Today's events and developments in the international arena once again demonstrate the growing need for the states of the Central and South Asian regions to achieve mutual understanding, solidarity, and a common goal. In this regard, the main goal of the Termez Dialogue on Connectivity between Central and South Asia, held on May 19, 2025, on the theme "Building a Common Space of Peace, Friendship, and Prosperity," was to strengthen regional connectivity and bring cooperation to a new level. It can be said that over the past year, significant results have been achieved on the topical issues discussed during the dialogue. The next Termez Dialogue is also aimed at discussing topical issues such as strengthening cooperation between Central and South Asia, deepening interregional ties and ensuring economic growth, as well as further improving security and sustainable development.
Cultural relations. It should be noted that today the city of Termez has become an important center for ensuring peace and stability in Afghanistan and restoring its economy. It is noteworthy that in the past, Termez was a center of intercultural and religious dialogue, where Zoroastrianism, Buddhism, Christianity, and Islamic traditions emerged and developed. Eldor Aripov, Director of the Institute for Strategic and Regional Studies under the President of the Republic of Uzbekistan, noted that the city, located between the Greco-Bactrian, Kushan, and other ancient states, flourished during the Timurid era and became a major center of trade, craftsmanship, 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 areas. 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]" Undoubtedly, the main goal of our efforts today is to restore these historical ties, further strengthen the bonds of friendship and brotherhood between our peoples, and ultimately raise the development of our countries to a new level. To this end, Uzbekistan has been increasingly developing ties with South Asian countries in recent years.
It should be noted that the education sector in Afghanistan has experienced a deep decline due to the long-standing unstable situation. In such a situation, it should be noted that assisting the Afghan people in obtaining education and training personnel with modern knowledge and skills is one of the most rational ways to lead Afghanistan out of the crisis. In this regard, in accordance with the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated November 13, 2017, "On organizing the activities of the Educational Center for Training Afghan Citizens under the Ministry of Higher and Secondary Specialized Education of the Republic of Uzbekistan," an Educational Center for Training Afghan Citizens operates in the city of Termez, Surkhandarya region. During the 2018-2019 academic year, 96 students studied at the Center in the "Uzbek Language and Literature" direction, all of whom received a bachelor's degree from the Alisher Navoi Tashkent State University of Uzbek Language and Literature.
Economic relations. It should be noted that the impossibility of achieving any positive results with weapons and troops in establishing peace and stability on Afghan soil was once again confirmed by the withdrawal of US troops from Afghanistan in 2021. From this perspective, today Uzbekistan's economic ties with Afghanistan serve as one of the important factors in establishing peace and economic recovery in the country.
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 the volume of trade to $5 billion. Therefore, today Uzbekistan is becoming one of the key 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 traffic 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 ports with access to the Black and Baltic Seas, and 5 times shorter than the route to 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, it should be noted that this prestigious international conference will contribute to the further expansion of ties between our regions, the opening of new horizons for cooperation, and our confident progress on 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
[1] 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
[2] Afg‘onistonda O‘zbekistonga aloqador madaniy boyliklar kam emas. (07.11.2023). https://xabar.uz/uz/madaniyat/afgonistonda-ozbekistonga-aloqador-madaniy-boyliklar-kam-emas
[3] O‘zbekiston Respublikasi Tashqi savdo aylanmasi. 2024-yil yanvar-noyabr oylari uchun dastlabki ma’lumot // O‘zbekiston Respublikasi huzuridagi Statistika agentligi. – B.4.
[4] Akmalov Sh. O‘zbekiston va Afg‘oniston: o‘tmishdan hozirgacha. Monografiya. – T.: “Zamon poligraf”, 2023. – B. 70.
Comment from the First Deputy Director of the Institute for Strategic and Interregional Studies (ISRS) under the President of Uzbekistan to Dunyo Information Agency
The focal points of President Shavkat Mirziyoyev’s address to the Oliy Majlis and the people of Uzbekistan as well as the signals conveyed to both domestic and international audiences, were highlighted in a commentary by Akramjon Ne’matov, the First Deputy Director of the Institute for Strategic and Interregional Studies (ISRS) under the President of Uzbekistan, in an interview with Dunyo IA correspondent.
The expert highlighted that the primary focus of the Address was on the country’s socio-economic development, the improvement of citizens’ well-being and the enhancement of the national economy’s competitiveness. According to him, the President of Uzbekistan clearly emphasized that it is the economy, the sustainability of development, and the quality of growth that today define Uzbekistan’s opportunities both domestically and in its external engagements.
Akramjon Ne’matov emphasized that despite a challenging and fragmented global environment, Uzbekistan’s economy continues to demonstrate steady growth. For the first time in the country’s history, its GDP surpassed $145 billion this year, whereas just nine years ago, reaching the $100 billion mark was considered an ambitious milestone. Even amid disruptions in global supply chains, exports grew by 23% to $33.4 billion, electricity production in 2025 reached 85 billion kilowatt-hours, and foreign exchange reserves exceeded $60 billion. Over $43.1 billion in investments were attracted to the national economy this year, raising the investment-to-GDP ratio to 31.9%, a clear indicator of the country’s rising investment appeal.
In this context, the expert noted, maintaining high economic growth rates remains an absolute priority. However, what is particularly significant is the shift in focus from quantitative expansion toward a technological and innovative development model. This entails building a knowledge- and technology-based economy, modernizing industry, advancing the digital economy, promoting scientific research and fostering technology transfer. As Akramjon Ne’matov stressed, “An innovative economy ensures long-term competitiveness and reduces dependency on raw materials, which is critically important amid global instability”.
Another strategic priority highlighted by the President of Uzbekistan is the stimulation of domestic demand. According to the expert, the development of the domestic market is seen as a key driver of sustainable growth, encompassing higher household incomes, support for small and medium-sized enterprises, and broader access to financial instruments. Domestic demand, he emphasized, provides stable sources of development and helps shield the economy from external shocks.
Special attention, Akramjon Ne’matov noted, was also given to workforce development and the creation of a new labor market architecture. The President outlined objectives for modernizing vocational education, fostering new competencies, and shaping a flexible and adaptive labor market capable of meeting the needs of a modern economy. He stressed that the labor market and professional development determine the quality of human capital – the key resource of the 21st century.
At the same time, an important focus is placed on ensuring ecological balance, developing “green energy” and the rational use of water resources. The transition to sustainable development, the adoption of renewable energy sources, improving energy and water efficiency, and adapting to climate change are regarded as strategic objectives. Ecology and “green” energy are now considered key factors for national security and sustainable development, Akramjon Ne’matov emphasized.
Among the President of Uzbekistan’s key priorities is also the formation of modern state governance and a fair judicial system. Central to this agenda are enhancing the efficiency, transparency, and accountability of public administration, strengthening the rule of law, digitizing public services and reforming the judiciary. The expert stressed that effective governance and a fair judicial system build trust, enhance investment appeal, and ensure long-term stability.
Overall, he noted, these priorities reflect Uzbekistan’s shift from quantitative growth toward a qualitative model of modernization focused on long-term outcomes.
Based on these strategic directions, Uzbekistan is shaping a framework of key cooperation priorities with international partners, aimed at deepening engagement through high-quality collaboration.
The first priority is technological and industrial partnership. This includes establishing joint high value-added production, localizing advanced technologies, and implementing collaborative research and development projects. The strategic goal is to move beyond simple technology adoption toward co-creation and practical implementation of innovations.
The second priority is the development of human capital. This encompasses joint programs for training and retraining personnel, sustained collaboration between universities, research centers, and industry, and the cultivation of new competencies demanded by the modern economy. The objective is to ensure the sustainability of reforms and enhance the quality of the workforce.
The third priority is “green” energy and resource efficiency. The focus is on joint initiatives in renewable energy, water-saving technologies, and environmentally sustainable solutions. These efforts are viewed as key instruments for reducing ecological risks and enhancing the long-term resilience of the economy.
The fourth priority is infrastructure and multi-level connectivity. The development of transport, logistics, and digital infrastructure aims not only to deepen Uzbekistan’s integration into regional and global supply chains but also to strengthen internal connectivity across the country’s regions, reduce territorial disparities, and improve access to markets, services, and economic opportunities. Taken together, these initiatives reinforce Uzbekistan’s role as a stable regional hub for cooperation and transit.
The fifth priority is institutional development and the quality of public governance. This includes promoting principles of transparent and efficient governance, establishing a fair and independent judicial system, enhancing the effectiveness and professionalism of the civil service, and fostering experience-sharing in the digitalization of public services. These measures create a predictable institutional environment, strengthen trust among investors and partners, and serve as a solid foundation for sustainable, long-term international cooperation.
In conclusion, Akramjon Ne’matov emphasized that Uzbekistan views collaboration with foreign partners as a strategic priority. The country aims to transition from broad but largely quantitative engagement toward high-quality partnerships, centered on technology, human capital, and sustainable growth that align with the long-term interests of all parties.
Dunyo IA
Just a few years ago, the concept of the “smart city” was largely seen as a futuristic idea associated with digital control panels, autonomous transport, widespread sensor networks, and automated urban services.
Today, the smart city has become a practical tool for addressing modern urban challenges. This trend can be seen across countries facing rapid population growth, increasing migration to major metropolitan areas, overstretched infrastructure, and mounting climate risks.
In this context, smart technologies are no longer viewed as an end in themselves. Instead, they are increasingly used to improve the resilience and efficiency of key urban systems, including transport, energy, public utilities, waste management, and environmental monitoring. This allows cities to adapt more effectively to emerging challenges, reduce pressure on infrastructure, and improve the overall quality of urban life.
At the same time, smart city development is gaining strategic economic importance by creating long-term drivers of growth. Such projects attract substantial investment by combining digital infrastructure, innovative services, and principles of sustainable development.
The growth of smart urban areas also contributes to job creation in high-tech sectors ranging from IT and telecommunications to engineering and urban data analytics. In parallel, the modernization of urban infrastructure improves resource management and raises overall living standards.
Against this backdrop, the approaches taken by Uzbekistan and Azerbaijan deserve particular attention. Rather than simply following a global trend, both countries are developing their own models of smart urbanization — ones in which technology serves people and supports the creation of more comfortable, sustainable, and future-oriented cities.
In this regard, Uzbekistan offers a particularly notable example, as urbanization is becoming an increasingly pressing issue amid steady demographic growth. The country’s population is growing by approximately 1.8–2% annually, placing additional pressure on transport systems, housing, infrastructure, and social services.
Under these conditions, the government is focusing not on limited modernization of the existing urban environment, but on the creation of new growth centers. The Smart City concept adopted in 2019, followed by the Digital Uzbekistan – 2030 strategy, established the institutional foundation for the large-scale digital transformation of urban infrastructure and public services.
One of the most visible outcomes of this strategy is the New Tashkent project, whose significance extends far beyond that of a traditional urban development initiative.
In essence, the project aims to create a new economic, administrative, and investment hub capable of easing pressure on the existing capital while introducing a fundamentally new model of urban organization based on smart city principles and sustainable development.
In this case, the concept of the “15-minute city,” green infrastructure, digital governance, public transport prioritization, and energy efficiency are not treated as separate elements, but as components of a broader strategy aimed at expanding economic space and improving the quality of the urban environment.
Against this backdrop, New Tashkent illustrates how urbanization can serve not only as a response to infrastructure pressures, but also as a tool for creating new centers of economic growth capable of redistributing business activity and shaping the long-term development of the urban agglomeration.
This is also why the project has a distinctly international dimension. Its implementation involves Singapore’s Meinhardt Group, the UK-based Foster + Partners and Cross Works, the Dutch firm OMA, Japan’s Sojitz Corporation, South Korea’s Incheon International Airport Corporation, and other international partners. This reflects Uzbekistan’s efforts to integrate global expertise into its national development model.
Azerbaijan, in turn, has chosen a different approach to the development of smart urban spaces. Rather than building entirely new cities from scratch, the focus has been placed on the restoration and comprehensive modernization of recently reintegrated territories alongside the introduction of modern urban planning solutions and Smart City technologies.
This approach goes beyond the physical reconstruction of infrastructure and involves rethinking urban development through digital technologies, sustainable planning, and green standards.
Following the reintegration of Karabakh and Eastern Zangezur, Azerbaijan faced not only the challenge of rebuilding damaged territories, but also the task of their socio-economic reintegration into the country’s broader development framework. In this context, the concepts of Smart City and Smart Village have gained particular strategic importance, serving as the foundation for a new model of territorial planning and governance.
Within this model, technology is no longer viewed solely as a modernization tool, but as an instrument for comprehensive territorial development. It supports the rapid restoration of basic services, creates conditions for the return of displaced populations, stimulates economic activity, and enables more effective management of spatial development.
One of the clearest examples is Aghali — Azerbaijan’s first “smart village.” The project demonstrates how digital infrastructure, renewable energy, smart agriculture, and modern public services can become part of a new model of post-conflict reconstruction.
The village covers around 119 hectares and includes more than 200 modern eco-friendly homes equipped with smart systems, as well as social and public infrastructure facilities, including a school, kindergarten, medical center, ASAN xidmət and DOST service centers, small business facilities, and administrative buildings.
A similar development model can also be seen in Fizuli, Aghdam, Shusha, Khojaly, and several other settlements, where new infrastructure systems are being developed based on environmental sustainability, transport accessibility, and digital management of urban and rural services.
Like Uzbekistan, Azerbaijan also relies heavily on international cooperation as a key driver of modernization. Huawei is involved in implementing digital solutions, the World Bank provides analytical and advisory support, while Japan is expanding cooperation in smart infrastructure and green energy, contributing to the adoption of advanced technological practices.
Uzbekistan is building a new urban environment from the ground up, while Azerbaijan is developing its model against the backdrop of a complex historical and territorial transformation. At first glance, these are very different starting points. Yet this is precisely what makes the similarities in their approaches particularly notable. In both cases, digital infrastructure is not treated as an additional layer built onto the city, but as a core element shaping its future development from the outset.
At the same time, neither country is pursuing a model based on copying existing examples. The experiences of Singapore, Dubai, and Qatar are being studied, but not replicated. Instead, both states are developing their own models tailored to local demographic, geographic, historical, and social realities. This reflects not a limitation of choice, but the maturity of their strategic approach.
Against the backdrop of accelerating urbanization across Central Asia and the South Caucasus, the experiences of Uzbekistan and Azerbaijan are increasingly emerging as a kind of laboratory for new development models. While their strategies differ in tools and priorities, both are driven by the same objective: building a new generation of cities that combine technology, sustainability, adaptability, and a people-centered approach.
Abbosbek Mashrapov
Senior Research Fellow, International Institute for Central Asia
From June 16th to 19th, the capital will host the 5th Tashkent International Investment Forum, the country's primary investment platform and one of the region's largest business forums.
Tashkent International Investment Forum (TIIF-2026) has solidified its position as a key investment platform in Central Asia, bringing together states, international investors, and representatives of global business. The forum serves not merely as a platform for dialogue, but as a space where the region's practical investment agenda is actively shaped.
The core idea of the forum lies in the fact that Uzbekistan is consistently cementing its status as a regional investment hub, capable not only of attracting capital but also of defining long-term rules and directions for the economic development of Central Asia.
The scale of TIIF-2025 clearly demonstrated that the forum has transitioned to a new stage of its development. The event brought together more than 8,000 delegates from 97 countries, with the total volume of signed investment agreements reaching 30.5 billion US dollars. These indicators stand as some of the most significant results among regional investment platforms.
The growing number of participants, the broadening geography, and the increased volume of concluded deals bear witness to a notable strengthening of international business confidence in Uzbekistan's investment climate. The forum is increasingly perceived not as a one-off discussion platform, but as a sustainable mechanism for generating real investment solutions.
The significance of the Tashkent International Investment Forum is determined not only by its scale, but also by its practical value for participants. TIIF provides a unique opportunity for direct access to key economic and political decision-makers - ranging from heads of state and governments to representatives of international financial institutions, sovereign wealth funds and major corporations.
The forum cultivates a rare environment where the state, investors, and business are concentrated within a single space, allowing for a seamless transition from general discussions to concrete formats of cooperation. Within the framework of TIIF, B2B and B2G meetings are actively advanced, serving as the cornerstone for concluding investment agreements and launching new projects.
TIIF-2026, scheduled to take place from June 16 to 19 in Tashkent, will maintain and expand upon the framework of previous years, combining elements of high-level political dialogue, business negotiations, and sectoral discussions. The forum's program features a plenary session with the participation of heads of state, panel sessions, thematic pitch presentations, and an expanded exhibition showcasing the country's industrial and investment potential.
One of the defining features of TIIF-2026 is its exceptionally high level of representation, which brings together a unique concentration of political, financial, and corporate capital within a single venue. The forum features heads of state and government, including leaders from Central Asian and European nations, alongside executives from international organizations and multilateral development banks.
Among the participants are representatives from the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Asian Development Bank (ADB), and the International Finance Corporation (IFC), alongside sovereign wealth funds and export credit agencies. Such a composition ensures a direct link between state reforms, global financial institutions, and private capital.
The outcomes of the 4th Tashkent International Investment Forum (TIIF-2025) received widespread international acclaim from representatives of government structures, financial institutions, and global business, who noted Uzbekistan's growing role as the region's premier investment hub.
The Director of the Center for Global and Regional Studies (CEGREG), Professor Ikboljon Qoraboev (Kazakhstan), emphasized the scale and significance of the forum:
TIIF is emerging as the premier platform for showcasing the industrial and economic potential of Central Asia, while the participation of state leaders, major investors, and international banks highlights the strategic significance of the forum as a window of opportunity for the region.
Associate Professor at the Azerbaijan State University of Economics, political scientist Emin Garibli (Azerbaijan), accentuated the integration significance of the forum:
Executive Producer of CGTN, Zhang He (China), highlighted the investment impact of the reforms:
Governor of the Japan Bank for International Cooperation (JBIC), Nobumitsu Hayashi (Japan), noted the transformation of the forum's role:
Chairman of the Chinese company CAMCE, Wang Bo (China), noted the practical value of the forum:
Tashkent International Investment Forum (TIIF-2026) is cementing its role as one of the key platforms for investment dialogue in Central Asia, where not only the directions of economic policy are shaped, but also real mechanisms for interaction between the state and global capital are forged.
On the whole, the experience of previous years demonstrates that TIIF has already transitioned from a traditional conference format into a practical investment ecosystem that influences the structure of regional economic development. In this context, TIIF-2026 is viewed as the next phase in strengthening Uzbekistan's role within the global investment architecture and further expanding its integration into international capital markets.
Dunyo IA
Despite its limited access to the world's major ports, Uzbekistan can fully develop its transportation and logistics industry through the formation of land transport corridors, developing them throughout the Eurasian region. Being located in the center of the crossroads of trade routes during the Great Silk Road, Uzbekistan has a unique opportunity to become an important provider of logistics of cargo flows between China and Southern Europe, on the one hand, and the Indian Peninsula and CIS, Northern Europe, on the other hand.
Landlocked countries account for less than 1% of world exports. Moreover, the share of Central Asian countries in the global export of transport services is very small and is represented in the following proportions: Uzbekistan, which has access to the sea only through two countries – 0.1%, Kazakhstan – 0.3%, Tajikistan – 0.007%, Kyrgyzstan – 0.03%.
However, the transport complex of Uzbekistan maintains a dominant position in foreign trade in services and is one of the main sources of foreign currency inflow into the country. Transport services in the republic form 43% of the total volume of the country's service exports and 65% of the balance of foreign trade in services. Uzbekistan's transport service exports in 2022 amounted to $2.2 billion, and the positive balance of foreign trade in transport services amounted to $1.7 billion.
Figure 1. Uzbekistan’s share in global exports of transport services in 2022, %
Calculated according to UNCTAD and Statistics Agency of the Republic of Uzbekistan
One of the main problems of Uzbekistan's international freight transport is the underutilization of its export and transit potential, which reduces revenues from the export of transport and logistics services. For example, when comparing actual exports in tons, Uzbekistan is behind Russia by 20 times, Turkey by 10 times, and Kazakhstan by 9 times.
In 2023, the volume of interstate cargo transportation in the Republic of Uzbekistan amounted to 62 million tons, which is 16% higher than in 2022. The largest share in the volume of export-import cargo transportation of the republic falls on Kazakhstan (30%), to a lesser extent on Russia (26%), China (10%), and Afghanistan (4%). Rail transport accounts for the largest share (76%) of Uzbekistan's international cargo transportation (export, import, and transit). The export of transport services includes the transit of goods through the territory of Uzbekistan with a total share in the export of railway services of up to 45%.
The unrealized transit crossroads of Eurasia
One of the main global logistics trends is trade between China and the EU. According to the ERAI review, in 2023, the trade turnover between them amounted to 738 million euros, and according to EUROSTAT exceeded 104 million tons. In the current realities, rail transportation between Europe and China is carried out along the Eurasian route through the territories of Kazakhstan, Russia, Belarus; Mongolia and Russia (Naushki border crossing), as well as along the Trans-Caspian International Transport Route – TITR (Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, the Black Sea).
Part of the cargo flows that previously passed through the northern corridor has been redirected to TITR. However, the Eurasian route continues to occupy a leading position. In 2023, a total of 674 thousand TEU passed along this route, which is 1.1% less than in 2022 (681 thousand TEU), but at the same time, in the first half of 2024, the volume of container traffic by China-Europe trains along TITR increased by 12.8% with a volume of 196.6 thousand TEU.
As can be seen, Uzbekistan does not fit into the list of major transit countries between China and the EU in the "Eurasian" and "Trans-Caspian" directions and claims only a part of the target markets mainly in direction along the Southern Corridor through Turkmenistan, Iran, and Turkey.
So, a limited number of international transport corridors pass through the territory of Uzbekistan. The main countries forming the transit of Uzbekistan are neighboring Afghanistan, Kazakhstan, Tajikistan, and Kyrgyzstan, as well as Russia, which is considered an important trading partner for the Central Asian countries. The transport isolation of the region, undiversified transport routes, and limited export deliveries mainly in the northern direction lead to a loss of profit due to the sale of domestic goods mainly to neighboring countries at a fairly low cost.
Transit Priorities
To sell domestic products at competitive world prices, Uzbekistan needs to develop additional export trade routes to other countries, such as China, the Asia-Pacific region, the Middle East, India, Pakistan, and others. This requires competitive and efficient transport and transit corridors that allow for increasing the volume of transit cargo through the Republic of Uzbekistan.
Therefore, the priority directions identified by 2030 for the development of international transport corridors and bringing the volume of transit traffic through the territory of the republic to 16 million tons include the task of increasing revenues from the export of transport services. The key task in this case is to increase the volume of multimodal cargo transportation in the directions of China – Kyrgyzstan – Uzbekistan (Kashgar–Irkeshtam–Osh–Andijan–Tashkent) and Uzbekistan – Afghanistan – Pakistan (Termez – Hairatan – Logar – Karachi).
China - Kyrgyzstan - Uzbekistan. The volume of cargo transportation of the PRC with such countries as Turkey, Iran, Turkmenistan, Afghanistan, and Pakistan in 2023 amounted to almost 50 million tons, with the main volume of cargo transportation carried out by sea transport. Studies have shown that it is possible to attract part of the cargo to the "China–Kyrgyzstan–Uzbekistan" route, in the amount of about 10 million tons, and with the stable organization of cargo transportation along the route, the volume of cargo transportation by 2040 may increase by 4 times.
Uzbekistan – Afghanistan – Pakistan. The geographical proximity to Afghanistan, and further south to Pakistan and India, gives Uzbekistan the opportunity to unlock its existing potential and provide cargo transportation services in export, import, and transit traffic in the direction of South Asian countries (Afghanistan, Pakistan, and India), without competing for existing transport and trade corridors. Therefore, Uzbekistan is extremely interested in trade and transport cooperation with Afghanistan and in the implementation of the Trans-Afghan Railway project "Uzbekistan–Afghanistan–Pakistan." This road will allow establishing a direct rail link between Uzbekistan and Pakistan through the territory of Afghanistan with further access to the ports of the Indian Ocean.
The importance and effectiveness of the "Uzbekistan–Afghanistan–Pakistan" (UAP) project can be significantly increased if it is implemented in parallel with the project of building the "Uzbekistan – Kyrgyzstan – China" (CKU) railway line, which is the shortest way to connect China with Pakistan and India and will allow a multiple increase in the volume of traffic from/to China to the countries of Central and South Asia.
In this regard, within the framework of two strategic projects UAP and CKU, the ongoing activities on formation of new uninterrupted perspective multimodal transport corridors in the region are relevant. In November 2023 in Tashkent within the framework of the ECO Ministerial Meeting the Protocol of the multilateral meeting on establishment of the international multimodal route between Asia-Europe through “Uzbekistan-Turkmenistan-Iran-Türkiye”, was signed.
In November 2023, a Memorandum on mutual Understanding on the creation and development of international transport corridor “Belarus-Russia-Kazakhstan-Uzbekistan-Afghanistan-Pakistan” with access to the ports of the Indian Ocean was signed in Tashkent. In April of this year, Termez hosted meetings of transportation agencies and railway administrations of the countries-participants of this corridor, which resulted in the adoption of the Road Map, including the main activities for further development of the corridor.
It should be noted that the abovementioned documents are open for other interested countries to join the transport corridors.
Multifaceted Transport Policy
It should be noted that the policy of forming international transport corridors in Uzbekistan is somewhat different from the policies of several other countries and is aimed at attracting as many countries as possible to the active development of a branched network of transport corridors that ensure efficient foreign trade cargo transportation. As emphasized by the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, at the SCO Summit in Astana on July 4 of this year, "the multivariance of transport corridors is the most important condition for the sustainable development of our entire region."
However, the effective functioning of various corridor options is hindered by the lack of unified Cargo Transportation Rules, a unified Transport Document Standard that would be used on all types of transport, as well as the absence of digital platforms for providing customers with freight transportation services remotely from anywhere in the world. All this slows down the transport integration of Asian countries in the context of developing routes between Central and South Asia, and China, on the one hand, and the integration of Asian countries with European communications on the other.
To solve the problems of different legal and technical standards in freight transportation between European and Asian countries, which hinder the full-fledged transportation of goods without delays, it makes sense to develop new services for logistics and cargo transportation market participants, while applying modern technologies.
These include the production of universal wagons with variable gauge axle systems at the country's industrial facilities, with their further use both in Uzbekistan and southern countries, China and others, as well as the development of a digital platform for online registration of cargo transportation and transportation documents, which will lead to additional revenues from the export of transport services.
In this regard, the initiative of the President of Uzbekistan Shavkat Mirziyoyev, announced in June at the OTS Summit on the formation of a Council of Railway Administrations within the framework of the organization and the placement of its directorate in Tashkent, is relevant. The Council could act as a regulator for the integration of the railways of China, the Asia-Pacific region, South and Southeast Asia with the countries of Central Asia, the Caucasus, and the EU.
To assess the prospects for the coordinated development of transport corridors, a forecast of foreign trade volume was made based on an analysis of panel data using a combined model of two directions of international cargo transportation: China-EU and China-CA. The results of this forecast showed that by 2050, the volume of trade between China and the EU will increase by 4.5 times compared to 2023, and between China and CA - by 5 times. At the same time, the total volume of trade between South Asian countries (India and Pakistan) with trading partners (EU, Russia, China, Belarus, Kazakhstan, Uzbekistan, and Turkmenistan) will increase by 3.8 times compared to 2023.
In the near future, a clearly defined strategy for integrating Central Asian countries into the international transport network can help solve the region's problems and lead to an increase in the export of transport and logistics services and attract cargo flow, and later passenger flow, to the territory of the Asia-Pacific region, South and Central Asia. As the President of Uzbekistan Shavkat Mirziyoyev said: "We are open to cooperation and ready to become a reliable partner in creating new transport corridors and integration projects."
Dildora Ibragimova,
Center for the Study of Transport and Logistics Development Problems under the Ministry of Transport of the Republic of Uzbekistan
Introduction: The Significance of President Shavkat Mirziyoyev’s participation in the 80th session of the United Nations General Assembly
The participation of the President of the Republic of Uzbekistan in the 80th session of the United Nations General Assembly (UNGA) this September held profound political and historic significance not only for our country but for the entire region. Speaking from this prestigious platform, which gathers heads of state from across the globe, Uzbekistan raised critical issues including sustainable development, combating climate change, ensuring food security, and the efficient management of water resources.
Through his address at the United Nations, a premier global institution, our President further solidified Uzbekistan’s international standing and reputation as a proactive and responsible state. Notably, by showcasing the ecological and innovative initiatives being implemented in the Aral Sea region, Uzbekistan demonstrated its openness to global cooperation in addressing pressing environmental challenges.
Another significant aspect of this participation is the integration of Uzbekistan’s international environmental initiatives into the global political agenda, highlighting the Aral Sea region as an open platform for advancing climate technologies.
During the visit, the initiatives concerning the Aral Sea region received significant attention from the international community.
During his address at the 80th session of the United Nations General Assembly, our President paid special attention to the environmental disaster in the Aral Sea region and the ongoing initiatives aimed at mitigating its consequences. This issue has garnered significant focus from the international community, reaffirming that the Aral Sea crisis is recognized not only as a regional challenge but also as a global environmental concern.
Uzbekistan’s initiative to transform the Aral Sea region into a hub of sustainable development and innovation has received strong support from international partners. In particular, significant opportunities were highlighted for implementing joint projects in areas such as green energy, water-saving technologies, ecotourism, and the restoration of biodiversity.
Thus, the raising of the Aral Sea issue on the prestigious platform of the United Nations during the visit served as a significant political and practical foundation for strengthening global cooperation and attracting increased attention from international donors and organizations.
Transforming the Aral Sea region into a hub for global climate technologies.
The challenges arising from the desiccation of the Aral Sea serve as a profound lesson for the entire world. In response, Uzbekistan aims to transform the Aral Sea region into a “global laboratory” by implementing advanced practices in green energy, water-saving technologies, biodiversity restoration, and climate change adaptation.
Such an approach not only addresses regional challenges but also offers an effective model for the international community. The projects being implemented in the Aral Sea region can subsequently serve as a replicable framework for other areas facing the impacts of climate change.
On May 18, 2021, during the 75th Session of the United Nations General Assembly, our President put forward the initiative to designate the Aral Sea region as a hub for ecological innovations and technologies. This proposal received enthusiastic support from the United Nations and the international community, and was unanimously adopted by all member states during the General Assembly plenary session. This resolution underscores Uzbekistan’s consistent and steadfast commitment to addressing the Aral Sea crisis and mitigating associated risks through a principled and effective approach.
The Aral disaster and its lessons for humanity.
The Aral Sea disaster is recognized worldwide as one of the greatest environmental catastrophes in human history. Once the fourth-largest lake in the world by surface area, the Aral Sea has almost completely dried up over the past half-century. This tragic development has dealt a severe blow to the regional climate, biodiversity, public health, and economy.
The drying up of the Aral Sea stands as a vivid example of human intervention that was not in harmony with nature. Excessive and inefficient use of water in irrigation, coupled with ineffective irrigation systems and planning errors, led to this major environmental disaster.
This tragedy underscored the necessity for humanity to use natural resources efficiently and wisely, highlighting the importance of developing water supply and agriculture solely based on sustainable technologies. At the same time, it clearly demonstrated that ensuring environmental security requires global solidarity and close international cooperation.
The imperative of sustainable development in the region.
The Aral Sea region today represents one of the most critical challenges for environmental, social, and economic sustainability in Uzbekistan and the broader Central Asian region. The limitations of natural resources, issues related to water supply, ongoing desertification processes, and declining living standards underscore the urgent need to implement a comprehensive sustainable development strategy in this area.
The necessity for sustainable development in the Aral Sea region is grounded in several key factors. Primarily, environmental security remains a pressing concern: frequent dust storms, soil degradation, and the loss of biodiversity pose direct threats to public health and the quality of life. Additionally, economic considerations are paramount, as the modernization of agriculture — the main source of income for the local population — requires the adoption of water-saving and innovative technologies.
Ensuring social sustainability requires a comprehensive set of measures aimed at creating new employment opportunities, increasing household incomes, and mitigating the risks of environmental migration. Furthermore, given that the challenges in the Aral Sea region transcend regional boundaries and hold global significance, addressing them necessitates reliance on international cooperation and partnership.
Opportunities of the Aral Sea region as an international innovation hub and platform for cooperation.
It is widely recognized that Uzbekistan has undertaken extensive and positive national efforts to combat the adverse environmental and public health impacts caused by the drying up of the Aral Sea. Since the early years of independence, the population of the White Aral Sea region has consistently felt the substantial support of the Uzbek government. The Government of Uzbekistan remains committed to paying continuous attention to the social welfare of the communities residing in the Aral Sea area.
Today, the Aral Sea region serves as an international innovation hub, playing a crucial role in promoting sustainable development in an area severely affected by ecological crisis. Through scientific, innovative, and practical projects, the center actively advances comprehensive work in key sectors including environmental protection, water resource management, agricultural technologies, energy, climate adaptation, and international cooperation.
In order to enhance the activities of the Center and further develop ecological and innovative technologies in the Aral Sea region, the Aral Sea International Innovation Center was transferred under the jurisdiction of the Ministry of Ecology, Environmental Protection, and Climate Change of the Republic of Uzbekistan, in accordance with Presidential Decree No. PQ-171 dated May 31, 2023.
In accordance with Presidential Decree No. PQ-5202 dated July 29, 2021, a modern laboratory, business accelerator training center, and technopark building, valued at 12.4 billion Uzbek soms, were completed and commissioned in 2024 within the Center’s premises. The laboratory is equipped with a plant seed gene bank and serves as a crucial scientific and innovative platform for preserving biodiversity in the region, protecting both native and introduced species, and achieving high efficiency in agricultural practices.
Currently, efforts are underway to commence full-scale operations at the facility, enrich the gene bank with an extensive seed collection, organize scientific research, and enhance the expertise of local specialists. This initiative not only supports sustainable agricultural development in Uzbekistan but also plays a crucial role in ensuring food security amid climate change and advancing international scientific cooperation across the entire Central Asian region.
Over the past period, the Center has established effective cooperation with a range of international and local organizations, as well as research institutes, in conducting scientific research and implementing projects. In particular, agreements and memoranda of understanding have been signed with over 70 foreign and domestic entities. Currently, 20 scientific-practical and innovative projects with a total value of 23.9 billion Uzbek soms are being carried out. These projects encompass alternative green energy, aquaculture, intensive horticulture, medicinal plant cultivation, resource-saving technologies, and social programs.
The Center’s activities are primarily focused on improving the living standards of the population, introducing and developing salt- and drought-tolerant crops, and implementing resource-efficient technologies. At the same time, it carries out scientific-practical and innovative initiatives aimed at restoring ecosystems, preserving biodiversity, and enhancing the quality of life in collaboration with leading international organizations. Among these partners are the United Nations Development Programme (UNDP), the International Center for Biosaline Agriculture (ICBA, UAE), the Xinjiang Institute of Ecology and Geography (China), the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the Global Green Growth Institute (GGGI), the Korea International Cooperation Agency (KOICA), the Japan International Cooperation Agency (JICA), and other prestigious institutions.
The “Samanbay” (24.3 hectares) scientific-production site in Nukus district and the “Moynoq” (106 hectares) site in Moynoq district serve as the primary experimental and testing bases of the Center. At these sites, experimental research and monitoring activities are being conducted in cooperation with foreign and local organizations. Additionally, the Center hosts joint laboratories established in partnership with international collaborators, as well as its own in vitro, soil, water, and plant biotechnology laboratories. These infrastructures support the deepening of scientific research carried out in the experimental fields and enhance the effectiveness of ongoing studies.
Each of the ongoing projects is aimed at creating long-term solutions for the Aral Sea region. Thanks to its innovative approach and international cooperation, the Aral Sea International Innovation Center is gradually becoming the primary platform in Central Asia for scientific research, technological development, and sustainable development.
In its future plans, the Aral Sea International Innovation Center aims to ensure environmental sustainability by implementing innovative eco-technologies, including desertification control measures and smart agriculture solutions.
Simultaneously, to strengthen scientific research activities, plans have been made to establish modern laboratories, a business accelerator, a training center, a technopark, experimental sites, and data analysis centers.
The Center aims to implement large-scale joint projects by further expanding cooperation with international organizations. Additionally, one of the Center’s priority directions is developing programs focused on fostering innovative ideas, creating startups, and enhancing professional skills for farmers, entrepreneurs, local communities, youth, and women.
Conclusion
The Strategic significance of the initiative to transform the Aral Sea region into a global hub for climate technologies.
The initiative to transform the Aral Sea region into a global hub for climate technologies holds strategic significance not only on a regional scale but also worldwide. Its core essence lies in ensuring environmental sustainability, conserving water resources, mitigating desertification processes, and restoring biodiversity.
At the same time, the introduction of solar and wind energy, modern irrigation systems, and innovative technologies will open broad avenues for the development of a green economy in the region. This initiative will strengthen cooperation with international organizations such as the United Nations and the Green Climate Fund, creating new employment opportunities for the local population and enhancing overall prosperity.
Most importantly, the Aral Sea region’s experience will serve as an effective model in addressing climate change and water resource challenges on a global scale in the future.
Director of the Aral Sea International Innovation Centre under the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan
B.S.Khabibullaev
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:
Innovative Mega-Projects and an Ecological Approach
The most vivid practical expression of this strategy is the “New Tashkent” mega-project, rising across 20,000 hectares. Designed for a population of 1 million residents, this ecologically clean, high-tech metropolis implements the globally recognized “15-minute city” concept. The project includes the creation of a 420-hectare “green belt,” the planting of 200,000 trees, and a fully ecological transport system (electric buses, metro, and bicycle lanes).
These high living standards are not limited to the capital. Across the country, 56 “New Uzbekistan” residential districts, each designed for at least 70,000 residents and equipped with rich social infrastructure, are being constructed at an accelerated pace.
In conclusion, Uzbekistan has formed a sustainable and effective model for managing urbanization, encompassing the National Committee, the escrow system, and the smart “New Uzbekistan” districts. By transforming modern cities into ecologically clean, socially oriented, and livable spaces, the country is establishing a high benchmark for urbanization in the Eurasian region.
The Central Election Commission held a meeting and a series of events today, July 26th. The primary agenda item was the preparation and high-level accomplishment of the upcoming elections for the Legislative Chamber of the Oliy Majlis and the Councils of People's Deputies in full compliance with the Constitution and laws.
According to Article 128 of the Constitution of the Republic of Uzbekistan, elections for the Legislative Chamber of the Oliy Majlis and the Councils of People's Deputies are scheduled to take place on the first Sunday of the third ten-day period of October in the year their term expires. Considering that the term of the deputies of the Legislative Chamber of the Oliy Majlis and the Councils of People's Deputies ends in 2024, the elections will be held on October 27th of this year, and the election campaign will begin on July 26th, as decided by the Central Election Commission.
These elections mark a significant departure from the past, taking place in a new socio-political environment as stipulated by our Constitution. The meeting underscored the unique features of these elections, which include:
The meeting underscored the significance of these elections as a vivid example of democratic state-building in our country and an essential means for citizens to exercise their constitutional rights to vote and be elected to democratic state bodies. The elections will involve the election of 150 deputies to the Legislative Chamber, 65 members to the Senate, 65 deputies to the Jokargy Kenes of the Republic of Karakalpakstan, deputies to 208 district (city) Councils in the regions and Tashkent city, with around 30,000 candidates and nearly 90,000 trusted representatives actively participating. Over 120,000 election commission members and more than 70,000 citizens and international observers are expected to participate in the election process.
Considering the important role of elections in state life and with the aim of widely engaging citizens in this process, the Central Election Commission announced that the elections will be held on October 27th under the slogan “My Choice—My Prosperous Homeland.”
The 'E-Saylov' information system is a key tool in making the election process more transparent and accessible. It facilitates around 60 interactions between election commissions, political party candidates, observers, and the media entirely electronically. Integrated with other electronic platforms, the system automates many procedures in the election process without human intervention. This system forms an extensive database of nearly 400,000 participants in the election process, including election commission members, candidates, and observers. Around 32,000 participants will professionally use the information system, which includes communication through 40 types of SMS notifications.
For citizens, the "E-Saylov" information system introduces several conveniences in obtaining election-related information. Specifically, it provides statistical data on voters and polling stations, information on candidates for various elections, and interactive maps to learn about candidates and their biographies.
The meeting emphasized that the "E-Saylov" information system represents a new level of technological advancement and transparency in elections.
It was also noted that according to Article 37 of the Election Code, political parties have the right to nominate candidates for deputies to the Legislative Chamber and local Councils.
To participate in the elections, political parties must have been registered by the Ministry of Justice at least four months before the announcement of the election campaign and collect at least 40,000 signatures supporting their participation.
Additionally, the meeting approved a calendar plan to ensure that the activities related to conducting the elections are carried out step-by-step within the timelines specified by election legislation. The Central Election Commission, as an impartial and independent constitutional body, will take all necessary measures to prepare for and conduct the upcoming elections in full compliance with national legislation and international election standards, ensuring the process is open and transparent.
A Press Center has also been established under the Central Election Commission.
Central Election Commission
of the Republic of Uzbekistan
Navruz is greeted with special enthusiasm throughout the country. On March 20, President Shavkat Mirziyoyev visited Rohat mahalla in Bektemir district, where he took part in festive events.
The mahalla, specializing in services and trade, is home to 4,000 people. Under the new employment system, the mahalla's internal reserves are actively used with the participation of banks. Last year, about 100 residents got jobs, 256 people became self-employed, and 13 people started entrepreneurial activities. Two manufacturing enterprises and dozens of trade and consumer service outlets create convenience for residents.
The Head of State reviewed the activities of these enterprises.
The mahalla has landscaped streets, well-maintained houses, educational and medical institutions, sports grounds, training centers, an amphitheater, crafts and library and information centers. The center for the elderly is especially lively now.
The President took part in the Sumalak celebration and had a warm talk with residents of the mahalla and representatives of the older generation. During the conversation, plans for the current year were discussed, including ensuring peace and stability, supporting entrepreneurship and creating new jobs.
– I am glad to see your mahalla so well-maintained and people in a good mood. Over time, we will expand opportunities in all districts. The most important thing is to maintain peace and unity. Remember what the situation was on our borders before? We solve all issues in a balanced manner, with political will. Thanks to the organization of work on the ground, we see the real picture in 10 thousand mahallas. Through the "mahalla seven" system, assistance reaches every home. We still have a lot of work to do in terms of increasing the population's income, reducing poverty and youth policy. This is why we are paying more attention to education, especially to the education of girls. A society where young people are educated and spiritually developed will definitely achieve prosperity, - emphasized Shavkat Mirziyoyev.
In the Rohat mahalla, young residents receive a quality education in a comprehensive school, a children's music and art school, the “Barkamol Avlod” center and an academic lyceum. The construction of a new preschool institution was recently completed, which will open up new opportunities for the early development of children.
Historical Background
The history of Uzbek - Finnish relations dates back to the early 1990s, when Finland became one of the first countries to recognize the independence of the Republic of Uzbekistan - on 30 December 1991. Just two months later, on 26 February 1992, diplomatic relations were officially established, marking the beginning of a new chapter based on mutual respect, trust, and a shared commitment to technological progress.
The first high-level visits in 1992 laid the foundation for political dialogue. During that year, Uzbekistan took part in the signing ceremonies of the OSCE Helsinki Final Act and the Paris Charter. In October of the same year, Finnish President Mauno Koivisto paid an official visit to Tashkent, further consolidating the partnership. Since then, cooperation between the two countries has developed steadily across political and economic spheres.
Legal and Institutional Framework
Today, the legal framework governing Uzbek-Finnish relations comprises eight active documents, including two interstate and six intergovernmental agreements. These include the 1992 Agreements on Mutual Protection of Investments and on Trade, Economic, and Technological Cooperation, as well as treaties on air and road transport (1996 and 1997) and agreements on avoiding double taxation and on customs cooperation.
New initiatives reflecting the modern stage of partnership are under consideration - such as a draft agreement on visa exemption for holders of diplomatic passports, a memorandum on cooperation in environmental protection, and a protocol on consultations between the foreign ministries.
Cooperation Priorities: Technology, Ecology, and Innovation
Finland, recognized globally as a leader in innovation, sustainable development, and green technologies, serves as a valuable model for Uzbekistan in its transition toward a digital and energy-efficient economy.
In 2017, a business delegation of nine Finnish companies specializing in engineering, agribusiness, telecommunications, and logistics visited Uzbekistan to participate in the AgroWorld Uzbekistan international exhibition. This visit gave new impetus to direct business-to-business engagement.
In April 2019, Tashkent hosted a delegation led by Mikko Koiranen, Deputy State Secretary of Finland for Foreign Economic Relations. The delegation included 29 representatives from leading companies and organizations - such as Nokia Siemens Networks, ABB, Wärtsilä, Uponor Infra, Tikkurila, ISKU, and Airbus Defense and Space. Discussions focused on implementing Finnish technologies in Uzbekistan, joint energy and raw material processing projects, and opportunities in smart cities and water management.
Later, in November 2019, Antti Koskelainen from the Finnish export credit agency Finnvera visited Tashkent, marking an important step toward deeper financial and investment cooperation. Meetings with the Ministry of Investment, Industry and Trade, the Ministry of Finance, and the Agency for State Asset Management addressed mechanisms for crediting and insuring Finnish export operations in Uzbekistan.
Trade: A Threefold Growth in One Year
Economic cooperation between Uzbekistan and Finland continues to expand. The two countries enjoy Most-Favored-Nation trade status, and regular meetings of the Joint Intergovernmental Commission on Trade, Economic, and Scientific-Technical Cooperation (five sessions to date, the latest held in Tashkent in February 2023) ensure a dynamic dialogue.
Trade turnover has shown remarkable growth in recent years: from USD 48.45 million in 2020 to USD 151.7 million in 2024 - an increase of over threefold. This upward trend reflects intensified business ties and growing interest among Finnish companies in the Uzbek market.
Investment and Business Cooperation
Finland is viewed in Uzbekistan not only as a trading partner but also as a source of innovation and investment. Currently, 14 enterprises with Finnish capital operate in Uzbekistan - four joint ventures and ten with 100% foreign ownership - active in sectors such as electronics, software, energy, agriculture, food processing, chemicals, and telecommunications equipment.
Finnish businesses are showing strong interest in renewable energy, waste recycling, eco-construction, water management, and sustainable agriculture. Uzbekistan, in turn, offers attractive conditions for investors - tax incentives, developed industrial infrastructure, and access to a 75-million-strong Central Asian market.
Finland’s Economic Potential: Opportunities for Partnership
Finland is one of Europe’s most advanced and innovative economies, known for its high living standards, sound macroeconomics, and strong industrial base. In 2024, its GDP exceeded USD 320 billion, with GDP per capita around USD 58,000. The economy is well-balanced, with services accounting for over 70%, industry 27%, and agriculture 2.5%. Inflation remains one of the lowest in Europe - around 3% - ensuring a stable and predictable business environment.
For Uzbekistan, cooperation with Finland opens wide-ranging opportunities for industrial, investment, and technological partnership, including:
Finland’s experience in sustainable development and digital transformation makes it a strategic partner for Uzbekistan’s “green economy” agenda and industrial modernization. At the same time, Uzbekistan - with its abundant natural resources, young workforce, and expanding domestic market - offers Finnish companies favorable conditions for localization and regional expansion.
A Look Ahead
The partnership between Uzbekistan and Finland goes beyond traditional economic cooperation. It stands as an example of how innovation and sustainability can form the foundation of long-term, mutually beneficial relations. Joint projects in digitalization, green energy, and education are paving new avenues for the exchange of expertise, technologies, and investments.
Finland regards Uzbekistan as a reliable partner in Central Asia, while Uzbekistan views Finland as a strategic ally in advancing its “smart growth” model and building a knowledge-based economy.
The synergy between Finland’s pragmatic northern experience and Uzbekistan’s dynamic eastern development creates a powerful foundation for further strengthening bilateral relations - grounded in trust, innovation, and mutual respect.
Uzbekistan, located in the heart of Central Asia, faces unique environmental challenges that require an integrated approach and strategic planning. In recent years, the country has been taking active steps to protect the environment by integrating sustainable development into national programs and projects. These efforts are not only aimed at improving the environmental situation in the country, but also make a significant contribution to solving global problems. Uzbekistan actively participates in global initiatives to combat climate change. The country ratified the Paris Agreement in 2016, committing to reducing greenhouse gas emissions and adapting to climate change.
Environmental policy issues play a key role on the agenda of the New Uzbekistan. Measures to transform the sphere of ecology and environmental protection to improve the activities of our ministry, actions to combat climate change and its consequences, a moratorium on tree cutting, the introduction of clean “green” energy, solid waste management, the development of “green” transport infrastructure, expansion networks of protected natural areas, measures to restore ecosystems and preserve biodiversity, combat desertification and drought, unify environmental legislation in accordance with international standards, supporting the introduction of modern information technologies, show positive trends.
One of the key aspects of Uzbekistan’s environmental strategy is the development of a “green economy”. The state program “Green Economy” for 2019-2030 is aimed at reducing the carbon footprint, increasing energy efficiency and developing renewable energy sources (RES).
Moreover, the government of Uzbekistan has set ambitious goals to increase the share of renewable energy sources in the country’s overall energy balance. As part of the Development Strategy “Uzbekistan - 2030” and subsequent plans. As President of Uzbekistan Shavkat Mirziyoyev stated at the third Tashkent International Investment Forum held in early may this year, our country strives to create more than 20 gigawatts of renewable energy capacity by 2030 and increase its share in the energy sector. balance up to 40 percent. These goals include the construction of new solar and wind power plants, as well as the modernization of existing energy infrastructure.
In 2019, the law “On Renewable Energy Sources” was adopted, which creates a legal basis for the development of the green energy sector. The law provides benefits and preferences for investors, which stimulates the attraction of both domestic and foreign investment.
The development of “green energy” in Uzbekistan is actively supported by international organizations and financial institutions. Cooperation with the International Renewable Energy Agency (IRENA), the World Bank, the Asian Development Bank and other structures plays an important role. Investments and technical support from these organizations contribute to the rapid implementation of innovative technologies and best practices in the field of renewable energy sources.
Just last year, together with the strategic partners of Uzbekistan - the companies Masdar, Gezhouba, China Energy”, large wind and solar power plants with a capacity of 1.4 gigawatts were launched. Also, together with ACWA Power, we began implementing a project for the production of “green” hydrogen.
Currently, work is underway on the implementation of 28 eight projects in this direction. It is noteworthy that these important projects are carried out exclusively through foreign direct investment on the basis of public-private partnerships.
Achieving global sustainable development goals is no less important for the country.
In Uzbekistan, in 2022, an updated Resolution of the Cabinet of Ministers “On additional measures to accelerate the implementation of National Goals and Objectives in the field of sustainable development for the period up to 2030” was adopted, which confirms Uzbekistan’s strong determination in achieving the global Agenda for the period up to 2030 year in a comprehensive partnership with all UN member countries to achieve sixteen national sustainable development goals.
The National Goals and Objectives in the field of sustainable development for the period until 2030, the Plan of Measures for the effective implementation of the National Goals and Objectives in the field of sustainable development for the period 2022–2026, as well as the National Development Strategies of Uzbekistan, approved by the Government of our country, serve the implementation of the Goals of Sustainable Development development.
The achieved results in implementing the national goals and objectives of Uzbekistan are generally approved and recognized by the international community.
The basic principle of the new Uzbekistan “In the name of the honor and dignity of man” is consonant with the UN principle on sustainable development “Leave no one behind”.
In the Interagency Ranking of Sustainable Development Goals published by the UN (SDR) in 2023, Uzbekistan took 69th place among 166 countries, increasing its ranking by 8 points.
The Voluntary National Reviews prepared in 2020 and 2023 on the implementation of the national Goals and objectives of sustainable development of Uzbekistan until 2023 were positively assessed by the UN.
Uzbekistan has achieved significant results on all Sustainable Development Goals, which were balanced and interconnected with the implementation of the “Strategy of Action for Five Priority Areas of Development of the Republic of Uzbekistan in 2017 - 2021”
An analysis of the current state of protected natural areas in Uzbekistan and current trends in this area shows that in recent years the number and area of protected natural areas in the country have been increasing. Reforms are being carried out in the forestry sector, as a result of which the amount of forest land in the country has noticeably increased.
In this context, the initiative of President Shavkat Mirziyoyev “Yashil makon” (“Green space”) has become a truly national project. The forest area in relation to the total land area of Uzbekistan has increased over 7 years from 8.3% to 8.7%. The share of protected areas increased 2.0 times.
Uzbekistan actively participates in international mechanisms for environmental protection and human development. Various initiatives are being implemented to preserve biodiversity, restore ecosystems in the Aral Sea region, protect the ozone layer and mitigate the effects of climate change, and waste management. There are also policies and programs aimed at ensuring people's access to healthy food and clean water. Uzbekistan cooperates with the European Union, its institutional bodies for environmental protection and sustainable development, as well as with individual states such as Germany, Finland, Turkey, and South Korea.
The country is a party to 14 international conventions, as well as more than 20 protocols, agreements and memoranda of understanding in the field of environmental protection and sustainable development.
Uzbekistan regularly takes an active part in the annual meetings of the UN Framework Convention on Climate Change. During the 27th meeting, held in 2022, the Uzbek delegation advocated consolidating efforts to achieve carbon neutrality, promoting renewable energy sources, climate change adaptation projects, combating desertification and land degradation, introducing water-saving technologies and other climate actions in Central Asia.
Another significant aspect was that the UN supported the initiative of President Shavkat Mirziyoyev to hold the first International Climate Forum in Samarkand in 2024, dedicated to climate change issues, which provides for a discussion of opportunities for international cooperation to reduce risks and threats in the Central Asian region and issues of attracting climate finance . During the 78th session of the UN General Assembly in September of this year. In New York, the President of Uzbekistan took the initiative to adopt the UN General Assembly resolution «Central Asia in the face of global climate threats: solidarity for common prosperity» and proposed discussing its main provisions at the Samarkand Forum.
Cooperation with the countries of Central Asia is critically important to address the many environmental challenges facing the region. Cooperation in this area contributes not only to improving the environmental situation, but also to strengthening regional stability and sustainable development.
Another significant aspect was that the UN supported the initiative of President Shavkat Mirziyoyev to hold the first International Climate Forum in Samarkand in 2024, dedicated to climate change issues, which provides for a discussion of opportunities for international cooperation to reduce risks and threats in the Central Asian region and issues of attracting climate finance . During the 78th session of the UN General Assembly in September of this year. In New York, the President of Uzbekistan took the initiative to adopt the UN General Assembly resolution “Central Asia in the face of global climate threats: solidarity for common prosperity” and proposed discussing its main provisions at the Samarkand Forum.
One of the most significant areas of cooperation between Uzbekistan and neighboring countries is water resources management. The transboundary rivers Amudarya and Syrdarya are vital for all countries in the region. Uzbekistan actively participates in international forums and initiatives aimed at the rational use of water resources and conflict prevention. Joint projects with Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan include modernizing irrigation systems, introducing water-saving technologies and improving water basin management.
The problem of the drying up of the Aral Sea is one of the most acute environmental disasters in the region. The Aral Sea region is of international importance. In the second half of the 20th century, the state of the Aral Sea entered a phase of instability. This period, caused by anthropogenic impact, is characterized by a decrease in the volume and flow of water, an increase in salinity, a decrease in fish biodiversity and other negative processes. The shrinking Aral Sea has a significant impact on the ecosystems of all neighboring countries, its critical situation extends directly to Turkmenistan, Kazakhstan and Uzbekistan, in particular to the Republic of Karakalpakstan, Khorezm, Bukhara and Navoi regions, and indirectly to Tajikistan and Kyrgyzstan.
Restoring the Aral Sea requires joint efforts of all coastal states. Uzbekistan actively cooperates with Kazakhstan within the framework of the International Fund for Saving the Aral Sea (IFAS), implementing projects on reforestation, improving water supply and combating dust storms. These measures not only help improve the environmental situation, but also help mitigate the socio-economic consequences of an environmental disaster.
Desertification and land degradation are a serious problem for the countries of Central Asia. Uzbekistan is actively participating in regional projects aimed at combating these phenomena. Collaborative efforts include planting shelterbelts, restoring pastures, improving land management and introducing sustainable agricultural practices. Cooperation with Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan allows for the exchange of best practices and technologies, which contributes to the effective fight against desertification.
Positive trends include the adoption of measures to increase the area of green space, a reduction in areas allocated for cotton and an increase in areas for growing vegetables, grains, fruits and fodder crops, as well as an increase in government support for the introduction of water-saving irrigation technologies.
Cooperation in the field of environmental education and knowledge exchange plays an important role in solving environmental problems in the region. Uzbekistan, together with neighboring countries, is implementing programs to increase environmental awareness of the population, train specialists and conduct joint research. This includes organizing conferences, seminars, training programs and exchanges of students and scientists. Such interaction contributes to the formation of a sustainable environmental culture and the training of qualified personnel to solve environmental problems.
Cooperation between Uzbekistan and the countries of Central Asia in the field of environmental protection is a key element of the regional sustainable development policy. Joint efforts to manage water resources, restore the Aral Sea, develop renewable energy sources, combat desertification and environmental education contribute not only to improving the environmental situation, but also to strengthening regional stability and prosperity. Uzbekistan continues to actively participate in international and regional initiatives aimed at solving common environmental problems, demonstrating its commitment to the principles of sustainable development and international cooperation.
In general, environmental protection in Uzbekistan is an integral part of the country’s sustainable development strategy. The measures taken to develop a green economy, combat climate change, protect water resources and promote sustainable agriculture not only improve the environmental situation in the country, but also make a significant contribution to solving global environmental problems. Uzbekistan demonstrates that an integrated and strategic approach to environmental protection can lead to a sustainable future, both nationally and globally.