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:

• Energy: joint projects in renewable energy, smart grids, and energy storage; development of solar panel and wind equipment manufacturing.
• Water and Environment: Finnish expertise in water purification, waste processing, and efficient water management, particularly relevant for agriculture and urban infrastructure.
• Engineering and Electronics: creation of joint ventures in industrial equipment, automation systems, and telecommunications.
• Construction and Green Materials: Finnish participation in energy-efficient building projects, production of eco-friendly insulation and finishing materials, and smart home systems.
• Education and Science: joint engineering and IT education programs, establishment of research laboratories, and introduction of dual education models based on Finnish experience.
• Agro-Industry: cooperation in precision farming, agricultural digitalization, and production of eco-friendly export-oriented goods.

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.

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

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

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to tradition, but a kind of manifesto for the "New Look Army," where intelligence and technology must finally supplant outdated approaches to warfare.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

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

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

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

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

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

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

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

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

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

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

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

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

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

Dunyo IA

The second day of the visit of the Head of our state to Navoi region began with a joyful event. A ceremony dedicated to new projects was held with the participation of representatives of the public.

In recent years, entrepreneurship in Navoi region has been actively developing, and the interest of investors in the region continues to grow. In 2023 alone, the region produced more than 101 trillion soums worth of industrial products and exported $648 million. Foreign investments worth about $478 million were also absorbed, and the foreign trade turnover of the region amounted to about $1.3 billion. More than 300 foreign enterprises operate in the region, and their number will continue to increase.

Fifteen new projects were announced at the ceremony.

In particular, the projects on extraction and processing of oil shale in Kanimekh district, construction of a 300 megawatt solar photovoltaic station and a 75 megawatt electricity storage system in Karmana district, production of technical gases in Navoi city, processing of marble in Gazgan and granite in Zarafshan, extraction and enrichment of kaolin in Uchkuduk district, and production of fish feed in Khatyrchi district were launched. 

Enterprises were launched to produce potassium sulfate and sulfuric acid in Karmana district, cotton pulp in Navoi city, and granite processing in Nurata district.

The total cost of the 15 projects is $3.6 billion. More than 7 thousand jobs will be created.

President Shavkat Mirziyoyev pressed a symbolic button and gave start to the construction and operation of the new projects.

According to the CERR bank ranking results for 2025, the stable positions of most financial institutions indicate a higher competitiveness threshold across the sector. At the same time, a noticeable reshuffling has emerged within the mid-tier segment.

The Center for Economic Research and Reforms (CERR) presented an updated Bank Ranking based on the results of the Bank Activity Index for Q4 2025. The study covers 35 commercial banks of the republic, including 20 large financial institutions classified by scale and branch network, and 15 banks categorized as small. The methodology is based on the analysis of 27 indicators, benchmarked against national averages and international standards, including Basel Committee requirements. The ranking serves as an important tool for enhancing transparency and strengthening trust in the financial system. This approach is consistent with international practice and is used by leading financial institutions worldwide.

Financial results for Q4 2025

During the reporting period, total assets of the banking sector amounted to 892.9 trillion soums ($74.2 bn), while liabilities reached 759.8 trillion soums ($63.1 bn). Lending increased by 13%, while deposits grew by 31%. The share of foreign-currency transactions declined, indicating strengthening of the national currency. Net profit reached 13.5 trillion soums ($1.1 bn), which is 57.1% higher than a year earlier. Over the period under review, the share of non-performing loans decreased to 3.5% from 4.3% a year earlier, pointing to improved portfolio quality. At the same time, in some banks this indicator remains above the sector average. Capital adequacy ratios exceed minimum regulatory requirements by more than 1.4 times, confirming the resilience of the banking sector.

Activity ranking of large banks for Q4 2025

The results for Q4 2025 show that sector leaders have maintained stable positions, while reshuffling within the ranking remains limited. The most notable progress was demonstrated by SQB, which climbed three positions. Positive dynamics were also recorded by Davr Bank, Orient Finance Bank, Xalq Bank, and Ipoteka Bank, all of which improved their standings in the overall ranking. At the same time, only two large banks showed a decline in activity. Invest Finance Bank and Aloqa Bank fell by four and three positions in the overall ranking, respectively. Overall, 13 banks retained their positions in the activity ranking, which, amid intensifying competition, reflects the ability of institutions to maintain operational efficiency, adequate liquidity, asset quality, and financial stability.

Dynamics of key indicators

In financial intermediation, Tenge Bank and Ipak Yuli Bank showed a decline in efficiency in attracting and allocating resources, losing four and three positions, respectively. National Bank, Asia Alliance Bank, Anor Bank, BDB, and Mikrokreditbank also dropped by one position in this category. In terms of financial inclusion, a one-position decline was recorded for Orient Finance Bank, Xalq Bank, Agrobank, BDB, and Ipoteka Bank. Regarding asset quality, six large banks registered a decline. Agrobank lost three positions, while National Bank, Trast Bank, Anor Bank, Aloqa Bank, and Asaka Bank each lost two positions. Despite the overall positive profit dynamics in the sector, two banks posted a decline in profitability, namely National Bank and Anor Bank, which fell by two and one positions, respectively. In management efficiency, weaker positions were observed for Mikrokreditbank and Anor Bank, both down two positions. In terms of liquidity, almost one-third of all large banks in the country lost positions, with the sharpest decline recorded by Davr Bank, down six positions, while Agrobank closed the ranking, falling to the last position on this indicator.

Activity ranking of small banks for Q4 2025

In the group of small banks, relative stability persists. Leaders have retained their positions. The main changes in this category also occurred in the mid-tier segment, where several banks improved their standings due to growth in financial intermediation and higher profitability. In this group, six out of 15 financial institutions, including the ranking leader Universal Bank, retained their positions. At the same time, five banks recorded declines, with the largest drop observed at Ziraat Bank, which lost three positions, while Apex Bank rose by three positions in the overall ranking. AVO Bank and Madad Invest Bank each gained two positions, while Okto Bank gained one position and secured third place in the overall group ranking.

Jafar Khidirov,
Head of Banking and Financial Research Sector

Starting January 1, 2026, Value-Added Tax will be exempted for Farmers and Dehkan producers

С 1

Almost half of the population of the Republic of Uzbekistan lives in rural areas. Millions of hardworking individuals in these communities play a crucial role in ensuring the country’s food security and establishing a solid foundation for the export of agricultural products. The nation’s development cannot be limited solely to urban centers; it is equally important to ensure that life in rural and peripheral regions is comfortable and sustainable.

The care for rural residents and the stimulation of their activities merit special attention from both the state and society. Governmental support measures have become pivotal in strengthening the agricultural sector.

However, the agricultural industry still faces significant challenges, including high tax burdens and limited access to financing, which contribute to the expansion of the informal economy. According to various estimates, up to half of agricultural producers operate outside the legal framework, resulting in reduced profitability and hindering sectoral development. Without genuine incentives to transition towards a formal economy, the agrarian sector’s capacity for investment and modernization will remain constrained.

In this context, the introduction of a zero rate of Value Added Tax (VAT) starting January 1, 2026, for farmers and dehkan producers selling their own products—including vegetables, fruits, meat, milk, eggs, and other food items—is a timely and significant measure. Producers of grain and cotton are excluded from this provision, as these sectors are regulated through state-managed clusters.

The existing practice of VAT refunds on expenses related to the production of seeds, fertilizers, fuel, logistics, electricity, and other operational costs will remain in place. As a result, farmers are expected to save up to 700 billion Uzbek soms annually.

The zero VAT rate will reduce the tax burden, increase farmers’ net income, and enable the allocation of additional funds toward modernization.

According to projections, farm profitability is expected to rise from 5–7 percent to approximately 15 percent. This measure will also facilitate more accurate planning of subsidies and incentives.

Another positive impact will be the growth of domestic processing industries. When products are processed locally, demand for investment in processing facilities and export logistics chains increases, leading to job creation and improved working conditions.

The reorientation of agriculture towards food crops has been one of the strategic priorities pursued in recent years.
Areas allocated to cotton and grain cultivation are being reduced, while orchards, vineyards, and vegetable crops are being developed instead. Approximately 1,500 food production projects have already been implemented, with a total investment of around one billion dollars.

The introduction of a zero VAT rate will further stimulate processing and export activities, strengthening the potential of the agro-food sector and enhancing the competitiveness and attractiveness of its products on the international market.

For farmers and dehkans, this presents an opportunity to retain a significant portion of their income. The savings can be directed towards farm development, improving working and living conditions, and modernizing production processes. Rural areas will benefit from job creation, technology influx, higher product quality, and a favorable environment for sustainable development.

For the state, this translates into a reduction of the shadow economy, increased transparency in reporting, and more accurate planning of support measures, tax incentives, and development programs. For society at large, it means access to higher quality and more affordable food products, enhanced resilience of the rural economy, and the strengthening of domestic agro-industrial value chains.

Nadira RASHIDOVA,

Member of the Legislative Chamber of the Oliy Majlis.

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:

1. For the first time in Uzbekistan's history, the Legislative Chamber of the Oliy Majlis elections will be conducted using a mixed electoral system, combining majoritarian and proportional systems. This significant change will see seventy-five deputies elected directly through the majoritarian system, where voters vote for specific candidates. The remaining seventy-five deputies will be elected based on votes cast for political parties under the proportional system.
2. One of the most significant advancements is the full digitization of election commissions' activities at all levels and their interactions with participants in the election process. This development significantly reduces bureaucracy, time, and document handling in election procedures, ushering in a new era of efficiency in our electoral system.
3. Our election legislation has been fundamentally improved to align with advanced democratic standards. These improvements include introducing a new system for election bodies led by the Central Election Commission and requiring political parties to ensure that at least 40% of their candidates for deputy positions are women. Additionally, a candidate must receive a relative majority of votes to be elected. If a candidate gets more votes than other candidates in their respective electoral district, they will be elected without needing a repeat vote.
4. The elections are taking place in conditions of significantly strengthened parliamentarianism and the powers of representative bodies at the local level, as established by the Updated Constitution. Specifically, the absolute powers of the Legislative Chamber have increased from 5 to 12, and those of the Senate from 12 to 18. The parliament's oversight functions over the activities of executive, judicial, law enforcement agencies, and special services have been expanded. The institution of hokims leading local Councils of People's Deputies is being abolished. To enhance the role of representative bodies in resolving important state issues, 33 powers previously held by hokims have been transferred to local Councils.

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

The exhibition will bring together more than 100 companies and brands from 12 countries.

The specialised international exhibition of the beauty, cosmetology, and perfumery-cosmetics industry – Beauty Uzbekistan 2026 – will take place from April 28 to April 30 at the CAEx Uzbekistan exhibition complex in Tashkent.

Beauty Uzbekistan is a professional B2B exhibition that brings together manufacturers and distributors of cosmetic products, aesthetic medicine specialists, retail representatives, salon business owners, and professionals in the personal care sector. The exhibition provides direct access to leading global brands, innovative products, and cutting-edge technologies, while offering valuable opportunities to establish business connections, and gain early insight into key trends in the beauty industry.

The exhibition will feature more than 100 companies and brands from 12 countries: Azerbaijan, China, Georgia, Italy, Kyrgyzstan, Republic of Korea, Poland, Russia, Sweden, Spain, UAE, and Uzbekistan. National pavilions from the Republic of Korea and Poland will showcase advanced beauty industry solutions and the export potential of these countries.

According to the organizers, the main sections of the exhibition are:

- Beauty Uzbekistan – covering the full spectrum of the perfumery and cosmetics industry, including makeup and skincare cosmetics, fragrances, personal care products, and hair industry products.

- Beauty Derma Central Asia – a dedicated segment focused on aesthetic medicine, device-based cosmetology, and anti-ageing solutions. This section of the exhibition will present advanced technologies for clinics and industry professionals, including injectable treatments, as well as next-generation laser and energy-based technologies.

Traditionally, the exhibition will feature a comprehensive business programme, including specialised seminars, expert-led sessions, and professional discussions.

Dedicated programme segments will address key developments in aesthetic medicine, balneology, and SPA industry, including scientific approaches in aesthetic medicine (CYTOLIFE / MedTenderGroup, Russia), as well as advanced solutions in balneological equipment and hydrotherapy technologies (Physiotechnika, Russia).

A specialised session on fragrance solutions presented by the Swiss Company LUZI may be of particular interest to industry professional and household chemical manufacturers.

Beauty Uzbekistan 2026 is more than just an exhibition — it is a dynamic professional platform where business, medicine, technology, and the latest beauty trends converge. 

The event is organised by Iteca Exhibitions, an international exhibition company, in partnership with ICA Eurasia Group, informed that one can register to visit the exhibition on the website: www.beautypro.uz.

IA “Dunyo”

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

Following the results of Q1 2026, the ranking of large banks underwent notable changes. While the leading group remained intact, positions within the segment were reshuffled. In the small-bank category, movements were also significant, pointing to continued realignment and stronger competition across the sector.

The Center for Economic Research and Reforms presented the updated Bank Ranking based on the results of the Banking Activity Index for Q1 2026.

The study covers 34 commercial banks of the republic, including 20 classified as large financial institutions by scale and branch network, while the remaining 14 were categorized as small banks.

The methodology is based on the analysis of 27 indicators benchmarked against national averages and international standards, including the requirements of the Basel Committee. The ranking serves as an important tool for enhancing transparency and strengthening confidence in the financial system. This approach is consistent with international practice and is widely used by leading financial institutions.

Financial Results for Q1 2026

During the reporting period, total assets of the banking sector amounted to 932.3 tn sums ($76.3 bn), while liabilities reached 793.9 tn sums ($64.9 bn). Lending increased by 14%, while deposits grew by 32%. The aggregate capital of the banking system was fully denominated in the national currency. Net profit reached 3.1 tn sums ($254 mn), which is 36.3% higher than a year earlier.

During the period under review, the share of non-performing loans declined to 3.3%, compared with 4.5% a year earlier, indicating improved portfolio quality. At the same time, in several banks the ratio remains above the sector average. Capital adequacy indicators exceed minimum regulatory requirements by more than 1.4 times, confirming the resilience of the banking sector.

Large Banks Activity Ranking for Q1 2026

The results of Q1 2026 show that despite the relative stability at the top of the ranking, both categories of banks recorded notable positional changes.

In the large-bank segment, performance was mixed. Out of 20 banks, 7 improved their positions, 8 declined, and 5 retained their previous places. This reflects a high level of competition and the ongoing redistribution of market positions.

The most notable progress was demonstrated by Tenge Bank, which moved up by 6 positions. Three more banks — Agrobank, Invest Finance Bank, and Xalq Bank — advanced by 2 positions each. Positive momentum was also recorded by Ipak Yuli Bank, Asia Alliance Bank, and Hamkorbank, all of which improved their standing in the overall ranking.

At the same time, several large banks recorded lower activity levels. The most significant decline was observed at Orient Finans Bank and Trast Bank, which fell by 5 and 3 positions respectively.

Changes Across Key Indicators

Financial Intermediation. The leading positions were taken by Invest Finance Bank, Anor Bank and Kapitalbank. In this ranking, Davr Bank and Hamkorbank fell by 4 positions, while Ipoteka Bank declined by 1 position.

Financial Accessibility. The leaders were Agrobank, Anor Bank and BRB. Under this indicator, declines were mainly observed among leading banks: Kapitalbank (-3 positions), Hamkorbank (-7), Asia Alliance Bank (-1), Ipak Yuli Bank (-5), and Trast Bank (-6). The strongest improvement in this ranking was recorded by Tenge Bank (+8), Xalq Bank, Davr Bank (+5), and Agrobank (+4).

Capital Adequacy. The top positions were occupied by Orient Finance Bank, Trast Bank and Halk Bank. At the same time, Agrobank dropped by 4 positions, while Aloqa Bank declined by 2 positions.

Asset Quality. The leaders were Hamkorbank, Asia Alliance Bank and Ipak Yuli Bank. Turonbank fell by 5 positions, while Asakabank, Mikrokreditbank, SQB, Trast Bank and Anor Bank each declined by 2 positions.

Management Efficiency. The highest positions were held by SQB, Orient Finance Bank and NBU. At the same time, Asaka Bank dropped by 5 positions, while BRB declined by 4 positions.

Profitability. The leaders were Hamkorbank, Trast Bank and Asia Alliance Bank. Turon Bank, after falling by 3 positions, ranked last. In this ranking, Kapitalbank, Asia Alliance Bank, Anor Bank and Davr Bank declined by 2 positions, while Ipoteka Bank and Mikrokreditbank fell by 1 position.

Liquidity. The leaders were Asia Alliance Bank, Ipak Yuli Bank and Trast Bank. At the same time, Mikrokreditbank, Ipoteka Bank, Anor Bank and SQB each declined by 1 position.

Small Banks Activity Ranking for Q1 2026

The small-bank group remained relatively stable, with leading institutions retaining their positions. The main changes in this category were concentrated in the middle segment, where several banks improved their standing due to stronger financial intermediation and higher profitability.

Within this group, 8 out of 14 financial institutions improved their rankings. The most notable gains were recorded by AVO Bank and Apex Bank, both rising by 3 positions. TBC became the leader of the ranking.

At the same time, 5 banks moved down, with the sharpest decline recorded by Octobank, which lost 6 positions. Saderat Bank, Garant Bank, and Ziraat Bank each rose by 2 positions. The ranking was rounded out by Open Bank and Uzum Bank, both up by 1 position.

Jafar Khidirov, CERR

CERR Banking and Financial Sector Research Sector
Tel: (78) 150 02 02 (441)

CERR Public Relations and Media Sector
Tel: (78) 150 02 02 (417)

On August 14-15, 2025, the VIII Central Asian Expert Forum (CAEF) will be held in Tashkent under the title “Central Asia – a common space of trust, security and sustainable development”.

Established in 2018, the CAEF is held annually in the country chairing the Consultative Meeting of the Heads of State of Central Asia. The forum serves as an important platform for discussing the current state and prospects of regional cooperation, as well as developing recommendations for the further development of cooperation in Central Asia.

The Forum is organized by the Institute for Strategic and Regional Studies under the President of the Republic of Uzbekistan (ISRS). Event partners include the Regional Center for Preventive Diplomacy for Central Asia, the European Union Delegation to Uzbekistan and the Organization for Security and Cooperation in Europe (OSCE), and the Konrad Adenauer Foundation.

The Forum will traditionally bring together heads and specialists of strategic institutes, research centers, and academic institutions from across the region. For the first time, prominent experts from the EU, ASEAN, the Nordic Council, as well as researchers from the Russian Federation, the USA, Great Britain, Switzerland and Azerbaijan have been invited to participate in its work in order to exchange experience in regional studies.

The Forum’s program will focus on prospects for deepening regional cooperation and explore specific measures to promote multifaceted collaboration.

In addition, the Forum will feature separate events: a scientific-practical conference on shaping regional identity and a roundtable discussing prospects for partnership between Central Asia and Northern Europe.

The upcoming expert dialogue is expected to identify common interests and outline priorities for Central Asia’s future development. The resulting recommendations will enrich the agenda of the forthcoming Consultative Meeting of the Heads of State of Central Asia, scheduled to take place this year in Uzbekistan.

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

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

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

Building a New Chapter in Relations

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

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

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

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

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

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

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

The Trajectory of Economic Cooperation

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

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

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

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

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

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

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

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

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

Uzbekistan–Belgium

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

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

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

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

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

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

Conclusion

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

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

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

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

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

 Obid Khakimov,  

Director of the Center for
Economic Research and Reforms