms aimed at building an independent New Uzbekistan.

Deputy of the Legislative Chamber

of the Oliy Majlis of the Republic of Uzbekistan,

Doctor of Economic Sciences, Professor Durbek Akhmedov

This May, Baku will serve as the world's leading platform for discussions on the future of cities. From May 17 to 22, the capital of Azerbaijan will host the 13th Session of the World Urban Forum – the United Nations' leading global forum on sustainable urbanization. The forum's theme is "Housing for All: A Better Urban Future." Organizers indicate that the forum will address both the global housing crisis and the broader impact of housing on building inclusive, resilient, and climate-adapted urban environments.

According to UN-Habitat, nearly 3 billion people worldwide currently lack access to safe and affordable housing, more than 1.1 billion live in informal settlements or slums, and over 300 million are entirely without shelter.

For Uzbekistan, participation in this forum represents an opportunity to present its unique model of urban transformation to an international audience. Having moved beyond its image as a predominantly agrarian republic with ancient historic cities, the country today projects a new reality – expanding agglomerations, large-scale infrastructure modernization, and the growing significance of regional centers.

According to the National Committee on Statistics, as of January 1, 2026, the permanent population of the Republic of Uzbekistan exceeded 38 million, with the urbanization rate reaching 51 percent, representing nearly 20 million urban residents.

These figures mark a significant historical milestone. Uzbekistan has entered a stage in which national strength is measured not only by the throughput capacity of export corridors or the number of industrial zones, but also by the quality, connectivity, environmental sustainability, and economic productivity of its cities.

In contemporary Uzbekistan, a city is no longer merely an administrative unit. It is a place where young people receive education, entrepreneurs launch businesses, families seek affordable housing, and the state tests new approaches to infrastructure, transportation, and territorial governance. Rapid urbanization, however, is frequently perceived as a source of risk.

Indeed, when a city grows faster than its engineering networks, transportation arteries, and social infrastructure – schools, hospitals, parks –it begins to generate social tension rather than opportunity.

The Uzbek experience, however, is of particular interest precisely because urbanization is increasingly treated as a manageable resource for development. This process encompasses not only the construction of new districts, but also a transition toward a fundamentally higher quality of urban environment.

As the President of Uzbekistan has noted, each 1-percent point increase in the urbanization rate generates at least 1 percent of additional economic growth, with commensurate increases in investment flows, business and startup activity, and labor productivity. For this reason, Uzbekistan is developing a unified approach to the sustainable management of urbanization across the country.

To this end, the National Committee on Sustainable Urbanization and Housing Market Development has been established, tasked with implementing state policy in the areas of urbanization, housing construction, urban renewal, and mortgage lending. The Committee will also coordinate and advance programs across these domains.

The Future of Uzbekistan's Cities

According to World Bank projections, more than half of Uzbekistan's population currently resides in cities, and this share could exceed 60% by 2050. Such a trajectory means that urban planning, transportation, waste management, utility services, and public spaces are no longer merely matters of convenience –they are becoming a key determinant of national competitiveness.

This is where the core analytical insight lies: for Uzbekistan, urbanization is not a byproduct of demographic growth but a powerful lever of modernization whose economic rationale is abundantly clear. Quality infrastructure stimulates labor mobility, a livable urban environment attracts investment and talent, and the development of regional centers alleviates pressure on the capital.

While Tashkent naturally plays a pivotal role as the primary center of gravity, the country's sustainable development requires a deliberate shift of focus toward other cities.

Supported by the Asian Development Bank, cities such as Jizzakh, Khavast, Khiva, and Yangiyer are emerging as anchor points of this new geography, where projects for modern and inclusive infrastructure are being implemented. These cities exemplify the transformation of regional centers from peripheral locations into autonomous hubs of growth.

This approach fundamentally reframes the development philosophy. At its core lies not simply the decongestion of Tashkent, but a comprehensive strategy for creating genuine alternatives in the regions –with new employment opportunities, public spaces, transportation connectivity, a business-enabling environment, and high-quality municipal services.

To give powerful impetus to entrepreneurship in the regions, establish production of high value-added goods, and introduce urban living standards and conditions in rural mahallas, a program has been approved for the creation of 33 model districts and cities embodying the "New Uzbekistan" vision. The strategic objectives set by the President of Uzbekistan in this domain are ultimately aimed at transforming the architectural character of New Uzbekistan, while ensuring a dignified standard of living for the population and confidence in the future.

All of these measures are critically important for a country with a predominantly young population, since relocation to the capital must not be perceived by young people as the only viable path to self-fulfillment. In this sense, second-tier cities offer a new life scenario –education, employment, business, and a dignified existence without having to leave one's hometown.

Large-scale investment is being mobilized to realize this potential. In December 2025, the World Bank approved a financial package for Uzbekistan totaling $250 million. The funds will be directed toward improving municipal infrastructure and urban services in 16 districts and cities. The program covers territories with a combined population of approximately 3.6 million people and is expected to directly improve living conditions for roughly 1 million people by 2030. Among the anticipated outcomes are improved transportation access for 300,000 residents, the development of parks and public spaces for 400,000 residents, and the creation of approximately 10,000 temporary jobs in the construction sector.

Uzbekistan's Positive Achievements in Urban Development and Urbanization

Those figures matter not merely as investment statistics. They demonstrate that urban infrastructure is a form of social policy.

A compelling illustration of this principle is the experience of the Aral Sea region, which can be presented as a practical case study in implementing new approaches to territorial adaptation, water resource management, community support, and climate risk mitigation.

It is here that questions of urbanization acquire particular depth. How does one develop settlements in an ecologically vulnerable zone? How does one create employment where the natural environment has suffered severe degradation? How does one integrate afforestation, water security, public health, infrastructure, and the local economy into a coherent whole?

The answers to these questions are relevant not only for Uzbekistan. They hold lessons for many regions of the world where climate change, land degradation, and water scarcity are already affecting urban quality of life. Indeed, the story of Uzbek urbanization is significant not only as a national case study, but as a reflection of a broader strategic shift underway across Central Asia.

This shift marks a move beyond the traditional perception of the region through the prism of geopolitics, energy, raw materials, and transportation corridors. Today, the relevant question is framed differently: what will the cities of Central Asia look like?

Will they simply expand, consuming land and overstretching infrastructure? Or will they evolve into spaces where economic growth is reconciled with environmental responsibility, affordable housing, public transportation, green zones, and meaningful civic participation?

Uzbekistan stands precisely at this crossroads. Its advantages lie in its scale, demographics, and growing attention to regional development. Its challenge is to ensure that the quality of urban planning keeps pace with rapid urban growth.

In this sense, Baku –as host of the World Urban Forum –becomes a symbolic platform for the entire region. For Uzbekistan, it is an opportunity to demonstrate that its urbanization agenda carries both national and international significance. The country has the potential to offer the world a pragmatic yet human-centered approach –one in which the region functions not only as an economic node, but also as a mechanism of social resilience.

Altogether, Uzbekistan today stands on the threshold of the most ambitious urbanization reforms in its history. The new strategic plan envisions decisive measures aimed at supporting demographic growth and improving the welfare of the population. This is the central meaning of Uzbekistan's new urbanization.

Tursunboy Zikirov and Alisher Nizamov,

Heads of Departments,

The Institute for Strategic and Regional Studies

under the President of the Republic of Uzbekistan

Distinguished heads of delegations!

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

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

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

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

Distinguished Federal Chancellor!

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

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

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

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

I would like to mention another historical fact.

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

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

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

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

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

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

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

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

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

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

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

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

Dear colleagues!

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Fifth. Joint response to climate change.

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

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

We are also interested in the following:

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

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

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

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

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

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

Dear heads of delegations!

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

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

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

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

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

Dear colleagues!

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

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

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

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

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

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

Thank you!

Amid growing water scarcity and climate instability in Central Asia, Uzbekistan and Finland are implementing a unique form of scientific cooperation that combines digital innovation with sustainable water resource management.

In 2021, the Ministry of Mining Industry and Geology of the Republic of Uzbekistan and the Geological Survey of Finland (GTK) signed a Memorandum of Understanding aimed at the rational development of natural resources through advanced technologies. Today, this project stands as an example of scientific diplomacy that unites European expertise with Uzbekistan’s potential.

From Paper Maps to Digital Models.

For many years, hydrogeological maps of Uzbekistan existed only in paper form. Within the framework of the joint project, they were digitized using the ArcGIS platform, creating a unified national groundwater database. This digital transformation enables specialists to monitor aquifer conditions, analyze water balances, and forecast the impacts of climate change.

Finnish experts conducted a series of training programs for Uzbek specialists, introducing modern methods of digital mapping and data processing. This strengthened the professional capacity of the sector and laid the foundation for scientifically grounded and transparent water resource management.

Scientific Practice: Experimental Site in Akhangaran.

An experimental site was established in the Akhangaran district of the Tashkent region, where joint research teams conducted geophysical studies and developed digital models of groundwater flow. The obtained data help predict groundwater levels, plan water supply systems, and identify areas vulnerable to drought.

The use of the MODFLOW software package made it possible to create models that provide scientifically based solutions for water resource allocation — particularly important for regions with limited water reserves.

European Partnership for Climate Resilience.

Cooperation with Finland is part of a broader European agenda aimed at supporting climate adaptation and sustainable development in Central Asia. By combining European technologies with Uzbekistan’s scientific resources, the project demonstrates how international partnerships can strengthen ecological security and water stability.

The results of the joint work were published in the journal Water (Scopus) under the title “Assessing Climate Change Impacts on Groundwater Recharge and Storage Using MODFLOW in the Akhangaran River Alluvial Aquifer, Eastern Uzbekistan.”

Furthermore, new areas of cooperation have opened — with the University of Padua (Italy) in geological risk monitoring, and with the Belarusian Scientific and Production Center for Geology in groundwater observation.

Looking Ahead.

The joint project between Uzbekistan and Finland is more than a transfer of technology — it represents a step toward creating a new culture of rational water use and responsible climate action. The establishment of a national digital hydrogeological database will become a key element in the country’s environmentally sustainable development.

As Europe and Central Asia continue to strengthen cooperation in water, energy, and climate, the Uzbek-Finnish project serves as a model of how scientific initiatives can deliver tangible environmental and social benefits.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The text of the article is in Russian!

Over the past five years, the open dialogue between the President of Uzbekistan and entrepreneurs has evolved from a new feedback format into a stable mechanism of economic policy. Its importance is defined not only by the number of appeals received or proposals voiced. The main result has been a consistent transition from removing individual barriers to changing the rules of doing business themselves – in taxation, lending, access to land and infrastructure, export support, digitalization of services, and protection of entrepreneurs’ rights.

The logic of the five meetings held so far is clearly reflected in their dynamics. The first dialogue in 2021 focused on removing the most urgent post-pandemic restrictions and restoring trust between the state and the private sector. The second established a categorized approach to businesses and territories. The third set the goal of helping companies grow from microbusiness to small business, from small to medium-sized and large enterprises. The fourth expanded access to capital, land, energy, and markets. The fifth focused on legalizing entrepreneurial activity, developing digital financial services, simplifying tax administration, supporting startups, and protecting investments.

It is important to note that entrepreneurship indicators are the result of the full range of economic reforms, not only the annual meetings. However, the open dialogues have become the platform where business problems are translated into specific decisions, and their practical implementation is reviewed at the next meeting.

As Uzbekistan approaches the upcoming sixth dialogue, scheduled for August 2026, the country has a fundamentally different business climate from the one with which this process began.

2021: The First Dialogue

The first open dialogue took place on August 20, 2021. At that time, entrepreneurship was emerging from a difficult pandemic period, and businesses needed affordable financial resources, predictable taxation, simplified exports, protection of property, and reduced administrative pressure.

More than 15,000 appeals were received before the meeting, and about half of them were resolved on the spot. Following the discussion, the President outlined seven main areas of work and proposed holding the open dialogue annually. August 20 was designated as Entrepreneurs’ Day.

One of the central issues was access to financing. To strengthen banks’ resource base, $600 million was allocated through the Fund for Reconstruction and Development, and Eurobonds worth about $417 million were placed in the national currency. Foreign-currency loans of around 6,000 entrepreneurs, totaling about $1 billion, were converted into the national currency. This reduced currency risks for borrowers and expanded opportunities for long-term local-currency lending.

Conditions for microfinance organizations were simplified, while in the tax sphere the reduction of the tax burden and simplification of administration continued. For exporters, a mechanism was introduced to refund 80% of VAT within 7 days instead of 60 days, without additional inspections.

Significant changes also affected exports and logistics. Enterprises exporting goods with high added value were given the opportunity to receive compensation for up to 50% of transport costs for deliveries to neighboring countries and up to 70% for deliveries to the EU. The requirement for repeated national certification of a number of types of equipment, components, and raw materials already certified in countries with advanced quality control systems was abolished.

In regulation, more than 40 duplicating control functions were eliminated. The digitalization of permitting procedures expanded, while the process of receiving subsidies was transferred to a Single Window system.

As a result, by August 2022, the number of exporting enterprises reached 7,500, while total exports grew by 30%. In the first seven months of 2022, exporters received about $14.2 million in transport subsidies, and the geography of exports expanded by another 32 markets. A total of 15,800 land plots were put up for online auction, while more than 54,000 vacant land plots with a total area of over 22,000 hectares were entered into the YerElectron system.

2022: The Second Dialogue

The second open dialogue took place on August 22, 2022. Before the meeting, more than 12,000 appeals were received. Entrepreneurs were mainly concerned with issues related to financing new projects, working capital, connection to infrastructure, allocation of land, tax administration, and inspections.

The main decision of the dialogue was the categorization of businesses. Enterprises were divided by annual turnover: up to about $83,000 as microbusinesses, up to about $834,000 as small businesses, and up to about $8.3 million as medium-sized businesses. This made it possible to apply differentiated regulatory and support measures based on the scale, financial capacity, and stage of development of each enterprise. As a result, smaller companies no longer had to bear the same regulatory burden as larger businesses.

Starting in 2023, a single turnover tax rate of 4% was introduced for microbusinesses, replacing the previous range of 4% to 25%. For enterprises moving to the general taxation regime as their turnover increased, a twofold reduction in profit tax for one year was introduced. This measure helped 370,000 entrepreneurs move to the next stage of development.

Another major decision was the reduction of the VAT rate to 12% from January 1, 2023. At the same time, about $167 million of debt arising from the application of increased tax rates on unused buildings and land plots was written off.

The categorization of districts and cities according to business conditions was also important. Territories were divided into five groups, for which different regimes of taxation, subsidies, interest compensation, guarantees, and infrastructure connection began to be formed. Special tax, credit, and financial conditions were introduced in 60 districts of the republic.

A principle was also established under which a decision to allocate land or property to an entrepreneur can be canceled only by a court. In addition, criminal liability for violating trade rules was abolished.

By August 2023, the results of the second dialogue were already reflected not only in regulatory acts but also in measurable indicators. State support measures began to depend on the scale of a company and the conditions of a territory, while business growth no longer automatically meant a sharp increase in the regulatory burden.

2023: The Third Dialogue

The third open dialogue was held on August 18, 2023. It announced the creation of a comprehensive system for training entrepreneurs, preparing projects, providing financing, and finding new markets and partners.

Fourteen small business centers were established in each region with the aim of helping 150,000 small business entities get on their feet, moving 25,000 companies into the medium-sized category, and creating 250,000 permanent jobs.

To support the transition from small to medium-sized business, an industrial mortgage system was launched, providing businesses with ready-made production facilities. The program “New Uzbekistan: A Country of Competitive Products,” which previously covered 100 leading exporters, was expanded to 500 enterprises. The state moved from general export support to targeted work with companies capable of entering new markets and introducing international standards.

By August 2024, more than 700 issues, initiatives, and new projects proposed by entrepreneurs had been supported. An additional about $667 million was allocated, while another about $1.5 billion was directed to industry, agriculture, services, and entrepreneurial infrastructure.

The turnover of entrepreneurs grew by 25% over the year and reached about $82.2 billion. The number of medium-sized enterprises with turnover from about $834,000 to $8.3 million doubled, while the number of large companies with turnover above about $8.3 million exceeded 2,200, also roughly doubling compared to the previous year.

Joint work by the tax, banking, and financial-economic systems at the level of mahallas and clients helped 16,000 previously loss-making enterprises earn about $542 million in profit in half a year. The number of enterprises in categories “A” and “B” in the entrepreneurship rating increased by 91,000, while another 170,000 companies moved out of the lowest “D” category.

The level of business sustainability was especially telling: the share of enterprises operating for more than three years reached 76%, while the number of such active entities approached 300,000 for the first time.

2024: The Fourth Dialogue

The fourth open dialogue took place on August 20, 2024, in Nukus. During the year, the government, the Chamber of Commerce and Industry, the Business Ombudsman, and khokims worked with entrepreneurial initiatives on a permanent basis. As a result, a number of effective economic measures were adopted.

The amount of microcredit was tripled to about $25,000, while collateral was no longer required for part of the loan up to about $8,300. Work began on preparing a law on Islamic finance, which was estimated as a source of an additional $5 billion in resources. VAT on land purchased through auctions was abolished. Installment payment terms for land were set at up to 3 years in Tashkent and regional centers, up to 5 years in other regions, and up to 10 years in districts of the fourth and fifth categories.

For industrial enterprises, the procedure for paying for electricity and gas when consumption limits were exceeded was softened. To launch the production of new types of domestic products based on long-term orders, $100 million was allocated.

As a result, by August 2025, 1,600 microenterprises had increased their turnover above about $834,000 and moved into the medium-sized category. Another 143 microenterprises exceeded turnover of about $8.3 million and became large businesses, while 122 small enterprises also entered the large business category.

In 2024 alone, 16 types of licenses and permits were abolished, which, according to estimates, saved entrepreneurs about $29.2 million.

By the time of the fifth dialogue, more than 600 startups were operating in the country. In the first seven months of 2025, they attracted $264 million in foreign investment, four times more than in the whole of 2024.

2025: The Fifth Dialogue

The fifth open dialogue took place on August 20, 2025, in New Tashkent. In preparation for the dialogue, meetings and consultations were held with almost 7,000 entrepreneurs representing 26 sectors. In addition, more than 13,000 appeals and initiatives were received through call centers.

The main result of the five-year cycle was that hundreds of entrepreneurial initiatives had already been enshrined in legislation. The agenda of the fifth meeting focused on further reducing the cost of doing business and supporting the transition from the informal sector to the legal economy.

The largest changes affected 300,000 individual entrepreneurs and 5.5 million self-employed people. A special legal regime was introduced for them until 2030, with digital services from registration to reporting, remote biometrics, electronic wallets for salary payments, and a universal QR code for accepting payments.

In addition, starting from January 1, 2026, individual entrepreneurs and self-employed people with annual turnover of up to about $83,000 pay turnover tax at a rate of 1% instead of 4%. Thus, the tax burden for businesses with turnover of up to about $83,000 was reduced by 3 to 4 times.

According to Presidential Decree No.214 of November 14, 2025, the principle of “Starting a business in 15 minutes” is introduced from January 1, 2026. Under this approach, when registering a business, an entrepreneur immediately receives an electronic digital signature, a bank account, the ability to formalize a lease, register a cash register, and submit the necessary notifications. This further simplifies the start of entrepreneurial activity and makes opening one’s own business more accessible.

It is important to note that 2025 data show that 493,000 enterprises were operating in the country, while 82,400 new enterprises were created during the year. The share of small business amounted to 52.2% of GDP, 36.6% of exports, and 28.5% of industrial production. In construction, its share reached 75.6%; in trade, 83%; and in services, 47.2%.

These figures show that entrepreneurship has become one of the pillars of Uzbekistan’s economy, accounting for a significant share of production, trade, construction, services, and exports. The scale of the private sector that has been formed creates a solid foundation for the further expansion of business activity, higher competitiveness, and sustainable economic growth in Uzbekistan.

Conclusion

The five open dialogues have formed a new tradition of interaction between the state and the business community. Its key feature is continuity: each new year begins with an assessment of already implemented decisions and then expands the horizon of new tasks.

During this period, many effective and useful decisions for business development have been adopted. However, the main outcome lies not so much in the number of measures taken as in the formation of a stable class of entrepreneurs capable of creating jobs, investing, introducing new technologies, and competing in foreign markets.

The sixth dialogue will be important precisely as the next stage of this trajectory. It is expected that particular importance will be attached to decisions that help introduce artificial intelligence and digital technologies into business, train managerial and engineering personnel, improve energy efficiency, implement international standards, and create competitive national brands.

If these expectations are translated into measurable decisions and implemented with the same continuity as in previous years, the open dialogue format will continue to perform its main function: turning the accumulated experience of entrepreneurs into a practical development program for the entire economy.

Khurshed Asadov,

Deputy Director of the Center for Economic Research and Reforms

The Fifth Tashkent International Investment Forum will take place on June 16–19, 2026. This year’s theme – “Investment Resilience: New Frontiers, New Partnerships” – frames the agenda around a set of pressing questions: how to protect capital amid global uncertainty, what institutional mechanisms enhance investment resilience in frontier markets, and where the new partnership routes lie.

The forum’s context is set by macroeconomic results. According to the National Statistics Committee, Uzbekistan’s GDP grew by 7.7% in 2025 and exceeded $147 billion – the fastest pace since 2021 and among the highest in the Europe and Central Asia region. Fitch Ratings and S&P Global upgraded the country’s sovereign rating from BB– to BB for the first time, while Moody’s revised its outlook to “positive.” International reserves, per the Central Bank, surpass $77 billion. Exports rose 24% to $33.8 billion. Foreign direct investment increased by 46.9%, with FDI accounting for 40.5% of total capital investment. For an economy that attracted only $4 billion in annual foreign investment in 2017, the surge to $42 billion by 2025 represents a fundamentally different scale of growth. This tenfold increase over eight years underscores a profound transformation in the nation's investment landscape.

The forum is scaling alongside the economy. Last year’s TIIF drew over 8,000 participants, including some 3,000 international delegates from 97 countries. Guests included Bulgarian President Rumen Radev, Slovak Prime Minister Robert Fico, heads of government from all Central Asian states, EBRD President Odile Renaud-Basso, and New Development Bank President Dilma Rousseff. The aggregate value of signed investment contracts and trade agreements reached $30.5 billion. Yet what best speaks to the platform’s maturity is not the number of signings but the conversion rate – the share of agreements that translate into operating assets is increasingly the metric that matters to returning investors.

The centrepiece of this year’s forum will be the Tashkent International Financial Centre (TIFC), established by presidential decree in March 2026. Behind the headline sits a specific institutional architecture: a special legal regime based on common-law principles, a dedicated financial services regulator, an arbitration centre (TIAC), and tax exemptions through 2076. TIFC is part of a global trend toward specialised financial hubs that offer international market participants a familiar legal environment and regulatory predictability. Its defining feature is integration within the country’s legal framework: the centre operates under a special legal regime rather than creating a separate jurisdiction, reducing regulatory fragmentation and simplifying engagement with the domestic economy. A panel session featuring leaders of major global financial centres and international investors operating in Uzbekistan will address the central question: what are the practical conditions under which TIFC can attract international market participants.

The TIIF 2026 programme is structured around four thematic pillars: investment resilience and capital protection mechanisms, financial infrastructure and capital market development, trade connectivity and logistics corridors, and energy transition and climate finance. Key sessions include a discussion of the regulatory framework for alternative investment funds (a legal basis for private equity and venture capital being adopted for the first time), a panel on the Middle Corridor and trans-Caspian logistics, a session on sovereign ratings across Central Asia, and a practitioner-led workshop on blended finance instruments in frontier markets. A dedicated arbitration and dispute resolution track features two panel sessions co-organised with the Tashkent International Arbitration Centre (TIAC), the British-Uzbek Legal Association (BrULA), and the British Embassy. Topics range from the institutional design of Uzbekistan’s arbitration ecosystem – including the innovative Dispute Avoidance Protocol (DAP) – to the country’s positioning within the global investment protection architecture: ISDS frameworks, bilateral investment treaty reform, and New York Convention enforcement.

The energy agenda warrants particular attention. Uzbekistan has set an ambitious target of raising the share of renewables in electricity generation to 54% by 2030. Currently, the country operates solar and wind facilities with a combined installed capacity exceeding 4 GW, with a project pipeline envisaging an additional 19 GW of green capacity. Alongside this, the public-private partnership mechanism continues to develop: as of early 2025, PPP agreements worth approximately $28 billion had been signed in the country. For investors, this represents a large, structured market with standardised PPA contracts and a clear entry mechanism – a subject that will be examined in detail during the forum’s energy panel.

TIIF 2026 retains its bilateral business forum format, reflecting the expanding geography of Uzbekistan’s economic partnerships. Confirmed platforms include business forums with the Republic of Korea, the United States, Croatia, Hungary, Turkey, and Albania, as well as a China–SCO countries investment dialogue; the lineup continues to grow as the event approaches. The plenary session featuring heads of state and government will set the tone for the business programme. Running in parallel is an exhibition of industrial and investment potential spanning approximately 6,000 sq m – in 2025, a comparable facility facilitated over 500 B2B and B2G meetings for 100 participating companies.

At the same time, the forum agenda implicitly flags unresolved challenges. The corporate governance session raises the question of transitioning from concentrated to dispersed ownership – a process without which the stock market will remain illiquid. The discussion of privatisation and state asset IPOs calls for a candid conversation about pacing and institutional quality. The responsible business conduct panel, anchored in OECD standards, recognises that tax incentives alone are insufficient for accessing institutional capital – what is needed is verifiable supply chain transparency and functioning National Contact Point mechanisms.

The business programme is complemented by networking formats: an FIC and EY business breakfast on digitalisation and AI, the annual SQB Investor Day, an ESG Award ceremony, and the European Business Evening. The informal component – an invitational tennis tournament, TIIF Open, and an evening run – is designed for delegates who prefer to build relationships beyond the conference hall. The anniversary evening concludes with a collaboration with the Stihia electronic music festival – a detail that captures the tone in which Uzbekistan presents itself to an international audience.

For Uzbekistan, TIIF has long ceased to be a showcase. It is a working instrument of investment policy, whose effectiveness is measured not by the number of signing ceremonies but by the volume of capital that actually enters the economy between forums. The fifth, anniversary edition takes place at a moment when the country is simultaneously launching an international financial centre, adopting an alternative investment funds law, and receiving a sovereign rating upgrade – a convergence that creates a window of opportunity for investors prepared to operate in frontier markets with a growing institutional base.

Libraries play a key role in education, culture, and community development, providing an invaluable resource for accessing knowledge, preserving cultural heritage, and promoting intellectual growth. In the modern information society, they remain an important institution that promotes the education and self-development of people of all ages.

President Shavkat Mirziyoyev emphasised during the opening ceremony of the People's Library under the President of the Republic of Turkey in Ankara: “Intellectual potential, high morale is what makes a nation strong. The source of this invincible power is books and libraries – the great invention of mankind”.  

At the present stage, education has become one of the most important areas of state policy. The government of the Republic of Uzbekistan pays special attention to the development of this sphere, recognizing its key role in the prosperity of the country. In recent years, the republic has achieved significant success in the educational domain. These achievements are aimed at modernizing the system, improving the quality of education and training, and expanding access to education for all citizens of the country.

At the same time, special attention is paid to the promotion of reading and the fostering of the reading culture of the population. And in the Presidential Decree adopted on September 13, 2017, “On the program of comprehensive measures to develop the system of publishing and distributing book products, improving the culture of reading”, clear goals are outlined for the creation of an effective system of information and library services to the population, which served to move this area to a new stage of development and contributed to raising the level of social and information culture and the role of libraries, made it possible to develop and implement modern innovative and educational technologies that increase the competitiveness of Uzbekistan in the world market.

In addition, the Presidential Decree “On further improvement of information and library services for the population of the Republic of Uzbekistan” was adopted on June 7, 2019. The main goals of the decree are:

• improving the regulatory framework in order to ensure high-quality social guarantees to the population for information and library services;
• development of information and library institutions taking into account modern requirements;
• promoting the sustainable development of information and library services the for population in the regions;
• strengthening the material and technical base of information and library institutions;
• development of public-private partnerships in the library sector, a network of private and electronic libraries;
• expanding cooperation with Internet resources that specialize in distributing electronic books to improve the efficiency of libraries and the efficiency of servicing (including paid) users;
• ensuring the safety of information and library institutions and the safety of information and library collections as part of the national and world cultural heritage;
• formation and enhancement of the information culture of society, sustainable interest in national history and culture, enhancement and promotion of a reading culture;
• staffing information and library institutions with qualified specialists.

The adoption of this decree expands the range of services in the country, including access to electronic resources and holding cultural and educational events, as well as improving staff qualifications and introducing modern methods of user service. In addition, these changes not only contribute to the development of the information society and economic growth by attracting investment in education and culture, but also promote the formation of a literate and informed society, which is an important step in the development of the country.

The Resolution of the Cabinet of Ministers dated December 14, 2020 approved the National Program for the Development and Support of a Reading Culture for 2020-2025, which includes the publication of quality books that meet the spiritual, educational, artistic and aesthetic needs of the population; supporting the activities of publishers and artists, publishing children's literature; translation of the best examples of national and world literature; simplification of the organization of book sales; improving the delivery system for newly published books and distribution of information sources; expansion of international cooperation in the field of online ordering of foreign work, their delivery and distribution.

In turn, it should be noted that within the framework of the “Uzbekistan - 2030” Strategy, special attention is paid to the popularization of masterpieces of Uzbek and world literature. The country's leadership strives to instil in citizens a love of reading and ensure access to libraries and information services for everyone.

The Strategy “Uzbekistan - 2030” puts forward such main goals as increasing the number of young book lovers to five million, the annual creation of 100 works of art and 50 books for children and adolescents, the publication of the multi-volume book “Uzbek adabiyoti khazinasidan” (“From the Treasury of Uzbek Literature”), the 100-volume book “Jakhon Bolalar Adabiyoti Durdonalari” (“Pearls of World Children’s Literature”) in Uzbek, as well as the digitalization of a book fund of almost 40 million books.

On November 28, 2023, there was signed the Presidential Decree “On measures to implement the project “A Thousand Books for Youth”, aimed at creating a system for translating books popular in the world into Uzbek, that contribute to increasing the intellectual and scientific potential of the younger generation.

At the same time, within the framework of the “Olympiad of Five Initiatives”, the following 5 projects in the field of reading and intellectual games are annually implemented: “Young Reading Family”, “Poetry Competition”, “Young Reader”, the intellectual game “Zakovat” and the project “Example of Foreign Languages”. These projects increase the interest of young people in reading books and help expand logical thinking and knowledge through intellectual games.

The “Young Reader” and “Young Reading Family” competitions are important events held to promote reading, the spiritual enrichment of youth, and increase their intellectual potential. This competition serves to increase interest in books among young people and expand their knowledge and horizons.

Also, within the framework of the project “A Thousand Books for Youth”, the Agency for Youth Affairs will have to work on acquiring rights to use works from authors, translating them into Uzbek, and preparing for printing and publishing books on the basis of a state order and at the expense of the State budget (with the exception of books, published for state higher educational institutions).

Two stages have been established for translation into Uzbek and the publication of popular books in the world. First: a preliminary list of books is formed annually by the Expert Council. Second: the preliminary list is posted in the information systems of the Agency for Youth Affairs for selection by the population by voting, and thus the final list is formed.

The list of books published annually must include at least 20 percent of popular science works. The rights to the works prepared for publication will belong to the Agency for Youth Affairs, which will provide them free of charge to publishing houses.

It is also planned to create and ensure the continuous operation of a special mobile application that accumulates literature in the Uzbek language and provides the population with free access to a wide range of information. On the recommendation of the Expert Council, the works will be distributed to information and library institutions (including libraries of public and administration authorities), and electronic versions will be donated free of charge to the Alisher Navoi National Library of Uzbekistan and the relevant institutions of the Academy of Sciences of the Republic of Uzbekistan for wide use by readers.

The necessary spiritual, legal, material, and technical basis has been created in the Republic to develop children's literature and improve the quality of textbooks and teaching aids. The country's publishing houses have increased the publication of works by authors of world and Uzbek children's literature. In accordance with a number of documents adopted to promote book reading, systematic measures are being taken in all regions to popularise literature among children and adolescents. Over the past four years, a number of presidential decrees and government resolutions have been adopted to guide the country's publishing, printing, and bibliographical information institutions.

Thus, bibliographical information services play a critical role in ensuring public well-being by providing citizens with easy access to information, knowledge, and culture. In addition, the development of digital services, collaboration with communities, and the use of new technologies strengthen the role of libraries as centres of learning, information, and communication. This helps to enhance the capabilities of people and stimulates their desire for education. The development of the potential of information and library services contributes to lifelong learning, self-improvement, cultural and spiritual enrichment of the population. This is of crucial importance for modern society.

Ramzidin Nuridinov

Expert of the Development Strategy Center.

The text of the article is in Uzbek!