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

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

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

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

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

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

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

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

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

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

The Future of Uzbekistan's Cities

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

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

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

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

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

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

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

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

Uzbekistan's Positive Achievements in Urban Development and Urbanization

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

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

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

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

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

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

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

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

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

Tursunboy Zikirov and Alisher Nizamov,

Heads of Departments,

The Institute for Strategic and Regional Studies

under the President of the Republic of Uzbekistan

Today, during a meeting with journalists, Azizbek Urunov, Special Representative of the President of Uzbekistan on WTO issues, answered questions from a correspondent of Dunyo Information Agency:

-How does WTO membership align with the “Uzbekistan - 2030” strategy?

-It fully aligns with it. Uzbekistan’s accession process to the World Trade Organization effectively began in the early days of the large-scale reforms launched under the leadership of President Shavkat Mirziyoyev in 2017. In the initial years, the primary focus was placed on urgent and systemic economic reforms.

These included the liberalization of currency policy, a comprehensive revision of foreign trade policy and a significant reduction and simplification of import tariffs, which helped strengthen competition in the economy and the domestic market.

The active phase of WTO accession negotiations began in 2020. Prior to that, over a period of three to four years, the country deliberately prepared its economy and regulatory framework to meet WTO requirements. A frequently asked question is why the accession process has taken so long, given that Uzbekistan submitted its application back in 1994. Meaningful progress only began after 2020, as before that time the economy and its regulatory mechanisms objectively did not meet WTO standards.

Before 2016, foreign trade was subject to strict regulation. For example, there was a practice of approving a limited list of enterprises authorized to export, particularly in the agricultural sector. The main participants in foreign economic activity were state structures and foreign trade companies affiliated with sectoral ministries.

However, WTO principles are based on equal conditions for all market participants and non-discriminatory access to foreign trade activities. That is why, as part of the reforms, foreign trade policy was comprehensively revised and liberalized. Today, any enterprise has the right to engage in foreign economic activity.

This was not merely an issue of currency convertibility, but rather a set of comprehensive reforms of the entire foreign trade regulatory system, including the elimination of exclusive rights held by state enterprises and the creation of a competitive environment.

I believe it is no secret that the WTO accession process is under the personal oversight of the President of the country. Over the past two to three years, a qualitative breakthrough has been achieved and today Uzbekistan is at the final stage of the negotiation process.

– What long-term national interests does Uzbekistan aim to protect through its accession to the WTO?

As a developing country, Uzbekistan, in accordance with WTO agreements, retains the right to protect certain sectors of the economy in the event of specific difficulties. At the same time, it is important to remember that the fundamental goals of the WTO are to improve the welfare of the population, create jobs and ensure sustainable economic development for member countries.

From a strategic perspective, WTO membership serves two key objectives for Uzbekistan.

The first is exports. Without an active export policy and integration into global value chains, achieving long-term and sustainable economic growth is virtually impossible. Relying solely on the domestic market has inherent limitations. As the domestic market becomes saturated, growth potential diminishes and further development is only possible through expanding presence in foreign markets.

The second objective is investment, primarily quality investment. It is important not only to attract capital but also to ensure its technological, institutional and managerial value. WTO membership sends an international signal that the country’s economy operates under transparent, predictable and investor-friendly rules.

This creates additional conditions for the development of industry and the service sector. Today, about half of Uzbekistan’s GDP is generated by the services sector, indicating its enormous potential for further growth.

Furthermore, Uzbekistan’s geographic location offers significant opportunities. The country is surrounded by dynamically developing markets such as China, the European Union, the Middle East, and India. The active economic development of Saudi Arabia, the UAE, Qatar, Kuwait and other countries generates steady demand for agricultural and industrial products as well as services. This creates favorable conditions for integrating Uzbekistan into global value chains.

– Is it already possible today - at least approximately, in monetary terms - to estimate the total benefit to Uzbek businesses from the removal of tariff regulations within the framework of Uzbekistan’s accession to the World Trade Organization?

– Ten years ago, Uzbekistan’s GDP was around USD 50 billion. By the end of 2025, it had reached approximately USD 147 billion.

Whereas an increase of, say, 5 billion dollars used to represent about 10 percent of GDP, today it accounts for only around 3 percent. Therefore, it is more important to talk not about absolute figures, but about the additional momentum for economic growth.

According to World Bank estimates, WTO membership could provide an additional GDP growth of roughly 17 percent over the next 5–7 years. In the longer term, international studies indicate that developing countries that are WTO members typically achieve an extra 1–1.5 percent GDP growth per year compared with non-member states.

Even a 1 percent additional growth per year, accumulated over 5, 10, or 15 years, can significantly transform a country’s economy.

– What specific instruments and legal mechanisms of WTO rules will work to protect the interests of Uzbekistan and its businesses?

– First and foremost, this concerns the protection of export interests. Today, there are often situations where partners are willing to purchase our raw materials but react negatively to shipments of processed products with high added value. In such cases, discriminatory measures aimed at limiting our exports may be applied.

WTO membership will allow Uzbekistan to challenge such actions in Geneva through the dispute settlement mechanisms and on a bilateral basis, relying on the universal principles of the WTO. This provides protection against unilateral and unjustified trade restrictions.

On the domestic market, the key instruments will be so-called trade remedies - anti-dumping, countervailing and safeguard measures. Currently, draft laws regulating these mechanisms are being developed in Uzbekistan.

The WTO provides developing countries with a longer time frame for applying protective measures: up to eight years and under special conditions - up to ten years. These instruments allow temporary protection for industries under pressure from imports, provided there is evidence of serious economic harm.

Anti-dumping measures are particularly important. Dumping is usually used to push competitors out of the market, followed by the establishment of monopoly prices. WTO legislation allows countries to effectively counteract such practices.

Alongside legislative development, Uzbekistan is preparing national specialists with the support of international experts. Their task is to ensure the competent and professional application of these mechanisms in practice, in the interests of fair competition and the protection of national businesses.

Dunyo IA

Tashkent

Issues of practical implementation of agreements at the highest level and promotion of investment projects were at the center of attention during the telephone conversation held on December 17 between the President of the Republic of Uzbekistan Shavkat Mirziyoyev and Amir of the State of Qatar Sheikh Tamim bin Hamad Al-Thani.

The Head of our state warmly congratulated the Amir of Qatar on the national holiday - Foundation Day, wishing him health, well-being and success, as well as peace and prosperity to the friendly Qatari people.

Current matters of further expansion of multifaceted cooperation and strengthening of strategic partnership between our countries were discussed.

The results of active contacts and exchanges were positively assessed. In November this year, the first meeting of the Intergovernmental Commission and business forum were successfully held in Doha. In October, the Qatar Culture Week events were successfully organized in Tashkent.

With the participation of leading Qatari companies, investment projects are being implemented in the field of energy, development of transport and tourism infrastructure, agriculture, healthcare and other priority areas.

There is a regular direct flight service between the capitals, which facilitates the growth of mutual tourist flow.

During the conversation, the heads of state paid particular attention to the schedule of upcoming events in 2025, including the second dialogue summit “Central Asia - Cooperation Council for the Arab States of the Gulf”.

Exchange of views on topical issues on the international agenda also took place.

The main goal of state policy in the penal sphere in Uzbekistan is aimed at liberalizing punishment and the system of its execution. Based on this, a number of strategic objectives have been identified. In particular:

Firstly, crime, improvement and liberalization of criminal and criminal-procedural legislation, decriminalization of specific criminal acts, humanization of criminal punishments and the procedure for their execution were determined as one of the priority directions for improving the state and society building system in the Action Strategy of the Republic of Uzbekistan in 2017-2021.

Secondly, the Resolution of the President of the Republic of Uzbekistan “On the Concept of improvement of criminal and criminal-procedural legislation” was adopted on May 14, 2018. It was aimed at improving the criminal responsibility and punishment system, in particular, eliminating forms and types of punishments that do not meet to modern requirements, and preventing crimes. The task of introducing types of punishment and other legal measures, simplifying punishment or expanding the norms regulating the conditions of criminal responsibility or exemption of person from liability was established.

Thirdly, the implementation of qualitatively new mechanisms for ensuring the unconditional observance of the rights of prisoners, respect for their honor and dignity, priority tasks such as further expansion of the scope of rights of convicts in accordance with generally recognized international standards were determined in the Decree of the President of the Republic of Uzbekistan dated on November 7, 2018 “On measures to radically improve the criminal and executive legislation”.

Fourthly, the necessity to ensure labor, social security and other internationally recognized rights of convicts, people who have served their sentences, to introduce effective mechanisms to help their social adaptation and reintegration into society, and widely introducing the principle of humanitarianism into the penal system was noted as the essential and necessary condition for the development of the law priority principles in the Development Strategy of New Uzbekistan in 2022-2026;

Fifthly, the task of reducing the practice of imprisonment from 30% to 20% was strengthened as the main criterion for reforms in the judicial system in the strategy “Uzbekistan – 2030”.

Sixthly, new version of the Constitution of the Republic of Uzbekistan was adopted pursuant to the Referendum on April 30, 2023, in which human rights and freedoms are guaranteed based on the universally recognized norms of international law, as well as the prohibition of the death penalty.

Meanwhile, 3 laws, 2 decrees and 7 resolutions of the President of the Republic of Uzbekistan, more than 20 resolution and decrees of the government, more than 15 departmental and interdepartmental regulatory legal documents aimed at further improving the system of execution of punishment for the implementation of these strategic goals were accepted.

As a result, the range of rights and legal interests of the prisoners were expanded and brought into line with international standards.

It is worth noting that at the initiative of the President Shavkat Mirziyoyev, the work on ensuring the rights and freedoms of prisoners serving sentences in penitentiary institutions has reached a completely new level.

In particular, based on the Decree of the President of the Republic of Uzbekistan dated on April 2, 2021, “On additional organizational measures to further improve the activities of internal affairs bodies in the field of ensuring public safety and fighting crime”, the followings were determined:

to increase the effectiveness of educational work on the moral correction in order to prevent re-offending, to improve the system of execution of punishment, to ensure the protection of the rights, freedoms and legal interests of prisoners;

to ensure the priority importance of honor and dignity of prisoners, to introduce transparent and more effective legal mechanisms of moral education and labor training for social adaptation of convicts to society in the future;

to radically improve the criminal-executive legislation, taking into account modern international standards and advanced foreign experience;

to ensure strict discipline and legality in penitentiary institutions and investigative detention centers, to prevent corruption, and fully automate the processes of monitoring the condition of prisoners;

to create opportunity to purchase items in the prescribed manner by prisoners in penitentiary institutions, and their relatives as well, through electronic stores based on free market mechanisms;

to maintain the electronic database of information about the behavior and personality of each prisoner and fully digitize the process of distribution of prisoners in order to correctly determine the tactics of re-educating prisoners and prevent them from committing crime.

A number of practical results have been achieved as a result of the comprehensive reforms implemented in the field of criminal punishment.

Particularly:

Firstly, the restrictions on the visits of juvenile prisoners with their parents were removed, and female prisoners were given the right to visit their children in orphanages on unlimited basis.

Secondly, special attention was paid to the education and vocational training of prisoners, and the activity of "Master-Apprentice" schools was launched in penitentiary institutions.

In fact, there are 6 general educational schools and 4 vocational centers operating in the penitentiary institutions at present. More than 2,000 convicts are trained in such schools, and more than 5,000 in the vocational centers are trained in tailoring, carpentry, furniture making, auto electrician, electrician, locksmith and other professions, and they are given certificates in 16 specialties in total.

Thirdly, according to the law “On Education"” the right to distance education was given to prisoners in penitentiary institutions.

Henceforth, the dream of the prisoners who want to get higher education was fulfilled. 25 prisoners were admitted to the prestigious national higher educational institutions, as well as branches of international higher education institutions in our country in 2021-2023.

Fourthly, special attention was paid to the social welfare of prisoners, and the right to pension was guaranteed (as of January 1, 2024, pensions were granted to 676 prisoners) and it was determined that social insurance would not be deducted from wages. The number of phone calls, visits and meetings of the prisoners has almost doubled.

Fifthly, in the direction of expanding the political rights of prisoners, the requirements of the International Covenant on Civil and Political Rights, as well as the positive experiences of France, Germany, the Netherlands, the United Kingdom, Germany, and Turkey, are implemented into national legislation, and the right to vote was given for the first time for prisoners who are serving sentences for crimes of low social risk and less serious crimes.

On this basis, 3,619 prisoners in the 2019 Parliamentary elections, 8,203 prisoners in the 2021 Presidential elections, and 9,738 prisoners in the 2023 referendum exercised their political right to vote.

Sixthly, the procedure for the visit of the Representative of the Oliy Majlis of the Republic of Uzbekistan on Human Rights (Ombudsman), diplomatic corps, representatives of international, republican and local non-governmental non-profit organizations, foreign and local mass media to prisons was established.

Seventhly, With the Decree of the President of the Republic of Uzbekistan “On the Development Strategy of New Uzbekistan in 2022-2026”, a system of providing “initial socio-material support package” was introduced to help citizens who have served their sentences to find their place in society in the future.

Eighthly, in order to allow and support the convicts who realized the mistake of their actions, sincerely repented and resolutely chose to the path of recovery, the mechanism of “pardon” was established by the head of our state which is considered clear example of forgiveness and nobility of our nation.

In particular, in 2017-2024, a total of 7128 convicts were pardoned by the relevant decrees of the President of the Republic of Uzbekistan, 219 of them were foreign citizens and 377 were women.

Ninthly, according to the relevant decree of the government, certain information in prisons that cannot be disclosed until now, including:

the number of persons detained in penitentiary institutions and investigative detention centers;

the number of penitentiary institutions and investigative detention centers and their locations;

the production activities of penitentiary institutions, the goods produced by them according to the nomenclature and expressed in money;

the number of deaths among persons detained in penitentiary institutions and pretrial detention centers;

information on the number of prisoners kept in penitentiary institutions and subjected to coercive medical measures was disclosed.

Admittedly, in addition to the norms of international law, the United States, the countries of the European Union, Russian Federation, Moldova, Kazakhstan, Belarus and Kyrgyz Republic and a number of positive experiences of other countries were taken into account in the improvement of criminal law and the mechanisms of its practical implementation, as well as in the expansion of the basic rights and freedoms of prisoners.

In addition, the provisions of the international legal norms related to the system of execution of punishment were introduced into the criminal law. In particular, the “Minimum standard rules for dealing with prisoners” (Nelson Mandela Rules), adopted by the resolution of the United Nations General Assembly on December 17, 2015, was applied to the criminal law of the Republic of Uzbekistan.

Hence, respect for the dignity of prisoners was guaranteed, mechanisms aimed at preventing the use of torture and cruel treatment were improved. Furthermore:

the right of prisoners to receive psychological assistance was enabled;

prisoners in need of medical care were allowed to be placed in regional institutions of the Ministry of Health;

prisoners suffering from a serious illness were given the opportunity to talk over the phone and meet their close relatives based on the doctor’s permission.

At the same time, the application of disciplinary punishment was completely canceled for the disorder in case of his mental state was disturbed.

Based on the abovementioned facts, as well as on the basis of the norms of international law and the positive experiences of foreign countries, it is expedient to implement the following proposals and recommendations in the practice of law enforcement in order to improve the criminal law of the Republic of Uzbekistan:

Further expansion of the basic rights of prisoners, in particular, the use of computer tools connected to the Internet (educational, artistic, electronic books, publications, educational materials, graphic designs) connected to the global information network in specially equipped rooms, the introduction of a simplified procedure for the use of electronic state services, including notary services;

education of convicts, acquisition of profession and wide involvement of them in useful work;

raising the legal consciousness and culture, ideological views of prisoners, defining systematic measures aimed at forming immunity of intolerance to violations to them;

determining the acceptable directions of exemption from punishment in legislation;

implementation of modern forms of social adaptation and resocialization of prisoners based on the analysis of international law norms and best practices of foreign countries.

At the same time, further liberalizing crimes and criminal law, especially by expanding non-custodial sentences for juveniles, women, the elderly, and prisoners with disabilities, is the best way to improve the most effective national crime-fighting system today.

In short, improving the law enforcement practice and legislation in the judicial executive system, and consistently continuing the ongoing reforms are aimed at building democratic legal state and fair civil society in our country, strengthening the guarantees of human rights protection, and ensuring the rule of law in society.

Khatamov Rustam

Head of the Academy of the Ministry of internal affairs of the Republic of Uzbekistan, Doctor of philosophy in law sciences (PhD), Associate professor, Colonel

New trends in Central Asian politics of Uzbekistan

Uzbekistan's policy in Central Asia has reached a qualitatively higher level. The trend of developing mutually beneficial cooperation between the countries of the region is intensifying with its own characteristics. According to President Shavkat Mirziyoyev, Uzbekistan has given priority to strengthening relations of close friendship and cooperation with neighboring countries, and over the past historically short period - the political position and influence of our country in the Central Asian region and the Middle East. The world has grown dramatically. The spirit of trust in New Uzbekistan and the principles of striving for cooperation with our country have increased in the world.

Central Asia is a region with important and unique resources, economic and communication potential. In the 90s of the 20th century, the countries of the region embarked on their own independent path of development and joined the ranks of developing countries, promoting humanism, social justice, and security. in the region there is international harmony, peace and well-established foreign policy activities and international cooperation, based on the principles of international law, such as the creation of an atmosphere of peace, and consistently developing them.

In the direction of the foreign policy of New Uzbekistan, in establishing practical cooperation in the countries of Central Asia, the fifth priority direction of the “Uzbekistan-2030” strategy has been identified - the consistent continuation of a policy based on the principle of “A Safe and Peaceful State”. the region to a new level of quality, good neighborliness and strategic partnership with all neighboring countries, pays special attention to the rapid development of relations, regular and effective conduct of bilateral and multilateral negotiations in political, economic, cultural and humanitarian areas.

The measures taken by the government of the Republic of Uzbekistan to expand mutual cooperation between the countries of the region also play an important role. It should be noted that as a result of President Shavkat Mirziyoyev’s reforms in the field of foreign policy, diplomatic relations of Uzbekistan with the countries of the Central region literally rose to a new level.

The fact that Shavkat Mirziyoyev began his first visit to foreign countries as President of Uzbekistan with a visit to the countries of Central Asia, literally indicating that he has raised the development of regional cooperation to a new level.

On March 6-7, 2017, Shavkat Mirziyoyev made a state visit to Turkmenistan. It should be noted that this was Sh. Mirziyoyev’s first visit to a foreign country as the President of the Republic of Uzbekistan. This state visit of the President clearly confirmed that Uzbekistan attaches great importance to good neighborly relations in foreign policy, and was supported by the signing of the Strategic Partnership Agreement between Uzbekistan and Turkmenistan.

The visit of President Shavkat Mirziyoyev to Kazakhstan on March 23, 2017 and the signing of a Joint declaration on deepening the strategic partnership and strengthening the friendly neighborhood between the two countries opened a new era in interstate cooperation. Thanks to the joint efforts of Uzbekistan and Kazakhstan, in 2017 the volume of bilateral trade reached 2 billion US dollars, and such direct contacts serve as the basis for the effective implementation of bilateral and multilateral cooperation.

Following the state visit of President Shavkat Mirziyoyev to the Kyrgyz Republic, a declaration was signed on strengthening strategic partnership, friendship, good neighborliness and trust.

In 2018, the implementation of the new policy of the President of Uzbekistan to strengthen political trust and mutual solidarity in Central Asia continued consistently. In particular, President Sh. Mirziyoyev visited this country on March 9-10, 2018 at the invitation of the President of the Republic of Tajikistan E. Rahmon. During the visit, the leaders of the two countries signed a Joint Statement on Strengthening Friendship and Good Neighborhood and an Agreement on Certain Sections of the Uzbek-Tajik State Border.

In addition, as a result of the continuation of negotiations of the Republic of Uzbekistan on the delimitation and demarcation of the state border with neighboring countries, the delimitation of the state border lines with Kazakhstan has been completed, 85 percent of the border with Kyrgyzstan has been passed. agreed upon, and 99.9 percent of the border with Tajikistan has been agreed upon.

At the end of 2021, trade turnover between Uzbekistan and Tajikistan amounted to almost 600 million US dollars. The number of joint ventures has increased 10 times. If in 2017 there were 24 enterprises operating in Uzbekistan, then by the end of 2021 240 enterprises with the participation of Tajik capital began operating. There are 61 enterprises operating in Tajikistan based on investments from Uzbekistan.

On June 2-3, 2022, the presidents of Tajikistan and Uzbekistan Shavkat Mirziyoyev and the presidents of Tajikistan signed a historic declaration “On strengthening eternal friendship and alliance.” In addition, documents signed at the level of government, ministries and departments are designed to raise multifaceted Uzbek-Tajikistan cooperation to a new level.

Analyzing the platforms and formats of interstate dialogue organized on the initiative of Uzbekistan on regional cooperation, it should be noted that, on the initiative of the head of Uzbekistan, consultative meetings of the leaders of Central Asian countries are regularly held.

Consultative meetings are systematically organized as part of this initiative (March 2018, Kazakhstan; November 2019, Uzbekistan; August 2021, Turkmenistan; July 2022, Kyrgyzstan; 2023, Tajikistan). As positive trends in Uzbekistan’s policy in Central Asia, practical proposals made at these meetings can be noted. In particular, at the fourth consultation meeting held in Kyrgyzstan, he put forward a number of proposals that meet the interests of the region. In particular, the interests of the region today are served by such proposals as the creation of a system of border trade zones with unified and simplified procedures for the delivery of goods to Central Asia and the holding of a Central Asian festival of culture, art and cinema in each country.

Indeed, here it is permissible to note the high assessments expressed by many foreign experts to the initiatives of Uzbekistan. For example, Li Yunxuan, director of the Institute of European and Asian Social Development under the State Council of China, says: “Uzbekistan is an active participant in the processes of strengthening regional and interregional cooperation, in the mechanism of consultative meetings of leaders of Central Asian countries, in ensuring the effectiveness of cooperation on topical issues of ensuring regional stability and development plays an important role.

Indeed, as a result of the growing role of Central Asia in modern international relations, “the spirit of trust in New Uzbekistan and the principles of cooperation with our country have increased in the world.” ... Our countries, which have been common brothers and sisters from time immemorial, began to act in close cooperation on many regional and global issues and socio-economic development.

The phrase “spirit of Central Asia” has appeared in world political science.

On September 14, 2023, President of Uzbekistan Shavkat Mirziyoyev spoke at the fourth consultative meeting of leaders of Central Asian countries held in Tajikistan and put forward a number of proposals to strengthen new trends in the Central Asian region. politics of Uzbekistan. Including the development of trade and economic cooperation in the region; development of industrial cooperation; increasing interdependence in transport; ensuring security in the energy sector; ensuring food safety; Combating the threats posed by climate change.

The issue of creating an interstate economic council to expand practical cooperation on the entire range of trade and economic issues in the region also deserves attention. Another platform implemented at the initiative of Uzbekistan is the Central Asian Economic Forum. On March 15, 2019, the first Central Asian Economic Forum was held in Tashkent with the participation of deputy prime ministers of Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan. Positive results were achieved through discussion at the forum of issues of further development of regional cooperation, studying the possibilities of the transport and communications complex, increasing the volume of mutual trade and the attractiveness of tourism.

At the initiative of Uzbekistan, in order to ensure good neighborliness and interethnic harmony between the peoples of the countries of Central Asia, on November 15, 2019, an international conference was held in Tashkent with the participation of experts and scientists from foreign countries on the topic “Central Asia is our common home,” which serves to bring the countries of the region closer together in cultural and humanitarian sphere.

Uzbekistan's policy in Central Asia is consistent in identifying new trends, ensuring stability and security.

On March 9-10, 2018, the President of the Republic of Uzbekistan Shavkat Mirziyoyev made a state visit to the Republic of Tajikistan. At the high-level meeting, special attention was paid to strengthening interstate cooperation in the areas of ensuring regional security and stability, promoting the solution of international problems, combating terrorism and extremism and other types of organized transnational crime, which is an important achievement of Uzbekistan. diplomacy in ensuring regional security and stability. According to Tajik expert Kasimsho Iskandarov, relations between Tajikistan and Uzbekistan depend on the political will of state leaders. After Shavkat Mirziyoyev came to power, relations between the two countries changed dramatically. The rapid development of Tajik-Uzbek relations has solved many problems not only between the two countries, but also between all countries in the region. The political environment for developing regional cooperation has improved. 

Also, on the initiative of President Shavkat Mirziyoyev, on June 22, 2018, the UN General Assembly for the first time adopted a resolution “Strengthening regional and international cooperation to ensure peace, stability and consistent development in the Central Asian region”.  Our opinion is confirmed by the fact that Uzbekistan has put forward proposals for the formation of a regional system for forecasting emergency situations in the region, their prevention, early warning and joint counteraction.

It is worth noting that there are several factors that contribute to the development of good neighborly relations, such as mutual trade, investments and joint projects.

If we look at the numbers, we can witness that Uzbekistan’s trade turnover with the countries of Central Asia has grown to an unprecedented level. Trade turnover in 2017 amounted to $2.4 billion, and by the end of 2019 it reached $5.2 billion. In two short years the growth was 150 percent. Despite the restrictions caused by the pandemic, the growth in freight volumes observed in Central Asia in 2020 demonstrates the enormous potential for further expansion of international roads and railways and strengthening of transport and logistics infrastructure. In this regard, on August 6, 2021, within the framework of the third consultative meeting of leaders of Central Asian countries, at the Economic Forum of Central Asian Countries, held in the Avaza National Tourist Zone (Turkmenistan), the Uzbek side discussed the development of transport corridors connecting the countries of Central Asia, increasing efficiency use of the transit potential of the countries of the region, and also, it is worth noting that he made a proposal to strengthen cooperation on the harmonization and digitalization of customs clearance procedures. It is worth noting that “in recent years, radical reforms in our country, a consistent and active foreign policy, especially strengthening the environment of close neighbors in the Central Asian region, have increased the international prestige of our country”.

If we evaluate the new trends in the Central Asian policy of Uzbekistan, we can see that their impact on regional interaction and international relations is acquiring positive significance.

It should be noted that on December 19, 2019, at the plenary meeting of the UN General Assembly, a special resolution “Sustainable tourism and sustainable development in Central Asia” was adopted, proposed by President Shavkat Mirziyoyev.

In short, the special significance of the approaches in the regional policy of Uzbekistan lies in the fact that they serve to strengthen the belt of security, stability and cooperation throughout the region. In the context of increasing threats to regional and global security, the socio-economic well-being of countries, Uzbekistan is of great importance in determining new trends in the politics of Central Asia and the prospects for jointly combating modern dangers and threats.

Mirzayev Gulom,

Doctor of philosophy in historical sciences (PhD), associate professor at the University of Public Safety of the Republic of Uzbekistan

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

Uzbekistan’s 2030 Strategy is the country’s principal framework for medium- and long-term development. It provides strategic direction for public policy, institutional reform, and socio-economic transformation, while embedding principles of continuity, predictability, and long-term planning at the core of state governance. Since its adoption, the strategy has served as a foundational reference point for the reform agenda, shaping what is often referred to as “New Uzbekistan.”

Over recent years, Uzbekistan has made tangible progress across a wide range of areas, including economic modernisation, public administration reform, judicial reform, the expansion of civic space, and the protection of human rights. These reforms have produced measurable results and have contributed to greater openness and institutional capacity. At the same time, the pace of change—both domestically and globally—has continued to accelerate.

Societal expectations are evolving, economic conditions are becoming more complex, technological change is reshaping governance models, and global geopolitical and economic dynamics are introducing new risks and opportunities. Against this backdrop, updating the Uzbekistan–2030 Strategy is a logical and necessary step to ensure that policy planning remains relevant, responsive, and effective.

At the heart of the revised strategy lies a fundamental principle articulated by the President of Uzbekistan: the state must serve the people, not the other way around. In its updated form, the strategy seeks to translate this principle into practical governance outcomes by reinforcing a development model that is results-oriented, accountable, and centred on human well-being.

Every policy decision and reform priority is assessed through the lens of its impact on citizens’ quality of life, social inclusion, and long-term prosperity. This marks a shift away from abstract targets toward a more outcome-driven approach to public policy.

A key element of the strategy’s refinement is a comprehensive review of progress achieved to date. This includes an honest assessment of remaining challenges and structural bottlenecks, as well as recalibrating performance indicators to enable more precise measurement and evaluation. Each strategic objective is linked to clearly designated responsible institutions, while required financial resources are explicitly identified. This strengthens institutional accountability and moves the strategy from a broad vision to an operational roadmap.

Another defining feature of the updated Uzbekistan–2030 Strategy is its emphasis on clarity and relevance for ordinary citizens. The strategy is being shaped so that people can readily understand how national reforms affect their daily lives—how they improve access to services, create economic opportunities, and enhance prospects for future generations. In this sense, the strategy is intended not as a set of slogans, but as a framework for tangible, lived improvements.

The revised strategy also reflects the need for adaptability. Performance benchmarks are being updated to align with new economic realities, social priorities, technological innovation, and international developments. This ensures that public policy remains flexible and able to respond to change, rather than being constrained by static assumptions.

Digitalisation plays a central role in this process. The monitoring and evaluation of strategy implementation are being fully digitised, enabling greater transparency, evidence-based decision-making, and enhanced public oversight. This approach strengthens trust in public institutions and supports more informed policy adjustments.

Equally important is policy coherence. All sectoral, regional, and thematic development plans are being aligned with the Uzbekistan–2030 Strategy to ensure consistency across government actions. This integrated approach reduces fragmentation and enhances the overall effectiveness of state policy.

Public participation is another core principle. The updated strategy is being developed through broad public consultation, incorporating input from citizens, civil society organisations, experts, and the wider public. This reflects the understanding that reforms are most sustainable and credible when they are shaped with society, rather than imposed upon it.

In conclusion, the ongoing refinement of the Uzbekistan–2030 Strategy represents a structured, transparent, and responsible effort to deepen reforms and adapt them to contemporary realities. Above all, it reaffirms a clear priority: national development is not an end in itself, but a means to improve people's lives and well-being. In this sense, Uzbekistan–2030 is being shaped as a genuinely people-centred roadmap for inclusive and sustainable progress.

Eldor Tulyakov,

Executive Director, Development Strategy Centre

Navruz is considered one of the ancient and widely celebrated traditional holidays, embodying values such as humanity, kindness, generosity and diligence.

This holiday holds a significant place in the culture of the peoples of Central Asia, Iran, the Caucasus, the Near East and South Asia, reflecting the continuity of centuries-old civilizational traditions.

According to historical sources, the tradition of Navruz dates back at least three thousand years. Detailed information on this subject was provided by Abu Rayhan Beruni in his work “The Remaining Signs of Past Ages” (Athar al-Baqiya).

Navruz is closely linked to the calendar systems of ancient Iranian and Turkic peoples and is celebrated during the vernal equinox. The origins of Navruz are directly connected to astronomical events: during the equinox, the Sun moves along the ecliptic and enters the sign of Aries, making day and night equal in length. Ancient peoples interpreted this natural phenomenon as the beginning of a new year. Consequently, since antiquity, Navruz has been regarded as a symbol of nature's awakening, fertility and the renewal of life.

Today, Navruz is recognized as a cultural tradition celebrated across a vast geographical area. The holiday is observed in various forms in countries such as Uzbekistan, Iran, Afghanistan, Azerbaijan, Tajikistan, Kazakhstan, Kyrgyzstan, Türkiye, India and Pakistan. Its shared core philosophy is centered on harmony with nature, fostering friendship between people and strengthening unity within society.

The international significance of Navruz has received special recognition. In 2009, UNESCO inscribed Navruz on the Representative List of the Intangible Cultural Heritage of Humanity. Subsequently, the United Nations General Assembly proclaimed March 21 as International Nowruz Day, highlighting the holiday's role in strengthening cultural ties and mutual respect among nations.

The traditional festive table (dasturkhon) plays a central role in Navruz ceremonies. Various dishes prepared from spring bounties, including Uzbek national specialties such as kuk somsa (green somsa), kuk chuchvara (herb dumplings), halim and sumalak, are considered symbolic elements of the holiday. In particular, ceremony of preparing sumalak represents a centuries-old communal tradition. Made from wheat sprouts, this dish is interpreted as a symbol of abundance and prosperity.

Historical sources record that ceremonies associated with sumalak were held in the form of ancient communal festivities. Some researchers note that these traditions continued through the Middle Ages. In particular, historical records from the Timurid era contain information about spring festivals and public celebrations. These ceremonies were often organized in open fields, gardens, or city centers, featuring various traditional folk games.

Another ancient tradition associated with Navruz is the spring festival. Events such as the Tulip Festival (Lola Sayli) or the Red Flower Festival (Guli Surkh Sayli) are dedicated to celebrating the awakening of nature. These festivities were primarily held in mountain and foothill regions, evolving as ceremonies linked to the blooming of spring flowers.

Cultural scholars explain the significance of Navruz in society through several key aspects. First and foremost, it ensures the continuity of centuries-old traditions and values. Secondly, the holiday strengthens social virtues such as collectivism, generosity, and tolerance. Thirdly, Navruz serves as an important platform for promoting cultural dialogue and mutual understanding among diverse peoples.

From this perspective, Navruz is regarded not only as a spring holiday but as a unique cultural phenomenon shaped throughout the history of human civilization. Its ancient customs, ceremonies and symbolic meaning continue to play a vital role today in strengthening social harmony, preserving historical heritage, and passing it on to future generations.

Dunyo IA

The current and future development of Uzbekistan's economy is directly determined by the freedom of the private sector, equal and favorable opportunities created for businesses, and robust legal protections. The Open Dialogue between the Head of State and entrepreneurs, which has become a solid tradition in our country, is not merely another routine event. Instead, it serves as the primary mechanism of a direct, pragmatic, and highly effective strategic alliance between business and government. This direct platform enhances the country's investment attractiveness while playing a crucial role in supporting national businesses and unlocking new opportunities.

Practical Results and Benefits

Direct, face-to-face interaction with the President has emerged as the most powerful driver for fundamentally improving the country's business climate. The systemic decisions made and incentives granted within this platform have delivered tangible, practical benefits to business entities rather than remaining on paper. Below are select outcomes demonstrating the impact of these strategic initiatives:

Transformation of the Financial and Credit System

The government optimized the direct financing procedures for large state-owned enterprises, shifting the focus toward directing banking resources to private sector projects. The Business Development Bank, microfinance institutions and banks, factoring services, venture capital funds, and industrial support funds were established. A state guarantee system for entrepreneurs' bank deposits was also introduced.

Land, Property, and Infrastructure Reform

Land parcels and real estate were transformed into full-fledged economic assets. Taxes on land acquired through auctions were adjusted, payment installment periods were extended, and incorporating land into charter capital was permitted. Changing the intended use of land was simplified via a unified classifier. Energy limits were regulated, and private capital was attracted to the development of mineral deposits and subsoil resources.

Foreign Trade, Logistics, and Exports

The economy pivoted toward WTO accession and integration into global supply chains. Monopoly and exclusive rights in foundational sectors such as metallurgy, chemicals, and energy were abolished. Subsidies for pre-export financing, logistics, and international certification were expanded. The "E-logistika" platform was launched to ensure transparent distribution of transport permits, and the VAT refund mechanism for export operations was simplified.

IT, Services, and Innovation

The state implemented joint-equity co-financing models and patent fee reimbursement mechanisms to boost IT sector development, artificial intelligence, and startups. A VAT cashback mechanism and corporate income tax reductions were introduced for the catering, tourism, and hospitality sectors. Certification and consulting services in construction and tourism were transitioned to the private sector.

Liberalization of Tax and Oversight Systems

Tax administration was enhanced: the VAT "tax-gap" coefficient was abolished, and a transparent rating system for compliant businesses was introduced. A moratorium was declared on the application of new penalties. Commercial banks were prohibited from forcing collateral into unauthorized liquidation and unlawfully suspending business activities.

Legal Protection and Local Manufacturing

The authority of state bodies to confiscate property without a court order or cancel land allocation decisions was restricted. The statute of limitations for tax disputes was reduced to three years. To support domestic manufacturers, a "local content" requirement in public procurement and a system of long-term guaranteed orders were established.

Representatives of the business community feel the real impact of the platform in their daily operations.

Shavkat Kholboev, head of the "AslCab" enterprise, states: "Based on proposals submitted during last year's Open Dialogue, an automated electronic VAT refund system for exports was launched. Consequently, our enterprise recovered approximately 10 to 12 billion UZS in working capital within a short period, channeling these funds into purchasing raw materials and expanding our export footprint."

Firat Deniz, a foreign investor and owner of a major textile enterprise, emphasizes: "The Open Dialogue with the President is one of the most effective platforms globally for directly hearing and protecting investor interests. My proposal to create additional opportunities for enterprises exporting over $50 million annually was immediately supported and implemented."

Preparations for the 6th Open Dialogue: Numbers and Analysis

In preparation for the upcoming 6th Open Dialogue, a Republican Headquarters comprising representatives from over 50 ministries and agencies was established on May 15, operating around the clock (24/7). Nearly 6,000 inquiries have been received via call centers and official bots. As part of the processing efforts, over 4,200 inquiries were resolved positively, while approximately 1,800 remain under review.

By topic, the inquiries include: over 940 regarding strengthening legal protections for entrepreneurs, over 910 on banking issues, over 750 on production space allocation, nearly 680 on simplifying business regulations, over 660 on infrastructure provision, nearly 530 on tax system improvements, and over 480 on financial support for business. Regionally, the highest volume of inquiries originated from Kashkadarya region, Tashkent city, Samarkand region, and Fergana region.

Additionally, responsible organizations conducted over 750 meetings attended by more than 8,800 entrepreneurs, raising over 3,500 proposals and issues. Furthermore, over 130 meetings organized by the Business Ombudsman and the Chamber of Commerce and Industry brought together more than 5,700 entrepreneurs who raised nearly 1,500 issues. Expert groups are analyzing 300 systemic problems identified during these sessions, the majority of which cover: simplifying business regulation (nearly 70), improving the tax system (60), and foreign economic activity and investment (over 50). Proposals are being developed in collaboration with relevant ministries and agencies to address these issues fundamentally and improve current legislation.

Abdumannop Buriev, Business Ombudsman under the President of the Republic of Uzbekistan for the Protection of Rights and Lawful Interests of Entrepreneurs, highlighted priority areas in the sector: "We focus primary attention on building a preventive system that averts issues before they arise and protects entrepreneurs' rights early on. Through extensive digitization and the integration of electronic resources into a unified network, potential risks are eliminated in advance. The live dialogues held ahead of the main event create a solid foundation for modern tools that protect business from both legal and digital standpoints."

Davron Vakhabov, Chairman of the Chamber of Commerce and Industry of Uzbekistan, emphasized the positive momentum: "Today, the private sector has become the primary driving force of our national economy. Regular open dialogues and the systemic decisions arising from them offer invaluable opportunities for entrepreneurs to expand their operational scale, increase export capacity, and strengthen competitiveness in international markets."

Preparations for the President's upcoming Open Dialogue are entering their final stage. Every submitted proposal and inquiry serves to further improve the business environment in our country. We invite all entrepreneurs and investors to actively participate in shaping the agenda for the upcoming high-level dialogue. Inquiries and proposals are accepted 24/7 via phone numbers 1100 and 1094, web platforms business.gov.uz and my.chamber.uz/ochiq_muloqot/oz, as well as Telegram communication channels @biznesombudsmanrasmiy_bot and @ochiqmuloqot2026_bot.

Today, global development is proceeding at an unprecedented pace of urbanization — by 2050, nearly 68% of the world’s population is expected to live in cities.

This process is also advancing rapidly in Uzbekistan: the country’s population has exceeded 38 million, the urbanization rate has reached 51%, and nearly 20 million people now live in urban areas.

According to economic analyses, every 1% increase in the urbanization rate grows the economy by at least 1% and accelerates investment flows and startup development — making reforms in this sector of strategic importance.

With this in mind, within the framework of Uzbekistan’s urbanization policy, the practice of “chaotic construction” has been abandoned in favor of smart and integrated territorial development — an approach recognized as essential in global best practices.

One of the most important institutional steps was the establishment of the National Committee for the Sustainable Development of Urbanization and the Housing Market. This body serves as the central “think tank” unifying architecture, economics, and social policy into a single system.

To reduce administrative barriers in the construction sector, the number of permitting stages has been cut by a factor of 3, and processing timelines by a factor of 4. Additionally, 420 outdated urban planning norms have been restructured, replaced by 140 modern regulatory documents.

Furthermore, in Uzbekistan, land ownership no longer automatically grants the right to build — the process is now based on the principle of integrated territorial development.

Most importantly, a strict principle has been enshrined in law: schools, clinics, and modern utilities must be built before or simultaneously with residential construction.

These new mechanisms provide, above all, trust and financial stability. To ensure stability in the housing market and strengthen buyer confidence, measures have been taken to fully eliminate the risk of “unfinished constructions.” To this end, a system of escrow accounts is being widely introduced in Uzbekistan for the first time.

Through this modern mechanism, citizens’ funds are securely held in banks until the keys to the property are handed over. Developers, in turn, gain access to affordable and convenient project financing. As a result, urban development has transformed from a chaotic process into a managed industry operating under transparent rules.

Development Strategy and Achievements

Over the past eight years, 120 million square meters of housing have been built across the country. The total volume of construction work grew from 30 trillion soums in 2016 to 314 trillion soums last year, and the sector now employs more than 3.5 million people.

According to the state’s long-term priority strategy, the following key targets have been set:

• Raise the urbanization rate to 60%;
• Increase housing provision from 18.9 square meters per capita to 23 square meters;
• Nearly double the annual housing construction volume to 30.3 million square meters.

Innovative Mega-Projects and an Ecological Approach

The most vivid practical expression of this strategy is the “New Tashkent” mega-project, rising across 20,000 hectares. Designed for a population of 1 million residents, this ecologically clean, high-tech metropolis implements the globally recognized “15-minute city” concept. The project includes the creation of a 420-hectare “green belt,” the planting of 200,000 trees, and a fully ecological transport system (electric buses, metro, and bicycle lanes).

These high living standards are not limited to the capital. Across the country, 56 “New Uzbekistan” residential districts, each designed for at least 70,000 residents and equipped with rich social infrastructure, are being constructed at an accelerated pace.

In conclusion, Uzbekistan has formed a sustainable and effective model for managing urbanization, encompassing the National Committee, the escrow system, and the smart “New Uzbekistan” districts. By transforming modern cities into ecologically clean, socially oriented, and livable spaces, the country is establishing a high benchmark for urbanization in the Eurasian region.

On February 21, under the chairmanship of the President of the Republic of Uzbekistan, Supreme Commander-in-Chief of the Armed Forces Shavkat Mirziyoyev a meeting was held on strengthening military security and defense capacity of the state.

The meeting was attended by members of the Security Council, heads of ministries and departments within the Armed Forces of Uzbekistan, commanders of military districts, as well as the chairmen of the Jokargy Kenges and the Council of Ministers of the Republic of Karakalpakstan, regional and Tashkent city khokims, as well as responsible persons of local authorities in the videoconference format.

At the beginning of the meeting, the adopted measures on strengthening the country's defense capacity and their results were reviewed, certain shortcomings in this work were pointed out.

It was noted that the national army is being equipped with modern weapons and equipment, the level of combat and moral-psychological training of servicemen has significantly increased. 

In view of international experience and the analyses carried out, new combat units have been formed to prevent and eliminate internal and external threats, and the organizational structure of the troops has been optimized.

It was underlined that the creation of a new system of modernization and modern equipment of the army continues - the defense industry is developing and additional enterprises have been set up. The Armed Forces of Uzbekistan have established bilateral military cooperation with more than 20 countries and successfully participated in more than 400 joint exercises.

The infrastructure of higher military schools within the Armed Forces has been completely modernized, their curricula and methodology brought in line with modern requirements. 

The social and legal protection of servicemen and their families has been strengthened. In particular, about 30,000 families have been provided with housing, and more than 2,000 children of servicemen have received benefits when enrolling in higher educational institutions. 

Military administrative sectors, government and public organizations are involved in creating favourable conditions for homeland defenders. Attention to the issues of educating young people in the spirit of patriotism and initial pre-conscription military training in schools is being intensified.

The meeting identified priority tasks for 2025 and subsequent years. 

The need to consider contemporary armed conflicts, existing threats to national security and the peculiarities of the theater of military operations when planning for the further development of the army was emphasized. 

It has been indicated that artificial intelligence, robotic systems, missiles, drones and means of countering them are widely used in today's regional conflicts. In this connection, it has been instructed to create new units in the armed forces to combat drones, use robotic equipment, air defense, and cyber structures utilizing artificial intelligence technologies.

The Supreme Commander-in-Chief emphasized the need to further improve the combat readiness of the army, raise the level of combat training, create a unified automated troop management system using artificial intelligence technologies, as well as introduce dual training in military education and training of military personnel. 

Priority tasks have been set to improve the activities of the “Corps of Master Sergeants”, which is the backbone of the army, further develop the defense industry, provide social support to servicemen and their families, educate young people in the spirit of patriotism and involve them in military sports.

Reports and proposals by the Minister of Defense, commanders of military districts and other responsible persons were heard at the meeting.

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