On June 20, President Shavkat Mirziyoyev chaired a video conference call on training engineering personnel and improving the performance of higher educational institutions.

In today's competitive world, our country, relying on domestic resources, is moving towards industrial development. Every year 3 thousand industrial enterprises are put into operation, about 150 thousand jobs are created.

This year, projects worth 21 trillion soums will be implemented within the framework of state investment programs. Also, projects with foreign and regional investments worth 37.5 billion dollars are planned for this year.

Accordingly, the state pays great attention to science, education and innovation. For example, over the past four years, 2.2 trillion soums have been allocated to 1,727 practical, innovative, fundamental and startup projects. Spending on research and development has doubled.

However, the results in this area and the number of highly qualified engineers are still insufficient. There is a gap between higher education institutions and industry.

That is why rectors of technical universities were also invited to the meeting.

The head of state first of all dwelt on the problems in this sphere.

The 36 state technical higher educational institutions annually graduate 67 thousand specialists. However, the programs and specialties in these universities do not meet the requirements of manufacturers. As a result, 60 percent of engineers do not work in their specialty.

Higher educational institutions are limited to fundamental research, and practical developments for the economy are very rare. Hundreds of startups and innovative projects in engineering fields remain on paper.

In foreign universities there are such specialties as "value engineering", "comparative engineering", "reverse engineering". In our technical universities, these areas are not developed. As a result, industries have to spend a lot of money on training their employees abroad or attract specialists from abroad.

Although the coverage of higher education has increased 5 times in the last seven years, the interest of young people in engineering and technical specialties is very low. Some equipment of universities and scientific laboratories is outdated. Many professors and teachers are disconnected from practice. Rectors do not visit enterprises, do not familiarize themselves with new technologies, do not study equipment and machines.

Over the last four years, the number of research contracts of universities has tripled. Revenues from them have increased 6 times. However, the implementation of the results of scientific developments into production is slow. Not everyone is equally successful in patenting their inventions.

The President presented new initiatives to develop this area.

Now training and research processes in technical areas will be completely changed based on the best practices. 36 universities and their branches will be gradually consolidated, leaving a total of 20 technical universities. They will completely switch to the dual system of education.

Specialties that are not in demand in the labor market will be reduced. Some departments will be merged. The functions of dean offices to serve students will be digitalized. Based on foreign experience, a "Registrar's Office" will be created.

Each university will establish cooperation with prestigious technical universities of developed partner countries such as Germany, Japan, China, Russia, Italy, Turkey, South Korea, Singapore.

Based on the chain "industry-enterprise-university", each university will be assigned an industrial partner.

All engineering universities will open departments at their partner enterprises and introduce dual education. At the same time, the enterprises will allocate funds to equip the departments, stimulate teachers and students. Student internships and graduate training will be fully organized at partner enterprises.

Thirty-two sectoral councils will be established in the system of ministries and enterprises. They will determine priority directions of scientific research in technical fields together with institutes and will be customers of these researches.

Also at the first stage, higher engineering schools will be opened in 10 universities. Two-year applied master's degree programs will be implemented in them, and candidates will be selected by order of manufacturers. Enterprises will financially support the establishment and equipping of laboratories in higher engineering schools. The state will also provide highly qualified engineers-technologists. If every minister, industry leader, rector, professor and teacher feels deep sense of responsibility and works hard, we will definitely achieve this," Shavkat Mirziyoyev said.

The status of pilot production enterprises of universities will be legislated. They will be granted privileges applicable to IT park residents. At least 60 percent of the employees of the subsidiaries will be doctoral candidates and students.

From next year, state grants for projects in technical areas will be increased fourfold. Partner organizations of universities will also be allowed to act as founders of enterprises.

Hokims of regions and heads of industries will be able to directly provide universities with orders for scientific and production projects up to 10 billion soums.

A system of allocating at least half a percent of the cost of investment projects for scientific activities will be introduced.

It has been determined to organize national contests "Best Idea", "Best Project" and "Best Invention" in engineering fields. Teachers, students and practicing engineers will be able to participate in them. The prize for the first place is an electric car.

Also 10 best participants, authors of ideas, projects and inventions will be sent for internship to such countries as Germany, Japan, China, Russia, Italy, Turkey, South Korea, Singapore.

The meeting continued in the format of an open dialog. Industry leaders, scientists, rectors and engineers expressed their opinions on the development of science and education in engineering.

It was assigned to draft a relevant decree based on the proposals.

- We need highly qualified engineers-technologists like air for the accelerated development of the economy. If every minister, industry leader, rector, professor and teacher feels deep sense of responsibility and works hard, we will definitely achieve this," Shavkat Mirziyoyev said.

The eighth Consultative Meeting of the Heads of State of Central Asia and Azerbaijan, scheduled for 8 October 2026 in Awaza, lends particular significance to the strategic partnership between Uzbekistan and Turkmenistan. The agenda proposed by Turkmenistan covers security, the economy, energy, transport, water resources and humanitarian ties. In each of these areas, cooperation between Tashkent and Ashgabat can deliver benefits for the region as a whole.

Against a backdrop of global instability and the restructuring of Eurasian logistics networks, this partnership is becoming a pillar of regional stability. Its broader significance rests on a combination of political trust, complementary economies and responsibility for shared resources. Coordination between the two neighbours creates a more predictable environment for trade, investment and long-term planning across Central Asia.

From Strategic Partnership to Regional Trust

The 1996 Treaty of Friendship, Cooperation and Mutual Assistance laid the foundations for bilateral relations. A new stage began in March 2017, when President Shavkat Mirziyoyev made his first foreign visit as head of state to Turkmenistan. The visit culminated in the signing of the Treaty on Strategic Partnership. The Declaration of 21 October 2022 reaffirmed the commitment to deepening this partnership, expanding economic ties and strengthening cooperation on the international stage.

The settlement of border issues through negotiated agreements is equally significant. On 10 November 2017, Uzbekistan, Turkmenistan and Kazakhstan signed a treaty concerning the area where their state borders meet. Such agreements strengthen regional trust and provide legal certainty for the development of cross-border cooperation.

Regular dialogue between Shavkat Mirziyoyev, President Serdar Berdimuhamedov and the National Leader of the Turkmen People, Gurbanguly Berdimuhamedov, ensures continuity in this approach. The state visit of the President of Turkmenistan to Uzbekistan in November 2025 gave fresh impetus to cooperation. Agreements were signed on border trade, agriculture, healthcare and ties between the regions of the two countries. Political trust is steadily being translated into practical mechanisms for joint action.

Ashgabat’s diplomatic engagement plays a particular role. On Turkmenistan’s initiative, the UN General Assembly adopted the resolution “Zone of Peace, Trust and Cooperation of Central Asia” on 28 July 2022, with Uzbekistan among its co-sponsors. The resolution secured international political support for regional dialogue and the peaceful settlement of disputes. By advancing this agenda, Turkmenistan assumes an important responsibility for strengthening trust in Central Asia. This approach is consistent with Uzbekistan’s policy of good-neighbourly relations: joint efforts to prevent risks create the conditions needed for national development programmes and regional projects.

Economic Cooperation as a Foundation for Integration

Trade growth demonstrates the economic foundations of closer ties. According to Uzbekistan’s National Statistics Committee, bilateral trade rose from $177.9 million in 2017 to $1.2 billion in 2025, an increase of approximately 6.8 times. In January–August 2026, it reached $807.4 million, up 5.7 per cent on the same period of the previous year.

A free trade regime has been in effect since 25 February 2025, eliminating customs duties on goods originating in the two countries, subject to certain exceptions. In November 2025, the Shavat–Dashoguz border trade zone opened, bringing together trading, warehousing and service facilities. It enables businesses to store and sell products, complete shipment formalities and access essential services in one location. The two sides agreed to extend this model to the Alat–Farap area. Establishing a similar zone between Bukhara Region and Lebap Province would bring more local producers into direct trading relationships.

These arrangements are turning border areas into centres of economic cooperation. Simpler trade and border procedures reduce business costs and create more opportunities for small enterprises and employment. Bilateral cooperation provides a practical setting for developing solutions that can subsequently be discussed at Consultative Meetings and applied across the wider region. This approach builds integration around measurable benefits for producers and local communities.

The leaders’ target of increasing bilateral trade to $2 billion calls for closer industrial cooperation, including in the production of construction materials, pharmaceuticals and food products.

Joint processing activities and the manufacture of finished goods could diversify both countries’ exports and strengthen regional production links. Cooperation in the purchase, supply and transit of gas and electricity complements these efforts. It offers Uzbekistan opportunities to secure reliable energy supplies for its growing economy, while enabling Turkmenistan to expand its export markets. Predictable supplies provide a more stable basis for industrial cooperation in Central Asia.

From Landlocked Geography to Eurasian Connectivity

Turkmenistan provides Uzbekistan with access to the Caspian Sea and, through the South Caucasus, to Europe. Uzbekistan’s infrastructure, in turn, connects Turkmen businesses with markets elsewhere in Central Asia. The Turkmenabat–Farap bridges, opened in 2017, strengthened this connection. Its further development marks a shift from the constraints of being landlocked towards becoming active, land-linked hubs in international transport networks.

The Awaza Programme of Action for Landlocked Developing Countries for the Decade 2024–2034 provides a global framework for this transformation. Adopted by the UN General Assembly on 24 December 2024, it was endorsed at the Third UN Conference on Landlocked Developing Countries in Awaza in August 2025. Hosting the conference and advancing its outcomes highlight Turkmenistan’s role in mobilising international support for transport connectivity, trade and climate resilience. For Tashkent and Ashgabat, this is a shared agenda for overcoming geographical constraints on development.

Practical steps include the trilateral dialogue between Uzbekistan, Turkmenistan and Azerbaijan, launched at the highest level in Awaza in August 2025, and the November agreement on the joint development of the Port of Turkmenbashi. Azerbaijan’s full participation in the Consultative Meetings creates further opportunities to coordinate Caspian transport operations. Priorities include through tariffs, electronic documentation and coordinated border-crossing operations, which are essential to turning infrastructure into a competitive transport route.

Combining Caspian and southern transport links with existing routes gives exporters across Central Asia more options and expands transport opportunities along the East–West and North–South axes. This reduces exposure to disruptions on individual routes, strengthens the region’s economic autonomy and improves its position in Eurasian trade. In this area, the value of the partnership is measured by the reliability of deliveries and access to external markets.

The Amu Darya: Water Security and Preventive Diplomacy

Cooperation on the Amu Darya, Central Asia’s largest river by discharge, directly links the resilience of both countries to the security of the entire basin. For countries along its middle and lower reaches, coordinated water use is essential to irrigation, energy supply, food security and the preservation of ecosystems in the Aral Sea region.

The intergovernmental Agreement on the Management, Protection and Rational Use of the Water Resources of the Amu Darya River, signed on 14 July 2022, strengthened the legal framework for cooperation. The fifth meeting of the Joint Water Management Commission, held in Khiva on 30 January 2026, addressed improvements in water accounting and monitoring, modern technologies and adaptation to climate change. Regular data exchange and coordinated action help the two countries anticipate water shortages and reduce the risk of disagreements.

The reliable operation of the Tuyamuyun hydraulic complex, which combines flow regulation, irrigation and electricity generation, is particularly important. Joint expert work has examined sedimentation in its channel reservoir. Sediment accumulation reduces water storage and flow-regulation capacity. Modernisation of the complex, water conservation and the reduction of losses in irrigation networks should therefore be treated as interconnected tasks in ensuring water and energy security.

Tashkent and Ashgabat share the task of establishing lasting water cooperation with all countries in the basin, including Afghanistan. In 2023, Shavkat Mirziyoyev proposed jointly studying the impact of the Qosh Tepa Canal on the flow regime of the Amu Darya and considering the involvement of Afghan representatives in regional water dialogue. Both countries attach fundamental importance to balancing Afghanistan’s economic development with the need to maintain reliable water supplies downstream. Achieving this balance requires joint assessments of the impact of new projects, the exchange of reliable data, agreement on water withdrawal parameters and consideration of each other’s interests. This gives the dialogue on the Qosh Tepa Canal significance for the entire region.

This illustrates the preventive role of water diplomacy: reaching agreement in advance reduces vulnerability to drought and the associated food security and humanitarian risks. The experience of Uzbekistan and Turkmenistan can strengthen basin-wide cooperation and engagement between upstream and downstream countries. Its effectiveness matters to the entire region because the consequences of a water crisis extend beyond national borders.

Awaza and Central Asia’s Long-Term Prospects

The “Central Asia 2040” Concept for the Development of Regional Cooperation, adopted in Astana in 2024, provides a long-term framework for joint action. The forthcoming meeting in Awaza offers an opportunity to translate that framework into practical decisions. The Uzbek–Turkmen partnership contributes concrete elements to this agenda: production links, reliable energy supplies, access to Caspian and southern transport routes, and responsible water use. Together, these areas strengthen the ability of the region’s states to shape their own development paths.

Lasting cooperation requires support from society and professional communities. Expanding cultural and people-to-people ties is particularly important in this regard. A shared cultural heritage and appreciation of the works of Alisher Navoi and Magtymguly Pyragy sustain mutual interest between the two peoples. The Days of Turkmen Culture and screenings of Turkmen films held in Urgench and Tashkent in 2025 were followed by agreements on regular exchanges. The Cultural Cooperation Programme for 2026–2027 provides a basis for bringing the two countries closer together. Joint educational programmes and the training of specialists in water management, logistics and industry could make a valuable further contribution.

Expert dialogue is also intended to support these processes. In November 2025, the Institute for Strategic and Regional Studies under the President of the Republic of Uzbekistan and the Institute of International Relations of the Ministry of Foreign Affairs of Turkmenistan signed a memorandum establishing an Uzbek–Turkmen Expert Council. This mechanism creates opportunities to assess regional risks jointly and develop proposals on trade, transport and water use. Its practical value lies in providing research-based input into interstate decisions while taking account of the interests of businesses and the public.

The new stage in the partnership between Tashkent and Ashgabat is thus defined by its contribution to the broader framework of security and sustainable development. By translating political trust into accessible markets, reliable transport and infrastructure links, and coordinated resource management, the two countries strengthen the foundations of regional cooperation. This is their strategic contribution to the future of Central Asia as a region of good-neighbourly relations, economic interconnectedness and open engagement with the Caspian basin and other parts of Eurasia.

Vladislav Tyan
Leading Research Fellow
Institute for Strategic and Regional Studies
under the President of the Republic of Uzbekistan

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 the current geopolitical climate, Uzbekistan's participation in the Shanghai Cooperation Organization (SCO) is acquiring particular strategic importance. The SCO serves as a crucial platform that allows member states to combine their efforts, both in times of stability and during periods of crisis and external shocks, as well as to develop coordinated approaches and joint solutions to issues of common regional interest.

In the transport sector, this is especially vital for maintaining the stability and continuity of international supply chains, diversifying routes, developing new transport corridors, and strengthening the interconnectedness of member states.

Over the past five years, Uzbekistan's international freight traffic with SCO member countries has increased by approximately 9 million tons, or 40%, reaching 33.5 million tons in 2025 and accounting for 80% of the country's total freight volume. Within this volume, the largest shares belong to Russia (33%), Kazakhstan (32%), China (16%), and Kyrgyzstan (10%).

According to the author's calculations, international freight traffic between Uzbekistan and SCO member states could reach up to 47 million tons by 2030.

Established in 2001 primarily as a mechanism for ensuring regional security, the SCO has significantly expanded its agenda over its 25-year history. Today, its framework addresses issues of trade, investment, energy, transport, logistics, digitalization, ecology, culture, and other areas.

With the expansion of the Shanghai Cooperation Organisation (SCO) to 10 member states, transport cooperation has acquired key importance in the organization's activities. The SCO's geographical area covers a vast territory, stretching from Belarus to India in the south—through Afghanistan, which has observer status—and latitudinally from China to Iran and Türkiye, a dialogue partner. Furthermore, an opportunity is emerging for the first time to connect the land transport systems of the Indian subcontinent and Eurasia, including China. This geographic configuration creates the foundation for linking key trade regions across Eurasia and establishing new international transport routes.

In recent years, the organization's member states have adopted a set of strategic documents that have formed the institutional framework for developing transport connectivity. These include:

The Concept for Cooperation of the SCO Member States on Developing Connectivity and Creating Efficient Transport Corridors – Samarkand, September 16, 2022;

The Concept for Cooperation between SCO Member States on Transport Decarbonization, Promoting Digital Transformation, and Innovative Technologies to Achieve Greater Efficiency and Sustainability – New Delhi, July 4, 2023;

The Concept for Cooperation of SCO Member States in the Development of Ports and Logistics Centers – Astana, July 4, 2024.

Concurrently, the SCO regularly holds meetings of the Joint Commission on Creating Favorable Conditions for International Road Transport, meetings of the heads of railway administrations, and meetings of transport ministers.

One of the key responses to contemporary challenges is the development of alternative land-based communications and the creation of a sustainable, interconnected digital transport ecosystem. This principle is shaping a new paradigm in the SCO's approach to logistics development.

The Tianjin Declaration of the SCO Council of Heads of State, adopted on

September 1, 2025, directly reflects this trend.

The document notes that, "The Member States, sharing the international community's aspiration to strengthen interconnectedness, advocate for the further development of cooperation in the transport sector on a fair and balanced basis in accordance with international law and the goals and principles of the UN Charter and the SCO Charter. They emphasize the importance of creating new and modernizing existing international transport routes, including promoting the activities of the North-South and East-West corridors, and harnessing the transit potential of the SCO Member States. They also note the SCO countries' initiatives on transport infrastructure and on ensuring the stable and uninterrupted functioning of supply chains through the digitalization of logistics procedures, including the organization of electronic data exchange on goods transported between SCO countries and the introduction of technological innovations".

At the same time, to achieve an integrated transport and logistics system for the SCO, it is necessary to eliminate the existing infrastructure gaps between the Organization's individual subregions.  One of the key challenges to transport interconnectivity among the SCO states remains the insufficient level of railway connectivity between the member countries. This hinders the formation of a unified, integrated railway network not only for the SCO but for all of Eurasia.

In this regard, the implementation of new transregional railway projects aimed at bridging existing infrastructure gaps and creating additional routes between Central, South, and East Asia is of particular importance.

In this respect, the projects initiated and supported by Uzbekistan to build new railway lines are of a significance that extends far beyond national infrastructure, acquiring a regional character.

One of the most significant infrastructure projects is the China–Kyrgyzstan–Uzbekistan railway^[1].

The Tianjin Declaration specifically noted the launch of the China–Kyrgyzstan–Uzbekistan railway's construction. In this project, Kyrgyzstan and Uzbekistan can serve as a key link in a new transport logistics network. Furthermore, the development of land routes will allow the region's states not only to compensate for their lack of direct sea access but also to form a regional transport bridge between the largest markets of Eurasia.

On December 27, 2024, an official ceremony marking the start of the railway's construction was held in the Jalal-Abad region of Kyrgyzstan. The total length of the project is approximately 532.5 km. It involves the construction of railway stations, bridges, and tunnels, making it one of the most complex infrastructure projects in the region^[2].

According to preliminary estimates, after commissioning, the freight volume on the new railway could reach 8 million tons by 2030, 10 million tons by 2040, and 13.5 million tons by 2050.

The project's importance lies not only in shortening the distance between China and Central Asia. Its strategic impact is the creation of a new component of the transportation network, which can later be integrated with routes to South Asia and onward to the ports of the Indian Ocean.

To link the countries of East Asia (China) with those of South Asia (India and Pakistan), the swift implementation of another project vital to the region is necessary: the construction of the Uzbekistan–Afghanistan–Pakistan railway line. The implementation of this project will create a new international multimodal transport corridor capable of connecting the European Union, the CIS countries, Afghanistan, Pakistan, and India, with subsequent access to the markets of Southeast Asia.

The project's fundamental importance lies in establishing a new, shorter overland route and providing a direct transport link between the SCO countries via a unified railway network.

As part of the project preparation, field studies have already been conducted, orthophoto maps and a digital terrain model have been prepared, and the technical part of the preliminary feasibility study for the route has been developed by the Boshtransloyiha design institute.

In July 2025, during the first meeting of the foreign ministers of the three countries in Kabul, a framework intergovernmental agreement was signed on the development of a feasibility study.

Preliminary estimates by the consulting firm EY (one of the Big Four) project a significant cargo potential for the project: up to 22 million tons per year by 2030 and up to 34 million tons by 2040^[3]. A significant portion of this cargo base, up to 80%, is expected to come from transit flows.

The economic significance of the corridor extends beyond the transport sector. Its implementation could help bring Afghanistan's natural resources into economic circulation, create new professions and jobs, develop infrastructure, and establish new production and logistics chains.

The most significant strategic effect will be achieved not by implementing individual railway construction projects, but through their synchronized development and mutual integration. This will allow for the formation of an interconnected system of transport routes, expand the transit and export potential of the SCO countries, including Uzbekistan, and create the conditions for redistributing freight flows between East, Central, and South Asia.

In the long term, this will lay the groundwork for forming international multimodal transport corridors along the "China–Kyrgyzstan–Uzbekistan–Afghanistan–Pakistan–India," "China–Kyrgyzstan–Uzbekistan–Turkmenistan–Iran–Turkey–EU," and "CIS countries–Uzbekistan–Afghanistan–Pakistan" routes, providing access to Indian Ocean ports.

In this regard, the initiative by Uzbekistan's railway authorities to establish a Council for the Integration of SCO Railway Spaces, proposed in 2024^[4], is of particular importance. The draft Concept for the Council was supported on March 27, 2026, at the sixth meeting of the heads of SCO railway administrations and was approved by the organization's transport ministers in April 2026.

The creation of the Council will make it possible to coordinate joint efforts to eliminate existing barriers, including differences in railway gauge, technical and technological standards, and rolling stock parameters, as well as to improve border procedures and unify transport documents.

Thus, the development of transport connectivity within the SCO creates opportunities not only for the member states as a whole, but also for individual regions, promoting their integration into international transport and logistics chains, expanding their transit potential, and attracting new cargo flows.

1. T. Ibragimova

[1] Железная дорога «Китай – Кыргызстан – Узбекистан»: новая транспортная артерия Евразии// https://t.me/projekt_office_smsc/339

[2]  О ходе строительства ж/д «Китай – Кыргызстан – Узбекистан» – новой транспортной артерии Евразии// https://www.youtube.com/watch?v=r9MTktgScAk

[3] О проекте строительства железной дороги "Узбекистан-Афганистан-Пакистан", 2025// https://www.youtube.com/watch?v=kbx2vVH2xHs

[4] Россия поддержит: перспективы двух крупных транспортных проектов в ЦА// https://uz.sputniknews.ru/20240219/russia-uzbekistan-perspektivy-transportnye-proekti-v-tsa-42568893.html

Over the past few years, Uzbekistan and Azerbaijan have moved from strategic partnership to a fully fledged alliance. Two distinct dimensions now stand out in the way they engage with one another. On the one hand, the institutional foundation of their cooperation is firmly in place; on the other, its economic momentum is only beginning to build. In our view, the balance between the development of political and diplomatic machinery and the practical substance of economic cooperation is what will define the next chapter in Uzbek–Azerbaijani relations.

The institutional architecture

The framework of bilateral ties built by Tashkent and Baku rests largely on top-down coordination: the agenda is set at the level of the heads of state, while intergovernmental, ministerial and business mechanisms deliver it. It is President Shavkat Mirziyoyev of Uzbekistan and President Ilham Aliyev of Azerbaijan who set the principal vectors of cooperation and its tempo, and who appreciably shorten the time needed to sign off on individual decisions.

This has gradually produced an extensive system of engagement mechanisms. The Supreme Interstate Council was established in 2023 and held its first session in 2024; the same year saw the signing of the Treaty on Allied Relations. In July 2026, Tashkent hosted the fifteenth meeting of the Intergovernmental Commission. The Uzbek–Azerbaijani Business Council has been operating since 2020, three Forums of Regions have been convened, and eleven cities have entered into sister-city arrangements. In the past three years alone there have been more than twenty high-level inter-parliamentary contacts, and in 2025 Khiva hosted the first inter-parliamentary forum.

Contact of this density is normally found between neighboring countries, or between states whose mutual trade runs at far higher levels. For Uzbekistan and Azerbaijan – separated by the Caspian and still trading comparatively little – the degree of institutionalization achieved looks all the more striking.

The practical effect is to lower political and administrative barriers, shorten approval timelines and make it easier for companies to enter the partner’s market. Yet an institutional framework does not in itself generate trade flows or investment demand. It creates favorable conditions for business activity, but it is no substitute for the economic incentives on which the further momentum of cooperation depends.

The next stage, therefore, is likely to be defined less by adding to the number of existing formats than by their capacity to convert the political relationship already achieved into concrete economic results.

The economic dimension: a question of scale

Political dialogue between the two countries is still running well ahead of the underlying economic indicators, as the statistics make plain. Bilateral trade came to $307 million in 2025, an increase of roughly 15 percent. Uzbek exports grew by 8 percent to $227 million, while imports from Azerbaijan rose by 39 percent to $80 million. The Uzbek export basket widened by 116 product lines.

These figures take on a rather different meaning, however, when set against Uzbekistan’s total foreign trade turnover, which exceeded $81 billion in 2025^[1]. Azerbaijan accounted for less than 0.4 percent of it. That number should not be read as a verdict on the quality of the bilateral relationship. What it shows, rather, is how hard it is to translate political alignment into economic ties of real scale – a difficulty rooted in several objective structural constraints.

These include the absence of a shared border and the resulting need for multimodal shipping across the Caspian; a partial overlap in export baskets (textiles, fruit and vegetables, selected chemical products); and similar approaches to diversifying economic ties, which leave the two sides competing on third markets more often than complementing one another.

From this follows a thoroughly practical conclusion. Simply scaling up conventional trade is unlikely to bring the two countries to the $1 billion mark set by their presidents^[2]. Growth will have to be sought through investment and industrial cooperation, where trade flows arise from shared production chains.

Both countries appreciate how important it is to put such systematic work in place, and in recent years the center of gravity of the agenda has shifted noticeably from trade toward investment. The Azerbaijan–Uzbekistan Investment Company (AUIC), created in 2023 with charter capital of $500 million, is already involved in fifteen projects worth some $360 million, according to Uzbekistan’s Ministry of Investment, Industry and Trade^[3]. The wider pipeline is considerably larger, taking in more than twenty projects worth around $6 billion, with a further twenty-five worth almost $1.5 billion in preparation^[4].

How far investment cooperation reaches beyond declared intentions is best judged from what is happening at specific production sites. The most visible example is the joint vehicle assembly operation run by Uzavtosanoat and Azermash at the Hajigabul industrial park, which has already turned out more than 11,000 Chevrolet cars and Isuzu buses^[5]. The project is now moving into its next phase: a full-cycle plant with investment of more than $84 million. Textile and sericulture clusters are developing in parallel, alongside agro-industrial and logistics projects.

The significance of such ventures is not measured by output alone. Their principal value lies in forging durable production links between the two countries.

Joint manufacturing generates steady demand for mutual deliveries of components, raw materials and equipment, which in effect embeds bilateral trade within a single production chain.

Ties of this kind tend to be less sensitive to swings in the market, since they rest not on one-off deals but on the long-term needs of production. Another consideration matters just as much. Localizing production in Azerbaijan, provided the relevant rules of origin are met, potentially opens the door to third-country markets with which Baku holds preferential trade arrangements.

In that sense, joint ventures can be seen not merely as a means of serving the two national markets, but as a possible platform for promoting products together beyond Uzbekistan and Azerbaijan. That effect does not materialize automatically, however: it calls for dedicated work on the trade, customs and legal mechanisms involved.

What will shape further growth?

The institutional architecture now in place, together with the results already achieved in economic cooperation, creates considerable scope for taking the relationship further. Realizing that potential, though, will depend on the two sides’ ability to overcome a number of structural constraints.

Foremost among them are the competition between similar products on third markets noted above and the volatility of Caspian logistics, which reflects the condition of the ferry fleet and the seasonality of shipping. A further brake comes from the difficulty of making direct payments between the two countries’ banks and of insuring cargo, both of which add to the cost and duration of foreign trade transactions.

Against this backdrop, a natural question arises: what could accelerate the pace of cooperation?

One of the most practical steps would be mutual recognition of certificates and laboratory test results, above all for agricultural produce, which would cut both the time and the cost of bringing goods to the partner’s market.

In the financial sphere, there is a strong case for broadening correspondent banking relations and settlement in national currencies, by way of direct payments between banks and convenient currency conversion arrangements. This would reduce reliance on intermediaries and make settlement of trade and investment operations more predictable.

Transport deserves attention in its own right. Expanding the capacity of the Caspian routes, harmonizing tariffs and shipping schedules, and developing digital cargo tracking would all help lower costs for business.

Uzbek–Azerbaijani relations have thus reached the point at which the political capital accumulated over recent years is gradually acquiring economic and practical substance. In this sense it can be said with confidence that the two countries have laid a solid foundation for moving into new areas and deeper forms of allied partnership.

Miraziz Mirumarov, Leading Research Fellow,

Institute for Strategic and Interregional Studies under the President of the Republic of Uzbekistan

Iroda Imamova, Leading Research Fellow,

Institute for Strategic and Interregional Studies under the President of the Republic of Uzbekistan

[1]https://stat.uz/ru/press-tsentr/novosti-goskomstata/66431-2025-jilda-zbekistonning-tash-i-savdo-ajlanmasi-81-mlrd-dollardan-oshdi-3

[2]https://president.uz/ru/lists/view/8287

[3]https://surl.li/rgudkn

[4]https://surl.li/wbqoju

[5]https://economiczones.gov.az/post/hsp-de-avtomobil-istehsali-artir-az

Today, Uzbekistan and Kyrgyzstan are connected not only by a shared border and close historical and cultural ties. A common economic space is gradually emerging, built on mutual trade, industrial cooperation, joint investment, and direct ties between businesses and regions.

Over the past decade, the two countries have moved from resolving accumulated issues to implementing concrete projects. The border is becoming a link rather than a barrier, while the complementary nature of the two economies is creating new opportunities.

Drivers of Trade and Economic Cooperation

The transformation is most clearly reflected in the growth of bilateral trade. Compared with 2016, mutual trade has increased more than sevenfold. Uzbekistan’s exports have grown more than sixfold, while imports from Kyrgyzstan have increased more than ninefold. Thus, the flow of goods is expanding in both directions.

In 2025, Uzbekistan’s foreign trade turnover with Kyrgyzstan reached nearly $1.2 billion, rising by 37% year-on-year. Uzbekistan’s exports to Kyrgyzstan increased by 46.5% to $771 million, while imports reached $428 million, up nearly 23%.

The positive trend continued in 2026. In January–May, trade turnover approached $469 million, increasing by 45.5%. Uzbekistan’s exports rose by 63% to $771 million, while imports from Kyrgyzstan increased by nearly 13% to $428 million.

The structure of bilateral trade has also changed significantly in recent years. For example, while light industry products accounted for more than 50% of Uzbekistan’s exports in 2021–2022, their share declined to 19%, or $147 million, in 2025. Agricultural and food products accounted for 15%, or $112 million; machinery, equipment, and vehicles for 11%, or $87 million; and chemical products for 11%, or $81 million.

At the product level, exports are primarily composed of finished textile products, electricity, cement, mineral fertilizers, knitted fabrics, automobile bodies and components, ceramic tiles, aluminum profiles, fruit and vegetable products, and confectionery.

The quality of Uzbekistan’s export structure has also improved. The share of raw materials in exports declined from 56% in 2019 to 8.2% in 2025. Processed goods accounted for 40%, with the remainder consisting of finished products, services, and goods supplied by individuals.

Imports from Kyrgyzstan are also gaining strategic importance. In 2025, mineral and raw material products accounted for 44%, or $190 million, of imports from Kyrgyzstan. Fuel and energy products made up 26%, or $111 million, including $85 million worth of coal and lignite. Agricultural and food products accounted for 14%, or $61 million. Other significant imports included glass, natural stone, rolled metal products, tires, and packaging materials.

At the same time, considerable growth potential remains. Kyrgyzstan currently accounts for only about 1.5% of Uzbekistan’s total foreign trade turnover. This indicates that the goal set by the two countries to increase mutual trade to $2 billion by 2030 is fully achievable. However, reaching this target will require systematic efforts to diversify the range of traded goods and strengthen cooperative links that can support durable trade and investment relations.

Investment and Industrial Cooperation

Investment and industrial cooperation constitute the second major driver of economic relations between the two countries.

In 2016, only 49 enterprises with Kyrgyz capital operated in Uzbekistan. By the end of 2025, their number had reached 344, representing a sevenfold increase. As of July 1, 2026, there were already 374 such enterprises.

An important mechanism in this area is the Uzbek–Kyrgyz Development Fund, established in 2021. The fund already uses several support instruments, including investment lending, leasing, and project financing. The next stage of its development could involve expanding its portfolio and actively channeling resources into export-oriented joint ventures.

A number of joint enterprises have also been launched in recent years. These include the Kyrgyz–Uzbek Tulpar Motors automobile plant in the Chuy Region, which generates demand for metalworking, automotive components, logistics, and maintenance services.

Joint projects are also being implemented in the textile industry, household appliance manufacturing, the production of plastic and aluminum profiles, construction materials, and other sectors.

Implementation has begun on major projects such as the China–Kyrgyzstan–Uzbekistan railway and the 1.9 MW Kambarata Hydropower Plant-1.

These projects provide a solid foundation for a new structural breakthrough in bilateral relations.

Promising Areas of Cooperation

The results achieved in trade and economic cooperation, together with the rapid economic growth of Uzbekistan and Kyrgyzstan, create significant opportunities for further expanding bilateral economic relations.

One priority is to increase mutual trade, with a particular emphasis on products resulting from industrial cooperation. Achieving the target of $2 billion in bilateral trade will require more than simply increasing sales of finished goods. The two countries will need to expand trade in inputs intended for further processing as part of deeper cross-border value chains.

According to estimates by the Center for Economic Research and Reforms, Uzbekistan has the potential to increase exports to Kyrgyzstan of passenger vehicles and components, trucks, agricultural machinery, iron and steel products, finished textile products, polymer materials and finished plastic goods, electrical products and equipment, pharmaceuticals, and cement.

Kyrgyzstan, in turn, has the potential to increase supplies of mineral ores, plastic products, glass, natural stone, ceramic products, and environmentally friendly agricultural and food products.

A strategically important area of cooperation could be the transition to large-scale industrial collaboration through the creation of joint full-cycle production facilities and clusters in border regions.

In light industry, border regions produce more than 600 tons of raw cotton and have a cattle population of 4 million and a sheep and goat population of 6.4 million, providing a substantial raw material base. Proximity to China can also reduce the cost of purchasing synthetic raw materials for the industry.

Construction materials represent another promising area because their production is already one of the leading industrial sectors in the border regions. Kyrgyzstan is also experiencing a construction boom, with construction activity increasing 1.7 times in the first half of 2026, thereby generating additional demand for construction materials.

In the food industry, cooperation could focus on processing fruit and vegetables, meat and dairy products, and producing juices, jams, animal feed, and other food products.

In the mining sector, the two countries could develop joint projects for the exploration and development of mineral resources, including critical minerals and iron ore deposits. Such projects should aim to establish full production cycles, from extraction to the manufacture of finished products.

Additional potential for industrial cooperation and investment exists in electrical equipment, household appliances, pharmaceuticals, medical devices, and automotive components, including parts, batteries, tires, and plastic and metal components.

An important consideration in this area is ensuring that products are manufactured in accordance with the standards and market requirements of the Eurasian Economic Union. This would strengthen the export potential of joint projects.

As part of their industrial cooperation agenda, Uzbekistan and Kyrgyzstan should begin developing joint industrial projects along the route of the China–Kyrgyzstan–Uzbekistan railway. Logistics terminals, industrial zones, warehouses, processing centers, and freight service facilities should be established along the route. This would help create a major industrial hub in the region.

Other important areas include deeper interregional and cross-border cooperation and greater support for entrepreneurship. Promising fields include e-commerce, joint entry into third-country markets, marketplaces, startup cooperation, digital payments, tourism, and workforce training for joint enterprises.

In conclusion, Uzbekistan and Kyrgyzstan have already established a solid foundation for economic partnership. The next stage should transform quantitative growth into qualitative production integration. The two countries need to move from trading individual goods toward joint value chains, interconnected industrial cooperation networks, and a common production and logistics space.

Ruslan Abaturov,
Center for Economic Research and Reforms

President of the Republic of Uzbekistan Shavkat Mirziyoyev met with Secretary-General of UN Tourism (World Tourism Organization) Zurab Pololikashvili, who is in our country on a working visit, in Samarkand on June 15.

The sides discussed issues related to further expansion of Uzbekistan's multifaceted cooperation with this specialized UN institution.

The course of implementation of agreements reached and initiatives put forward at the 25th session of the organization's General Assembly, which was held in Samarkand in October 2023, has been reviewed. The UN General Assembly's adoption of the resolution initiated by Uzbekistan on declaring 2027 the International Year of Sustainable and Resilient Tourism was highly appreciated.

It was noted with deep satisfaction that the organization is a strategic partner of Uzbekistan in the development of modern tourist infrastructure and popularization of tourist destination to our country.

It was noted the importance of continuing joint efforts to implement programs and projects aimed at creating comfortable conditions and facilities for tourists, development of pilgrimage and cultural and cognitive tourism, including domestic tourism.

Special attention was paid to the issues of training qualified personnel in the field of hospitality and service with the effective use of opportunities of the International Academy of Tourism operating in Samarkand.

In order to popularize the tourist destination in Uzbekistan, practical interaction will be expanded in the issues of supporting the participation of domestic tour operators in major international tourism fairs and exhibitions.

More than 200 companies and brands from 11 countries to participate

14^th International Exhibition for Heating, Ventilation, Air Conditioning, Water Supply, Plumbing, Swimming Pools, Environment and Renewable Energy – Aquatherm Tashkent 2026 will be held from October 6 to 8, 2026, at the Uzexpocentre National Exhibition Complex in Tashkent.

The event will bring together equipment manufacturers and suppliers, distributors and dealers, as well as key market professionals, including installers, developers and engineering systems designers, representatives of construction and utility organizations, industry experts and professional associations.

The organizers are international exhibition company “Iteca Exhibitions” and its partner “ICA Eurasia Group.” The exhibition is held with the official support of the Ministry of Construction and Housing and Communal Services of Uzbekistan.

“Aquatherm Tashkent” is the leading specialized exhibition in Uzbekistan showcasing the latest developments and comprehensive solutions in the fields of HVAC, water supply, plumbing and related sectors. For 14 years, it has remained a key platform for demonstrating modern equipment, exchanging professional expertise and developing business cooperation.

In Uzbekistan, it is the only specialized exhibition that comprehensively presents all types of engineering solutions, including equipment for heating and hot water supply, ventilation, air conditioning and refrigeration, water treatment systems, wastewater and sewage systems, gas supply, pipes, fittings and valves, plumbing equipment, solutions for swimming pools, saunas and spas, as well as instrumentation and control systems, automation, tools and installation technologies.

This year, the exhibition will feature more than 200 companies and brands from 11 countries, including Belarus, Germany, Iran, Italy, Kazakhstan, China, the Republic of Korea, Poland, Russia, Türkiye and Uzbekistan.

Among the participants are Climadens Pro, Akfa, Bosch, Buderus, Besterm Itermic, Tepliy Vozdukh, Format, Rols Isomarket, Termaflex Izolyatsiya, Daikin, Haier, Thaicon, Hitium, Lesso, Tokamnet, Newterm, Akvadis, PK Kontur, Craft, Zip24, Nimbus, Santim, Ostendorf Rus and Edelweiss.

The exhibition will offer solutions across different price segments, including affordable options for a wide range of consumers.

A new area at this year’s exhibition will be wastewater treatment, which is particularly relevant for Uzbekistan amid water resource shortages, population growth, aging infrastructure and the pollution of water bodies by industrial and municipal wastewater.

The exhibition program will include expert presentations, professional skills competitions and practical master classes.

Aquatherm Tashkent 2026 is of practical interest to international manufacturers of equipment and raw materials, chambers of commerce and industry, and specialized associations that view Uzbekistan as a promising market for developing business ties and establishing new partnerships.

The exhibition will also serve as a networking platform for official delegations, representatives of the construction industry and utility companies seeking modern solutions for engineering infrastructure, water supply, water treatment, heating, ventilation and more efficient use of resources.

Every year, Aquatherm Tashkent brings together the professional community, providing an opportunity to see new technologies and equipment in operation, receive consultations, establish direct business contacts, discuss prospective projects and find solutions for construction and infrastructure facilities.

Visitors from across Uzbekistan and abroad attend Aquatherm Tashkent to see what the market has to offer, compare available technologies and equipment, find reliable suppliers and identify suitable solutions for their specific needs.

As a result, the exhibition serves as a starting point for a new stage in the development of the engineering market for the following year – a place where new business relationships are established, priorities for further work emerge and the foundations for future projects are laid.

Visitors are encouraged to register in advance and obtain an online badge at: https://bit.ly/ATT_Dunyo_ru

More information is available at www.aquatherm-tashkent.uz or by phone at +998 71 205 14 14.

“Aquatherm Tashkent” is held under the internationally recognized Aquatherm® exhibition brand in the HVAC sector, owned by Austrian company Wiener Messe und Congress GmbH.

Dunyo IA

Президент Шавкат Мирзиёев начал свою поездку в Республику Каракалпакстан с ознакомления с промышленным потенциалом региона.

Совместное предприятие “Nukus Eleсtroapparat” было введено в строй в 2017 году, оно производит силовое оборудование для электросетей. В июне текущего года здесь был запущен проект по изготовлению солнечных панелей стоимостью более 10 миллионов долларов. Оборудование было доставлено и установлено из Республики Корея. Производственный процесс полностью автоматизирован. Годовая мощность проекта составляет 273 тысячи единиц.

Это будет способствовать дальнейшему внедрению альтернативной энергетики в нашей стране. На сегодняшний день в различных сооружениях и домах установлены солнечные панели общей мощностью 600 мегаватт. Этот процесс продолжается.

Наряду с локализацией востребованной на внутреннем рынке продукции совместное предприятие получило возможность экспортировать продукцию на 4 миллиона долларов. Обеспечено работой 70 человек.

Глава нашего государства ознакомился с технологическим процессом, побеседовал с работниками. Ответственным лицам даны указания по увеличению количества таких предприятий и производству ими продукции с высоким спросом на рынке.

Здесь же была представлена продукция, производимая предприятиями отрасли.

На самом заводе установлены солнечные панели мощностью 125 киловатт. Полученная электроэнергия используется для внутренних нужд, а излишки реализуются в региональную электросеть.

За последние годы в нашей стране за счет инвестиций в размере 2 миллиардов долларов введены в эксплуатацию 10 солнечных и ветряных станций общей мощностью 2,6 гигаватта. Также ведется работа по 32 "зеленым" проектам мощностью 18,6 гигаватта общей стоимостью 19 миллиардов долларов. В целом к 2030 году намечено довести долю возобновляемых источников энергии в энергетическом балансе до 40 процентов.

An expert from the Institute for Strategic and Regional Studies under the President of Uzbekistan, commented to Dunyo IA on the outcomes of President Shavkat Mirziyoyev’s working visit to the United States, which took place from February 17 to 19:

- The visit of the President of Uzbekistan to the United States, which took place as part of his participation in the first meeting of the Board of Peace, was not just another diplomatic event, but a logical continuation of the strategy of pragmatic and mutually beneficial dialogue with Washington built over recent years. It demonstrated a shift from symbolic political interaction to systemic coordination in security, economics, trade, and humanitarian exchanges.

This visit marked the culmination of an intensive partnership over the past six months. Meetings on the sidelines of the UN General Assembly, the C5+1 summit, participation in events in Davos, and the signing of the Charter of the Board of Peace, as well as personal contacts between the two leaders, have fostered a stable dynamic of political dialogue. This fifth summit in six months demonstrates that relations have entered a phase of regular strategic communication, with each meeting reinforced by concrete agreements.

The visit’s busy business program confirmed its practical nature. During his stay in the United States, the head of state held talks with representatives of the American administration, financial institutions, and business circles, including the Export-Import Bank of the United States, the International Development Finance Corporation, the American-Uzbekistan Chamber of Commerce, as well as the heads of major companies such as Traxys, Valmont Industries, Gulf Oil, Aviagen, John Deere, BlackRock Financial Markets Advisory, Oppenheimer, and others. Following the signing of bilateral documents, the parties solidified agreements in priority areas such as the agro-industrial complex, critical minerals, financial market development, improving the investment climate, and the creation of an investment platform.

Discussions with the US Trade Representative and the Secretary of Commerce deserve special attention. During these talks, the need to intensify work within the framework of the Trade and Investment Framework Agreement between the countries of Central Asia and the United States was emphasized. This gave cooperation not only a bilateral but also a regional dimension, strengthening Uzbekistan’s position as a coordinator of economic processes in the region.

Viewed historically, the current stage’s foundation was laid back in 2018 during Shavkat Mirziyoyev’s first official visit to Washington, when agreements worth over $4.8 billion were signed. This package signaled Uzbekistan’s systemic openness to international businesses. In 2021, the Strategic Partnership Dialogue was established, and its subsequent expansion testifies to the institutionalization of bilateral relations. The invitation of the Uzbek leader to the G20 summit in Miami, personally initiated by US President Donald Trump, further confirmed the country’s strengthening international status and recognition of its growing role on the global agenda.

The economic dimension of cooperation is demonstrating steady growth. While trade turnover stood at $408 million in 2018, it consistently exceeded $1 billion by the end of 2024-2025. The current three-year Economic Cooperation Program, worth $35 billion, reflects the long-term nature of the parties' intentions. At the same time, the structure of interaction is undergoing a qualitative change: the emphasis is shifting from trade operations to the implementation of investment and production projects.

Today, flagship American companies such as Air Products, General Electric, General Motors, Boeing, Honeywell, and John Deere are actively operating in Uzbekistan. The $8.7 billion package of agreements signed at the C5+1 summit, including a contract for 22 Boeing aircraft, investments in the critical minerals sector, and projects in the agro-industrial sector, confirms the practical focus of the dialogue.

The transformation of the export structure is particularly revealing: services now account for approximately 86% of Uzbek exports to the US, with the IT sector remaining the key driver. Of the 800 active digital services exporters, 448 target the US market, accounting for 45% of all industry exports. This demonstrates that the partnership is gradually becoming more high-tech, moving beyond traditional commodity-based models.

The humanitarian dimension of cooperation is no less important. Academic exchange is expanding, the number of joint research projects is growing, and the integration of Uzbek specialists into international educational networks is strengthening. Currently, 40 Uzbek universities are implementing partnership programs with more than 25 US universities. Webster University’s Tashkent branch and the American University of Technology, established jointly with Arizona State University, are successfully operating. Thus, a long-term intellectual infrastructure for strategic partnership is being formed.

Overall, the current stage of relations between Uzbekistan and the United States is characterized by a transition from symbolic declarations to systemic coordination on issues of regional security, sustainable development, investment policy, and technological modernization. These achievements confirm that Uzbekistan is steadily establishing itself as a key US partner in Central Asia.

Dunyo IA

In recent years, improving the living standards of the population and ensuring access to housing has become one of the top priorities of state policy in Uzbekistan. The reforms being implemented in this area go beyond simply increasing construction volumes — they are being carried out through a comprehensive approach closely linked to accelerating demographic growth and urbanization.

Demographic Factor and Growing Housing Demand

The high rates of demographic growth observed in the country require a fundamental review of housing policy. In recent years, the country’s population has been growing by nearly 800,000 people per year, and the number of new families by 250,000 — figures that demand a sharp acceleration of efforts to meet housing needs. To address this demand, the construction of 110,000 apartments for 2025 alone. By 2040, the goal is to double the number of housing units built annually to 421,000 and increase the mortgage loan portfolio to $56.7 billion.

Urbanization and the Shift to Integrated Construction (Vertical Growth)

Due to rapid population growth and limited land resources, the approach to urban expansion is changing. The approximately 40% of the country’s multi-apartment housing stock, currently made up of 2–3-story buildings, is being replaced by modern housing built on the principle of vertical growth, incorporating social infrastructure and green spaces.

Strict urbanization criteria have been established for the development of “New Uzbekistan” residential districts. In particular, new sites are selected based on the following criteria:

• The district must be located near the district (or city) center (within 2 km) and have existing infrastructure.
• At least 70,000 residents must live in the area.
• Construction of buildings covering at least 100,000 square meters and no fewer than 7 stories.

Institutional Reforms and Digitalization

To effectively manage urbanization and the housing market, the National Committee for the Sustainable Development of Urbanization and the Housing Market has been established. This committee coordinates urbanization processes, renovation programs, and the construction of “New Uzbekistan” districts. To prevent uncontrolled urban sprawl, plans are underway to designate 45 agglomeration zones across the country and launch the “Sustainable City” platform. Additionally, a unified digital urbanization platform called “Uy-joy” is being created to consolidate all urban planning processes, a land bank, and project data.

Environmental Sustainability and “Green” Standards

Environmental sustainability is a priority in the modern urbanization process. According to state programs, in “New Uzbekistan” districts, at least 2% of the cost of constructing multi-apartment housing must be allocated to creating green spaces around residential buildings. For large investment projects in Tashkent, it is mandatory that green spaces occupy at least 30% of the area. Housing and construction projects are evaluated and certified according to special “green” standards.

Social Protection and Financing (Mortgage Subsidies)

The acceleration of urbanization must not leave socially vulnerable segments of the population behind in the housing market. To this end, the mortgage subsidy system has been fully automated through the “subsidiya.idm.uz” platform. The system of providing state budget subsidies to cover down payments and interest has been expanded for low-income families, young people under 30, single women in difficult social circumstances, and official labor migrants.

In general, the reforms aimed at improving housing conditions in Uzbekistan are not simply about constructing new buildings — they represent a broad state policy directed at creating a modern urbanization environment that can withstand strong demographic growth, is ecologically clean, have infrastructure, and is comfortable for the population.

Cooperation between Uzbekistan and Serbia in digital technologies, IT services exports, startups, artificial intelligence and innovation entered a new phase in the second half of 2025.

A major milestone was the official visit of Serbian President Aleksandar Vučić to Uzbekistan on October 28, 2025, coinciding with the 30th anniversary of diplomatic relations between the two countries. During the first full-scale summit between the two heads of state, information technology and digitalization were identified among the priority areas for bilateral cooperation, alongside mechanical engineering, pharmaceuticals, the chemical industry, agriculture and tourism.

The two sides also signed a dedicated agreement on cooperation in engineering, advanced technologies, artificial intelligence and related fields, creating an institutional foundation for deeper technology partnerships.

From political agreements to technology projects

The high-level political dialogue was followed immediately by discussions focused on practical technology cooperation. On October 29, 2025, President Vučić visited IT Park Uzbekistan, where the Serbian delegation was introduced to Uzbekistan’s growing technology ecosystem, export-oriented IT companies and locally developed digital solutions.

The delegation was presented with solutions developed by companies and organizations including UniconSoft, Didox/Venkon, Kpi.com and UzSpace, as well as UZINFOCOM products such as Palm ID, HRM.argos.uz, uGaz and DMed. The discussions covered the potential establishment of a joint IT enterprise in Serbia, the deployment of Palm ID technology, and the development of a venture mechanism to support startups from both countries.

Towards the end of 2025, IT Park also promoted the Trucking Outsourcing Weekend with IT Park format in Belgrade, targeting logistics and outsourcing companies. The initiative was designed to demonstrate how Serbian and international businesses could leverage Uzbekistan to build operational teams, access skilled professionals, optimize costs and scale their international operations.

Moving towards a practical cooperation model

In 2026, the two sides continued efforts to translate the agreements reached in 2025 into practical business mechanisms.

At a business forum held in February with the participation of IT Park, government representatives and more than 80 entrepreneurs, discussions focused on IT outsourcing, business process outsourcing (BPO), knowledge process outsourcing (KPO), joint ventures, data centers and venture capital mechanisms.

One of the most promising concepts discussed was a “Serbia as front office, Uzbekistan as back office and delivery hub” model.

The concept is based on complementary strengths rather than competition between the two markets. Serbia offers geographic proximity to European and Western Balkan markets, experience in serving international clients, established business networks and a developed innovation ecosystem. Uzbekistan, meanwhile, can provide scalable technical and operational teams, competitive operating costs, a growing talent pool and a platform for expansion into Central Asia.

The value of this model lies in combining Serbia’s capabilities in client relations, business development and international networks with Uzbekistan’s strengths in technical delivery, workforce scalability and operational execution.

At a follow-up meeting in February 2026, Uzbekistan’s Minister of Digital Technologies Sherzod Shermatov and Serbia’s Deputy Prime Minister and Minister of Economy Adriana Mesarović discussed in detail cooperation in the IT industry, artificial intelligence, data centers, digitalization of public administration, and cybersecurity. The Serbian delegation also visited IT Park Uzbekistan, UzSOC, and UZINFOCOM, where it reviewed cyber incident response mechanisms, as well as the infrastructure supporting government information systems and data centers. In turn, the Serbian side shared its experience in developing supercomputing infrastructure and data centers.

Сooperation indicators

Meanwhile, cooperation between Uzbekistan and Serbia in the export of IT services is demonstrating a steady positive trend. In 2024, two IT Park Uzbekistan resident companies exported services to the Serbian market, with a total export volume of approximately $42,000.

By the end of the first nine months of 2025, the number of IT Park residents working with the Serbian market had tripled to six companies. Concurrently, the total export volume exceeded $72,000, indicating a consistent expansion of Uzbek IT companies' presence in this market.

This positive trend continued into 2026. Notably, a resident company with a Serbian founder was registered with IT Park, providing further evidence of Serbian business interest in the opportunities within Uzbekistan's tech ecosystem. To date, the cumulative export volume of services to Serbia has reached approximately $130,000.

Thus, in a relatively short period, this cooperation has evolved from isolated export contracts to a more sustained interaction between companies from both countries. The growth in the number of exporters, the increase in the volume of services provided, and the registration of a resident with Serbian ownership create a favorable foundation for the further development of partnerships in IT outsourcing, BPO/KPO, digital solutions, startups, and joint technology projects. This positions Serbia not merely as another potential destination for Uzbek technology exports, but as a partner with substantial experience in building and selling internationally competitive digital services.

For Uzbekistan, closer cooperation with Serbia could generate several strategic benefits.

First, Serbia can serve as a platform for Uzbek technology companies to gain experience working with European customers, adapt their products to international requirements and build stronger overseas sales channels.

Second, Serbia’s established startup and acceleration infrastructure can help Uzbek startups improve investment readiness, connect with international investors and expand into new markets.

Third, cooperation in logistics technology, GameDev, GovTech, artificial intelligence and cybersecurity could support Uzbekistan’s transition towards higher-value technology and knowledge-based services exports.

For Serbian companies, Uzbekistan represents both a rapidly growing domestic market of around 38 million people and a gateway to the broader Central Asian region.

Serbian technology and service companies can use Uzbekistan to establish delivery centers and BPO/KPO operations, form joint development teams, identify technology partners and test products before expanding them into neighboring regional markets.

Uzbekistan also offers a growing pool of technical talent, an increasingly dynamic startup ecosystem, support mechanisms for technology companies and rising demand for digital solutions across both the public and private sectors.