Modern Central Asia is becoming a space of sustainable growth and mutual trust. The countries of the region demonstrate a strong commitment to building balanced relations with global partners, prioritizing practical initiatives in trade, energy, transport, and innovation. One of the key formats shaping this new architecture is the “C5+1” platform, which unites the Central Asian states and the United States.

Regional Consolidation: Dialogue Based on Equality and Pragmatism

In recent years, the “C5+1” format has evolved from a diplomatic mechanism into an effective platform for coordination and implementation of joint projects. The latest ministerial meeting in Samarkand, attended by the Minister of Investment, Industry and Trade of the Republic of Uzbekistan, Laziz Kudratov, demonstrated a high level of trust and a shared focus on tangible results.

Key topics on the Samarkand agenda included food security, climate resilience, development of green and digital economies, diversification of transport corridors, and deepening industrial cooperation.

Following the meeting, memorandums were signed on decarbonization and digitalization of customs procedures - a step that paves the way for harmonized trade rules, easier exports, and increased investment inflows into the region.

Central Asia: From Fragmentation to an Integrated Economic Space

The figures speak for themselves: the total foreign trade turnover of Central Asian countries has reached $220 billion, almost doubling since 2017, while mutual investments have grown 5.6 times. The region’s combined GDP increased by 40% over the past five years to exceed $406 billion.

These indicators reflect not only growth but also a qualitative shift - from isolated initiatives to a coordinated regional development strategy.

Uzbekistan - Kazakhstan: Industrial and Logistics Core

The Uzbekistan - Kazakhstan partnership exemplifies a new model of integration. Between January and August 2025, mutual trade reached $3.03 billion, up by 15%. Projects exceeding $7 billion are under implementation across engineering, agriculture, construction, and energy sectors. Over 1,100 enterprises with Kazakh capital operate in Uzbekistan, creating jobs and new export niches.

Uzbekistan - Tajikistan: Transport and Energy Bridge

Tajikistan and Uzbekistan are rapidly strengthening railway and energy cooperation. In 2024, cargo traffic between the two countries reached 10 million tons, while regular passenger flights and a joint investment company with a $100 million capital were launched. These are not just numbers - they represent an architecture of trust that enables joint industrial and agricultural clusters.

Uzbekistan - Turkmenistan: Corridors of Growth

Cooperation with Turkmenistan is expanding in energy, logistics, and industry. In 2024, bilateral trade exceeded $1.14 billion, and the Shavat - Dashoguz border zone is evolving into a hub of trade and joint manufacturing. A localization project for repairing Turkmen wagons in Andijan is a vivid example of practical industrial integration.

Uzbekistan–Kyrgyzstan: A “Roadmap” for the Future

The interstate program until 2030 and the Border Regions Council ensure steady progress. From January to August 2025, trade turnover approached $600 million, while Uzbekistan’s exports grew by nearly 80%. New logistics routes are being developed to reduce transport costs and enhance business competitiveness.

“C5+1” as a Catalyst for Development

Participation in the “C5+1” framework gives regional integration new depth - aligning national interests with global sustainability trends.

The United States and regional partners are building long-term cooperation in green energy, resilient supply chains, infrastructure modernization, and human-capital development.

Special attention is given to unified standards for digital trade, environmental management, and logistics technologies, making Central Asia a vital link in Eurasian value chains.

Benefits for the Region and Uzbekistan

For Central Asia, the “C5+1” format provides:

• Investment and technology: opportunities to attract foreign partners for renewable energy, raw-material processing, and digital transformation;
• New markets: expanded export opportunities through unified customs and trade standards;
• Energy security: development of interconnected grids and energy-storage infrastructure;
• Human capital: education, internships, and exchanges with leading global companies.

For Uzbekistan, the advantages are clear:

• Expanded export potential through access to new transport routes;
• Technology localization and industrial partnerships with neighbors;
• Institutional stability and strengthened position as a regional integrator;
• Inflow of direct investment supported by uniform rules and a stable macroeconomic environment.

Conclusion: From Geography to the Economy of the Future

Central Asia is steadily transforming from a “crossroads of geography” into a region of synergy. The “C5+1” format has become a framework connecting the efforts of regional and global partners into a unified development strategy - based on trust, mutual benefit, and sustainable growth.

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

TASHKENT — Uzbekistan has unveiled its updated Uzbekistan–2030 Strategy, marking a major step in the country’s journey toward national reform and development. Officials emphasise that implementing reform requires responsibility, consistency, institutional discipline, and public legitimacy. The government has revised the strategy following extensive public consultations, ensuring that citizens’ voices are reflected in the results-based policy framework. Aligned with international standards and designed to advance the United Nations Sustainable Development Goals, the strategy positions Uzbekistan as an active participant in the global development agenda.

A defining feature of the strategy is its emphasis on measurable implementation. Authorities have established 100 goals to be assessed annually through 2030, each with designated institutions, mechanisms, and financing sources. This approach creates a governance model centred on accountability and transparency. International organisations and development partners will also be able to monitor progress, access reports, and contribute expertise — a move officials say will further enhance transparency and attract external support.

The first major priority of the strategy is to create opportunities for every person to realise their potential, with 44 goals linked to human development. These include targets for expanding access to education, healthcare, employment, and social protection. In education, the government aims to boost pre-school coverage to 80 per cent, achieve universal participation in school-preparation groups, and modernise schools with electronic boards and new-generation textbooks. Teachers’ salaries are set to double, and 500,000 education staff will receive ongoing professional development. Higher and vocational education goals include expanding access, improving graduate employability, and increasing the number of internationally accredited university programs to 200.

Officials have tied human capital development to advances in science and innovation. The strategy calls for raising spending on science to 1 per cent of GDP, increasing the number of research and innovation projects, and propelling Uzbekistan into the top 60 of the Global Innovation Index.

Healthcare reforms aim to increase average life expectancy to 78 years, with health expenditure projected to rise to 5 per cent of GDP. Priorities include reducing premature deaths from major diseases, improving maternal and child health, and expanding digital healthcare services. Broader social goals include increasing women’s representation in leadership and civil service, eliminating extreme poverty, reducing unemployment to 4 per cent, and training 2 million citizens in new skills and foreign languages.

Youth policy is another central pillar, with goals to offer free foreign language instruction to 7 million young people, train 3 million in modern professions using AI tools, and employ 300,000 in the IT sector. The strategy also seeks to boost participation in sports, culture, and the arts nationwide.

The second major priority is sustainable economic growth. The government has set targets to increase GDP from $145 billion to over $240 billion by 2030, and GDP per capita from $3,800 to $5,800. Other economic targets include keeping inflation at 5 per cent, public debt below 50 per cent of GDP, and the budget deficit under 3 per cent.

Plans for industry focus on diversification and value addition, with aims to boost high-tech output, raise car production to 1 million units (including 200,000 electric vehicles), create 1.8 million industrial jobs, and increase industrial value added to $60 billion. The government expects over 400 strategic projects worth $150 billion in foreign investment. Financial reforms will include bank privatisation, expanded credit, and the development of Islamic finance.

The strategy also emphasises the green economy. Officials want renewable energy to account for 54 per cent of total generation and to reduce greenhouse gas emissions by 35 per cent. Transport and logistics improvements will include expanding transit freight, repairing or building roads, and modernising airports. In agriculture, the focus is on boosting productivity and exports, with a target of $10 billion in agricultural exports.

Environmental protection and water saving are also key goals. Uzbekistan plans to improve water-use efficiency by 25 per cent, fully meter drinking water, and expand water-saving technology in agriculture. Other environmental targets include increasing urban greenery, expanding forested land, and creating new green spaces in the Aral Sea region and deserts. The government also aims to improve biodiversity, waste management, air quality, and climate resilience.

Strengthening the rule of law and public service is another core priority. The strategy aims to improve local governance, expand electronic public services, and reduce emergency response times. Legislative reforms will focus on increasing the number of directly applicable laws and reducing the regulatory burden. At the same time, additional measures will promote meritocracy, judicial reform, human rights, anti-corruption, and public oversight.

The strategy also calls for advancing a safe and peace-loving state by promoting an active foreign policy, regional cooperation, support for Uzbeks abroad, and better-managed labour migration. Targets include increasing the number of visa-free destinations for Uzbek citizens, boosting trade turnover with neighbours, expanding diplomatic representation abroad, and advancing WTO accession. Other goals include defence modernisation, disaster preparedness, and strengthening public trust and interethnic harmony.

A formal monitoring system will track implementation through a digital platform, using colour-coded performance categories to flag progress or delays. The Development Strategy Centre will play a key role in monitoring strategic indicators and recommending improvements.

The Uzbekistan–2030 Strategy stands out for combining ambition with a structured, results-oriented approach. Rather than isolated initiatives, the government is pursuing a coordinated, accountable, and long-term transformation agenda. The strategy is expected to guide Uzbekistan’s development and reform efforts well into the next decade.

By Eldor Tulyakov,

Executive Director, Development Strategy Centre

Ahead of U.S. Secretary of State Marco Rubio’s planned visit to Samarkand for the C5+1 summit, the Center for Economic Research and Reforms has examined the outlook for the Central Asia–U.S. platform and opportunities to further expand Uzbek-American cooperation.

History of Visits

Visits by U.S. secretaries of state to Uzbekistan date back to February 1992. John Kerry’s visit to Samarkand on November 1, 2015, was particularly significant: it brought together the foreign ministers of the five Central Asian countries and the United States for the first time, launching the C5+1 platform. Secretary of State Marco Rubio’s upcoming trip continues the established practice of combining bilateral talks with regional dialogue.

The U.S. secretary of state is expected to arrive in Samarkand in mid-October 2026, leading a delegation representing more than 200 American companies. A C5+1 ministerial meeting has been announced, with the foreign ministers of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan set to participate. Its stated priorities are regional economic connectivity, energy security, and joint responses to shared regional challenges. Talks with Uzbekistan’s leadership are also planned.

For Uzbekistan, the visit offers an opportunity to advance projects already agreed upon, attract technology, and improve access to international capital. The scale of the announced business delegation provides additional scope to pursue these objectives.

The Evolution of Central Asia Plus Frameworks

Regional frameworks involving external partners are becoming a regular feature of Central Asian diplomacy. In April 2025, Samarkand hosted the first Central Asia–European Union summit, which elevated relations to a strategic partnership. The second summit with China took place in Astana in June of the same year, followed by the first summit with Japan in Tokyo in December and the first summit with the Republic of Korea in Seoul in September 2026.

These platforms share much of their economic agenda: transportation, energy, critical raw materials, industry, and digital technology.

The C5+1 platform provides a dedicated channel for engagement with American businesses and financial institutions. Established in 2015, it covers the economy, energy and the environment, and security. A regional approach allows participants to address issues that extend beyond any single country, including transit, cross-border infrastructure, and supply chain resilience.

Bringing the five countries and prospective American investors together on one platform helps align national projects with the regional conditions needed to implement them.

Outcomes of the First C5+1 Summit

The first presidential-level C5+1 summit took place in New York on September 19, 2023. The inaugural Critical Minerals Dialogue followed in February 2024, and the first B5+1 business forum was held in Almaty in March. The latter created a channel for businesses to contribute to discussions on the investment climate and regional economic integration. The political platform thus gained both an industry-focused mechanism and a forum for business engagement.

The summit held at the White House on November 6, 2025, strengthened the commercial dimension of cooperation. According to the U.S. Department of Commerce, trade and investment agreements worth more than $25 billion across Central Asia were announced at the accompanying business conference. They cover aviation, agricultural machinery, rail infrastructure, digital technology, and critical minerals extraction.

At the summit, President Shavkat Mirziyoyev proposed closer coordination on investment and trade, the development of transport and energy projects linking Central Asia with the South Caucasus and Europe, and cooperation in the exploration, extraction, and value-added processing of critical minerals. His proposals also included holding the next summit in Samarkand.

The practical question for the next stage is whether high-level decisions are backed by adequate project preparation and financing. In aviation, this means aircraft delivery and operation; in industry, the construction and commissioning of production facilities; and in raw materials, the adoption of processing technologies and agreements with buyers.

Bilateral Meetings and New Investment Mechanisms

Regional cooperation rests on direct dialogue between Uzbekistan and the United States. During Uzbek President Shavkat Mirziyoyev’s official visit to the United States in May 2018, he held talks with U.S. President Donald Trump at the White House, and the two countries adopted a joint statement marking the start of a “new era of strategic partnership.” The presidents met again in New York in September 2025 and held talks in Washington on November 6. In February 2026, the Uzbek president visited the U.S. capital for the inaugural meeting of the Board of Peace, with new bilateral agreements signed as part of the visit’s business program.

One outcome of the November talks was the establishment of the U.S.–Uzbekistan Business and Investment Council. It is co-chaired by Saida Mirziyoyeva, Head of Uzbekistan’s Presidential Administration, and Sergio Gor on the American side. The Council’s responsibilities include supporting major trade and investment projects, monitoring the implementation of agreements, mobilizing financing, and promoting the services of IT Park resident companies, among other tasks.

The initial public offering (IPO) of the Uzbekistan National Investment Fund, or UzNIF, opened another channel to international capital. Its global depositary receipts were admitted to trading on the London Stock Exchange on May 18, 2026. Managed by Franklin Templeton since 2025, the fund holds stakes in 13 state-owned enterprises. For Uzbek-American cooperation, its significance lies in the involvement of an American investment manager in transforming a portfolio of state-owned assets and improving access to global equity markets.

BlackRock represents another area of engagement. In Davos in January 2026, President Shavkat Mirziyoyev discussed the acquisition of stakes in Uzbek enterprises and joint investment projects with BlackRock’s leadership. At a meeting in Tashkent on July 7, the priorities identified included privatization, financial markets, the fuel and energy sector, petrochemicals, and artificial intelligence technologies. These talks broaden opportunities for engagement with institutional investors.

A significant step has also been taken in cooperation with the U.S. International Development Finance Corporation (DFC). In February 2026, the parties agreed on the key terms for establishing a joint investment partnership. On June 16, DFC announced the launch of a U.S.–Uzbekistan investment platform involving the U.S. Export-Import Bank, Uzbekistan’s Ministry of Investment, Industry and Trade, and its Fund for Reconstruction and Development.

The platform’s priorities include energy, critical minerals, infrastructure, transportation and logistics, advanced manufacturing, information and communications technology, and pharmaceuticals. It is designed to attract private capital and participation from other financial institutions. Its significance lies in creating a mechanism to select and finance projects. This gives the October meeting a concrete basis for discussions on individual projects, their readiness, and the terms of partner participation.

Critical Minerals and Processing Opportunities

In September 2024, Uzbekistan and the United States signed a memorandum on a critical minerals partnership linked to initiatives from the 2023 C5+1 summit. In February 2026, the two countries signed an intergovernmental memorandum at the ministerial level on securing supplies through the extraction and processing of critical minerals and rare earth elements.

For Uzbekistan, the greatest returns are likely to come from developing production with higher added value. Where feasible, extraction should be complemented by ore beneficiation and further processing to produce materials that meet industrial customers’ requirements. The extent of processing, access to technology, training for local specialists, and the share of operations carried out domestically are therefore important considerations in evaluating joint projects.

Trade Trends and the Structure of Economic Ties

According to Uzbekistan’s National Statistics Committee, trade between Uzbekistan and the United States increased 4.7-fold between 2017 and 2025, from $215 million to approximately $1 billion. Exports rose from $32.1 million to $291.7 million, while imports increased from $182.9 million to $712.3 million. This trend reflects expanding ties, with purchases of American goods and services continuing to account for the larger share of bilateral trade.

In January–August 2026, bilateral trade reached $810.4 million, up 33.4% from the same period in 2025. Uzbekistan’s exports totaled $304.5 million, an increase of 59.9%, while imports reached $506 million, up 21.3%. The U.S. share of Uzbekistan’s total foreign trade rose from 1.1% to 1.4%.

Services accounted for $224.8 million, or 73.8%, of exports during the first eight months of 2026. Machinery and transport equipment contributed $44.8 million, while mineral fuels and related products accounted for $17.6 million. Machinery and transport equipment were the largest import category at $272.5 million, or 53.9%, followed by services at $84.1 million and chemical products at $73.5 million.

As of September 1, 2026, 377 companies with American investment were operating in Uzbekistan. The American business presence and joint projects span manufacturing and mining, energy and petrochemicals, agriculture, construction, and services, including information technology.

Total foreign direct investment and loans attracted from the United States exceeded $2.9 billion over 2017–2025. The annual figure rose from $8.6 million in 2017 to $383.2 million in 2025.

Conclusion

Given the announced agenda and the mechanisms already established, the most likely focus of the talks is advancing investment projects, energy infrastructure, and regional connectivity.

The partnership’s further development depends primarily on implementing the agreements already reached. Investment and modern technology create opportunities to upgrade production, raise productivity, and expand exports. For Uzbekistan, the long-term value of this cooperation lies in strengthening its industrial capacity, creating skilled jobs, and reaching new markets.

Regional dialogue also complements bilateral engagement by enabling countries to address transportation, energy, and trade issues together. Coordinated work in these areas can improve business conditions and make economic ties more resilient. The upcoming talks offer an opportunity to identify the next priorities and translate the existing partnership into further practical cooperation.

Overall, C5+1 allows Uzbekistan to connect its bilateral relations with regional transport and energy priorities, broaden its investor base, and strengthen its participation in international production networks. The forthcoming meeting in Samarkand could consolidate this shift toward project implementation.

Khurshed Asadov
Deputy Director of the Center for Economic Research and Reforms

In an era characterized by growing disunity among global powers, the strategies employed by so-called “middle” states in forging stable regional relations present promising solutions for achieving international peace and cooperation. Uzbekistan, a Central Asian nation situated at the heart of the historic Silk Road, and Finland, a Nordic state with a unique experience as a neutral border state during the Cold War, exemplify how a consistent commitment to dialogue can contribute to regional stability amidst the complexities of global relations.

Geographically separated, these countries have developed strikingly similar approaches to ensuring sustainable development, peace, and stability in their regions. They address key regional security challenges by strengthening multifaceted and mutually beneficial good-neighborly relations with their neighbors. Additionally, they engage in multilateral, long-term partnerships with interested countries and organizations.

While Uzbekistan and Finland have been shaped by different historical contexts, these experiences have contributed to the development of a shared diplomatic philosophy centered around stability, cooperation, sovereign equality, mutual respect, and multilateral interaction.

Central Asia, a region steeped in ancient history, has long been a cultural and historical hub. Centuries ago, it was a unified space where politics, economics, and culture intertwined seamlessly. As one of the cradles of human civilization, Central Asia boasts a rich tapestry of history and a vibrant cultural heritage that has shaped universal values. These values emphasize cooperation over confrontation, tolerance over imposition, and the belief that the well-being of neighbors is intrinsically linked to one’s own.

Since gaining independence in 1991, Uzbekistan has consistently championed a policy of regional interaction. This policy, which gained prominence under President Shavkat Mirziyoyev in 2016, became a cornerstone of Uzbekistan’s foreign policy. Tashkent’s “diplomatic offensive” to enhance intra-regional cooperation became one of the most significant policy changes that transformed relations in modern Central Asia.

Tashkent’s unprecedented focus on dialogue and building trust with neighboring states has transformed Uzbekistan into the primary organizer of cooperation in the region. It has advocated for the development of multilateral interaction mechanisms, spanning various domains such as water resource management, transport corridor expansion, industrial cooperation, border demarcation, and regional security.

The positive impact of these policy changes has reverberated throughout the entire region. After 2016, economic cooperation witnessed a remarkable surge, leading to a nearly doubling of the total GDP of Central Asian states from $273 billion to $520 billion. Trust and strengthened ties between countries have facilitated a 4.5-fold increase in intra-regional trade, soaring from $2.4 billion to $11 billion. Moreover, the number of tourists visiting the region has doubled, further boosting its appeal.

The collective openness and enhanced stability have become attractive factors for third countries, resulting in a significant increase in the region’s foreign trade. This growth has seen a remarkable rise of over 200 percent, from $112 billion to $253 billion.

Finland’s diplomatic traditions were shaped by its unique position at the crossroads of Eastern and Western “spheres of influence.” Its vulnerable geographical location drove its pursuit of interaction and stability.

Finland consistently advocates for strengthening friendly relations with all countries, particularly its neighbors, and fostering ties within Nordic cooperation structures like the Nordic Council, the Council of Ministers of the Nordic Countries, and the Nordic Investment Bank.

This approach is reflected in Finland’s active involvement in the OSCE with aims to enhance dialogue and trust.

Finland’s 2025 OSCE chairmanship, coinciding with the 50th anniversary of the Helsinki Final Act, holds symbolic significance. It exemplifies Finland’s commitment to building bridges, fostering dialogue, and cultivating trust, aligning with its dialogue-based foreign policy. Finnish diplomacy consistently emphasizes the importance of strengthening common positions and approaches among states, reflecting Finland’s consensus-oriented diplomatic style, which Uzbekistan shares as well.

It’s worth noting that both countries adhere to the same fundamental principles of international law. Respect for national sovereignty, non-interference in internal affairs, and the inviolability of borders serve as practical guidelines shaping Uzbekistan and Finland’s foreign policy, regional behavior, and international positioning.

Tashkent’s approaches to regional interaction resonate with Helsinki’s priorities for cooperation with the Nordic and Baltic countries. Uzbekistan’s efforts in resolving border disputes and collaborating on water resources in the region mirror Finland’s approach to peacebuilding and fostering cooperation.

Furthermore, both countries have established themselves as advocates of results-oriented cooperation. They are pragmatic architects of projects that create mutual benefits and strengthen regional stability and interregional connectivity.

Under the leadership of President Sh. Mirziyoyev, Uzbekistan is actively promoting the development of transport infrastructure within Central Asia and with neighboring regions, including the West, East, and South. For instance, the development of the “Middle Corridor” (Trans-Caspian International Transport Route) has led to a remarkable six-fold increase in cargo shipments along it over four years, from 2020 to 2024, reaching a substantial volume of 4.5 million tons. Tashkent is also actively involved in the construction of the China-Kyrgyzstan-Uzbekistan railway and is promoting connectivity between Central and South Asia.

Economic cooperation and environmental protection are additional pillars of Uzbekistan’s regional strategy. These aspects play a crucial role in Uzbekistan’s environmental programs, particularly in mitigating the consequences of the Aral Sea disaster.

Finland, following a similar pattern of project-oriented cooperation, has been an active participant in initiatives of the Nordic Council and the Barents Euro-Arctic Council. These initiatives encompass cross-border cooperation in environmental protection, innovation, and people-to-people contacts. Finland also promotes initiatives of the Trans-European Transport Network and Arctic connectivity.

Known for its leadership in environmental protection, Finland actively participates in cross-border economic projects with partners from the Nordic and Baltic countries.

Alongside their close cooperation with countries in their respective regions, Uzbekistan and Finland pursue a policy of strategic multilateralism. Both countries actively participate in various regional and global institutions, reflecting their shared views that modern challenges require collective responses. They believe that “middle powers” can exert effective influence through institutional engagement.

Since 2016, Uzbekistan has significantly increased its involvement in regional organizations, primarily the Shanghai Cooperation Organization (SCO), the Organization of Turkic States (OTS), and various United Nations bodies.

Additionally, the “Central Asia +” (C5+1) platform, now comprising over 10 partner countries and organizations, actively promotes interregional cooperation. Notably, the inaugural “Central Asia – European Union” summit held in April 2025 resulted in an agreement on “deep and comprehensive cooperation” between the two regions.

Finland’s international engagement, while having a longer history, also follows a similar pattern of active institutional participation. As a member of the European Union since 1995 and multiple international organizations, Finland maintains its traditional interactions with regional structures in Northern and Baltic Europe.

As the international landscape becomes increasingly intricate, Uzbekistan and Finland encounter similar challenges that test their historically established unique diplomatic approaches.

Uzbekistan faces the primary challenge of sustaining the momentum for deepening regional partnership and intensifying cooperation with external actors amidst escalating geopolitical tensions, environmental threats, and economic shocks.

From Uzbekistan’s perspective, responding to the changing geopolitical landscape and the economic transformation needs of Central Asia requires strengthened cooperation, both among Central Asian countries and between regions.

Finland’s challenge lies in finding a balance between its commitments within the EU and NATO and its traditional role as a mediator in building consensus and dialogue, particularly in organizations like the OSCE, where it continues to promote “strengthening dialogue and trust.”

Overall, Uzbekistan and Finland exemplify successful regional cooperation based on a consistent commitment to dialogue and interaction. Despite their distinct geographical and historical contexts, both countries have adopted similar foreign policy approaches focused on conflict prevention, institutional engagement, and pragmatic regionalism.

In an interconnected world characterized by great power rivalry, the diplomatic approaches of Uzbekistan and Finland serve as a reminder that sustainable security and prosperity are achieved through dialogue, cooperation, and practical collaboration, rather than diktat, isolation, or empty rhetoric.

And unsurprisingly, these foreign policy approaches positively impact the lives of their citizens. It’s not a coincidence that Finland consistently ranks as the “happiest country in the world” for the eighth consecutive year in the World Happiness Report. Similarly, Uzbekistan leads in the level of happiness among Central Asian countries in the same ranking.

Sharif Akhmedov,

Chief Researcher at the Institute for Strategic and Regional Studies under the President of the Republic of Uzbekistan

The changes taking place in Central Asia in recent years can hardly be described as simplediplomatic rapprochement. This process is also transforming the economic landscape of the region.

Several years ago, issues related to borders, transport, water and energy were largely viewed as sources of disagreement. Today, these very areas are becoming some of the greatest opportunities for cooperation. This is because the countries have come to understand that the individual market and opportunities of each country are limited, while an interconnected region creates a much larger economic space.

The political foundation of this change is linked to a new regional approach that began in 2017. The policy of openness, good-neighborliness and pragmatism promoted by President of Uzbekistan Shavkat Mirziyoyev has strengthened dialogue among the Central Asian states.

While the first Consultative Meeting of the Heads of State of Central Asia was held in Astana in 2018, by 2025 such meetings had become a regular tradition. Most importantly, the economic results of this dialogue have become increasingly visible.

For example, in 2023, mutual trade among the countries of the region increased by more than 2.5 times compared with previous years, while mutual investment grew almost sixfold. At the 2025 Tashkent meeting, it was noted that intra-regional trade in Central Asia had reached $10.7 billion.

 There is an important logic behind these figures: as trust increases, risks decrease; as risks decrease, trade and investment increase.

The Seventh Consultative Meeting in Tashkent: A New Geoeconomic Architecture

The seventh Consultative Meeting, held in Tashkent in November 2025, marked a new stage in regional cooperation. Azerbaijan’s accession to the format as a full-fledged participant expanded the economic geography of Central Asia.

Why is this important? One of the major challenges facing Central Asia is its limited direct access to seaports. Azerbaijan, through the Caspian Sea, connects the region with the markets of the Caucasus, Türkiye and Europe.

In this regard, the Port of Baku, the Trans-Caspian International Transport Route and railway networks may open new export opportunities for Central Asia.

This is not simply about transporting goods. Logistics centers, warehouses, insurance and financial services, and processing enterprises will emerge around the new corridors. In other words, a single transport corridor can create new businesses across several sectors.

Therefore, Central Asia is gradually beginning to emerge not simply as a “landlocked region,” but as an economic hub where Eurasian transport corridors intersect.

Integration Is Driven by Business, Not Summits

The real outcome of regional cooperation is measured not by the number of documents signed at summits, but by changes in the lives of enterprises and entrepreneurs. In this regard, bilateral relations are particularly important. For example, trade turnover between Uzbekistan and Kazakhstan is planned to increase to $10 billion.

Thousands of joint enterprises have been established in the two countries in recent years.

 Trade with Turkmenistan has also approached $1 billion. The growth of cross-border trade and cargo transportation shows that economic ties between the two countries are developing not only at the level of capitals, but also at the regional level.

With Kyrgyzstan, transport and energy cooperation is of particular importance, especially the China–Kyrgyzstan–Uzbekistan railway project. If implemented, it will further strengthen Central Asia’s transport connectivity along east-west routes.

Relations with Tajikistan are also increasingly viewing trade, industrial cooperation, transport, water and energy issues from the perspective of economic cooperation.

All these processes are connected by one trend: neighboring countries are beginning to see each other not only as markets, but also as partners in production and investment.

Uzbekistan–Azerbaijan: Towards Lasting Friendship and Joint Markets

Uzbekistan–Azerbaijan relations hold a special place in cooperation between Central Asia and the South Caucasus.

Joint projects between the two countries are expanding in trade, energy, logistics, construction, geology, textiles and tourism.

Bilateral trade increased in 2025, and high growth rates have continued in 2026.

Most importantly, relations are moving beyond ordinary trade toward investment and joint production. A target has also been set to bring bilateral trade turnover to $1 billion by 2030.

Another important aspect of this cooperation is the possibility of combining Uzbekistan’s production capabilities with Azerbaijan’s logistics opportunities in the Caspian and Caucasus regions.

For example, products manufactured in Uzbekistan can reach Azerbaijan via the Caspian Sea and then access the markets of Türkiye and Europe. If customs procedures, railway transportation, port operations and electronic document systems are coordinated along this route, the time and cost required to bring products to market can be reduced.

Therefore, Azerbaijan’s accession to the regional cooperation format is not merely a symbolic diplomatic event. It is a practical step that expands Central Asia’s economic map westward through the Caspian Sea.

From Cholpon-Ata to Avaza: Ahead of the Eighth Consultative Meeting

On October 8–9, 2026, the eighth Consultative Meeting of the Heads of State of Central Asia is scheduled to take place in the Avaza National Tourist Zone of Turkmenistan.

The importance of this meeting can also be seen in its agenda. Along with transport and energy, issues related to water, climate, ecology, the Aral Sea, education and human capital are expected to be discussed.

This is not accidental. The economic future of the region can no longer be divided into separate sectors.

For example, water is directly connected with agriculture and energy; energy is connected with industry; transport is connected with exports; and education is connected with high technologies.

Therefore, at the next stage, it is not enough to understand integration simply as “more trade.” The key issue is to create more value together.

Regional Value Chains

One of the most important issues for Central Asian countries in the future is not simply increasing the volume of trade, but determining how much added value is created within that trade.

For example, if automotive components are produced in one country, a vehicle is assembled in another, spare parts are manufactured in a third, and the finished product reaches external markets through a fourth country — this represents genuine regional economic integration.

Such a model can be applied in textiles, electrical engineering, automotive manufacturing, food production, chemicals, pharmaceuticals and construction materials.

For this, a business-friendly environment is needed: digitalization of customs procedures, mutual recognition of certificates, shorter border-crossing times, and compatibility of electronic payments and documents.

Simply put, the greatest result of integration should not be a new declaration, but the ability of an entrepreneur to cross the border faster and at lower cost.

Water and Energy: From a Challenge to a Common Interest

           One of the most complex issues of integration in Central Asia is water and energy.

Water resources and energy potential are not distributed evenly among the countries. Therefore, if a state acts solely on the basis of its own interests, this may lead to unfavorable consequences for the region as a whole.

Conversely, coordinating reservoirs, hydropower, agriculture and electricity grids increases overall efficiency.

Climate change is making this issue even more urgent. Droughts, shrinking glaciers and growing demand for water will require countries to cooperate even more closely in the future.
Therefore, digital water accounting, data exchange, joint forecasting and the development of cross-border energy projects will become important components of integration.

“Central Asia Plus”: The Region Is Moving in Harmony with the Outside World

 Another important outcome of regional rapprochement is the growing perception of Central Asia as a common economic actor in negotiations with external partners.

Through “Central Asia Plus” formats, dialogue is being conducted with the European Union, China, Russia, the United States, South Korea and other partners.

The important point here is that external partners now have an opportunity to view the region not only as five separate markets, but as a larger interconnected economic space.

At the first “Central Asia–European Union” summit, held in Samarkand in 2025, transport, green energy, investment and digitalization were discussed. Trade and transport links with China are also expanding. The first “Central Asia–Republic of Korea” summit, held in Seoul in 2026, demonstrates the growing importance of technology and human capital.

Thus, the region is simultaneously strengthening internal integration and diversifying its external economic relations.

Seven Priority Economic Areas for New Development

 Political trust has been established in Central Asia. The next task is to turn it into economic results. Several areas are crucial for achieving this.

First, customs and trade processes need to be digitalized.

Second, the number of joint industrial enterprises and regional value chains should be increased.

Third, the China–Kyrgyzstan–Uzbekistan railway, the Trans-Caspian Corridor and other routes should be developed as a single interconnected logistics system.

Fourth, investment funds, export credit, insurance and public-private partnership mechanisms need to be expanded.

Fifth, data exchange and long-term planning in water and energy should be coordinated.

Sixth, common standards for digital payments and e-commerce are important.

Finally, investment in human capital is essential. The integration of the future will be driven not only by railways, but also by engineers, programmers, scientists, entrepreneurs and specialists of the new generation.

The most important feature of current developments in Central Asia is that countries are increasingly beginning to see one another not as competitors, but as partners.

The goal of increasing trade with Kazakhstan to $10 billion, the growth of cross-border trade and transport links with Turkmenistan, railway and energy projects with Kyrgyzstan, water and energy dialogue with Tajikistan, and the opening of new transport and investment opportunities through the Caspian Sea with Azerbaijan are all different manifestations of the same process.

This process is not yet complete. On the contrary, its most important stage is only beginning.

Because turning political agreements into economic results is not always easy. An agreement signed at a summit must become a new product at an enterprise, a transport agreement must lead to cheaper logistics, and an investment agreement must create a new job.

If this chain works, the geographical constraints of Central Asia can become an economic advantage.

If the ports on the Caspian Sea, railways coming from the east, common energy systems, regional industrial chains and a large consumer market become interconnected, Central Asia will become not simply a geographical region, but an important economic space in Eurasia.

Today, the region faces a historic opportunity: to turn geographical constraints into economic advantages, common problems into joint projects, and national markets into a large interconnected space for development.

To achieve this, the agreements reached at summits must be transformed into tangible results that enterprises, investors, farmers, transport operators, scientists and ordinary citizens can feel in their daily lives.

Only then will cooperation in Central Asia become not a political slogan, but a real economic force creating prosperity.

The New Uzbekistan’s open and pragmatic regional policy will remain one of the important initiators and driving forces behind this common path of development.

Tulkin Teshabaev,

Rector of Tashkent State University of Economics

Doctor of Economics, Professor

Economic cooperation between Uzbekistan and Turkiye is carried out within the framework of signed bilateral agreements and established intergovernmental mechanisms, and is supported by regular high-level contacts. In addition, Uzbekistan and Turkiye cooperate within the framework of the Organization of Turkic States.

In 2023, the President of the Republic of Turkiye paid an official visit to Uzbekistan, during which the Uzbekistan–Turkiye Business Forum was held. As a result of the visit, a substantial package of intergovernmental and commercial agreements was signed, covering key sectors of the economy with a total value of around $10 bn.

In June 2024, the President of the Republic of Uzbekistan paid an official visit to Turkiye. During the visit, a meeting of the High-Level Strategic Cooperation Council was held, resulting in the signing of an important package of agreements, protocols, and roadmaps aimed at further expanding trade, economic, and investment cooperation.

Mutual trade between Uzbekistan and Turkiye operates under a most-favoured-nation regime, and a Preferential Trade Agreement has also been signed.

Turkiye is among Uzbekistan’s leading trade and economic partners, ranking 4th in terms of total trade turnover and imports, and 5th in terms of Uzbekistan’s exports.

In 2025, Turkiye’s share in Uzbekistan’s foreign trade turnover amounted to 3.7%, including 3.4% of exports and 4.0% of imports.

Dynamics of Bilateral Trade

Over the period 2017–2025, bilateral trade between the two countries increased by 1.9 times and reached $3.0 bn by the end of 2025. Exports to Turkiye grew by 1.3 times to $1.1 bn, while imports from Turkiye increased by 2.8 times to $1.9 bn.

At the same time, annual growth rates of imports from Turkiye consistently exceeded export growth rates, resulting in a widening trade deficit to –$751.6 mn.

Uzbekistan’s exports to Turkiye in 2025 comprised the following categories: industrial goods (copper products, yarn, etc.) amounting to $511.4 mn (45%); miscellaneous manufactured articles (mainly precious metal products) at $152.3 mn (13.4%); chemical products (polymers, fertilizers, etc.) at $124.3 mn (11%); machinery and transport equipment at $80.1 mn (7%); food products (dried fruits and nuts) at $63.0 mn (5.5%); petroleum products (gasoline, gas oil) at $36.6 mn (3.2%); non-food raw materials at $18.0 mn (1.6%); as well as services, primarily transport services, at $149.9 mn (13.2%).

Imports from Turkiye in 2025 were dominated by the following categories: machinery and transport equipment at $674.6 mn (35.7%); chemical products at $408.9 mn (21.7%); industrial goods at $390.2 mn (20.7%); miscellaneous manufactured articles at $136.2 mn (7.2%); food products at $94.6 mn (5.0%); petroleum products (lubricating oils) at $30.2 mn (1.6%); non-food raw materials at $30.1 mn (1.6%); and services at $117.4 mn (6.2%).

Investment Cooperation

The two countries have signed an Agreement on the Promotion and Reciprocal Protection of Investments. As of 1 January 2026, 2,137 enterprises with Turkish capital operate in Uzbekistan, accounting for 11.8% of all active enterprises with foreign investment. Of these, 496 are joint ventures and 1,641 are wholly owned by Turkish investors.

Total direct investments and loans from Turkiye to Uzbekistan’s economy over 2017–2025 amounted to $9.0 bn, including $2.6 bn attracted in 2025 alone.

Turkish capital continues to expand its presence in Uzbekistan, primarily in priority sectors such as energy, manufacturing, agriculture, and construction.

In particular, investments in the power sector are linked to the construction by the Turkish company Cengiz Enerji of a 240 MW thermal power plant in Tashkent Region and a similar 220 MW plant in Syrdarya Region.

Prospective Areas of Economic Cooperation

An analysis of Turkiye’s import structure indicates opportunities to increase Uzbekistan’s exports to Turkiye, particularly in product categories that Uzbekistan already supplies to global markets. These include polymers (Turkiye’s imports amounting to $2.8 bn), copper wire ($1.4 bn), fertilizers ($1.1 bn), legumes ($1.0 bn), zinc ($857 mn), copper tubes ($360 mn), textile products, particularly T-shirts and undershirts ($373 mn), knitted fabrics ($158 mn) and other manufactured goods.

Promising areas for cooperative engagement between Uzbekistan and Turkiye include manufacturing industries – especially textiles, electrical engineering, and machinery – chemical industry, agriculture, healthcare, education, as well as projects aimed at preserving and promoting cultural heritage. There are also prospects for joint infrastructure projects, including the construction of water treatment facilities.

In agriculture, particular attention is paid to the selection and cultivation of domestic pistachio varieties and the development of pistachio farming. Agreements have been reached on implementing joint research projects focused on cultivation techniques and adaptation.

A significant emphasis is placed on expanding cooperation in education, including the involvement of Turkish lecturers and specialized professionals in educational initiatives in Uzbekistan, experience exchange, and human capital development.

At the same time, areas of cooperation in healthcare are being discussed, focusing on the development of primary healthcare, the introduction of medical insurance systems, sector digitalization, improvement of service quality, and modernization of the pharmaceutical industry.

Tourism has been identified as a separate and promising area of cooperation. Currently, 12 hotels in Uzbekistan operate with the participation of Turkish partners, along with more than 100 joint restaurants, reflecting sustained interest by Turkish businesses in the country’s tourism sector.

In 2025–2026, with the support of Turkish investors, 11 hotel projects with a total value of $167.9 mn are planned in Bukhara, Samarkand, Jizzakh, Fergana, and Tashkent regions.

Transport connectivity is also expanding significantly. The number of weekly flights between Uzbekistan and Turkiye has increased from 62 in 2023 to 106 at present, creating additional conditions for the growth of mutual tourist flows and the expansion of travel routes.

A key initiative in tourism is the “Million + Million” programme, aimed at attracting at least one million tourists to each country. The programme envisages a further increase in flight frequency and the expansion of tourist routes between Uzbekistan and Turkiye.

Conclusion

In recent years, there has been steady growth in bilateral trade, investment volumes, the number of enterprises with Turkish capital, and the breadth of economic cooperation.

At the same time, Uzbekistan’s exports to Turkiye are still dominated by raw materials and intermediate goods used in Turkiye’s industrial sectors. Against this background, the key task for the coming years is to move from a “raw materials–finished goods” trade model toward the formation of joint production chains with higher value added.

In this context, Turkiye can play a role for Uzbekistan not only as one of its principal trading partners, but also as a contributor to Uzbekistan’s industrial development and to the expansion of its participation in global value chains.

Edvard Romanov
Center for Economic Research and Reforms

The XII Inter-Parliamentary Union (IPU) Global Conference of Young Parliamentarians will be held on September 4–6^th, 2026, in the city of Samarkand, under the theme “Restoring Human Rights, Justice and Dignity for All in Fragile Times”.

The XII Global Conference is expected to convene approximately 300 delegates representing 183 countries, 15 international organizations and around 50 permanent observers.

Event program includes six thematic sessions, during which the participants will address pressing issues pertaining to the status and rights of youth in the contemporary world. Specifically, particular attention will be devoted to protecting the rights of young people amid conflicts and digital transformation, expanding their political rights and opportunities, ensuring economic rights and youth employment, as well as preventing violence against women and youth.

Conference agenda envisages innovative and interactive working formats, including breakout discussions, training sessions, and dialogue forums. This approach is designed not only to facilitate a substantive exchange of views but also to foster the development of professional contacts among young parliamentarians from different countries.

An essential component of the conference will be the convening of the Third Global Forum on Inter-Parliamentary Cooperation for Achieving the Sustainable Development Goals. The participants will review the role of parliaments and inter-parliamentary interaction in advancing the Sustainable Development Goals, alongside opportunities to enhance youth contributions toward implementing the global agenda.

Following the conference, the adoption of a final document is expected, which will contain recommendations and joint approaches of young parliamentarians on the core issues of the event's agenda.

Official working sessions of the conference will take place on September 4–5^th. The third day, September 6^th, will be dedicated to a cultural program organized by the parliament of the host country.

Annual IPU Global Conference of Young Parliamentarians was established in 2014. The conference mechanism is aimed at enhancing the role of young parliamentarians and expanding youth participation in parliamentary activities, formulating recommendations that reflect youth perspectives on the IPU’s activities and agenda, as well as broadening opportunities for networking, strengthening solidarity and developing the capacity of young people.

IPU initiative to support youth participation in political life dates back to 2010, when the resolution “Youth participation in the democratic process” was adopted at the 122^nd Assembly of the organization in Bangkok. The document underscored the necessity of full and active participation of youth and youth organizations in democratic processes at local, national, regional and international levels.

In furtherance of this initiative, IPU established the Forum of Young Parliamentarians in 2013 - an official, permanent body aimed at quantitatively and qualitatively enhancing youth participation within parliaments and the activities of the IPU.

To date, eleven Global Conferences of Young Parliamentarians have been convened, addressing a broad spectrum of pressing issues, ranging from youth participation in politics and democracy to digital transformation, climate change, education, employment and gender equality.

Dunyo IA

Samarkand

For centuries, life in Central Asia has been inseparable from water. Across the Amu Darya and Syr Darya basins, settlements, agriculture and trade developed around rivers, canals and irrigation systems. Water has therefore never been merely a natural resource for the region; it has been one of the foundations of its economic life, social stability and shared history.

Today, the water challenge is more pressing than ever. Climate change, population and economic growth, shrinking glaciers, droughts and increasingly frequent extreme weather events are placing mounting pressure on water resources. One conclusion is clear: no single country can ensure water security in Central Asia on its own. The only sustainable path lies in cooperation, mutual trust, accurate measurement and shared responsibility.

One River Basin, Shared Interests

Central Asia’s major rivers originate in some countries and flow through others. The Syr Darya is of vital importance to Kyrgyzstan, Tajikistan, Uzbekistan and Kazakhstan, while the Amu Darya is equally significant for Tajikistan, Afghanistan, Uzbekistan and Turkmenistan.

This geographical reality makes it essential to avoid framing the interests of upstream and downstream countries as inherently opposed. For one state, water may be a key source of hydropower; for another, it is indispensable for irrigated agriculture. At the same time, preserving river ecosystems, improving the environmental situation in the Aral Sea region and ensuring access to safe drinking water are common priorities for all countries.

Around 90 per cent of water in Central Asia is used in agriculture. Water management therefore cannot be shaped solely around the interests of one sector or one country. What is needed is a regional approach that recognises the close interdependence of water, energy, food security and the environment.

Open Dialogue, Practical Results

In recent years, dialogue among the countries of Central Asia has become more open and constructive. This has had a direct impact on cooperation in the water sector. Whereas discussions once focused primarily on seasonal water allocation, the agenda today is considerably broader, encompassing water-energy cooperation, joint management of shared facilities, digitalisation, improved water accounting, scientific collaboration and professional training.

At the Seventh Consultative Meeting of the Heads of State of Central Asia, held in Tashkent in November 2025, the President of Uzbekistan drew attention to growing water scarcity and proposed declaring 2026–2036 the “Decade of Practical Action for the Rational Use of Water in Central Asia”. The establishment of a Regional Competence Centre for Water Management at the Tashkent Institute of Irrigation and Agricultural Mechanization Engineers National Research University was also proposed.

At the summit of the International Fund for Saving the Aral Sea in April 2026, the President of Uzbekistan outlined priority tasks for the country’s chairmanship of the Fund in 2027–2029. These include improving the Fund’s organisational and legal mechanisms, increasing the effectiveness of programmes in the Aral Sea basin, attracting international financing, promoting a culture of responsible water use and strengthening professional capacity in the sector.

Agreements as the Practical Basis of Cooperation

Regional dialogue produces lasting results only when it is backed by concrete agreements and practical cooperation.

On 15 November 2025, Uzbekistan and Kazakhstan signed an Agreement on the Joint Management and Rational Use of Transboundary Water Bodies. The agreement is designed to establish systematic cooperation between the two countries in the water sector, improve coordination among responsible agencies and ensure more effective use of shared water resources and infrastructure.

With the Kyrgyz Republic, issues related to water use, the operation of hydraulic structures and the distribution of water during the irrigation season are regularly addressed through joint mechanisms. On 15 May 2026, the eighth meeting of the Uzbek-Kyrgyz Joint Commission on Water Management was held in Namangan. In June, Uzbekistan, Kazakhstan and Kyrgyzstan also agreed on water release volumes and electricity supplies for the 2026 irrigation season.

Within the framework of the joint Working Group with Tajikistan, the parties regularly discuss transboundary water-management projects, exchange experience in managing water resources and address other practical matters.

Uzbekistan, Tajikistan and Kazakhstan also cooperate in coordinating the summer operating regime of the Bahri Tojik Reservoir. This issue is agreed annually at working-level meetings involving representatives of the three countries and is formalised through the relevant protocols.

A joint intergovernmental commission on water issues operates between Uzbekistan and Turkmenistan. Cooperation covers water-saving technologies, the reconstruction of collector-drainage networks, scientific exchange and professional training in irrigation. In 2025, for example, the second stage of the reconstruction of the Ozyorny and Daryolik main collectors in Turkmenistan was completed.

These examples demonstrate an important shift: water cooperation in Central Asia is moving beyond general declarations towards concrete mechanisms — commissions, agreements, technical projects and water-energy exchanges.

Accurate Data as a Foundation of Trust

In water relations, trust is built not only through political declarations but also through accurate and transparent data.

How much water is flowing in a river? What volumes are stored in reservoirs? How much water has been released, how much has reached users and how much has been lost along the way? These questions must be answered on the basis of reliable information that all parties can trust.

This is why it is increasingly important to automate transboundary hydrological gauging stations, enable remote data transmission, introduce digital water accounting and harmonise information-exchange systems among countries.

In July 2026, the World Bank approved the Regional Cooperation Project to Improve the Efficiency of Water Resources Use in Central Asian Countries (CAWEC), aimed at strengthening transboundary water cooperation in the region.

The project envisages a US$20 million grant to the Executive Committee of the International Fund for Saving the Aral Sea. The funds are intended to support the digitalisation of water accounting in the Amu Darya and Syr Darya basins, modernise information systems and strengthen the professional capacity of specialists.

By 2031, the project is also expected to support the preparation of mutually beneficial transboundary investment projects involving at least two Central Asian countries, including preliminary feasibility studies, design and cost documentation, and environmental and social assessments.

It is expected that around 40 million people will benefit directly or indirectly from the project’s results.

Water Conservation in Uzbekistan Also Serves Regional Interests

The rational use of transboundary water resources begins with the responsibility of each country to use water efficiently within its own territory.

In 2017, water-saving technologies were applied on 28,000 hectares in Uzbekistan. By the end of 2025, this figure had reached 2.6 million hectares — nearly 60 per cent of the country’s irrigated land. Since the beginning of 2026, water-saving technologies have been introduced on a further 640,000 hectares.

Around 174,000 kilometres of irrigation networks are used to supply water to 4.3 million hectares of irrigated land in Uzbekistan. Public funding for modernising this extensive system, reducing water losses in canals and improving efficiency has increased steadily. In 2017, 842 billion soums were allocated to irrigation and land-reclamation works; in 2020, the figure rose to 1.7 trillion soums, and in 2025 to 3 trillion soums.

In 2026, 4.1 trillion soums were allocated from the state budget for irrigation and land-reclamation facilities — 4.9 times the 2017 level.

By the end of 2026, Uzbekistan plans to save 11 billion cubic metres of water through the wider use of water-saving technologies, laser land levelling, the repair and concrete lining of irrigation networks, digitalisation, optimisation of crop patterns and improved agricultural practices. Under the state programme for 2025–2028, this figure is expected to rise to 12 billion cubic metres in 2027 and 13 billion cubic metres in 2028.

These figures matter not only for Uzbekistan, but for the region as a whole. Every cubic metre of water saved in one country reduces pressure on the shared river basin. Water conservation is therefore not merely a national objective; it is also a practical expression of good-neighbourly responsibility.

Five Pillars for the Future

Five areas are particularly important if Central Asia is to take water cooperation to a new level.

First, interstate cooperation mechanisms need to be adapted to contemporary realities. Clear legal arrangements are required for water allocation, the use of shared infrastructure and the exchange of information.

Second, water accounting should be further digitalised, with timely exchange of data on water availability and flows. Reliable information is the foundation of reliable cooperation.

Third, the region needs more joint investment projects to modernise ageing canals, hydraulic structures, pumping stations and water-metering facilities. The uninterrupted operation of a single facility in one country may directly serve the interests of several neighbouring states.

Fourth, water and energy issues should be addressed in an integrated manner. Better coordination of reservoir operating regimes, electricity supplies and seasonal water needs can significantly improve the efficiency of resource use.

Fifth, greater attention must be paid to science, human capital and a culture of responsible water use. Modern technologies alone are not enough. They require skilled specialists, farmers who have a clear incentive to conserve water, and a society that understands the true value of this resource.

Water conservation is not the responsibility of water professionals alone. It is also a matter of economic thinking, environmental responsibility and everyday culture.

Water as a Shared Responsibility for a Common Future

The history of Central Asia shows that water has not only sustained communities; it has also connected them. Villages, cities, markets and cultural ties developed along rivers, canals and irrigation channels. Preserving that unifying role of water is just as important today.

In the twenty-first century, effective water management is determined not only by how much water is available. It also depends on the quality of cooperation between countries, the efficiency with which water is used, and the accuracy with which it is measured and accounted for.

The challenges ahead are substantial. Demand for water is rising, the climate is changing and economies are expanding. Yet Central Asia has also developed a stronger culture of cooperation. Regular dialogue among heads of state, bilateral and multilateral agreements, modern technologies and support from international partners are creating practical opportunities to address shared challenges together.

Joint efforts to conserve water contribute to peace and stability. Rational use of this vital resource is an investment in economic development. Above all, it is an investment in a more prosperous, resilient and sustainable future for the entire region.

Shavkat KHAMRAEV,

Minister of Water Resources of the Republic of Uzbekistan,
Honored Irrigator of Uzbekistan

Relocating an operational office to a new jurisdiction is invariably a complex undertaking, involving unfamiliar regulatory environments and concerns regarding continuity of team management and internal processes. Uzbekistan addresses the majority of these challenges — and this article examines the factors underpinning that proposition and the reasons why more than 1,000 technology companies have chosen the country as their base of operations.

Why Companies Choose Uzbekistan

For businesses originating from CIS countries, Uzbekistan offers a familiar business culture, an established professional rhythm, and a legislative framework that is relatively straightforward to navigate. Teams integrate into operational workflows more rapidly, and founders are not forced to spend the initial months resolving administrative or logistical matters.

A further advantage is the elimination of lengthy preparation periods for basic operational setup. IT Park provides not only company registration assistance but also fully equipped, ready-to-use office infrastructure - including furniture, equipment, and communications.

All core administrative processes are handled through a single interface — the One Stop Shop — covering company registration, tax administration, bank account opening, and documentation requirements, without the need to navigate multiple institutions. A dedicated team with experience guiding hundreds of companies through this process is on hand to anticipate and resolve common complications.
For teams relocating with their families, the Softlanding Program offers assistance with housing, documentation, and post-relocation adaptation, enabling employees to settle in efficiently and transition smoothly into professional responsibilities.

Zero Risk Program: Launching Without a Cash Flow Gap

The Zero Risk Program is designed to accelerate the initial operational phase of relocation. Participating companies receive a fully furnished and equipped office, enabling near-immediate commencement of operations. The program additionally covers a portion of recruitment and staff training costs and reimburses up to 15% of payroll expenses, allowing businesses to assemble their teams and reach full operational capacity without undue financial pressure.

Tax Conditions for IT Park Residents

IT Park residents benefit from some of the most advantageous tax conditions available to technology businesses in the region: a 0% rate on corporate income tax, VAT, and social tax. Personal income tax for employees stands at 7.5% - considerably lower than prevailing rates across much of Europe.

These conditions allow companies to direct a greater proportion of resources toward team development and business growth rather than absorbing a high tax burden.

The cost of living and operational expenditure in Uzbekistan further reinforces this advantage, enabling businesses to reduce recruitment and retention costs, as well as day-to-day operating expenses, while maintaining working and living conditions conducive to international business.

IT Visa and Conditions for Teams

A three-year IT Visa is available to founders, investors, and technology specialists, allowing holders to reside and work in Uzbekistan without a separate work permit. The visa extends to family members and grants access to healthcare and education services on equivalent terms to Uzbek citizens, as well as the right to purchase real estate without value restrictions.

Uzbekistan as a Base for International Expansion

For a growing number of companies, relocation to Uzbekistan extends beyond operational transfer. The country is increasingly regarded as a strategic platform for international development. The IT and BPO sectors are expanding rapidly, with regional offices and delivery centers being established to serve clients across Europe, the CIS, Asia, and the United States. Uzbekistan's geographical position between European and Asian markets facilitates access to multiple markets simultaneously.

Today, the combined economic potential of the OTS countries exceeds $2.1 trillion. In 2025, the economies of these countries grew by 6.8 percent. Uzbekistan’s trade turnover with OTS countries reached $10.8 billion in 2025.

These figures demonstrate the significant potential for economic cooperation across the Turkic world.

Turning Economic Initiatives into Practical Mechanisms

A key aspect of Uzbekistan’s approach within the OTS is its focus on strengthening economic cooperation through concrete mechanisms and projects. Currently, practical cooperation is being carried out in more than 35 areas within the Organization. Uzbekistan has also put forward the idea of creating a “Space of New Economic Opportunities” in the near future, bringing together favorable conditions for trade, business, and mutual investment, as well as the necessary legal framework and infrastructure.

The President of the Republic of Uzbekistan has also proposed establishing a Permanent Council on Economic Partnership of the Turkic States and locating its Project Office in Tashkent. Such a mechanism could help move from discussing economic initiatives to their systematic preparation and implementation.

Another important initiative put forward by Uzbekistan is the establishment of a Turkic States Industrial Alliance. Cooperation in such sectors as mechanical engineering, electrical engineering, mining, petrochemicals, pharmaceuticals, textiles, food processing, and construction materials could enable the formation of new production chains across the OTS region. In this regard, a cooperation model based on the principle of “raw materials – processing – science and technology – finished products” is of particular importance.

For Uzbekistan, this model could, on the one hand, facilitate the integration of domestic producers into major regional value chains and, on the other, support the production of higher value-added goods and the expansion of export destinations.

Transport Connectivity as the Economic Foundation of Integration

Uzbekistan’s geographical location makes transport connectivity a strategically important area of economic integration within the OTS. As a landlocked country, the development of new transport corridors is one of the key factors determining the competitiveness of Uzbekistan’s foreign trade.

In this regard, the development of the Middle Corridor and its connection with the China–Kyrgyzstan–Uzbekistan railway currently under construction could create new economic opportunities. In the future, connecting this system with the Trans-Afghan Corridor could further strengthen Central Asia’s potential to become a major transport hub linking the markets of East Asia, South Asia, the Caucasus, Türkiye, and Europe.

New Financial Infrastructure

Deepening economic integration also requires institutions capable of financing it. In this regard, the establishment of the Turkic Investment Fund has marked a new stage in cooperation within the OTS. The Fund is focused on developing trade and economic cooperation, financing joint projects, and supporting small and medium-sized enterprises.

The launch of the Fund’s operational activities in 2026, along with the establishment of the OTS Council of Central Bank Governors and the Turkic Council for Green Finance, demonstrates that the financial infrastructure of a common economic space is gradually taking shape.

Uzbekistan supports efforts to combine the resources of the Turkic Investment Fund with those of other international financial institutions. In particular, it has proposed establishing strategic cooperation between the Fund and the Islamic Development Bank, the European Bank for Reconstruction and Development, as well as other international and national financial institutions.

Such an approach could enable the OTS to combine its own financial resources with international capital and expand opportunities for financing large-scale infrastructure, industrial, energy, and green projects.

Digital Economy – A New Frontier of Integration

The next major growth area for economic integration among the Turkic states is linked to the digital economy and artificial intelligence.

At the informal OTS summit held in Turkistan in 2026, Uzbekistan proposed establishing a strategic cooperation network in the field of artificial intelligence and developing a “Digital Turkic Corridor Concept”. The concept is aimed at interconnecting data centers across the region through high-speed communication networks, developing a unified modern digital space, and creating a new market for technology-based services.

This initiative is particularly important for Uzbekistan. The country’s geographical position in Central Asia could strengthen its future role not only as a transport hub, but also as a center for digital transit and data exchange.

Green Economy and New Markets

New sources of growth for the Turkic states are not limited to traditional industries. Renewable energy, green hydrogen and ammonia, critical minerals, organic agriculture, and environmental technologies are emerging as promising areas of cooperation.

The “Green Transformation” Consortium proposed by Uzbekistan is aimed at jointly implementing green energy projects, attracting technologies and standards, and expanding the use of public-private partnership mechanisms. In the area of critical minerals, the focus is shifting from exporting raw materials toward their deep processing and the production of higher value-added goods.

The significant agricultural potential of the OTS countries, their diverse climate zones, and proximity to major consumer markets create opportunities for establishing new cooperation chains in the production and export of organic products. In this area, Uzbekistan has proposed combining scientific research, breeding, production, and logistics capabilities and, in the future, bringing products to global markets under a common brand.

A New Stage – New Opportunities

Today, economic cooperation within the Organization of Turkic States is moving to a qualitatively new stage. Alongside increasing trade volumes, industrial cooperation, mutual investment, transport and digital connectivity, energy, and new financial mechanisms are becoming key areas of the common economic agenda.

This creates broad opportunities for making more effective use of the potential available across the OTS region and developing new sources of economic growth.

A comprehensive monitoring of key business activity indicators across Uzbekistan’s regions points to growth across all major metrics.

Based on operational data from the Tax Committee, Customs Committee, Central Bank, and the Uzbek Republican Commodity Exchange, the Center for Economic Research and Reforms (CERR) continues to monitor business activity across the regions of the Republic of Uzbekistan.

As of March this year, tax revenues demonstrated steady positive momentum, increasing by 54% compared to the same period last year.

The most notable growth in revenues was recorded in the Navoi, Syrdarya, Tashkent, and Khorezm regions, as well as in the city of Tashkent, where average growth rates reached 33%.

Personal income tax revenues rose by 15.2%, property tax revenues by 10.7%, and land tax revenues by 33.8%.

Customs revenues increased by 19.5%. The highest growth rates were recorded in the Navoi region, up 77.6%, and the Namangan region, up 64.2%.

Stable positive dynamics were also observed in the Fergana and Samarkand regions, as well as in the Republic of Karakalpakstan, where revenues increased by an average of 32%.

Analysis of foreign economic indicators shows that merchandise exports rose by 30%. The strongest export growth was recorded in the Navoi region, up 71.4%, and the Tashkent region, up 52.4%. Export growth was also observed in the Samarkand region (30.6%), Namangan region (29.3%), and Bukhara region (27.2%).

At the same time, lending activity expanded significantly. During the reviewed period, the volume of loans issued by commercial banks increased by 9.1%. The highest growth was recorded in the Samarkand region (+69.5%). In the Bukhara, Khorezm, Fergana, and Tashkent regions, lending growth averaged more than 43%.

The active development of the private sector is also reflected in a substantial increase in the number of newly established business entities. In March this year, 22,443 new enterprises were registered. The largest numbers were recorded in the Tashkent region (2,276), Khorezm region (2,035), Samarkand region (1,854), Fergana region (1,626), and the city of Tashkent (4,759).

Trading volume on the Uzbek Republican Commodity Exchange increased by 20.8%. The highest growth in exchange activity was recorded in the Syrdarya region, where activity rose by 68.4%. Additional strong growth was observed in the Syrdarya, Bukhara, Navoi, Namangan, and Surkhandarya regions, as well as in the city of Tashkent, where average growth reached 33%.

Sultonmurod Ozodov, CERR