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Economic connectivity between Central and South Asia: a foundation for stability and sustainable development of the macroregion
📅 27.05.2026
- Introduction
Central and South Asia form one of Eurasia’s most significant geographic junctions. Central Asia connects the continent’s east–west and north–south routes, while South Asia contains one of the world’s largest population bases and consumer markets. Taken together, the countries of the two subregions have a population of more than 2 billion people; however, their direct economic interaction remains below its potential level.
The scale of the potential market is confirmed by the figures: in 2024, the population of South Asia was approximately 1.68 billion people, while the region’s combined GDP was about US$4.5 trillion. At the same time, the economy of the five Central Asian countries in 2024 amounted to approximately US$489 billion. However, the level of interregional integration remains low: even within South Asia, intraregional trade is estimated at around 5% of total trade turnover, which is significantly lower than the ASEAN figure[1][2][3].
This is evident in trade statistics: Central Asia’s main trade flows continue to be oriented toward Russia, China, the European Union, Türkiye, and the Middle East, while trade with South Asia occupies a comparatively limited niche.
The underused potential is explained not by a lack of demand, but by structural constraints. Between the two subregions, there are mountain barriers, complex cross-border routes, differing levels of integration into international supply chains, non-uniform customs and technical procedures, as well as the Afghanistan factor, which is simultaneously the shortest connecting link and the most sensitive element of the regional architecture. Therefore, the issue of connectivity has not only commercial but also strategic significance.
The restoration of economic ties between Central and South Asia should not be viewed as a romanticized return to historical routes. In modern conditions, it is a matter of competitiveness, supply-chain security, energy resilience, and diversification of foreign economic directions. For the countries of Central Asia, the southern route opens shorter access to the ports of the Arabian Sea and the Indian Ocean. For the countries of South Asia, it creates an opportunity to gain access to energy resources, food products, industrial goods, and new markets in Eurasia.
Uzbekistan occupies a special place in this logic. It is located in the central part of the region, borders all Central Asian states and Afghanistan, and therefore is capable of forming a link between the internal markets of Central Asia and the southern direction. At the same time, the role of a connector state means more than the transit of goods. It includes the coordination of infrastructure projects, the development of logistics services, the improvement of institutional quality, the creation of an analytical basis for decision-making, and the involvement of the private sector in interregional projects.
- Historical and geographical preconditions for connectivity
The historical connection between Central and South Asia was formed long before the emergence of modern state borders. The cities of Transoxiana, Khorasan, Bactria, and northern India were part of a network of caravan routes and exchanges of artisanal goods, knowledge, religious traditions, and financial practices. Samarkand, Bukhara, Balkh, Merv, Kabul, Peshawar, and Lahore, in different periods, served as trade and cultural hubs linking the Eurasian space.
However, historical connectedness does not automatically translate into economic integration today. Modern supply chains depend on railways, highways, ports, energy networks, digital cargo-tracking systems, insurance, banking settlements, and predictable rules. Where even one of these elements is absent, transit becomes expensive, slow, and risky.
The geography of the region creates both incentives and constraints. On the one hand, the distance from Uzbekistan’s southern borders to northern Afghanistan is relatively short, and the route through Afghanistan is potentially the shortest overland path from Central Asia to Pakistan and onward to the ports of the Indian Ocean. On the other hand, mountain ranges, differences in railway gauge, the limited capacity of border infrastructure, security issues, and insufficient standardization of procedures increase the cost of projects.
Uzbekistan’s geographical role has not only qualitative but also measurable significance: the country is one of only two double-landlocked states in the world and, at the same time, the only state bordering all four other Central Asian countries as well as Afghanistan. In this context, the Mazar-i-Sharif–Kabul–Peshawar railway project, with a length of approximately 573 km, acquires systemic importance, since it could reduce the time and cost of transportation toward Pakistan’s ports by roughly 30%[4].
Therefore, connectivity should be understood more broadly than the physical connection of two points on a map. In the modern economy, it includes four dimensions. The first is infrastructural: roads, railways, terminals, ports, and energy networks. The second is institutional: customs, tariffs, standards, sanitary and phytosanitary rules, permits, and transit guarantees. The third is commercial: demand, purchasing power, contracts, logistics companies, insurance, and banking channels. The fourth is social and humanitarian: education, labor skills, tourism, medical ties, and research cooperation.
This approach helps avoid oversimplification. Even the shortest road will not become a sustainable corridor unless it is supported by a reliable legal environment, competitive tariffs, financial guarantees, and coordination among states.
- Current state of trade and economic cooperation
Trade and economic ties between Central and South Asia are developing, but their scale still does not correspond to the size of the markets. Trade between Central Asian countries and India, Pakistan, Bangladesh, Sri Lanka, and Afghanistan remains relatively modest compared with their trade with China, Russia, the European Union, Türkiye, and countries of the Middle East.
Central Asia supplies, or could potentially expand supplies to South Asia, in such areas as agricultural products, grain, fruit and vegetable products, textiles, fertilizers, energy goods, certain types of metals, and industrial raw materials. South Asia, primarily India and Pakistan, holds competitive positions in pharmaceuticals, medical goods, IT services, equipment, textile products, processed food products, and consumer goods.
In recent years, Uzbekistan has been strengthening the southern direction of its foreign economic policy. Trade ties with India and Pakistan are developing through pharmaceuticals, textiles, food products, services, logistics, and investment projects. Uzbekistan’s foreign trade in the southern direction is already growing, but it still occupies a limited place in the overall structure of foreign trade. The largest trade flows with South Asian countries are with Afghanistan and India. However, the very fact that certain bilateral flows are growing does not solve the main problem: interregional trade remains fragmented. In order to turn it into a sustainable market, it is necessary to reduce transaction costs, ensure the predictability of transit, make standards comparable, and develop business services.
The issue of trade data is especially important. Mutual trade is often assessed using different sources, while the statistics of exporting countries and importing countries may diverge. To develop effective policy, a regularly updated data panel is needed, broken down by corridors, types of cargo, border-crossing times, transportation costs, return loads, the number of permits, and the actual use of preferential regimes. Without such a database, regional initiatives risk remaining merely declaratory.
- Transport and logistics infrastructure as the basis of connectivity
Transport infrastructure is the material foundation for the rapprochement of Central and South Asia. At the same time, it is more accurate to speak not of a single route, but of a portfolio of corridors. Relying on only one route increases the vulnerability of the entire system. A diversified network of routes through Afghanistan, Iran, the Caspian Sea, the Caucasus, and existing Eurasian directions creates redundancy, reduces risks, and strengthens the negotiating position of shippers.
The key project in the southern direction remains the trans-Afghan railway corridor Mazar-i-Sharif–Kabul–Peshawar. Its strategic value lies in its potential to connect Uzbekistan and other Central Asian countries with Pakistan’s ports, including Karachi, Qasim, and Gwadar. If implemented, such a corridor could reduce the distance and delivery time for certain types of cargo. However, the project requires the resolution of several complex issues: financing, security, technical parameters, railway gauge compatibility, the operating model, tariffs, and the distribution of risks among participants.
The Termez–Hairatan hub in Uzbekistan has particular significance. It is the closest entry point from Uzbekistan into Afghanistan and is already used as a logistics, humanitarian, and trade channel. The development of terminals, warehouses, customs capacities, multimodal transport services, and digital cargo-control systems could turn this hub into a stable anchor point for interregional trade.
Alongside the trans-Afghan route, the route through Iran is also important. For India, Central Asia, and Afghanistan, the Chabahar port is of particular significance, as are its links with the International North–South Transport Corridor and the Ashgabat Agreement. This option does not replace the trans-Afghan route, but it increases the resilience of the trade system. Events of recent years have shown that the closure or restriction of individual routes quickly increases the importance of alternative pathways through Iran and the countries of Central Asia.
Road corridors remain a necessary complement to railways. They are especially important for perishable products, small consignments, e-commerce, pharmaceuticals, and high-value-added goods. In this area, the key factors are not only roads, but also border procedures, the permit system for carriers, weight control, insurance, the safety of parking areas, and access to backhaul cargo.
The development of air connectivity plays a separate role. Direct flights between Tashkent, Samarkand, Almaty, Astana, Delhi, Mumbai, Lahore, and other cities do not create mass freight logistics, but they reduce barriers to business travel, tourism, education, medical services, and managerial oversight of investment projects. For modern business, such mobility is not a secondary factor, but a systemic one.
- Energy partnership: from project-based logic to a regional market
Energy is one of the most obvious areas of complementarity between Central and South Asia. The Central Asian countries possess significant resources in natural gas, hydropower, solar power, and wind generation. South Asia, primarily Pakistan, India, Bangladesh, and Afghanistan, faces high energy demand, seasonal consumption peaks, and the need for a more reliable supply structure.
The most advanced interregional project in the electricity sector is CASA-1000. According to World Bank materials, the project is intended to ensure the transmission of up to 1,300 MW of surplus summer electricity from Kyrgyzstan and Tajikistan to Afghanistan and Pakistan. The project also provides for high-voltage transmission infrastructure, including power transmission lines and converter stations. Its significance goes beyond the energy sector: it demonstrates the possibility of contract-based electricity trade between the subregions with the participation of international financial institutions.
In the gas sector, the best-known project is TAPI: Turkmenistan–Afghanistan–Pakistan–India. Its planned logic is straightforward: Turkmen gas is expected to flow through Afghanistan to the energy-deficient markets of South Asia. Published descriptions of the project usually indicate a length of approximately 1,800 km and a designed capacity of up to 33 billion cubic meters of gas per year. However, TAPI remains a complex project with a high dependence on security, financing, long-term contracts, payment guarantees, and political coordination among the participants.
CASA-1000 has not only political but also measurable infrastructural significance: the project cost is estimated at approximately US$1.2 billion, while the designed transmission capacity is 1,300 MW. The Kyrgyz component provides for around 456 km of 500 kV power transmission lines. This makes it possible to view CASA-1000 as the first major example of contract-based interregional electricity trade between Central and South Asia[5][6].
The new energy agenda includes not only the export of fuel and electricity, but also the development of low-carbon solutions. Uzbekistan, Kazakhstan, Kyrgyzstan, and Tajikistan are expanding projects in solar, wind, and hydropower, while also modernizing their grids. In the long term, South Asia could become a market for seasonal electricity and energy services from Central Asia. However, this requires rules for cross-border trade, compatible dispatch mechanisms, commercial guarantees, transparent tariffs, and investment in grid resilience.
Energy cooperation must take into account climate and water-related factors. In Central Asia, hydropower is closely linked to irrigation and water resource management. In South Asia, electricity demand depends on temperature peaks, urbanization, and industrial growth. Therefore, energy projects should be accompanied by mechanisms for climate adaptation, forecasting water availability, improving energy efficiency, and developing energy storage systems.
- Investment cooperation and business ties
Investment cooperation between Central and South Asia is still developing on a case-by-case basis, but it has significant potential. Unlike trade in raw materials, investment requires a higher level of trust, legal certainty, protection of property rights, clear tax regimes, access to foreign-exchange settlements, and high-quality business information.
The most promising areas include pharmaceuticals, medical services, agro-processing, textiles, logistics, warehouse infrastructure, IT services, education, tourism, financial technologies, renewable energy, and the production of components for infrastructure projects. South Asian companies have strong competencies in IT, pharmaceuticals, and services, while Central Asia offers access to raw materials, industrial sites, growing domestic markets, and transit opportunities.
An important task is to move from one-off business contacts to a systematic investment pipeline. This requires project catalogues, clear requirements for investors, standardized public-private partnership models, dispute-resolution mechanisms, insurance against political and commercial risks, and joint workforce training programs.
Small and medium-sized enterprises are of particular importance. Large infrastructure projects create the foundation, but it is small and medium-sized businesses that fill corridors with real goods and services. For them, access to information, affordable logistics services, digital marketplaces, simplified payments, standardized documents, and support in entering a new market are critical.
Development institutions and international financial organizations can play a catalytic role. Their participation reduces risks, improves the quality of project preparation, and disciplines the participants. However, external financing does not replace national reforms. Without clear rules, transparent statistics, and effective courts, even concessional loans will not create a sustainable flow of investment.
- The strategic role of Uzbekistan as a connector state
Uzbekistan possesses a unique set of preconditions for playing the role of a connector state. It is located at the center of Central Asia, borders all the countries of the region as well as Afghanistan, and is also a major demographic and industrial market. For a country without access to the sea, the development of external corridors is not an optional task, but a condition for long-term competitiveness.
Uzbekistan’s role is not limited to transit. A transit country earns revenue from the movement of goods, but a connector state shapes rules, services, trust, and the institutional environment. This means developing multimodal hubs, creating logistics centers, digitalizing customs procedures, expanding railway and road links, training personnel, attracting banks and insurance organizations, and providing analytical support for projects.
The southern direction strengthens Uzbekistan’s foreign economic diversification. It complements the country’s already existing links in the northern, eastern, and western directions. At the same time, the diversification of routes reduces dependence on individual markets and transit pathways, which is especially important amid instability in global trade, changes in tariff policy, and geopolitical restrictions.
Termez occupies a special place in this strategy. It can serve as a border logistics center, a platform for trade with Afghanistan, a hub of humanitarian and commercial infrastructure, and a symbolic space for discussing connectivity between Central and South Asia. To turn this role into a sustainable result, investment is needed in terminals, railway approaches, warehouse capacity, services for carriers, and a system for analyzing cargo flows.
Uzbekistan’s strength also lies in its ability to put forward multilateral initiatives. Interregional connectivity cannot be implemented through bilateral agreements alone. It requires the alignment of interests among the countries of Central Asia, the countries of South Asia, Afghanistan, international financial institutions, business, and the expert community. In this sphere, Uzbekistan can act as a coordinator of the agenda and a provider of analytical solutions.
- Key barriers and ways to overcome them
The first barrier is incomplete infrastructure. Many corridors exist in the form of project concepts or partially functioning routes. To transform them into commercially sustainable directions, technical and economic feasibility studies, agreed tariffs, clear sources of financing, unified operational models, and transparent risk allocation are required.
The second barrier is security and the predictability of transit. For business, what matters is not only the length of the route, but also the likelihood of delays, losses, border closures, changes in rules, and additional payments. Therefore, transport policy should include insurance mechanisms, security standards, corridor monitoring, crisis protocols, and regular information exchange among government agencies.
The third barrier is administrative fragmentation. Different documents, uncoordinated customs procedures, weak advance declaration, the absence of mutual recognition of certain certificates, and limited digital interoperability increase the cost of trade. The solution lies in the transition to electronic transport documents, the expansion of the single-window principle, the introduction of risk-based control, and the coordination of technical standards.
The scale of the financial challenge can be assessed through the example of CAREC: in 2021–2024, transport investment under the program amounted to US$8.61 billion, with a significant share of financing provided by international partners. This shows that infrastructure corridors require not only a political decision, but also a sustainable financial architecture[7][8].
Administrative barriers have a measurable expression. According to CAREC monitoring, in 2022, the average border-crossing time on road corridors was 9.9 hours, while on railway corridors it was 40.6 hours. This confirms that the digitalization of documents, advance declaration, and risk-based control can produce an effect even without the immediate construction of new arterial routes.
The fourth barrier is financial constraints. Infrastructure projects require large capital investments and have long payback periods. A combination of budget funds, loans from international financial organizations, public-private partnerships, guarantees, project financing, and blended-finance mechanisms is needed. At the same time, each project must undergo an assessment of commercial viability, not only political attractiveness.
The fifth barrier is the lack of market information. Companies often do not know potential partners, market requirements, logistics tariffs, certification rules, or available financial instruments. This barrier can be reduced through digital trade platforms, business missions, sectoral catalogues, regular exhibitions, analytical reviews, and consulting centers under chambers of commerce and industry.
The sixth barrier is climate and resource-related risks. Mountainous areas, droughts, floods, changes in glacial runoff, and extreme weather events affect roads, energy, and agriculture. New corridors should be designed with climate resilience in mind, while energy projects should take into account the water balance and the seasonality of demand.
Practical priorities through 2030
|
Area |
Short-Term Focus |
Medium-Term Result |
|
Transport |
Modernization of border terminals, digital cargo tracking and recordkeeping, corridor statistics |
Reduction in delivery time and cost, increased reliability of routes |
|
Trade |
Electronic documents, advance declaration, work on harmonizing standards |
A more predictable regime for exporters and carriers |
|
Energy |
Contractual models, grid investments, consideration of seasonality |
Regional electricity trade and diversification of supplies |
|
Investment |
Project catalogues, guarantee instruments, support for SMEs |
Expansion of private-sector participation and industrial cooperation |
|
Institutions |
Project registry of the Termez Dialogue and annual monitoring |
Transition from declarations to measurable results |
- The Termez Dialogue as an institutional foundation for cooperation
The Termez Dialogue on Connectivity between Central and South Asia can become an important institutional platform for coordinating the interregional agenda. In 2025, the first dialogue was held in Termez, dedicated to the formation of a shared space of peace, friendship, and prosperity. The very choice of Termez emphasizes the city’s practical role as Uzbekistan’s southern hub and as a symbolic point of connection with Afghanistan and South Asia.
The effectiveness of such a format will depend on whether it can move from general statements to the management of a project-based agenda. For this purpose, it would be advisable to structure the dialogue around four permanent tracks: transport and logistics, trade and standards, energy and climate, and investment and human capital. Each track should have a project map, progress indicators, responsible participants, and a mechanism for annual updates.
The participation of business is of particular importance. States can sign framework documents, but real demand for corridors is generated by exporters, importers, carriers, banks, insurance companies, terminal operators, and manufacturing enterprises. Therefore, within the framework of the Termez Dialogue, business sessions, B2B platforms, sectoral presentations, and discussions of specific barriers faced by companies are necessary.
The expert track should serve as an evidence base. It can prepare an annual report on the state of connectivity between Central and South Asia, a corridor-readiness index, monitoring of transportation time and costs, a review of regulatory barriers, analysis of investment projects, and recommendations for governments. In this area, Uzbekistan’s analytical institutions can play a leading role.
The Termez Dialogue is also important as an instrument for involving Afghanistan in economic processes on a pragmatic basis. This is not a matter of political legitimization, but of reducing economic isolation, developing transit procedures, supporting sustainable livelihoods, and creating incentives for stability. This logic corresponds to the interests of all participants, since Afghanistan’s economic predictability directly affects the cost and security of interregional routes.
- Connectivity and the Sustainable Development Goals
Economic connectivity between Central and South Asia is directly linked to the UN Sustainable Development Goals. The development of energy networks supports SDG 7, the expansion of trade and employment corresponds to SDG 8, the construction of resilient infrastructure is linked to SDG 9, the reduction of spatial isolation contributes to SDG 10, climate resilience relates to SDG 13, and regional coordination and partnerships correspond to SDG 16 and SDG 17.
However, the link with the SDGs does not arise automatically. Infrastructure can promote development, but it can also deepen inequality if benefits accrue only to major actors while local communities bear the costs. Therefore, projects should include environmental assessment, social safeguards, consultations with the population, management of land-related issues, occupational safety measures, and transparent compensation mechanisms.
Special attention should be paid to women, youth, and small enterprises. New corridors create demand for services in logistics, trade, catering, repair, digital support, education, and tourism. If access to these opportunities is opened to local entrepreneurs, infrastructure will become a source of inclusive growth, not merely transit rent.
Climate risk is already becoming an economic factor. According to World Bank estimates, by 2030, nearly 90% of South Asia’s population may be exposed to intense heat, while more than one fifth of the population may face the risk of severe flooding. For Central Asia, the key constraint is water: in Uzbekistan, the volume of water withdrawal significantly exceeds internal renewable resources, and the current water deficit may increase to 7 billion m³ by 2030 and to 15 billion m³ by 2050[9][10][11].
The climate dimension of connectivity is becoming increasingly important. South Asia and Central Asia are exposed to the risks of extreme weather events, glacier melt, droughts, floods, and tensions around water. Therefore, new roads, railways, power transmission lines, and logistics centers should be designed with long-term climate scenarios in mind. For the energy sector, this means combining electricity trade, energy efficiency, renewable sources, and grid resilience.
From the standpoint of sustainable development, the most promising model is not one of raw-material transit, but one of value-added creation. This implies agro-processing, industrial cooperation, service chains, digital trade, the localization of selected industries, and workforce training. In this case, connectivity is transformed from the movement of goods into a mechanism of structural modernization.
- Conclusion
Economic connectivity between Central and South Asia is one of the key conditions for the sustainable development of the macroregion. It is capable of expanding sales markets, reducing transport isolation, strengthening energy security, supporting employment, and creating new incentives for regional stability. At the same time, the expected effect depends not on a single project, but on a coordinated package of measures.
The main practical conclusion is the need for a portfolio approach. The trans-Afghan railway, the route through Iran, road corridors, air connectivity, the CASA-1000 and TAPI energy projects, trade digitalization, logistics hubs, and investment platforms should be viewed as mutually complementary elements. Each of them has different implementation timelines, risks, and economic logic; therefore, the regional strategy should ensure redundancy and flexibility.
Uzbekistan has objective advantages for the role of a connector state. Its geography, demographic potential, industrial base, southern hub in Termez, and active foreign economic agenda make it possible to bring together the interests of Central and South Asia.
The Termez Dialogue can become a platform where political will is translated into project-level discipline. For this to happen, it should generate not only declarations, but also a list of projects, indicators, road maps, evaluation mechanisms, and permanent channels of interaction among business, experts, and government agencies.
In the long term, connectivity between Central and South Asia should be oriented not only toward increasing trade volumes, but also toward improving the quality of development. A sustainable macroregion will take shape where infrastructure is connected with institutions, energy with climate responsibility, trade with industrial cooperation, and diplomatic initiatives with evidence-based analysis and practical results.
Muhammad Babadjanov,
Head of Department
at The Institute for Macroeconomic and Regional Studies
under the Cabinet of Ministers of the Republic of Uzbekistan
[1] https://www.worldbank.org/en/programs/south-asia-regional-integration/trade
[2] https://data.worldbank.org/?locations=TJ-UZ-KZ-TM-KG
[3] https://data.worldbank.org/country/south-asia
[4] https://uzembassy.kz/en/article/the-mazar-i-sharif-kabul-peshawar-railway-will-open-up-broad-prospects-for-international-trade
[5] https://www.worldbank.org/en/country/afghanistan/brief/updated-q-a-on-casa-1000-resumption-in-afghanistan
[6] https://www.worldbank.org/en/news/press-release/2023/11/01/additional-financing-for-casa-1000-project-for-the-kyrgyz-republic
[7] https://www.carecprogram.org/uploads/03-CAREC-Transport-Strategy-2030-Midterm-Review-Draft-Report.pdf
[8] https://cpmm.carecprogram.org/2022-report/key-results/
[9] https://www.worldbank.org/en/news/press-release/2025/06/03/climate-resilience-in-south-asia-will-be-private-sector-led
[10] https://data.worldbank.org/country/uzbekistan
[11] https://www.adb.org/news/features/numbers-climate-change-central-asia
Akramjon Ne’matov: In his Address, President of Uzbekistan placed a key emphasis on the country’s socio-economic development, the enhancement of citizens’ well-being and the strengthening of the economy’s competitiveness
📅 28.12.2025
Comment from the First Deputy Director of the Institute for Strategic and Interregional Studies (ISRS) under the President of Uzbekistan to Dunyo Information Agency
The focal points of President Shavkat Mirziyoyev’s address to the Oliy Majlis and the people of Uzbekistan as well as the signals conveyed to both domestic and international audiences, were highlighted in a commentary by Akramjon Ne’matov, the First Deputy Director of the Institute for Strategic and Interregional Studies (ISRS) under the President of Uzbekistan, in an interview with Dunyo IA correspondent.
The expert highlighted that the primary focus of the Address was on the country’s socio-economic development, the improvement of citizens’ well-being and the enhancement of the national economy’s competitiveness. According to him, the President of Uzbekistan clearly emphasized that it is the economy, the sustainability of development, and the quality of growth that today define Uzbekistan’s opportunities both domestically and in its external engagements.
Akramjon Ne’matov emphasized that despite a challenging and fragmented global environment, Uzbekistan’s economy continues to demonstrate steady growth. For the first time in the country’s history, its GDP surpassed $145 billion this year, whereas just nine years ago, reaching the $100 billion mark was considered an ambitious milestone. Even amid disruptions in global supply chains, exports grew by 23% to $33.4 billion, electricity production in 2025 reached 85 billion kilowatt-hours, and foreign exchange reserves exceeded $60 billion. Over $43.1 billion in investments were attracted to the national economy this year, raising the investment-to-GDP ratio to 31.9%, a clear indicator of the country’s rising investment appeal.
In this context, the expert noted, maintaining high economic growth rates remains an absolute priority. However, what is particularly significant is the shift in focus from quantitative expansion toward a technological and innovative development model. This entails building a knowledge- and technology-based economy, modernizing industry, advancing the digital economy, promoting scientific research and fostering technology transfer. As Akramjon Ne’matov stressed, “An innovative economy ensures long-term competitiveness and reduces dependency on raw materials, which is critically important amid global instability”.
Another strategic priority highlighted by the President of Uzbekistan is the stimulation of domestic demand. According to the expert, the development of the domestic market is seen as a key driver of sustainable growth, encompassing higher household incomes, support for small and medium-sized enterprises, and broader access to financial instruments. Domestic demand, he emphasized, provides stable sources of development and helps shield the economy from external shocks.
Special attention, Akramjon Ne’matov noted, was also given to workforce development and the creation of a new labor market architecture. The President outlined objectives for modernizing vocational education, fostering new competencies, and shaping a flexible and adaptive labor market capable of meeting the needs of a modern economy. He stressed that the labor market and professional development determine the quality of human capital – the key resource of the 21st century.
At the same time, an important focus is placed on ensuring ecological balance, developing “green energy” and the rational use of water resources. The transition to sustainable development, the adoption of renewable energy sources, improving energy and water efficiency, and adapting to climate change are regarded as strategic objectives. Ecology and “green” energy are now considered key factors for national security and sustainable development, Akramjon Ne’matov emphasized.
Among the President of Uzbekistan’s key priorities is also the formation of modern state governance and a fair judicial system. Central to this agenda are enhancing the efficiency, transparency, and accountability of public administration, strengthening the rule of law, digitizing public services and reforming the judiciary. The expert stressed that effective governance and a fair judicial system build trust, enhance investment appeal, and ensure long-term stability.
Overall, he noted, these priorities reflect Uzbekistan’s shift from quantitative growth toward a qualitative model of modernization focused on long-term outcomes.
Based on these strategic directions, Uzbekistan is shaping a framework of key cooperation priorities with international partners, aimed at deepening engagement through high-quality collaboration.
The first priority is technological and industrial partnership. This includes establishing joint high value-added production, localizing advanced technologies, and implementing collaborative research and development projects. The strategic goal is to move beyond simple technology adoption toward co-creation and practical implementation of innovations.
The second priority is the development of human capital. This encompasses joint programs for training and retraining personnel, sustained collaboration between universities, research centers, and industry, and the cultivation of new competencies demanded by the modern economy. The objective is to ensure the sustainability of reforms and enhance the quality of the workforce.
The third priority is “green” energy and resource efficiency. The focus is on joint initiatives in renewable energy, water-saving technologies, and environmentally sustainable solutions. These efforts are viewed as key instruments for reducing ecological risks and enhancing the long-term resilience of the economy.
The fourth priority is infrastructure and multi-level connectivity. The development of transport, logistics, and digital infrastructure aims not only to deepen Uzbekistan’s integration into regional and global supply chains but also to strengthen internal connectivity across the country’s regions, reduce territorial disparities, and improve access to markets, services, and economic opportunities. Taken together, these initiatives reinforce Uzbekistan’s role as a stable regional hub for cooperation and transit.
The fifth priority is institutional development and the quality of public governance. This includes promoting principles of transparent and efficient governance, establishing a fair and independent judicial system, enhancing the effectiveness and professionalism of the civil service, and fostering experience-sharing in the digitalization of public services. These measures create a predictable institutional environment, strengthen trust among investors and partners, and serve as a solid foundation for sustainable, long-term international cooperation.
In conclusion, Akramjon Ne’matov emphasized that Uzbekistan views collaboration with foreign partners as a strategic priority. The country aims to transition from broad but largely quantitative engagement toward high-quality partnerships, centered on technology, human capital, and sustainable growth that align with the long-term interests of all parties.
Dunyo IA
Uzbekistan and Kazakhstan: Digital Cooperation Enters a New Phase
📅 20.04.2026
In recent years, cooperation between Uzbekistan and Kazakhstan in the field of information and communication technologies (ICT) has expanded steadily, acquiring strategic significance. This partnership not only strengthens economic ties between the two nations but also serves as a foundation for the formation of a unified digital space across Central Asia.
A Robust Legal Framework
The legal foundations of bilateral cooperation were established in the early years of independence and have been progressively refined since. Agreements and memoranda concluded in the areas of electrical and postal communications, cross-border telecommunications services, radio frequency coordination, and space research have created a solid basis for bilateral relations. Notably, a new agreement on radio frequency usage signed in 2025 is contributing to the harmonised development of shared digital infrastructure.
Digital Economy: Growth and Investment
Cooperation in the digital economy has intensified considerably in recent years. The number of IT Park residents with Kazakhstani capital has reached 67, with export services valued at USD 2.8 million rendered in 2025 and 755 new jobs created. The number of companies exporting services to the Kazakhstani market has reached 155, with total export volume amounting to USD 17.6 million and a combined workforce of 4,600 employees — a clear indicator of growing mutual trust and an increasingly favourable business environment.
The Central Asian Innovation Hubs platform, established through the cooperation of the region's leading technology parks, has elevated the regional startup ecosystem to a new level, enabling hundreds of startups to access international markets.
Startups and Global Integration
Special attention is being devoted to startup support within the framework of bilateral cooperation. Both countries' startups are actively participating in such prestigious events as ICT Week Uzbekistan and GITEX Global. Kazakhstani and Uzbekistani startups have attracted new investment through participation in international acceleration programmes held in the United States, the UAE, Germany, and the United Kingdom. Forty startups participated in the Draper University, AlchemistX, and Silicon Valley Residency programmes.
One hundred startups under the Central Asian Innovation Hubs umbrella participated in major international conferences, including the AI Forum in Kazakhstan, Eurasia Technology Week in Turkey, Machines Can See Summit in the UAE, GITEX in Germany, and London Tech Week in the United Kingdom.
More than 20 companies with Uzbek capital are currently operating among Astana Hub residents, including Oson, Billz, Sales Doctor, IT Academy for Engineers, Verifix, Smartup, Iman, Uysot, Smartcast, Tezbor, Platma, and BITO.
The opening of the Khan Tengri Innovation Hub in Shanghai has broadened market entry opportunities for regional startups in China.
On 3 October 2025, the Kazakhstan Market Entry global acceleration programme was launched during the Digital Bridge 2025 international conference, with 10 startups from the Republic of Uzbekistan presenting their projects on stage. The programme is being conducted in partnership with Astana Hub as an exchange initiative, under which 10 Kazakhstani startups are actively developing their products in the Uzbekistani market through the Digital Startup Awards acceleration programme.
The Digital Startup Awards — one of the region's most prominent initiatives with a total prize fund of USD 1 million — brought together startups from Central Eurasia, including Kazakhstan and other regional markets, through its incubation, acceleration, and Best Startup Project competition components. Upon completion of the programme, 14 startups successfully completed the acceleration track and 15 completed incubations. Based on results achieved and expansion potential, IT Park Ventures invested up to USD 50,000 per startup in SAFE format for acceleration participants, and up to USD 10,000 for incubation participants on the same terms.
Telecommunications: Strengthening Interconnectivity
In the field of telecommunications, direct communication channels have been established between major operators of both countries, enabling the efficient exchange of international telephone and internet traffic. Operators including Uzbektelecom JSC, Kazakhtelecom JSC, Jusan Mobile JSC, TransTeleKom JSC, and TNS-Plus LLC are facilitating the exchange of international direct and transit telephone and telegraph traffic. Additionally, a system for sharing data on the IMEI codes of mobile devices is being introduced between the two states — a significant measure in ensuring information security and combating the circulation of unauthorised devices.
Artificial Intelligence: Forward-Looking Cooperation
Cooperation in the field of artificial intelligence is progressing consistently. Scientific and research ties have been established with the Institute of Artificial Intelligence at Nazarbayev University in Kazakhstan. Specialists from both countries are engaged in joint work on personnel training, the development of research laboratories, and the creation of innovative solutions.
Digital Government: Cross-Border Collaboration
On 17 December 2025, agreements were reached to launch a pilot project on tourism data exchange, building on Memoranda of Understanding signed between the UN ESCAP and both the Republic of Uzbekistan and the Republic of Kazakhstan.
On 13 March 2026, a meeting held at the Digital Government Project Management Centre between UN ESCAP, Korea's National Information Society Agency (NIA), and Kazakhstan's NITEC JSC announced the successful completion of the first phase of the project. During this phase, the legal and technical frameworks for cross-border data exchange among Uzbekistan, Kazakhstan, and Korea were developed, and data-driven analyses were prepared demonstrating their value in decision-making processes. Results pertaining to the activities and consumer behaviour patterns of Korean tourists in Uzbekistan proved particularly significant.
Upon the successful completion of subsequent phases, the project envisions expanding data exchange to other priority sectors and establishing a unified intergovernmental data-sharing platform among Uzbekistan, Kazakhstan, and the Republic of Korea — an initiative that will drive the development of cross-border digital cooperation and enhance the efficiency of both public and commercial services.
Information Security and Infrastructure
Efforts are under way within the framework of cooperation memoranda to develop e-government systems, digital platforms, and public data management systems. The transition of digital television broadcasting to enable the rollout of 4G and 5G networks in the 700 MHz band is being implemented in a coordinated manner across Central Asia.
ICT cooperation between Uzbekistan and Kazakhstan today carries strategic importance not only for both nations, but for the entire Central Asian region. Joint initiatives in digital economy, the startup ecosystem, artificial intelligence, and telecommunications are accelerating innovation-driven development across the region. This partnership will undoubtedly serve as a key driver in the formation of a unified digital space and the enhancement of global competitiveness.
President of Uzbekistan points to the need of enriching partnership with the UAE
📅 16.12.2024
The issues of further expansion of practical interaction and promotion of investment cooperation projects were discussed at the meeting between President of the Republic of Uzbekistan Shavkat Mirziyoyev and the delegation of the United Arab Emirates comprising Minister of Industry and Advanced Technologies Sultan Ahmed Al Jaber and Minister of Energy and Infrastructure Suhail Mohammed Al Mazroui.
At the beginning of the conversation, Sultan Al Jaber conveyed to the Head of our State sincere greetings and best wishes from the President of the Emirates Sheikh Mohamed Al Nahyan, Prime Minister of the country, Emir of Dubai Sheikh Mohammed Al Maktoum and Vice President Sheikh Mansour Al Nahyan.
In the course of the meeting, the current highest level of Uzbek-Emirati multifaceted relations was noted with special satisfaction. The volumes of mutual trade turnover, the number of joint ventures and the frequency of flights are growing. The portfolio of ongoing and promising projects with the participation of leading Emirati companies in Uzbekistan reaches $20 billion.
Green energy is the driving force behind bilateral cooperation. Today, a 500 megawatt wind farm was commissioned in Navoi region, a project implemented by Masdar.
In general, in recent years with the participation of this company power generation facilities with total capacity of 1.5 gigawatts have been commissioned in our country.
Particular attention was paid to the early preparation and implementation of major investment projects in the energy, oil and gas and chemical industries, mining, water supply, household waste processing and other fields.
The importance of continuing productive contacts at all levels and careful preparation for the upcoming high-level events was noted.
A SHARED GENETIC CODE: THE REVIVAL OF THE CULTURAL AND CIVILISATIONAL HERITAGE OF CENTRAL AND SOUTH ASIA
📅 01.06.2026
Historically, Central and South Asia constituted a macro-region of intensive cross-cultural and civilisational exchange.
The peoples of the two regions were repeatedly incorporated into common state formations and shared political, economic, cultural and humanitarian spaces. It was through these territories that major routes passed, connecting the Middle East, Europe, India and China. Close contacts facilitated the dissemination of scientific knowledge and philosophical ideas, as well as achievements in medicine, astronomy, mathematics, architecture, diplomacy and systems of public administration.
In contemporary conditions of global turbulence and a deficit of mutual trust, understanding the deep historical and civilisational commonality of Central and South Asia is of particular importance. This is not only a matter of retrospectively analysing trade ties or political contacts of the past. Data from modern population genetics confirm the existence of stable, centuries-long anthropological interconnections among the population of the macro-region.
The results of large-scale palaeogenetic studies, including the sequencing of ancient DNA (aDNA) from representatives of the Indus civilisation, together with archaeological and linguistic evidence, make it possible to reconstruct the directions of migration flows and the transformation of the gene pool over millennia.
Studies of the ancient population of southern Uzbekistan and of the Bactria-Margiana Archaeological Complex (BMAC) demonstrate the genetic continuity of local populations and their close contacts with ancient communities of the Iranian Plateau, north-western India and the Indus basin.
The specific nature of these processes in the Late Bronze Age and the Early Iron Age indicates that the territories of present-day southern Uzbekistan functioned as a space of permanent demographic and cultural exchange. They formed part of a single area of intensive circulation of people, technologies and cultural practices. This factor shaped the closeness of anthropological, linguistic and religious processes in Central and South Asia without erasing their autochthonous identities.
This is not a question of genetic homogeneity, but of a centuries-old system of demographic interactions that shaped the closeness of anthropological, linguistic, cultural and religious processes in Central and South Asia.
In this context, Uzbekistan attaches special importance to the restoration of deep historical and cultural relations in order to create a solid foundation for enhancing connectivity. After 2016, the country’s modern foreign policy is based on the synergy of pragmatic economic and transport partnership and the recognition of the common historical destiny of the macroregion.
At the same time, within the framework of the “Termez Dialogue”, projects are being formed for the joint study of Buddhist and Islamic heritage. The exceptional syncretism of the monuments of southern Uzbekistan (Kara-Tepe, Fayaz-Tepe and Kampyrtepa) reflects the historical synthesis of Indian, Hellenistic, Iranian and Central Asian traditions, marking the routes of the transfer of Buddhism from India to East Asia.
A new stage of civilisational synthesis is associated with the integration of the region into the Islamic space from the eighth century onward. Termez became one of the key intellectual centres of the Muslim world, as evidenced by the influence of Sufi networks and the legacy of the outstanding thinker al-Hakim at-Termizi, whose works retain authority in both Central and South Asia. In the Timurid era, these ties served as a basis for the formation of the unique Indo-Muslim civilisation of the Great Mughals, whose origins directly go back to the cultural matrix of Mawarannahr.
Relying on this historical and civilisational foundation, Tashkent today advocates the creation of a common cultural and humanitarian platform for Central and South Asia, one that demonstrates a high degree of complementarity with the foreign policy strategies of key South Asian states.
India: New Delhi views Uzbekistan’s initiatives through the prism of its own Connect Central Asia concept. Cultural and historical parallels (the Baburid era, Sufism and Buddhist heritage) enable India to expand its humanitarian presence in the region, as reflected, in particular, in the opening of branches of leading Indian universities (Amity and Sharda) in Uzbekistan.
Pakistan: For Islamabad, deep spiritual ties with Samarkand and Bukhara are critically important. The development of programmes of “ziyarat tourism” (pilgrimage tourism) acts as a catalyst for humanitarian contacts and contributes to the growth of mutual trust necessary for implementing large-scale trans-regional transport projects.
Afghanistan: For Kabul, Uzbekistan’s depoliticised initiatives open a legitimate channel of interaction with the outside world, allowing the country to integrate into regional economic processes without being drawn into political confrontation.
The strategic potential of the macro-region is closely linked to its demographic characteristics. Central and South Asia are among the youngest regions in the world: the share of the population under 30 exceeds 60 per cent, while the median age is about 28. This demographic resource serves as a key driver of sustainable growth and the activation of intersocietal ties, which makes the development of human capital particularly urgent.
In these conditions, joint work in the field of human capital development becomes increasingly important. This includes the training of qualified personnel, the expansion of scientific and academic cooperation, the exchange of knowledge and technologies, and the intensification of youth and public contacts.
Uzbekistan is consistently scaling up inter-university and scientific and academic cooperation in the macro-region. A practical example of this activity is Termez, where programmes of vocational and language training for Afghan students have been launched with the support of international organisations. As a result, the city is being transformed into a major educational and humanitarian hub at the junction of the two regions.
In this context, Tashkent’s modern initiatives aimed at restoring trans-regional connectivity appear as a natural continuation of a historical model of development determined by the deep interdependence of states.
The contemporary foreign policy course of Uzbekistan is based on the synergy of pragmatic economic and transport partnership and the recognition of the macro-region’s shared historical destiny. In implementing this strategy, Termez, an ancient intellectual and logistical hub linking Mawarannahr, Afghanistan and the Indian subcontinent, acquires special significance.
Its historical role was shaped by a unique geostrategic position. Already in antiquity, Termez was an important centre of the Greco-Bactrian and Kushan worlds. It was the Kushan Empire that created one of the first stable political and economic spaces uniting the territories of present-day Central Asia, Afghanistan, Pakistan and northern India.
Today, Uzbekistan is institutionalising this heritage by creating new multilateral dialogue platforms. The key element of this architecture is the international platform “Termez Dialogue”, which is focused on developing transport and logistical connectivity, humanitarian diplomacy and academic interaction.
The expert community notes the qualitative evolution of this platform. The second session of the “Termez Dialogue”, scheduled for 4–6 June 2026 in Tashkent, Termez and Samarkand, marks a transition from conceptual discussions to the formation of applied mechanisms of cooperation in politics, logistics, climate adaptation and cultural exchange. The forum is acquiring the status of a specialised international platform for developing multilateral approaches to regional security and the Afghan settlement process.
The fundamental distinction of Uzbekistan’s approach lies in its reliance on the concept of “inclusive regionality”, which presupposes the obligatory inclusion of Afghanistan in the system of trans-regional ties. Tashkent proposes an alternative model of diplomacy, viewing humanitarian cooperation as an instrument for reducing interstate contradictions and overcoming regional fragmentation.
Thus, contemporary Uzbekistan is carrying out a conceptual rethinking of the historical experience of interaction between Central and South Asia in relation to the realities of the twenty-first century. By developing the “Termez Dialogue” platform and stimulating trans-regional connectivity, Tashkent is transforming historical memory of a single civilisational space into a viable mechanism of multilateral integration, humanitarian partnership and indivisible regional security.
Alisher Sabirov
Doctor of Historical Sciences
Nizami National Pedagogical University
of Uzbekistan
X TASHKENT INTERNATIONAL BIENNALE OF CONTEMPORARY ART
📅 08.07.2024
ART
The Tashkent International Biennale of Contemporary Art has been held every two years since 2001 with government support. It serves as an open platform for cultural exchange in the visual arts, showcasing the modern creative potential of different countries and discussing current issues in contemporary art.
The theme of the X Tashkent International Biennale of Contemporary Art in 2024 is "Art and World". Conceptually, it explores the relationship between art and modern reality through the works of artists from various countries. This theme prompts reflection on the nature of the modern world: Does it possess integrity? Today, the world is characterized by polar stances, clashes, and numerous challenges related to preservation, ecology, morality, culture, and identity, spanning personal to state levels. Its landscape is shaped by opposition influenced by globalization, geopolitics, technogenic civilization, and artificial intelligence. How does contemporary art reflect on the modern world?
Simultaneously, the X Tashkent International Biennale aims to showcase various trends and new directions in contemporary art to the general public. It seeks to enhance international cultural relations, strengthen the creative dialogue between cultures, and highlight the achievements of different countries in visual art. The Biennale focuses on liberating creative consciousness, demonstrating pluralism in creative exploration, and illustrating the specifics of the postmodern condition in different countries. It addresses the state of intertextuality in modern art and the preservation or disappearance of local traditions in the era of globalization.
The concept of the Biennale is dedicated to displaying a multicultural lifestyle through the prism of contemporary art. The works presented will reflect diverse artistic expressions that uphold humanistic values. The theme provides an opportunity to explore concepts such as ecology, culture, tolerance, modern orientalism, identity, artificial intelligence, technogenic civilization, and the inner world of individuals.
FOR MORE DETAILS: biennale.uzbekistan@gmail.com, +998-71-233-04-27
Curator of the X Tashkent International Biennale of Contemporary Art:
Sukhrob Kurbanov - Art Critic and Art Historian.
Coordinator of the event:
Asya Tuychiyeva - Head of the Department for International Relations, Academy of Arts of Uzbekistan.
Ministers of Foreign Affairs of Uzbekistan and Latvia discussed issues on transport connectivity and logistics, IT and digital technologies, trade, and investments during their meeting in New York
📅 02.10.2024
TASHKENT, September 24. /Dunyo IA/. The Minister of Foreign Affairs of Uzbekistan Bakhtiyor Saidov held negotiations in New York City with the Minister of Foreign Affairs of Latvia Baiba Braže, reports Dunyo IA correspondent.
"Had a productive meeting with H.E. Baiba Braže, Foreign Minister of Latvia, – the head of the Ministry of Foreign Affairs of Uzbekistan wrote in his telegram channel. – We highly value the opening of the office of the Investment and Development Agency of Latvia in Tashkent. Transport connectivity and logistics, IT and digital technologies, trade and investments were on the focus of our meeting".
Uzbekistan–Georgia Relations: Contemporary Priorities for Bilateral Development
📅 30.06.2026
The history of the partnership between Uzbekistan and Georgia provides a compelling example of how two countries, bound neither by alliance commitments nor by historical dependency, have come to recognize each other as genuine strategic partners.
One of the key priorities of Uzbekistan's contemporary foreign policy is the expansion of cooperation with the countries of the South Caucasus. This approach reflects Tashkent's consistent policy of diversifying its external economic relations while strengthening regional connectivity. Within this framework, the South Caucasus is regarded as an important partner capable of contributing to Uzbekistan's sustainable economic growth, expanding the country's transport and logistics opportunities, and enhancing its overall foreign economic potential.
The growing importance of the South Caucasus stems from its role as a natural bridge between Central Asia and Europe. Amid the ongoing transformation of global logistics and the emergence of new transport and economic corridors, this role has become increasingly significant, reinforcing Uzbekistan's interest in practical cooperation with the countries of the region.
Georgia occupies a special place in this strategy due to its considerable transit potential, well-developed transport infrastructure, and favorable conditions for expanding trade, investment, and humanitarian cooperation.
Although diplomatic relations between Uzbekistan and Georgia were established in the early years of independence, they remained overshadowed for many years by other pressing national priorities in both countries. For nearly two decades, bilateral relations developed largely by inertia: annual trade turnover fluctuated between US$30 million and US$50 million, high-level contacts were infrequent, and joint projects remained limited in number.
A turning point came after 2017, when Uzbekistan, under the leadership of President Shavkat Mirziyoyev, embarked on a policy of openness and active integration into regional and global economic processes. Within this broader strategy, the South Caucasus emerged as one of Tashkent's important foreign policy priorities. Georgia was among those partners whose bilateral relations required comprehensive reassessment and renewed political attention.
The first high-level dialogue after a fifteen-year hiatus took place in September 2017, when, on the sidelines of the United Nations General Assembly in New York, the President of Uzbekistan met with the Prime Minister of Georgia, Giorgi Kvirikashvili. The meeting sent a strong political signal of both countries' commitment to revitalizing bilateral cooperation and laid the groundwork for expanding contacts across multiple levels of government.
In the years that followed, political dialogue steadily intensified. Parliamentary relations were established, regular contacts were launched between the heads of government and the foreign ministries, and annual official meetings between the Prime Ministers of Uzbekistan and Georgia became an established practice.
In 2023, Prime Minister of Uzbekistan Abdulla Aripov paid an official visit to Georgia. In 2025, Georgian Prime Minister Irakli Kobakhidze made a reciprocal official visit to Uzbekistan, during which he held talks with the President of Uzbekistan, as well as meetings with the Prime Minister and the leadership of both chambers of the Oliy Majlis.
The steady strengthening of political dialogue has created a solid institutional foundation for the progressive development of Uzbek–Georgian relations. A central role in this process is played by the Intergovernmental Commission on Economic Cooperation, whose work focuses on implementing bilateral agreements, eliminating existing barriers, and identifying new avenues for cooperation.
The effectiveness of these institutional mechanisms is reflected in the consistently positive performance of bilateral economic relations, particularly in trade. Over the past nine years, trade turnover between Uzbekistan and Georgia has tripled, exceeding US$267 million in 2025. By comparison, bilateral trade amounted to only US$89.1 million in 2017.
The highest level of bilateral trade was recorded in 2024, when trade increased by nearly 50 percent compared to the previous year, reaching a record US$326 million.
Equally noteworthy is that this growth has been driven not only by increasing trade volumes but also by the diversification of its structure. Whereas bilateral trade once consisted of a relatively limited range of commodities, today its product composition has become considerably broader.
Uzbekistan exports industrial goods, including non-ferrous metals, copper wire, rolled metal products, and electrical equipment, alongside food products such as legumes, fruit, and tobacco, as well as chemical products, including polymers. Georgia, in turn, exports food products, beverages, pharmaceuticals, construction materials, and metal products to Uzbekistan.
An important indicator of the expanding trade and economic cooperation has been the growing investment activity of the business communities of the two countries, reflected in the establishment of joint ventures. Today, around 100 enterprises with Georgian capital operate in Uzbekistan, while more than 140 Uzbek companies are active in Georgia. This demonstrates the growing level of mutual trust between business circles, as well as their interest in maintaining a long-term presence in each other’s markets.
The continued positive dynamics of economic cooperation suggest that the two countries have the necessary prerequisites to move beyond a trade-based model toward deeper industrial and investment cooperation. The most promising areas include the textile industry, agriculture and food production, pharmaceuticals, construction, and services, where the economies of both countries possess complementary advantages.
One of the key dimensions of Uzbek–Georgian relations is the expansion of transport and logistics links between Central Asia, the South Caucasus, and Europe. It is in this area that the interests of the two countries align most naturally.
For Uzbekistan, the use of Georgia’s transport infrastructure to access European markets is of particular importance. The ports of Poti and Batumi are key elements of this logistics chain. For Georgia, in turn, increased cargo flows from Uzbekistan and other countries of the region create opportunities to expand trade ties with Asian states.
According to experts from the Center for the Study of Transport and Logistics Development Problems under the Ministry of Transport of the Republic of Uzbekistan, positive dynamics are also observed in bilateral freight transportation. By the end of 2025, the total volume of cargo transportation between Uzbekistan and Georgia reached 146.8 thousand tons. Export shipments increased by 27 percent to 53.4 thousand tons, while import shipments rose by 26 percent to 71.5 thousand tons.
In this context, the development of the Middle Corridor is gaining particular importance. Today, it is regarded as one of Eurasia’s most promising transport arteries, opening new opportunities for route diversification and the growth of international trade. Over the past five years alone, Uzbekistan’s foreign trade cargo transportation along this route has doubled, reaching 1.2 million tons by the end of 2025.
At the same time, cooperation between Uzbekistan and Georgia in this field is moving beyond the basic use of existing transport infrastructure toward the creation of a dedicated logistics base. A vivid example is Uzbekistan’s construction of a multifunctional logistics terminal in the Poti Free Industrial Zone. The project provides for the creation of a modern warehouse complex covering around 30 hectares and designed to handle various categories of cargo, including containerized, general, bulk, and perishable goods.
The implementation of this project will create an important logistics hub for ensuring the supply of Uzbek products to European markets. At the same time, the terminal will be used to organize reverse cargo flows, thereby contributing to increased trade not only between Uzbekistan and Georgia, but also with other Central Asian states.
It is transport and logistics partnership that has the greatest potential to become the main driver of Uzbek–Georgian relations in the coming years. While at this stage the parties are focused on trade and infrastructure modernization, in the long term the goal is to create a full-fledged economic corridor linking Central Asia, the South Caucasus, and European markets.
In parallel with the development of these large-scale routes, people-to-people ties are also strengthening. In recent years, mutual interest among citizens of the two countries in tourist travel has grown noticeably. Thanks to direct flights from Tashkent to Tbilisi and Batumi, operated 13 times per week, the number of Uzbek tourists visiting Georgia has been steadily increasing, exceeding 21.5 thousand people in 2025.
For its part, Uzbekistan is attracting growing interest among Georgian travelers wishing to discover the country’s unique cultural heritage, including Samarkand, Bukhara, Khiva, and other ancient cities. Over the past seven years, the tourist flow from Georgia to Uzbekistan has increased more than 2.5 times — from 3 thousand people in 2019 to 6.8 thousand people in 2025.
Thus, relations between Uzbekistan and Georgia are currently at a stage of steady and progressive development. Whereas ten years ago bilateral interaction was based mainly on diplomatic contacts and limited trade ties, today, as we can see, a new format of partnership is taking shape, covering the political, economic, transport, and humanitarian spheres.
Of particular importance is the fact that this expansion of cooperation is taking place against the backdrop of major changes in the international economy and global logistics. As new transport routes between Asia and Europe are being formed, Uzbekistan and Georgia are objectively becoming important elements of a single space of connectivity.
The realization of this potential in the medium term will depend on the readiness of both sides to support political will with genuine economic interest. Such an approach will give new practical substance to the partnership between Uzbekistan and Georgia and will make it possible to build a sustainable model of cooperation based on pragmatism, mutual trust, and a shared commitment to sustainable development.
Miraziz Mirumarov
Leading Research Fellow
Institute for Strategic and Regional Studies
under the President of the Republic of Uzbekistan
CULTURE — THE TREE OF A NATION'S TRUST UZBEKISTAN — THE UNITED STATES
📅 30.07.2026
Culture is one of the most powerful forces that brings nations closer together and strengthens mutual trust between countries. It is the face of a nation, the reflection of its spiritual identity, its history and future, and the cradle of centuries-old values. Today, relations between countries are shaped not only by economic interests but also by cultural and humanitarian cooperation, which gives international partnerships new meaning and significance.
In recent years, Uzbekistan's international cultural ties have expanded considerably as a result of the country's open and pragmatic foreign policy. The recognition of cultural diplomacy by the President of the Republic of Uzbekistan as one of the key instruments of foreign policy has significantly strengthened the country's presence in the global cultural arena. In this context, cultural cooperation with the United States occupies a special place.
Over the past several years, bilateral relations have steadily developed on the basis of this very principle. Cooperation in culture, education, academic exchange, and the preservation of cultural heritage has become an integral part of the partnership between the two countries. This demonstrates that Uzbekistan–U.S. relations are entering a new stage of strategic cooperation.
Turning to specific examples, cultural exchanges between the two countries have intensified since 2017. Concerts and master classes held in Tashkent with the participation of American conductors, musicians, and professors opened a new chapter in professional exchange between the musical communities of Uzbekistan and the United States. These visits contributed to the development of national artistic traditions and contemporary performance practices while creating new opportunities for future generations of musicians.
That same year, the American ensemble Gina Chavez Band performed at the 11th International Music Festival "Sharq Taronalari" ("Melodies of the East") held in Samarkand, the spiritual capital of Uzbekistan.
The festival provided American artists with a unique opportunity to become acquainted with the rich musical heritage of Central Asia. The band's subsequent participation in the International Jazz Festival in Uzbekistan demonstrated that cultural dialogue between the two countries has evolved into sustained and long-term cooperation rather than remaining a one-time initiative.
Education has become another important pillar of cultural cooperation. In 2017, professors from the Michigan State University College of Music conducted master classes at the State Conservatory of Uzbekistan. Later, in 2022, cooperation was established between the R. Glière Specialized Music School and Bemidji State University in Minnesota. These initiatives created new opportunities for young musicians while laying the foundation for long-term academic partnerships between educational institutions in both countries.
It is worth emphasizing that Uzbekistan's open foreign policy has significantly expanded the country's participation in the international cultural landscape. Prestigious international festivals held in Samarkand, Khiva, Bukhara, Kokand, Nukus, Namangan, and Andijan have not only showcased Uzbekistan's rich cultural heritage but have also strengthened humanitarian dialogue with countries around the world.
A remarkable example of cultural diplomacy in practice was the U.S. government's grant of USD 150,000 in 2019 for the restoration of the Tosh Hovli Palace in Khiva. The subsequent visit of representatives of the Smithsonian Institution further confirmed the continuity of cooperation in the field of cultural heritage preservation. During their visit, the delegation explored the historic city of Khiva and highly praised the cultural and historical significance of Uzbekistan's ancient cities.
Since 2020, cultural relations have become even more diverse. A special project launched in the United States to study traditional Uzbek dance, together with the regular participation of American specialists in the International Lazgi Festival in Khiva, the International Charity Arts Festivals in Nukus and Gulistan, the International Handicrafts Festival in Kokand, and the "Echoes of the World" Forum in Andijan, demonstrates the expanding scope and growing depth of cultural dialogue between the two nations.
This evolution reveals an important trend. While cooperation initially focused primarily on concerts and festivals, it has gradually expanded to include education, restoration, cultural heritage preservation, traditional crafts, dance, maqom music, and many other fields. This reflects the systematic development of bilateral cooperation and the emergence of a more comprehensive partnership.
Culture is not only a spiritual value but also a key component of the creative economy. Through cinema, music, tourism, handicrafts, and international festivals, countries strengthen their economic potential while promoting innovation and cultural exchange. From this perspective, cultural cooperation between Uzbekistan and the United States creates new opportunities for the development of creative industries in both countries.
Furthermore, the participation of American representatives in the International Bakhshi Art Festival in Khiva and the Third International Maqom Art Forum held in Namangan under the auspices of UNESCO and ICESCO has contributed to the international promotion of Uzbekistan's intangible cultural heritage. Such participation enhances the global recognition of Uzbek culture while fostering greater interest among the American public in Uzbekistan's rich artistic traditions.
This year, one of the most significant events was the meeting of the Ministers of Culture of the Central Asian countries and the United States, held in Tashkent. During the meeting, participants discussed prospects for expanding cultural and humanitarian cooperation, including the development of creative industries, digital cultural initiatives, professional exchanges, and collaboration in cinema, theatre, literature, and music.
At the conclusion of the meeting, the participants signed the Joint Statement of the Council of Ministers of Culture on the Preservation of Cultural Heritage, adopted within the framework of the C5+1 Summit held in Washington, D.C. In addition, Uzbekistan's Minister of Culture, Ozodbek Nazarbekov, met with Kazakhstan's Deputy Prime Minister and Minister of Culture and Information, Aida Balayeva, to discuss further strengthening bilateral cooperation in literature and theatre.
In conclusion, culture has become one of the most enduring pillars of international relations. Political circumstances may change, and economic priorities may evolve, but cultural ties remain deeply rooted in the hearts, minds, and shared memory of peoples.
Culture is a spiritual bridge connecting a nation's past with its present and its present with its future. Every investment in culture is, in essence, an investment in people, in the future of nations, and in lasting peace. The cultural partnership between Uzbekistan and the United States serves precisely these noble purposes. The seeds of trust being planted today will grow into a strong tree of friendship between our peoples tomorrow. Under its branches, future generations, creative professionals, and representatives of diverse fields will come together, contributing through culture and the arts to the prosperity of both nations.
Uzbekistan has moved its economic cooperation with the Turkic states into a practical dimension
📅 09.10.2026
President of Uzbekistan Shavkat Mirziyoyev will participate in the upcoming 13th Summit of the Organization of Turkic States (OTS), which will be held in Ankara, Türkiye.
Ahead of the 13th Summit of the Organization of Turkic States, scheduled to be held in Ankara, economic cooperation within the OTS is acquiring new substance. Alongside trade and investment, industrial cooperation, transport corridors, digital infrastructure, artificial intelligence and co-financing mechanisms are emerging as practical areas of engagement. The preparation of the OTS Strategy for 2027–2031 further increases the economic significance of the Ankara meeting.
Today, the Organization of Turkic States covers a significant economic space connecting Central Asia, the South Caucasus and Türkiye with European markets. By the end of 2025, the combined nominal GDP of the OTS countries amounted to approximately $2.3 trillion, while their GDP at purchasing power parity exceeded $6.2 trillion. Their aggregate foreign trade turnover surpassed $1.2 trillion.
These figures indicate the presence of a large market for expanding economic cooperation. At the same time, the volume of mutual trade among the OTS countries remains limited relative to their overall economic potential. The next stage of cooperation is therefore increasingly focused on moving beyond the simple expansion of trade toward deeper industrial cooperation, lower transport costs and the financing of joint investment projects.
Differences in the economic structures of the OTS countries provide a foundation for such cooperation. Türkiye has a substantial manufacturing base in machinery, automotive production, electrical engineering, textiles and chemicals. Kazakhstan and Azerbaijan, in addition to their energy resources, hold significant positions in metallurgy and petrochemicals. Uzbekistan is developing its textile and garment industry, electrical engineering, automotive, chemical and food industries, as well as non-ferrous metallurgy. Kyrgyzstan’s capabilities in light industry and agriculture also provide an additional basis for expanding shared production chains.
In this context, the economic outcome of integration within the OTS will increasingly be determined not merely by the volume of mutual trade, but also by the extent to which enterprises in member countries become integrated into one another’s production chains.
Uzbekistan’s Trade with OTS Countries
For Uzbekistan, economic relations with the Turkic states have become an important component of foreign trade diversification.
In 2025, Uzbekistan’s total foreign trade turnover reached $81.2 billion, including $33.8 billion in exports and $47.4 billion in imports. Among the country’s major trading partners, turnover with Kazakhstan amounted to $5 billion, while trade with Türkiye reached $3 billion.
Kazakhstan and Türkiye alone account for roughly one-tenth of Uzbekistan’s total foreign trade. When economic relations with Kyrgyzstan, Turkmenistan, Azerbaijan and Hungary are also taken into account, the OTS space represents a distinct and sizeable regional market for Uzbekistan.
Exports have played an important role in recent trade growth. In 2025, Uzbekistan exported $1.5 billion worth of goods and services to Kazakhstan, $1.1 billion to Türkiye and $771.1 million to Kyrgyzstan.
The composition of trade also points to qualitative changes in economic relations. In 2025, industrial goods accounted for 28.2% of Uzbekistan’s exports to OTS countries, machinery and transport equipment for 19%, food products for 11.1%, chemical products for 10%, and services for 12.7%. On the import side, food products represented 22.8%, mineral fuels 20.3%, industrial goods 18.1%, and machinery and transport equipment 12.9%.
This structure highlights two important features. First, Uzbekistan’s exports to the OTS market are not limited to raw materials, with industrial goods, machinery and equipment accounting for a substantial share. Second, the presence of energy resources, industrial goods and equipment in imports indicates that mutual trade with OTS countries is also closely linked to domestic production processes.
For this reason, alongside trade turnover, the depth of industrial cooperation is becoming an increasingly important indicator of future economic relations.
Untapped Export Potential
Despite significant growth in trade, the available opportunities have yet to be fully utilized.
According to estimates by the Center for Economic Research and Reforms, Uzbekistan has the potential to increase exports to OTS countries by an additional $2.7 billion. The largest reserve is associated with the Turkish market, at $1.8 billion. Additional export potential is estimated at $500 million for Kazakhstan, $200 million for Hungary and $100 million for Kyrgyzstan.
Market size alone, however, is insufficient to ensure export growth. Product quality, mutual recognition of standards, certification procedures, transport costs, delivery times and access to trade finance all directly affect exporters’ competitiveness.
Opportunities are particularly substantial in agriculture and food products. The combined agricultural market of the OTS countries is estimated at around $72 billion. For Uzbekistan, promising export categories include fruit and vegetables, processed food products, textiles, electrical equipment, construction materials, mineral fertilizers, copper products and polymers.
The concentration of a large share of the export reserve in Türkiye and Kazakhstan is also economically significant. Türkiye offers both a sizeable domestic consumer market and access to European and Mediterranean markets. Kazakhstan, due to its geographical proximity, shared transport networks and production linkages within Central Asia, remains a natural partner for cooperation with Uzbek enterprises.
In this sense, realizing the $2.7 billion export reserve requires a coordinated approach across industrial, logistics and trade policies.
Investment Relations Are Becoming More Institutionalized
Alongside trade, investment flows from OTS countries into Uzbekistan have also increased substantially.
Between 2017 and 2025, investment attracted from OTS countries into Uzbekistan exceeded $11.5 billion. In 2025 alone, investment amounted to $3.8 billion. Türkiye was Uzbekistan’s largest investor among OTS countries, with $2.4 billion. Investment was concentrated primarily in manufacturing, energy, agriculture, construction and logistics.
As of April 2026, Uzbekistan was home to more than 4,500 enterprises with capital participation from OTS countries.
The growing number of such enterprises points to a qualitative shift in economic relations. A trade transaction ends once a product crosses the border, whereas direct investment creates longer-term links between economies through capital, technology, employment, local suppliers and export channels.
The expansion of joint industrial projects within the OTS can therefore provide an additional foundation for further growth in mutual trade.
For example, components produced in one country may be used to manufacture finished goods in another and subsequently exported to a third market. In such a case, trade statistics reflect an underlying integrated production chain. Differences in the specialization of the Turkic economies create opportunities for precisely this type of cooperation.
The Turkic Investment Fund as a New Financial Mechanism
One of the most significant institutional developments in the OTS economic architecture has been the transition of the Turkic Investment Fund to practical operations.
In 2025, its authorized capital was increased from $500 million to $600 million. Uzbekistan’s share amounts to $100 million.
The Fund’s economic significance is not limited to the size of its own capital. Its broader potential lies in using these resources to mobilize financing from other international financial institutions.
On 17 June 2026, the Turkic Investment Fund and the Islamic Corporation for the Development of the Private Sector, part of the Islamic Development Bank Group, signed an agreement on an Islamic co-financing program of up to $50 million. The program is intended to finance small and medium-sized enterprises through local financial institutions in Azerbaijan, Kazakhstan, Kyrgyzstan, Türkiye and Uzbekistan.
Another practical model emerged on 1 July. The Turkic Investment Fund signed an agreement to provide up to $10 million in financing to KMF Bank in Kazakhstan, while the European Bank for Reconstruction and Development committed up to $50 million. The combined resources are intended to expand lending to micro, small and medium-sized enterprises.
These two examples point to an emerging trend. Rather than functioning solely as an institution that directly allocates its own resources, the Fund could develop into a platform for mobilizing international financial resources for projects across the OTS region.
Such an approach could help mobilize investment substantially exceeding the Fund’s own $600 million capital base. This mechanism is particularly relevant for industrial cooperation, transport, energy, digital infrastructure and small business projects.
From a Transport Corridor to an Integrated Logistics System
Transport costs and delivery times remain another major factor affecting trade within the OTS region.
Because Central Asian countries lack direct access to seaports, logistics costs have a significant impact on export competitiveness. In this context, the Trans-Caspian International Transport Route — the Middle Corridor, which runs across the Caspian Sea through Azerbaijan, Georgia and Türkiye toward European markets — is becoming an important infrastructure component of economic cooperation within the OTS.
For Uzbekistan, the importance of this route is increasing with the construction of the China–Kyrgyzstan–Uzbekistan railway. Connecting the new railway with the Caspian route could expand Uzbekistan’s participation in the East–West logistics chain linking China, Central Asia, the Caucasus and Europe.
A modern transport corridor, however, consists of more than roads and railways. Border procedures, permits, customs declarations, consignment notes and cargo tracking systems also affect the time and cost of transportation.
Digitalization has therefore become an important component of OTS transport policy.
The e-Permit electronic permit system is being implemented among the organization’s member states. At the 9th Meeting of OTS Ministers of Transport, held in Bishkek on 23 April 2026, a memorandum was also signed on introducing the e-CMR electronic international consignment note.
At the May summit in Turkistan, the President of Uzbekistan noted that the E-Permit system had been fully launched with OTS member states and proposed linking the Middle Corridor with the China–Kyrgyzstan–Uzbekistan railway, developing a simplified customs corridor, and digitalizing data exchange and cargo tracking processes.
If these mechanisms are integrated into a single system, the OTS region could develop a logistics environment that facilitates both the physical movement of goods and the digital flow of accompanying documents and data.
The economic effects can be measured in concrete terms — shorter border crossing times, lower administrative costs and greater predictability of delivery schedules for exporters.
From Trade to Technological Connectivity
In 2026, another new dimension of OTS economic cooperation became increasingly visible.
On 15 May, the informal summit in Turkistan on “Artificial Intelligence and Digital Development” placed particular emphasis on digital infrastructure, innovative technologies and the practical application of artificial intelligence.
Uzbekistan proposed developing the concept of a “Digital Turkic Corridor”, aimed at connecting data centers across the region through high-speed communication channels.
Additional initiatives included the establishment of a strategic cooperation network in artificial intelligence, the organization of a Technology Forum in Tashkent and broader technological cooperation among participating countries.
There is a clear connection between transport and digital integration. While the Middle Corridor facilitates the movement of goods, the Digital Turkic Corridor could accelerate the movement of data.
As a result, two parallel types of infrastructure may develop across the OTS region — physical and digital.
The first encompasses roads and railways, ports, logistics centers and customs infrastructure. The second includes data centers, telecommunications networks, cloud computing, artificial intelligence infrastructure and digital services.
Their integration could support the expansion of e-commerce, digital logistics, fintech, cross-border services and digital production management.
The Institutional Framework for Economic Integration Is Expanding
Another feature of the changes taking place within the OTS is the emergence of permanent mechanisms for economic cooperation.
While cooperation previously relied largely on summits of heads of state, intergovernmental meetings and bilateral agreements, dedicated mechanisms are now taking shape in finance, transport and the digital economy.
The Turkic Investment Fund is establishing a mechanism for financing investment projects. E-Permit and e-CMR are digitalizing transport documentation. The Digital Turkic Corridor initiative is intended to connect information infrastructure across participating countries.
The economic value of these institutions lies primarily in their ability to complement one another.
The effectiveness of integration will therefore depend not only on reducing trade barriers, but also on developing the broader infrastructure that supports trade.
New Economic Opportunities for Uzbekistan
Developments within the OTS open several avenues for expanding Uzbekistan’s economic cooperation.
The first is access to larger export markets. The estimated $2.7 billion in additional export potential represents a significant reserve relative to existing trade flows.
The second is industrial cooperation. Türkiye’s industrial and technological base, the resources of Kazakhstan and Azerbaijan, and Uzbekistan’s labor resources and expanding manufacturing sector provide conditions for developing complementary production chains.
The third is transport geography. Connecting the China–Kyrgyzstan–Uzbekistan railway with the Middle Corridor could expand Uzbekistan’s transit and logistics opportunities along the East–West axis.
The fourth is access to capital. Co-financing mechanisms involving the Turkic Investment Fund and international financial institutions could provide new sources of financing for the private sector.
The fifth is the digital economy. Integration of data centers, artificial intelligence, e-commerce and digital transport documentation could create conditions for faster growth in trade in services.
At the same time, these opportunities will not automatically translate into economic outcomes. Turning the $2.7 billion export potential into actual exports requires addressing product standards, certification, logistics costs, financing and market access at the level of specific product categories.
Likewise, the economic efficiency of transport corridors should be assessed not by their length or the number of participating countries, but by indicators such as cargo delivery times, transport costs per tonne and waiting times at border crossings.
In investment cooperation, the volume of capital attracted should be considered alongside localization levels, the participation of domestic companies in supply chains, job creation and export revenues.
Ahead of the Ankara Summit
As of September 2026, preparations are under way for the 13th OTS Summit in Ankara. On 8 September, OTS Secretary General Kubanychbek Omuraliev and Turkish Foreign Minister Hakan Fidan discussed the organizational and substantive aspects of the summit as well as its expected outcomes.
The discussions also covered another important document — the OTS Strategy for 2027–2031, which is expected to define the organization’s strategic framework and priority areas for the coming period.
In this context, the Ankara Summit may become an important milestone for the next stage of economic cooperation within the OTS.
The trend of recent years is increasingly clear. While the initial emphasis was largely on expanding trade volumes, economic relations are now becoming more closely linked to investment, transport infrastructure, financial institutions and digital technologies.
For Uzbekistan, the next task is to translate the existing $2.7 billion in additional export potential into actual trade, expand joint production chains with OTS countries, reduce transport costs and use new financial mechanisms to support private-sector projects.
Accordingly, the criteria for assessing economic integration within the OTS are also evolving. Trade turnover and investment volumes remain important indicators, but they are increasingly complemented by delivery times, logistics costs, industrial cooperation, joint projects, digital services and mobilized private capital.
It is this transition — from trade in goods toward an interconnected system of production, transport, finance and digital infrastructure — that increasingly defines the new economic substance of cooperation among the Turkic states.
Latofat Burieva
Center for Economic Research and Reforms
Uzbekistan recognized as the safest of 121 countries worldwide
📅 29.07.2024
TASHKENT, July 28. /Dunyo IA/. Uzbekistan took 1st place in the ranking of the safest countries in the world "Safety Perception Index 2023", which includes 121 countries, reports Dunyo IA correspondent.
According to Uzbektourism, the rating indicates that the level of danger to the life and movement of citizens in Uzbekistan is minimal.
The five safest countries also included the United Arab Emirates, Saudi Arabia, Norway and Estonia.
Of the Central Asian countries, Kazakhstan took 14th place, Tajikistan – 17th, Kyrgyzstan – 26th.
Guinea, Sierra Leone and Mali took the lowest place in the rating.
The "Safety Perception Index" focuses on five factors: food and water, violent crime, adverse weather conditions, mental health and safety in work settings. These factors serve as an important basis for the formation of an image that will become the basis for the security rating of countries.
The fact that Uzbekistan is in first place in this ranking creates the basis for the unhindered arrival and departure of foreign tourists to our country.
Press and media workers
📅 26.06.2024
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