At the end of Q1 2026, the republic’s exports of goods and services demonstrated a steady growth trend.
During the reporting period, exports totaled $5.8 bn, increasing by 26%, or $1.2 bn, compared to the same period last year.
Export growth was driven primarily by the expansion of shipments of higher value-added products and raw materials. In particular, exports of natural uranium amounted to $402.6 mn, increasing by $196 mn, or 95%. Exports of non-ferrous metals reached $248.7 mn, up by $137 mn, with a twofold increase recorded. Exports of oil and gas products totaled $160 mn, rising by $20 mn, or 15%.
Positive dynamics were also observed in manufacturing industries. Textile exports reached $731 mn, increasing by $110 mn, or 18%. Exports of construction materials totaled $304 mn, up by $130 mn, or 75%. Exports of jewelry products reached $214 mn, increasing by $75 mn, or 54%.
Sustained growth was also recorded in agricultural and food exports. Fruit and vegetable exports reached $320 mn, increasing by $34 mn, or 12%. Food product exports totaled $282 mn, increasing by $47 mn, or 120%.
Strong growth was also achieved in services. During the reporting period, services exports amounted to $2.2 bn, increasing by 35%, or $573 mn, compared to last year.
Regional export activity also expanded. In Andijan region, exports increased by $83 mn, or 74%; in Khorezm region by $27 mn, or 66%; in Navoi region by $15 mn, or 42%; in Fergana region by $54 mn, or 42%; in Namangan region by $43 mn, or 31%; in Syrdarya region by $17 mn, or 29%; and in Samarkand region by $54 mn, or 28%. In Tashkent city, exports grew by $178 mn, or 42%.
Export growth was recorded in 147 districts and cities across the republic.
The geography of exports continues to expand. In January–March of the current year, previously non-exported goods worth $162 mn across more than 140 product categories were supplied for the first time to 86 countries, including the United States, Austria, Belarus, Poland, South Korea, Iran, Kazakhstan, and Afghanistan.
In particular, exports to Hong Kong included jewelry, solar panels, semiconductors, brass products, and spare parts worth $42.1 mn. Exports to Afghanistan included truck cranes, aluminum products, oilcake, metal fittings, pipes, and other goods worth $19.8 mn. Exports to the United States included carpets, rug fabrics, electrical equipment, solar panels, and other goods worth $9.4 mn.
In addition, exports amounted to $2.3 mn to Poland, $3.8 mn to Kazakhstan, $3.2 mn to Belarus, $1.7 mn to Austria, $1.1 mn to the United Kingdom, $1.1 mn to Iran, and $649.3 thousand to South Korea.
As a result of efforts to involve new businesses in export activity, 702 new business entities joined export operations during the reporting period. Their exports totaled $270 mn. As a result, the total number of exporting enterprises reached 4 thousand.
Within the national export support system, financial and organizational assistance to exporting enterprises continued. Through the Trade Promotion Fund, 405 exporters received financial support totaling 32.3 bn soums, while these companies exported goods worth $98.9 mn. Every $1 of state support generated $38.9 in exports.
In addition, the Light Industry Agency provided financial assistance totaling 8.8 bn soums to 212 exporters.
The achieved results confirm the effectiveness of the measures being implemented in the country to expand export potential, diversify the product range, and strengthen competitiveness in foreign markets.
Center for Economic Research and Reforms Media Sector
Center for Economic Research and Reforms (CERR), jointly with the Chamber of Commerce and Industry (CCI), surveyed more than 5,000 entrepreneurs from all regions of the country.
Study assesses the business environment and the effectiveness of entrepreneurship support measures, while developing proposals to further improve business conditions and promote private sector development.
Private businesses accounted for the majority of respondents (93%). By type of activity, wholesale and retail trade had the largest representation (43%), followed by services (30%), industry (17%), construction (8%), and agriculture, forestry and fisheries (2%).
The sample covers enterprises with varying levels of business experience. Almost one in four has been operating for more than 10 years (24%), more than a quarter for 5–10 years (28%), around a quarter for 3–5 years (26%), and one in five for 1–3 years (20%).
Survey results show that enterprises use a variety of tools to improve efficiency. One in three enterprises has adopted several digital solutions (33%), a comparable share uses artificial intelligence in at least two areas (30.4%), and almost one in four applies energy-saving solutions (23.2%). Enterprises are also introducing new products and technologies and revising their production and business processes to reduce costs.
Combined use of several measures is associated with stronger business performance. Among companies that have implemented at least three efficiency improvement measures, more than half report increased demand for their products and services (54.1%). Such enterprises are 4.1 times more likely to reduce costs, while the share of companies recording wage growth of more than 10% is 2.1 times higher.
Enterprises that have implemented at least three efficiency improvement measures also demonstrate greater investment activity, with more than half planning to increase investment in the following year (57.8%).
However, the comprehensive application of efficiency improvement tools has not yet become widespread. Approximately one in nine enterprises has implemented three or more measures (11.6%), while more than a quarter use none of the measures examined (28.5%).
By sector, three or more measures are implemented by 13% of enterprises in both industry and services, followed by trade (11%), construction (9%), and agriculture (8%). Regional differences are more pronounced. The comprehensive set of measures is most widely applied in Tashkent city (18%), while the corresponding figures are considerably lower in the Samarkand (4%), Bukhara (3%), and Syrdarya (2%) regions.
The survey results indicate the widespread use of basic digital solutions among enterprises (94%).
More than half of enterprises use artificial intelligence in one form or another (60%). AI is most commonly applied in marketing and sales (24%), production process optimization (15%), accounting and financial analysis (14%) and chatbots (13%).
At the same time, around one-third of enterprises use AI directly in production, logistics and financial processes (31%), indicating considerable scope for its further practical application.
Almost every second enterprise uses customer relationship management systems (CRM) to organize sales and customer engagement (48%). CRM systems are most widely used in the services sector (54%). Digital business analytics tools are used by only one in seven enterprises (14%). Nearly half of private enterprises do not use such systems, while more than a quarter are unaware of these digital solutions.
Social media has become a standard channel for promotion and customer engagement for more than four out of five enterprises (80.9%). More than half of enterprises have established online sales (58.8%), although the share of enterprises selling more than half of their products online remains relatively small (9%). Digital payment systems are used by one in four enterprises (25%).
The sectoral breakdown reveals differences in how digital tools are used. In services, CRM systems are the most widely used (54%), while this sector also records the highest adoption rates for artificial intelligence (68%), online sales (67%), and social media (87%).
In industry, CRM systems (49%) and artificial intelligence (60%) are widely used, alongside online sales (61%) and social media (81%).
In trade, digital payment systems are relatively more widespread (31%). More than half of enterprises also use artificial intelligence (55%) and online sales (54%), while over three-quarters use social media (77%).
In construction, social media is the most widely used digital tool (80%). More than half of enterprises use artificial intelligence (55%) and online sales (51%), while 43% use CRM systems.
In agriculture, digital payment systems are relatively widespread (30%). At the same time, 43% of enterprises use artificial intelligence, 49% have established online sales, and 66% use social media.
Findings show that further opportunities to improve enterprise efficiency are associated with the broader adoption of modern technologies and management solutions, the modernization and automation of production, development of digital sales channels and improvements in energy efficiency.
The stronger performance of enterprises that use these tools comprehensively demonstrates the importance of their consistent adoption for productivity growth and greater investment activity.
Technological modernization represents a separate area of opportunity for enterprises. The survey results indicate a relationship between the introduction of new products and technologies, increased demand and investment activity.
At the same time, 51% of enterprises still have scope for further technological modernization through upgrades and the introduction of new products, services and innovations.
The further spread of digital solutions also depends on the conditions for their implementation. According to entrepreneurs, digitalization could be supported by improved internet infrastructure (13%), greater availability of qualified specialists (10%) and lower financial costs associated with technology adoption (9%).
The need for skilled personnel is also confirmed by the broader findings of the study, with enterprises reporting shortages of specialists with various qualifications, including IT professionals and engineering and technical personnel.
Overall, the survey results show that further improvements in business efficiency require a transition from the use of individual digital tools to their direct integration into production and management.
CERR’s findings are consistent with the results of World Bank research. Enterprise-level data show that the most significant productivity gains occur when companies move beyond basic access to digital technologies and adopt more advanced solutions, including cloud services, management systems, analytics, and artificial intelligence. Digital payments and online sales alone have a limited impact unless accompanied by changes in internal business processes.
Realizing the considerable untapped potential for technological modernization depends primarily on developing managerial and digital competencies, training qualified personnel, and shifting from supporting access to technologies toward their practical adoption by enterprises.
This approach is also consistent with contemporary research on economic growth, which links long-term productivity gains to the diffusion of new knowledge and its practical application (2025 Nobel Prize in Economic Sciences; Joel Mokyr, Philippe Aghion and Peter Howitt).
Accordingly, further business support measures should focus on expanding the practical adoption of technologies in enterprises’ production and management processes.
Dunyo IA
Over the past decade, the socio-economic, cultural, humanitarian, scientific, and educational relations between the Republic of Uzbekistan and the countries of Central Asia have clearly demonstrated that the region's strategic partners have entered a fundamentally new stage of mutually beneficial cooperation.
Particularly noteworthy is the fact that the recent agreements and high-level meetings among the Presidents of the Central Asian states have provided a strong impetus to the development of educational transfer, scientific cooperation, joint innovation projects, and the modernization of systems for training highly qualified specialists.
It should be emphasized that geopolitical stability, economic prosperity, and sustainable development in Central Asia are directly dependent upon the quality of good-neighborly relations among the countries of the region. Since 2016, the incorporation of the principle of "Good Neighbourliness as a Foreign Policy Priority" into the foreign policy doctrine of the Republic of Uzbekistan has elevated cooperation with neighboring brotherly states to an entirely new strategic level.
For centuries, the peoples of Central Asia have been united by a common history, shared cultural heritage, religious traditions, and spiritual values. Today, in the era of globalization and the digital economy, these nations are advancing regional integration to a qualitatively new stage. The principal driving force behind this transformation is intellectual capital, embodied primarily in cooperation in the fields of higher education, science, and innovation.
Prior to 2016, relations among neighboring countries experienced a period of relative stagnation, with numerous long-standing issues remaining unresolved. However, thanks to the far-sighted foreign policy, effective diplomacy, and strategic leadership of the President of the Republic of Uzbekistan, historical barriers were overcome, opening a new chapter in regional cooperation. This breakthrough created a stable foundation for the significant expansion of educational, scientific, and cultural exchanges throughout Central Asia.
A compelling example of this transformation can be found in the rapidly developing partnership between Uzbekistan and the Kyrgyz Republic. The declarations on strategic partnership, friendship, and good-neighborly relations, together with numerous intergovernmental agreements signed during official visits of the two countries' leaders, have established a comprehensive legal framework comprising more than 200 bilateral legal and regulatory instruments.
Whereas bilateral trade amounted to only USD 150–200 million in 2016, by 2025–2026 it had exceeded USD 1 billion, reflecting the remarkable intensification of economic cooperation. The establishment of the Uzbekistan–Kyrgyzstan Development Fund has enabled the financing of dozens of industrial, logistics, and agricultural projects. Assembly plants producing automobiles under Uzbek brands have been launched in Kyrgyzstan, while joint ventures in textile manufacturing and the production of construction materials have also been established.
Furthermore, the commencement of the active construction phase of the China–Kyrgyzstan–Uzbekistan Railway is expected to fundamentally reshape the transport and logistics architecture of the entire Central Asian region, creating new opportunities for regional connectivity and economic integration.
During the same period, cooperation between the Ministry of Higher Education, Science and Innovation of the Republic of Uzbekistan and the Ministry of Education and Science of the Kyrgyz Republic underwent profound transformation. Since 2016, universities of the two countries have significantly expanded direct institutional cooperation, resulting in numerous bilateral academic initiatives.
Among the most significant achievements has been the establishment of the Forum of Rectors of Higher Education Institutions of Uzbekistan and Kyrgyzstan, which has evolved into one of the principal platforms for strengthening academic cooperation, promoting joint research, and expanding university partnerships between the two countries.
Over the past several years, Uzbekistan’s higher education system has evolved into one of the principal drivers of regional integration and is increasingly emerging as a leading educational and scientific hub of Central Asia.
Today, 3,020 students from the countries of Central Asia are enrolled in higher education institutions across Uzbekistan, reflecting the growing confidence of neighboring nations in the quality and international competitiveness of Uzbek higher education. This student community includes 1,554 citizens of Turkmenistan, 646 from Kazakhstan, 436 from Tajikistan, and 384 from Kyrgyzstan. Beyond acquiring professional knowledge and competencies, these students contribute to the formation of a common educational space through the exchange of academic, cultural, and intellectual experiences.
In order to provide practical support for regional integration, the Government of the Republic of Uzbekistan has introduced a system of state-funded scholarships for citizens of Central Asian countries. Under this initiative, 20 fully funded scholarships are allocated annually to each neighboring state, enabling talented young people to pursue higher education in Uzbekistan.
This initiative has become one of the most effective instruments of educational diplomacy, strengthening mutual trust, expanding people-to-people contacts, and fostering long-term humanitarian cooperation throughout the region.
A notable example of deepening academic integration is the establishment of the branch campus of Mukhtar Auezov South Kazakhstan University in the city of Chirchiq. During the initial stage of its operation alone, the branch enrolled 350 students, demonstrating the growing demand for cross-border educational opportunities.
As a reciprocal step toward strengthening bilateral cooperation, the National Research University “Tashkent Institute of Irrigation and Agricultural Mechanization Engineers” established its branch at the Kazakh National Agrarian Research University in Almaty. The branch currently educates 16 students in the fields of transboundary water resources management and agricultural innovation, drawing upon Uzbekistan's scientific schools, educational methodologies, and technological expertise.
Language and cultural cooperation has also become an important dimension of regional integration. Centers of Uzbek language and culture have been restored and expanded at higher education institutions in Osh and Jalal-Abad, while departments of Kyrgyz language and literature have resumed and broadened their activities at universities in Tashkent and Andijan.
These initiatives not only promote linguistic and cultural exchange but also contribute to strengthening mutual understanding, preserving shared historical heritage, and educating younger generations in the spirit of friendship, tolerance, and good-neighborly relations.
The expansion of academic cooperation has demonstrated that universities today perform a role far beyond their traditional educational mission. They increasingly serve as platforms for scientific diplomacy, intercultural dialogue, and regional cooperation, making a substantial contribution to sustainable development and long-term stability across Central Asia.
The powerful momentum of educational integration that has emerged across Central Asia has gradually expanded beyond the region, reaching the South Caucasus and, in particular, the Republic of Azerbaijan. Contemporary Uzbek–Azerbaijani cooperation in higher education, science, and culture stands as a vivid example of the growing strategic partnership between the two fraternal nations.
At present, 44 new bilateral agreements and memoranda of cooperation between higher education institutions of Uzbekistan and Azerbaijan have been prepared for implementation, laying a solid foundation for the further expansion of academic and scientific collaboration.
Currently, 51 Azerbaijani students are pursuing higher education in Uzbekistan, while 31 Uzbek students are enrolled at leading universities in Baku and Ganja. Although these figures may appear modest, they reflect the emergence of sustainable mechanisms for academic exchange and increasing educational mobility between the two countries.
Academic mobility has become one of the defining features of bilateral cooperation. In 2024, five students from Tashkent State Pedagogical University completed a period of study at Azerbaijan State Pedagogical University and Baku Slavic University, gaining valuable exposure to Azerbaijan's educational system, teaching methodologies, and academic environment.
During the same year, 15 students representing Termez State University, universities in Tashkent, and higher education institutions specializing in arts and culture participated in scientific conferences and international academic forums held in Azerbaijan, thereby strengthening scholarly communication and expanding professional networks between young researchers.
Reciprocal academic exchanges have also intensified. Eleven Azerbaijani professors and scholars visited Uzbekistan, delivering lectures in philology, psychology, and management for students and academic staff of Uzbek universities. These visits have significantly contributed to strengthening scientific dialogue and promoting the exchange of academic expertise.
A particularly promising area of cooperation is the joint initiative between the Tashkent Institute of Chemical Technology and the Baku Higher Oil School to develop innovative joint degree programmes in Petroleum Engineering and Chemical Engineering. The project is expected to combine the scientific and technological capacities of both countries while preparing highly qualified professionals capable of meeting the demands of modern industry and the global energy sector.
Cooperation between the Alisher Navoi Tashkent State University of Uzbek Language and Literature and the National Academy of Sciences of Azerbaijan has likewise continued to develop dynamically. Their partnership encompasses joint research projects, scholarly publications, academic conferences, and collaborative initiatives in the humanities, linguistics, and literary studies.
Humanitarian cooperation has also acquired a strong institutional dimension. Since 2019, the Muhammad Fuzuli Azerbaijani Center for Culture, Education and Research in Tashkent has become an important intellectual platform for students, researchers, and academics interested in Azerbaijani language, literature, history, and culture.
Similarly, the Alisher Navoi Research Center, established within the Nizami Ganjavi Institute of Literature of the National Academy of Sciences of Azerbaijan, has become a significant venue for collaborative research on Turkic literature, comparative philology, and shared cultural heritage.
Regular literary evenings dedicated to the works of Alisher Navoi and Muhammad Fuzuli have further strengthened cultural dialogue, inspiring young people in both countries to explore the rich literary traditions of the Turkic world and reinforcing a shared sense of historical and cultural identity.
These initiatives demonstrate that educational cooperation between Uzbekistan and Azerbaijan has evolved beyond conventional academic exchange. It has become a strategic instrument of cultural diplomacy, scientific partnership, and intellectual integration, contributing to the long-term development of both countries and to broader regional cooperation.
Another significant dimension of Uzbek–Azerbaijani cooperation has been the establishment of specialized academic and cultural centers dedicated to the preservation and promotion of the shared intellectual heritage of the Turkic world.
The Kara Karayev Center, established at the Uzbekistan State Institute of Arts and Culture, introduces students to the rich musical legacy of the distinguished Azerbaijani composer while fostering professional cooperation in the field of performing arts.
Likewise, the Khurshidbanu Natavan Center, opened at Termez State University, has become a symbol of Uzbekistan's profound respect for Azerbaijani cultural heritage and a tangible manifestation of the growing humanitarian partnership between the two countries.
A landmark event took place on 13 September 2024, when a new Center for Uzbek Language and Culture was officially inaugurated in the city of Ganja. The center is expected to play an important role in promoting the Uzbek language, literature, history, and national traditions among Azerbaijani students and scholars while strengthening people-to-people ties between the two nations.
Collectively, these educational, scientific, and cultural initiatives have gradually evolved into one of the fundamental pillars of cooperation within the Organization of Turkic States (OTS), contributing to the formation of a common intellectual and educational space across the Turkic world.
Regular dialogue among the ministries responsible for education and science within the Organization of Turkic States has further accelerated this process. In particular, the visits of Emin Amrullayev, Minister of Science and Education of the Republic of Azerbaijan, to Tashkent, together with discussions involving Nagif Hamzayev, Member of the Milli Majlis of Azerbaijan, have elevated to the policy agenda the establishment of a comprehensive system for teaching the Uzbek language to international learners, modeled on Türkiye's internationally recognized TÖMER framework.
The implementation of such an initiative would substantially expand opportunities for foreign students to study the Uzbek language while simultaneously strengthening Uzbekistan's educational diplomacy and enhancing the country's cultural influence throughout the broader Turkic region. Beyond language instruction, the project could become an effective mechanism for promoting Uzbekistan's higher education system, national heritage, and academic potential on the international stage.
More importantly, the Turkic states are today becoming increasingly integrated not only in political and economic terms but also as a unified scientific and intellectual community. Shared historical memory, common cultural values, and mutual aspirations for innovation are gradually giving rise to a common educational ecosystem capable of generating new knowledge, technologies, and human capital.
Only a few years ago, the concept of a "common intellectual home" existed primarily as a strategic vision. Today, however, this vision is becoming a tangible reality within university classrooms, research laboratories, joint scientific projects, and international academic exchanges. Students, researchers, and faculty members have emerged as the principal architects of this transformation, strengthening academic cooperation through everyday collaboration and knowledge sharing.
The students who are currently studying in neighboring countries within an atmosphere of mutual trust, friendship, and respect will become tomorrow's scientists, engineers, policymakers, entrepreneurs, and innovators. They will jointly address such strategic challenges as regional economic security, transboundary water governance, environmental sustainability, food security, technological modernization, and scientific advancement.
From this perspective, educational integration in Central Asia should not be regarded merely as another dimension of humanitarian cooperation. Rather, it represents a long-term strategic investment in the formation of a single competitive intellectual space, capable of enhancing regional resilience, promoting sustainable development, and increasing the global competitiveness of Central Asia in the twenty-first century.
Ultimately, the future of regional integration will depend not only on infrastructure projects, trade agreements, or political dialogue, but also on the ability of the countries of Central Asia and the broader Turkic world to cultivate a new generation of highly educated, globally competitive professionals united by common values, shared responsibility, and a collective vision for regional prosperity. In this regard, cooperation in higher education, science, and innovation should be viewed as one of the most effective strategic instruments for ensuring lasting peace, stability, and sustainable development across the region.
Fazliddin MUMINOV,
Head of Department
Ministry of Higher Education, Science and Innovation
of the Republic of Uzbekistan
A meeting of the Organizing Committee for the Second Asian Women’s Forum was held at the Senate of the Oliy Majlis.
The meeting was chaired by the Chairperson of the Senate, Tanzila Narbaeva.
The meeting was attended by members of the Organizing Committee, senators, heads of relevant ministries and agencies, as well as representatives of non-governmental non-profit organizations.
It should be noted that the Head of state, during the 80th session of the United Nations General Assembly held on September 23–29, 2025, proposed transforming the Asian Women’s Forum into a permanent platform.
To this end, it was decided to hold the forum jointly with UN Women and the United Nations Population Fund on May 13–15 this year in the city of Bukhara.
The forum will address issues related to empowering women in the region in areas such as politics, economy, healthcare, education, social protection, climate, environment, and governance. It is expected to enhance both global and regional cooperation, with active exchange of experience.
The event will also serve as a platform to present to international participants the reforms implemented in Uzbekistan under the leadership of the Head of State, including measures to support women, socio-economic opportunities, and conditions created in employment, entrepreneurship, education, and social protection, as well as achievements in community development and tourism potential.
Particular attention will be given to the implementation of key international frameworks, including the Convention on the Elimination of All Forms of Discrimination against Women, UN Security Council Resolution 1325, the Beijing Declaration and Platform for Action, and the Sustainable Development Goals.
During the meeting, participants discussed organizational aspects related to the forum, including its agenda, content, and arrangements for bilateral meetings with foreign delegations.
Following the meeting, relevant ministries and agencies were assigned specific tasks to ensure the forum is held at a high level.
Dunyo IA,
Tashkent
In the context of rapidly changing global economies, transport and logistics are becoming more than just infrastructure elements, but crucial instruments of economic and geopolitical influence. Against this backdrop, the Organization of Turkic States (OTS) is gradually emerging as one of the most promising platforms for regional cooperation in Eurasia. The development of transport and transit links, which are now becoming the foundation for the economic integration of the Turkic countries, holds a special place in the Organization's activities.
In this regard, the informal summit of the OTS, which will take place on May 14-15 this year in Turkestan (Republic of Kazakhstan), will be positive step in further strengthening the position of the Organization, deepening cooperation and uniting the efforts of all Turkic states.
Transport as the basis of a new Eurasian architecture
Today, the member states of the OTS interact in more than 40 areas – from economics and energy to digital technologies and artificial intelligence. However, transport sphere is gradually becoming the main driver of integration.
This is due to the unique geographical location of the Turkic countries. The region is located at the intersection of major international routes connecting Europe, Central Asia, China, the Middle East, and South Asia. A new Eurasian logistics system is effectively emerging, in which the OTS’s member states play a key link between East and West.
Amid the transformation of global supply chains and growing competition between international transport routes, the states of the region are striving not only to strengthen their own infrastructure but also to create a unified transit and logistics space.
Formation of a common transport policy
In recent years, a solid legal framework has been created within the OTS, which enshrines the strategic importance of this area in documents such as «Turkic Vision 2040» and «OTS Strategy for 2022–2026».
The 2022 Samarkand Summit was of particular significance, as it saw the signing of «Agreement on International Combined Freight Transport among the Governments of the Member States of the OTS» and «the Transport Connectivity Program». These documents ushered in a new era of cooperation among Turkic countries in the near future and established specific mechanisms for its implementation.
An important step was the introduction of the e-CMR system in 2026, which allows for the electronic transfer of transport documentation. This significantly simplifies transportation, reduces bureaucratic procedures, and expedites the passage of goods across state borders. At the same time, cooperation is developing in the digitalization of customs processes, the implementation of electronic permits, and the unification of transit procedures.
Institutional strengthening of cooperation
In recent years, the OTS has been consistently developing an institutional framework for transport integration, moving cooperation from a political and declarative level to a practical level. Regular meetings of the competent authorities of the Organization’s member states play a key role in this process.
Thus, at the meeting of OTS Transport ministers in April 2026 in Bishkek, the focus was on the development of transport corridors and the removal of border crossing barriers. Essentially, this is about creating a more coordinated regional transport system capable of increasing the competitiveness of OTS routes amid growing freight flows between Asia and Europe.
Meetings of heads of railway administration, held since 2022, serve a similar function. At the October 2025 meeting in Bishkek, issues of digitalization of transportation management and improving the efficiency of rail service were discussed. This demonstrates the desire of the OTS countries to unify transport procedures and reduce logistics costs within the region.
An additional step toward institutionalization was the creation of the Alliance of Logistics Centers and Cargo Carriers within the OTS in Tashkent in 2024. The establishment of this structure demonstrates a shift toward deeper business involvement in transport integration processes.
Transport corridors as a strategic basis for the integration of OTS countries
One of the key areas of the OTS's transport strategy is the creation of a unified space of transport connectivity, centered on the development of international corridors linking East and West, as well as North and South Eurasia.
The «Middle Corridor», connecting China and Europe via Central Asia and the South Caucasus, is particularly important in this system. Against the backdrop of the transformation of global logistics, geopolitical instability, and the desire of states to diversify trade routes, this corridor is becoming one of the most promising transport arteries in Eurasia.
While the volume of traffic along this route remained relatively limited in 2020, by 2025 it exceeded 5 million tons, an increase of almost sixfold. This demonstrates the gradual transformation of the «Middle Corridor» from an alternative route into an important element of the global transport system.
Moreover, the corridor's significance extends far beyond its purely transit function. For the OTS’s member states, its development means strengthening trade and economic ties, expanding access to external markets, attracting investment, and increasing the resilience of national economies to external challenges. In the long term, the «Middle Corridor» is seen as the foundation for the development of a new model of Eurasian connectivity.
A key element of this strategy is the implementation of the «China-Kyrgyzstan-Uzbekistan» railway project, which is already considered one of the most significant infrastructure projects in Central Asia. Construction of the highway, which includes 50 bridges and 29 tunnels with a total length of approximately 120 kilometers, is estimated to cost approximately $4.7 billion.
The project will significantly reduce freight delivery times between China and Europe, strengthen Central Asia’s transit potential, and enhance the integration of the OTS’s transport system. Essentially, this creates a new strategic route capable of transforming the region's logistics configuration.
Equally important is the development of the «Trans-Afghan Corridor», which opens OTS countries to the markets of South Asia, with a population of approximately 1,9 billion and a combined GDP of approximately $3,5 trillion. For Central Asian states, this creates opportunities to diversify foreign trade, expand export routes, and reduce transportation costs. At the same time, the Trans-Afghan route has the potential to become a factor in the economic stabilization of the region by boosting trade, investment, and industrial cooperation.
Uzbekistan as a Driver of Transport Integration in the OTS
Since the Republic of Uzbekistan joined the Organization of Turkic States in 2019, transport and logistics cooperation has become a key focus of the country's foreign economic strategy within the Organization. Against the backdrop of the transformation of global supply chains, the growing importance of alternative Eurasian routes, and increased competition among international transport corridors, Tashkent has consistently promoted initiatives aimed at creating a unified transport and transit space for the OTS.
The initiatives of the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, play a key role in advancing this agenda. He views transport connectivity as a key factor in regional integration and economic development. At the OTS summit in Turkey in 2021, the head of state emphasized the need for systemic cooperation in transport and transit, effectively marking a shift to a more comprehensive approach within the Organization. This agenda received significant impetus at the 2022 Samarkand Summit, where Uzbekistan advocated for the development of multimodal routes and the implementation of the e-TIR, e-Permit, and e-CMR electronic systems.
Uzbek logistics centers Universal Logistics Services (Tashkent), Akhtachy (Andijan), and Termez Cargo Center (Surkhandarya) joined the «Sister Ports» initiative, marking a practical step toward integrating Uzbekistan’s transport infrastructure into the regional logistics network.
At the summit in Astana in 2023, Uzbekistan again emphasized the diversification of transport routes and the development of the «Middle Corridor», which, in the current geo-economic environment, is acquiring strategic significance as an perspective route between Asia and Europe. At the same time, Tashkent promoted for the expansion of transport routes connecting OTS countries with the markets of China, South Asia, and Europe.
A logical continuation of this line of action was the initiatives announced at the OTS summit in Bishkek in November 2024. The focus was on optimizing transit tariffs, simplifying border procedures, creating joint logistics mechanisms, and transitioning to electronic document management.
In May 2025, at the informal OTS summit in Hungary, Uzbekistan supported for the accelerated implementation of «single-window» systems and «green corridors» along the Trans-Caspian route. At the summit in Gabala in November 2025, special attention was paid to enhancing the competitiveness of the «Middle Corridor», modernizing infrastructure, and other areas. Particular importance was placed on linking this route with the «China-Kyrgyzstan-Uzbekistan» railway project and the «Trans-Afghan Corridor», which effectively creates a new system of transport connectivity across a vast region.
The International Forum on Multimodal Transportation held in Tashkent on November 12, 2025, was a practical confirmation of Uzbekistan's growing role in the OTS’s transport agenda.
Overall, the Turkic countries are already demonstrating a willingness to move beyond the idea of partnership to the creation of a unified interconnected space. Joint infrastructure projects, the development of interregional corridors, the digitalization of logistics, and Uzbekistan’s active role in promoting these processes form the foundation of a new transport architecture within the OTS.
Sarvar Kamolov,
the Chief Research Fellow of
the Institute for Strategic and Regional Studies
under the President of the Republic of Uzbekistan
Official visit of the President of Uzbekistan to Belarus begins on July 8th
On July 8–9th, President of Uzbekistan will pay an official visit to Belarus.
Contemporary stage of Uzbek-Belarusian relations is characterized by steady positive dynamics and the sequential expansion of cooperation across a broad spectrum of dimensions.
Diplomatic relations between the two nations were established on January 21st, 1993. Embassy of Belarus in Tashkent has been operational since February 1994, while the Embassy of Uzbekistan in Minsk was established in October 2017 and commenced full-scale operations in March 2018. Over the intervening years, the sides have formulated a substantial legal and regulatory framework and accumulated significant experience of interaction in the political, economic and humanitarian spheres.
Legal and regulatory framework of Uzbek-Belarusian cooperation encompasses virtually all areas of bilateral interaction. Currently, 126 bilateral documents have been signed between Uzbekistan and Belarus, regulating cooperation in the fields of trade, investment, industrial cooperation, transport, education, culture, science, healthcare and interregional interaction.
Foundational document is the Treaty on the Principles of Interstate Relations, signed in Tashkent on November 6, 1991, which serves as the legal basis for the development of the Uzbek-Belarusian partnership and reaffirms the parties' commitment to the principles of sovereign equality, mutual respect and due consideration of mutual interests.
Political dialogue remains the key cornerstone of the Uzbek-Belarusian partnership. Regular contacts at the highest and high levels contribute to strengthening mutual trust and the sequential development of bilateral relations. From 1991 to 2026, President of Belarus Aleksandr Lukashenko, visited Uzbekistan six times, including official visits in 1994, 2018 and 2024. A significant milestone in the development of bilateral cooperation was marked by the official visit of the President of Uzbekistan to Belarus on July 31st – August 1st, 2019.
Intergovernmental cooperation constitutes an essential element of bilateral interaction. Between 2022 and 2026, a series of reciprocal visits by the Prime Ministers of Uzbekistan and Belarus took place, during which matters of trade and economic cooperation, industrial partnerships, logistics and the implementation of joint investment projects were discussed.
An important component of Uzbek-Belarusian interaction is inter-parliamentary cooperation, which in recent years has acquired a more systematic and practice-oriented character. A special place in the structure of inter-parliamentary cooperation is occupied by the Uzbek-Belarusian women's business forums, which have become an effective platform for the development of business contacts, support for entrepreneurial initiatives and the expansion of humanitarian ties.
Economic interaction remains one of the key areas of the Uzbek-Belarusian partnership and demonstrates a steady positive dynamic. Despite the complex international economic environment, the sides manage to consistently increase the volume of mutual trade, expand investment cooperation and strengthen industrial cooperation.
In recent years, trade turnover between Uzbekistan and Belarus has increased more than fivefold - from 181.7 million dollars in 2017 to a record 965 million dollars at the close of 2025. This positive dynamic persists in the current year. Following the results of January - April 2026, volume of reciprocal trade reached 340.4 million dollars, representing a nearly one-third increase compared to the same period last year.
Structure of mutual trade is characterized by a high degree of diversification. Belarus supplies Uzbekistan with food products, machinery and equipment, vehicles, chemical products, and raw materials, whereas Uzbekistan exports industrial and food commodities, finished products, services and processed goods.
Investment cooperation also makes a substantial contribution to the development of bilateral ties. Currently, 244 enterprises with the participation of Belarusian capital operate in Uzbekistan, while 229 companies with the participation of Uzbek business are functional in Belarus. In 2025, the volume of Belarusian investments attracted into the economy of Uzbekistan amounted to 104.4 million dollars. The coordination of economic interaction is ensured by the Intergovernmental Commission on Bilateral Cooperation, established in 2001.
An important factor in strengthening Uzbek-Belarusian relations is the development of direct ties between the regions of the two countries, which facilitates the translation of agreements reached at the political level into concrete economic, investment and humanitarian projects.
Since 2017, more than forty mutual visits of regional delegations from Uzbekistan and Belarus have taken place. Active exchange of visits facilitates the expansion of contacts between local authorities, business circles and public organizations. A special place in the development of interregional cooperation is occupied by the Forums of Regions, which are traditionally held within the framework of official visits of the heads of state and are accompanied by national exhibitions, presentations of investment potential and the signing of cooperation agreements.
Cultural and humanitarian cooperation remains one of the important areas of the bilateral agenda, contributing to the strengthening of friendship, mutual understanding, and the expansion of educational, scientific and cultural exchanges.
Cultural exchanges represent a significant direction of cooperation. Creative groups from Belarus regularly participate in the “Sharq Taronalari” International Music Festival in Uzbekistan, while representatives of Uzbek culture perform at Belarusian venues, including the “Slavianski Bazaar in Vitebsk” International Festival of Arts. Days of Culture of the two countries are regularly held on a mutual basis.
Monuments dedicated to prominent figures of the two nations hold symbolic value for strengthening cultural ties. In 2018, a bust of the classic of Belarusian literature Yakub Kolas was unveiled in Tashkent, and in 2019, a monument to the great Uzbek poet and thinker Alisher Navoi was installed in Minsk, serving as a clear testament to the mutual respect for the historical and cultural heritage of both states.
Cooperation in the field of education and professional training is developing dynamically. An important step was the establishment of the Belarusian-Uzbek Intersectoral Institute of Applied Technical Qualifications in Tashkent. Double-degree programs are being implemented between the universities of the two countries, while forums of rectors of engineering and technical universities, along with professional and educational forums, facilitate the expansion of academic interaction and the conclusion of cooperation agreements between educational institutions.
Cooperation in the fields of science, cinematography, and tourism is expanding. Days of Uzbek Cinema are regularly held in Belarus, and Days of Belarusian Cinema in Uzbekistan, with representatives from both countries participating in international film festivals. Interaction between tourism organizations is also growing, including within the framework of specialized forums and presentations of the tourism potential of both states.
Cooperation in the field of healthcare is an intensively developing area of bilateral interaction. In 2023, the first medical forum “Healthcare and Medical Education Days Uzbekistan – Belarus” took place, resulting in the signing of more than 120 agreements aimed at expanding partnerships between medical institutions, exchanging experience and implementing modern technologies.
Belarusian diaspora living in Uzbekistan plays a special role in strengthening humanitarian ties. Today, there are approximately 18 thousand ethnic Belarusians in the country. A significant contribution to the preservation of national culture and the development of public diplomacy is made by the “Svitanak” Belarusian Cultural Center in Tashkent and the Belarusian Cultural Center in Angren.
Thus, Uzbek-Belarusian relations are characterized by steady development across key areas of interaction. The high level of political dialogue, expansion of trade and economic cooperation, development of interregional ties, and humanitarian interaction create a solid foundation for the further deepening of a partnership that meets the long-term interests of both countries.
Dunyo IA
Numerous scholars and studies have confirmed the connection between the quality of education and the well-being of society. The Nobel Prize winning Gary Becker was one of the first to inquire into the impact of education on economic growth and social development. His research has shown that investing in education can improve productivity and thus economic growth.
According to experts from the Organization for Economic Cooperation and Development, the high level of education, GDP and economic development serve to augment the average life expectancy and improve public health. One should note that stepping up the duration of education by 1 year can increase GDP by 3-6 percent.
Education is considered a crucial issue for Uzbekistan, 60% of the population of whose is young people under the age of 30, with a population increase of 700 thousand a year.
Up until recently, obtaining higher education was the dream of millions of Uzbek youth. In 2016, enrollment in higher education was only 9 percent of all the school graduates, and the number of higher education institutions was 69 (with 9 private). Due to a lack of student loans to finance higher education and support systems for vulnerable segments of the population, many were unable to study failing to pay tuition fees.
There were also problems for youth in getting onboard the higher education. Those willing to obtain one were able to apply only to one institution a year. And if they did not score enough in the admission exams, they had to wait until the next year to reapply to that or another university.
In addition, such factors as taking faculty and students to forced seasonal agricultural work used to have a grave negative impact on the quality of education. So did the insufficient material incentives for the teaching staff due to the extremely low wages.
After the election of Shavkat Mirziyoyev as President of the country in 2016, the system of admission to higher education institutions started to be revised, with overall systemic transformation underway, especially when it came to the quality of education.
First, the organizational and legal framework of the industry has been revised. In particular, the 2030 Concept for Higher Education Development in the Republic of Uzbekistan was approved in 2019 by the corresponding presidential decree.
In 2020, the Oliy Majlis (Supreme Assembly, the national parliament) passed the Education law in a new edition. In accordance with it, the system opened up to market mechanisms, priority was afforded to raising the scale and quality of education to a new level, to studying advanced foreign practices and establishing broad international connections.
Apart from that, adopted in 2023, the new edition of the Constitution introduced a number of new norms on the protection of the honor and dignity of teachers, government concern for their social and material well-being. The upgraded Basic Law also granted the higher education institutions the right to academic self-government, freedom in scientific research and teaching methodologies and approaches.
Second, to be sure, education advancement requires allocation of large sums from the state budget to this area. According to research, a 1% increase in education spending will increase GDP by 0.35%. It is for this reason that the amount of funds allocated from the public budget for the maintenance and development of educational institutions in Uzbekistan has been steadily growing.
In 2023, spending on education accounted for 44 percent of total social expenditures, reaching 61.2 trillion soums.
The rapid growth in the number of public and private universities, as well as branches of foreign ones, and the introduction of market mechanisms in this area have created the basis for expanding the market in educational services. Today there are 210 universities in the country, almost half of them are private (67) and foreign universities (29).
Crucially, the youth are now free to choose. A healthy competitive environment has begun to emerge among the institutions offering higher education. Branches of prestigious foreign universities like Westminster (UK), Webster (US), Management Development Institute of Singapore, Polytechnic University of Turin (Italy) have an important role to play in the implementation of advanced standards in higher education by inviting state-of-the-art certified faculty, making a good use of the latest teaching technologies, innovations and international best practices.
As a result of the enhancement of the higher education market in Uzbekistan, it became possible to boost the coverage in the system from 9 percent of school graduates enrolled in 2016 to 42 percent in 2023. And the launch of correspondence and evening studies at universities has contributed to a sharp increase in the proportion of students over 24 years of age. The total number of university students now exceeds 1.3 million.
Starting from 2019, applicants have been given the opportunity to simultaneously submit documents to several universities and choose an educational institution based on the results of entrance exams and their preferences. This year, building on a relevant presidential decree, exams for admission to universities will take place under the principle “test first, then choose”.
Uzbekistan has created a unique system that provides opportunities to obtain higher education for people in need of social protection and people with disabilities. In particular, the distribution of admission quotas was approved on the basis of an additional two percent state scholarship for persons with disabilities and one percent for graduates of Mehribonlik (Mercy homes, orphanages), children’s villages and family homes in the context of higher educational institutions and forms of education.
It will not be an exaggeration to say that changing society by attracting girls to higher education is a unique path for Uzbekistan. Here one can recall a popular wisdom that if you educate a girl, you educate the whole nation. In order to ensure gender equality, as well as the consistent implementation of the UN Sustainable Development Goals, starting from the 2022-2023 academic year, new educational loans are allocated on preferential terms (interest-free) for training girls and women. As a result, in 2023, interest-free educational loans in the amount of 1,548.6 billion soums were allocated to about 137.4 thousand students.
A procedure has also been established for reimbursement of tuition fees for girls studying for graduate degree at universities. During this time, 20,260 women took a good advantage of this opportunity.
Special emphasis is placed on the issues of training youth from Uzbekistan in prestigious foreign universities. In particular, the amount of funds allocated from the state budget to the El-Yurt Umidi (Hope of the Nation) Foundation for the training of talented youth abroad has been growing. If 200 billion soums were allocated to this fund in 2022, in 2024 the amount reached 500 billion soums. Thanks to the foundation, more than 1,000 young people have received education in respected higher education institutions abroad and today work in various fields. According to the UNESCO Institute for Statistics, students from Uzbekistan ranked fifth in the world in the number of students studying abroad in 2021. The number exceeded 110 thousand. This is also clear evidence of how young people in this country are thirsty for knowledge.
The Uzbekistan-2030 Strategy urges to bringing the level of youth enrollment in higher education to no less than 50 percent, including in at least 10 higher educational institutions in the top 1,000 ranking of the most prestigious universities, and making the way for the country into the top 50 nations by 2030 in the Global Innovation Index.
As a result of reforms over the past period, two universities of Uzbekistan for the first time entered the top 1,000 higher education institutions in the world, compiled by the British company Quacquarelli Symonds (QS). The National Research University “Tashkent Institute of Irrigation and Agricultural Mechanization Engineers” (TIIAME) was named 547th in the rating, while the Mirzo Ulugbek National University of Uzbekistan secured the 781-790th positions.
The National Research University TIIAME was among the 300 best higher education institutions in the world and among the top three universities in Central Asia in terms of “Academic reputation”, and the National University of Uzbekistan was in the top 200 in terms of “Share of foreign teachers” and took second place among universities in the region.
In addition, 53 higher educational institutions of Uzbekistan were noted in the “THE Impact Rankings” published by the Times Higher Education agency for 2024. Seven of them ended up in the top 1,000. In the ranking, the Tashkent State University of Uzbek Language and Literature came 10th in the world in terms of gender equality.
In short, well aware of the truism that investing into education means investing into your future.
Nodir Tilavoldiev,
Member of the Legislative Chamber of the Oliy Majlis
Republic of Uzbekistan
On 23 January, under the chairmanship of the President of the Republic of Uzbekistan, a videoconference meeting was held on the key tasks of poverty reduction and employment provision for 2026. In terms of both substance and the framing of issues, the meeting marked a turning point in the evolution of the country’s social policy.
The relevance of transitioning to a new model
The results of the reforms demonstrate a transition to the next stage of social policy. For the first time, poverty reduction has been placed in direct dependence on outcomes at the level of individual mahallas.
This shift is a consequence of the socio-economic results achieved. By the end of 2025, the national economy grew by 7.7%, significantly above the forecast level of 6.5%. GDP exceeded $147 bn, reaching approximately $3,900 per capita. Growth rates in all sectors surpassed those of 2024. Foreign investment reached $43 bn, while exports amounted to $33.8 bn. Inflation declined from 9.8% to 7.3% in 2025.
Sustained economic growth ensured a significant increase in budget revenues, which were consistently directed toward addressing social issues, reducing poverty, and developing mahallas. As a result, in 2025 income sources were provided for 5.4 mn people, and 330,000 families were lifted out of poverty. Unemployment declined to 4.8%, while the poverty rate fell to 5.8%.
As overall poverty indicators decline, its geography is changing. Poverty is becoming localized, concentrated, and heterogeneous. Nearly one-third of low-income households and around one-fifth of the unemployed are concentrated in a limited number of mahallas, which necessitates a transition to a new model.
Against this backdrop, the primary indicator becomes the outcome achieved at the level of each mahalla. The persistence of poverty or unemployment indicates that measures require further calibration.
Accordingly, for the first time at the national level, a systematic classification of all territories by poverty level was conducted. Based on 20 criteria, 37 “difficult” districts and 903 “difficult” mahallas were identified, home to around 120,000 poor families and approximately 155,000 unemployed citizens. At the same time, work to shape the image of a “New Uzbekistan” has also begun in an additional 33 districts and 330 “difficult” mahallas.
A distinctive feature of the new approach is that “difficult” territories are viewed as points of structural transformation. For each mahalla and district, comparative advantages are assessed, including economic, agricultural, industrial, logistics, or service-related strengths.
Individual development programmes for mahallas are being formulated. Practice shows that even in the most vulnerable areas, ensuring stable access to water and electricity, basic infrastructure, and integration with markets can multiply household incomes.
In the current year, territorially targeted development becomes the main instrument for achieving the stated goals, as clearly articulated by the President.
Infrastructure as an economic asset
A particular emphasis in the new model is placed on revising regional policy priorities. As noted by the President, residents and entrepreneurs in “difficult” districts and mahallas primarily expect improvements in roads, water supply, and electricity provision, rather than an expansion of tax incentives.
Concentrating resources on a limited number of problem territories allows infrastructure investment to be transformed from general budget spending into an instrument of targeted socio-economic impact. In 2026, $1.6 bn will be allocated for regional infrastructure development, of which $990 mn will be directed to “difficult” districts and mahallas.
At the same time, transfers from the republican budget to local budgets will double.
Additionally, allocations of $4.1 mn to each “difficult” district and $165 ths to each “difficult” mahalla are envisaged.
In total, district hokimiyats (district executive administrations) and local kengashes (local representative councils) will receive an additional approximately $330 mn exclusively to support problem territories.
A key element of this model is ensuring stable energy supply for “difficult” districts and mahallas.
In 2026, each of the 903 “difficult” mahallas is expected to host the construction of a small solar power plant with a capacity of 300 kW, with a total investment of around $110 mn. These plants will be transferred to the mahallas free of charge, creating a local energy asset. Through the generation of “green” electricity, each mahalla will gain a sustainable additional income source of $33-41 ths per year.
The proceeds are intended to be used for energy-efficient renovation of housing stock, reducing utility costs, and improving quality of life. Operation of the solar plants will involve members of low-income households, simultaneously addressing employment and infrastructure sustainability objectives.
A separate emphasis is placed on supporting the most vulnerable households. An instruction has been issued to conduct targeted assessments of 6,700 families with a member having a first-degree disability and no able-bodied household members, followed by identification of needs for energy-efficient housing upgrades and the launch of “green” renovation.
Taken together, these measures form a model of territorial and energy resilience. The effectiveness of local authorities’ performance will be subject to public evaluation, reinforcing the transition to results-oriented governance.
Comparative advantages of mahallas
The President clearly defined key socio-economic targets for 2026, including the provision of permanent employment for around 1 mn people, lifting 181,000 families out of poverty, increasing the number of poverty-free mahallas by 2.5 times to 3,500, and reducing the unemployment rate to 4.5%.
Achievement of these targets is expected to be based on the comparative advantages of specific districts and mahallas in industry, agriculture, and services. This approach allows resources to be concentrated where they generate the greatest multiplier effects for employment and household incomes.
As an example of leveraging comparative advantages based on location and specialization of mahallas, the President cited Furqat District. Its advantages include, first, cooperation with neighboring economically active centers; second, deepening specialization among nearby mahallas and combining competencies; and third, increasing value added through the launch of processing activities.
Further measures were outlined within the framework of a differentiated approach to developing problem territories.
Deepening mahalla specialization
Primary attention will be focused on deepening mahalla specialization, as welfare levels are significantly higher in mahallas with deep specialization. Practice shows that in such mahallas, welfare levels are noticeably higher, while the number of recipients of social assistance is half as large, at around 7 people per 10,000 population.
Currently, the 903 “difficult” mahallas encompass around 90,000 hectares of household and leased land. To transform this resource into a source of sustainable income, a new mechanism of a “social contract” between the state and the mahalla has been proposed. Mahallas that, by leveraging residents’ skills and rational land use, manage to increase household incomes by three to four times will receive additional financing of $165 ths for the development of road, water, and irrigation infrastructure. Implementation of this model is planned to begin with “difficult” mahallas.
To support deeper specialization, banks will allocate a total of $1.4 bn in loans. For production projects, 4% of the loan will be compensated, while for processing projects the compensation will amount to 6%.
Comparative advantages of mahallas
In 2026, $11.5 bn in credit resources are earmarked for the development of small and medium-sized businesses in mahallas, compared to $10.7 bn a year earlier. At the same time, banks have been tasked with strengthening entrepreneurship financing: alongside a planned $6 bn from external sources, the total volume of funds directed to mahalla-level projects should reach $8 bn.
Not only the scale but also the principle of credit allocation is changing. The model under which loans within the “Family Entrepreneurship” programme were issued on uniform terms at a 17.5% rate across all districts and cities is giving way to territorial differentiation. In particular, for the 37 “difficult” districts, the rate is reduced to 12%. This step transforms lending into an instrument for accelerating the development of problem territories.
In parallel, programme limits and target areas are being expanded. In all districts, the maximum size of concessional loans is increased by 1.5 times, from $2.7 ths to $4.1 ths. To support this decision, an additional $165 mn is added to the planned $297 mn.
Overall, the 2026 credit policy is shaped as a targeted development mechanism, a managed conversion of credit into employment, income, and local growth.
Institutional changes in system governance
A number of institutional changes are also envisaged to enhance the effectiveness of all governance levels involved in mahalla development.
Work in mahallas is moving away from an administrative-intermediary model and is being structured around specific projects. In this framework, the hokim’s assistant acts as a territorial development manager responsible for implementing project solutions.
To ensure integrated project governance, multi-level coordination is being introduced. Initiatives proposed by hokims’ assistants are paired with regional bankers; the first deputy hokim of the region provides operational oversight; and the “Reform Headquarters” supervises issues requiring inter-agency solutions. From February, a system of training hokims’ assistants in project management will be launched, starting with “difficult” mahallas. Each district will form a project portfolio followed by a transition to practical implementation.
One hundred “difficult” mahallas that demonstrate the best performance in job creation, income growth, and poverty reduction will receive an additional $82.5 ths each. Hokims’ assistants from these mahallas will be able to upgrade their qualifications in China, Turkiye, South Korea, and Malaysia.
In this context, work on developing mahalla master plans is being intensified. International experts are being engaged, alongside the potential of domestic universities. Final-year students in architecture programmes will be able to participate in the development of “difficult” mahallas, with the best projects being supported by state grants.
Overall, the institutional changes formalize a shift from a universal approach to a differentiated territorial policy.
Resource redistribution is justified by the structure of the economy: 62% of industrial production and 57% of services are concentrated in 50 districts and cities with high entrepreneurial potential. Growth in their budget revenues creates an opportunity to concentrate state efforts on problem territories.
This is evident from revenue dynamics: three years ago, additional local budget revenues in these 50 territories amounted to $72.2 mn, while in the current year they are expected to increase 8.5 times, to $610.5 mn.
As a result, greater attention can be directed to “difficult” districts and mahallas, where poverty and unemployment are territorially concentrated.
Conclusion
The decisions and instruments for 2026 demonstrate that Uzbekistan’s social policy is moving beyond traditional resource redistribution toward a model of managed territorial development. The new model rests on three interlinked pillars.
First, the concentration of infrastructure resources in “difficult” districts and mahallas, with the creation of long-term local assets, reduced household costs, and enhanced energy resilience.
Second, the expansion of employment based on comparative advantages and deeper territorial specialization, supported by financial incentives, access to credit, and solutions along value chains.
Third, institutional recalibration of governance, where a project-based approach and multi-level coordination align resources, responsibility, and measurable outcomes.
The essence of the current phase is that targeting becomes a technology focused on “difficult” territories. Exiting poverty is understood as an individual household trajectory, in which local conditions, skills, and infrastructure are decisive. The “Mahalla Seven” and the institution of hokims’ assistants serve as the connecting link, ensuring coordination and feedback until results are achieved.
Khurshed Asadov,
Deputy Director of Center for Economic Research and Reforms
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.
Just a few years ago, the concept of the “smart city” was largely seen as a futuristic idea associated with digital control panels, autonomous transport, widespread sensor networks, and automated urban services.
Today, the smart city has become a practical tool for addressing modern urban challenges. This trend can be seen across countries facing rapid population growth, increasing migration to major metropolitan areas, overstretched infrastructure, and mounting climate risks.
In this context, smart technologies are no longer viewed as an end in themselves. Instead, they are increasingly used to improve the resilience and efficiency of key urban systems, including transport, energy, public utilities, waste management, and environmental monitoring. This allows cities to adapt more effectively to emerging challenges, reduce pressure on infrastructure, and improve the overall quality of urban life.
At the same time, smart city development is gaining strategic economic importance by creating long-term drivers of growth. Such projects attract substantial investment by combining digital infrastructure, innovative services, and principles of sustainable development.
The growth of smart urban areas also contributes to job creation in high-tech sectors ranging from IT and telecommunications to engineering and urban data analytics. In parallel, the modernization of urban infrastructure improves resource management and raises overall living standards.
Against this backdrop, the approaches taken by Uzbekistan and Azerbaijan deserve particular attention. Rather than simply following a global trend, both countries are developing their own models of smart urbanization — ones in which technology serves people and supports the creation of more comfortable, sustainable, and future-oriented cities.
In this regard, Uzbekistan offers a particularly notable example, as urbanization is becoming an increasingly pressing issue amid steady demographic growth. The country’s population is growing by approximately 1.8–2% annually, placing additional pressure on transport systems, housing, infrastructure, and social services.
Under these conditions, the government is focusing not on limited modernization of the existing urban environment, but on the creation of new growth centers. The Smart City concept adopted in 2019, followed by the Digital Uzbekistan – 2030 strategy, established the institutional foundation for the large-scale digital transformation of urban infrastructure and public services.
One of the most visible outcomes of this strategy is the New Tashkent project, whose significance extends far beyond that of a traditional urban development initiative.
In essence, the project aims to create a new economic, administrative, and investment hub capable of easing pressure on the existing capital while introducing a fundamentally new model of urban organization based on smart city principles and sustainable development.
In this case, the concept of the “15-minute city,” green infrastructure, digital governance, public transport prioritization, and energy efficiency are not treated as separate elements, but as components of a broader strategy aimed at expanding economic space and improving the quality of the urban environment.
Against this backdrop, New Tashkent illustrates how urbanization can serve not only as a response to infrastructure pressures, but also as a tool for creating new centers of economic growth capable of redistributing business activity and shaping the long-term development of the urban agglomeration.
This is also why the project has a distinctly international dimension. Its implementation involves Singapore’s Meinhardt Group, the UK-based Foster + Partners and Cross Works, the Dutch firm OMA, Japan’s Sojitz Corporation, South Korea’s Incheon International Airport Corporation, and other international partners. This reflects Uzbekistan’s efforts to integrate global expertise into its national development model.
Azerbaijan, in turn, has chosen a different approach to the development of smart urban spaces. Rather than building entirely new cities from scratch, the focus has been placed on the restoration and comprehensive modernization of recently reintegrated territories alongside the introduction of modern urban planning solutions and Smart City technologies.
This approach goes beyond the physical reconstruction of infrastructure and involves rethinking urban development through digital technologies, sustainable planning, and green standards.
Following the reintegration of Karabakh and Eastern Zangezur, Azerbaijan faced not only the challenge of rebuilding damaged territories, but also the task of their socio-economic reintegration into the country’s broader development framework. In this context, the concepts of Smart City and Smart Village have gained particular strategic importance, serving as the foundation for a new model of territorial planning and governance.
Within this model, technology is no longer viewed solely as a modernization tool, but as an instrument for comprehensive territorial development. It supports the rapid restoration of basic services, creates conditions for the return of displaced populations, stimulates economic activity, and enables more effective management of spatial development.
One of the clearest examples is Aghali — Azerbaijan’s first “smart village.” The project demonstrates how digital infrastructure, renewable energy, smart agriculture, and modern public services can become part of a new model of post-conflict reconstruction.
The village covers around 119 hectares and includes more than 200 modern eco-friendly homes equipped with smart systems, as well as social and public infrastructure facilities, including a school, kindergarten, medical center, ASAN xidmət and DOST service centers, small business facilities, and administrative buildings.
A similar development model can also be seen in Fizuli, Aghdam, Shusha, Khojaly, and several other settlements, where new infrastructure systems are being developed based on environmental sustainability, transport accessibility, and digital management of urban and rural services.
Like Uzbekistan, Azerbaijan also relies heavily on international cooperation as a key driver of modernization. Huawei is involved in implementing digital solutions, the World Bank provides analytical and advisory support, while Japan is expanding cooperation in smart infrastructure and green energy, contributing to the adoption of advanced technological practices.
Uzbekistan is building a new urban environment from the ground up, while Azerbaijan is developing its model against the backdrop of a complex historical and territorial transformation. At first glance, these are very different starting points. Yet this is precisely what makes the similarities in their approaches particularly notable. In both cases, digital infrastructure is not treated as an additional layer built onto the city, but as a core element shaping its future development from the outset.
At the same time, neither country is pursuing a model based on copying existing examples. The experiences of Singapore, Dubai, and Qatar are being studied, but not replicated. Instead, both states are developing their own models tailored to local demographic, geographic, historical, and social realities. This reflects not a limitation of choice, but the maturity of their strategic approach.
Against the backdrop of accelerating urbanization across Central Asia and the South Caucasus, the experiences of Uzbekistan and Azerbaijan are increasingly emerging as a kind of laboratory for new development models. While their strategies differ in tools and priorities, both are driven by the same objective: building a new generation of cities that combine technology, sustainability, adaptability, and a people-centered approach.
Abbosbek Mashrapov
Senior Research Fellow, International Institute for Central Asia
The text of the article is in Uzbek!
Introduction: The Significance of President Shavkat Mirziyoyev’s participation in the 80th session of the United Nations General Assembly
The participation of the President of the Republic of Uzbekistan in the 80th session of the United Nations General Assembly (UNGA) this September held profound political and historic significance not only for our country but for the entire region. Speaking from this prestigious platform, which gathers heads of state from across the globe, Uzbekistan raised critical issues including sustainable development, combating climate change, ensuring food security, and the efficient management of water resources.
Through his address at the United Nations, a premier global institution, our President further solidified Uzbekistan’s international standing and reputation as a proactive and responsible state. Notably, by showcasing the ecological and innovative initiatives being implemented in the Aral Sea region, Uzbekistan demonstrated its openness to global cooperation in addressing pressing environmental challenges.
Another significant aspect of this participation is the integration of Uzbekistan’s international environmental initiatives into the global political agenda, highlighting the Aral Sea region as an open platform for advancing climate technologies.
During the visit, the initiatives concerning the Aral Sea region received significant attention from the international community.
During his address at the 80th session of the United Nations General Assembly, our President paid special attention to the environmental disaster in the Aral Sea region and the ongoing initiatives aimed at mitigating its consequences. This issue has garnered significant focus from the international community, reaffirming that the Aral Sea crisis is recognized not only as a regional challenge but also as a global environmental concern.
Uzbekistan’s initiative to transform the Aral Sea region into a hub of sustainable development and innovation has received strong support from international partners. In particular, significant opportunities were highlighted for implementing joint projects in areas such as green energy, water-saving technologies, ecotourism, and the restoration of biodiversity.
Thus, the raising of the Aral Sea issue on the prestigious platform of the United Nations during the visit served as a significant political and practical foundation for strengthening global cooperation and attracting increased attention from international donors and organizations.
Transforming the Aral Sea region into a hub for global climate technologies.
The challenges arising from the desiccation of the Aral Sea serve as a profound lesson for the entire world. In response, Uzbekistan aims to transform the Aral Sea region into a “global laboratory” by implementing advanced practices in green energy, water-saving technologies, biodiversity restoration, and climate change adaptation.
Such an approach not only addresses regional challenges but also offers an effective model for the international community. The projects being implemented in the Aral Sea region can subsequently serve as a replicable framework for other areas facing the impacts of climate change.
On May 18, 2021, during the 75th Session of the United Nations General Assembly, our President put forward the initiative to designate the Aral Sea region as a hub for ecological innovations and technologies. This proposal received enthusiastic support from the United Nations and the international community, and was unanimously adopted by all member states during the General Assembly plenary session. This resolution underscores Uzbekistan’s consistent and steadfast commitment to addressing the Aral Sea crisis and mitigating associated risks through a principled and effective approach.
The Aral disaster and its lessons for humanity.
The Aral Sea disaster is recognized worldwide as one of the greatest environmental catastrophes in human history. Once the fourth-largest lake in the world by surface area, the Aral Sea has almost completely dried up over the past half-century. This tragic development has dealt a severe blow to the regional climate, biodiversity, public health, and economy.
The drying up of the Aral Sea stands as a vivid example of human intervention that was not in harmony with nature. Excessive and inefficient use of water in irrigation, coupled with ineffective irrigation systems and planning errors, led to this major environmental disaster.
This tragedy underscored the necessity for humanity to use natural resources efficiently and wisely, highlighting the importance of developing water supply and agriculture solely based on sustainable technologies. At the same time, it clearly demonstrated that ensuring environmental security requires global solidarity and close international cooperation.
The imperative of sustainable development in the region.
The Aral Sea region today represents one of the most critical challenges for environmental, social, and economic sustainability in Uzbekistan and the broader Central Asian region. The limitations of natural resources, issues related to water supply, ongoing desertification processes, and declining living standards underscore the urgent need to implement a comprehensive sustainable development strategy in this area.
The necessity for sustainable development in the Aral Sea region is grounded in several key factors. Primarily, environmental security remains a pressing concern: frequent dust storms, soil degradation, and the loss of biodiversity pose direct threats to public health and the quality of life. Additionally, economic considerations are paramount, as the modernization of agriculture — the main source of income for the local population — requires the adoption of water-saving and innovative technologies.
Ensuring social sustainability requires a comprehensive set of measures aimed at creating new employment opportunities, increasing household incomes, and mitigating the risks of environmental migration. Furthermore, given that the challenges in the Aral Sea region transcend regional boundaries and hold global significance, addressing them necessitates reliance on international cooperation and partnership.
Opportunities of the Aral Sea region as an international innovation hub and platform for cooperation.
It is widely recognized that Uzbekistan has undertaken extensive and positive national efforts to combat the adverse environmental and public health impacts caused by the drying up of the Aral Sea. Since the early years of independence, the population of the White Aral Sea region has consistently felt the substantial support of the Uzbek government. The Government of Uzbekistan remains committed to paying continuous attention to the social welfare of the communities residing in the Aral Sea area.
Today, the Aral Sea region serves as an international innovation hub, playing a crucial role in promoting sustainable development in an area severely affected by ecological crisis. Through scientific, innovative, and practical projects, the center actively advances comprehensive work in key sectors including environmental protection, water resource management, agricultural technologies, energy, climate adaptation, and international cooperation.
In order to enhance the activities of the Center and further develop ecological and innovative technologies in the Aral Sea region, the Aral Sea International Innovation Center was transferred under the jurisdiction of the Ministry of Ecology, Environmental Protection, and Climate Change of the Republic of Uzbekistan, in accordance with Presidential Decree No. PQ-171 dated May 31, 2023.
In accordance with Presidential Decree No. PQ-5202 dated July 29, 2021, a modern laboratory, business accelerator training center, and technopark building, valued at 12.4 billion Uzbek soms, were completed and commissioned in 2024 within the Center’s premises. The laboratory is equipped with a plant seed gene bank and serves as a crucial scientific and innovative platform for preserving biodiversity in the region, protecting both native and introduced species, and achieving high efficiency in agricultural practices.
Currently, efforts are underway to commence full-scale operations at the facility, enrich the gene bank with an extensive seed collection, organize scientific research, and enhance the expertise of local specialists. This initiative not only supports sustainable agricultural development in Uzbekistan but also plays a crucial role in ensuring food security amid climate change and advancing international scientific cooperation across the entire Central Asian region.
Over the past period, the Center has established effective cooperation with a range of international and local organizations, as well as research institutes, in conducting scientific research and implementing projects. In particular, agreements and memoranda of understanding have been signed with over 70 foreign and domestic entities. Currently, 20 scientific-practical and innovative projects with a total value of 23.9 billion Uzbek soms are being carried out. These projects encompass alternative green energy, aquaculture, intensive horticulture, medicinal plant cultivation, resource-saving technologies, and social programs.
The Center’s activities are primarily focused on improving the living standards of the population, introducing and developing salt- and drought-tolerant crops, and implementing resource-efficient technologies. At the same time, it carries out scientific-practical and innovative initiatives aimed at restoring ecosystems, preserving biodiversity, and enhancing the quality of life in collaboration with leading international organizations. Among these partners are the United Nations Development Programme (UNDP), the International Center for Biosaline Agriculture (ICBA, UAE), the Xinjiang Institute of Ecology and Geography (China), the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the Global Green Growth Institute (GGGI), the Korea International Cooperation Agency (KOICA), the Japan International Cooperation Agency (JICA), and other prestigious institutions.
The “Samanbay” (24.3 hectares) scientific-production site in Nukus district and the “Moynoq” (106 hectares) site in Moynoq district serve as the primary experimental and testing bases of the Center. At these sites, experimental research and monitoring activities are being conducted in cooperation with foreign and local organizations. Additionally, the Center hosts joint laboratories established in partnership with international collaborators, as well as its own in vitro, soil, water, and plant biotechnology laboratories. These infrastructures support the deepening of scientific research carried out in the experimental fields and enhance the effectiveness of ongoing studies.
Each of the ongoing projects is aimed at creating long-term solutions for the Aral Sea region. Thanks to its innovative approach and international cooperation, the Aral Sea International Innovation Center is gradually becoming the primary platform in Central Asia for scientific research, technological development, and sustainable development.
In its future plans, the Aral Sea International Innovation Center aims to ensure environmental sustainability by implementing innovative eco-technologies, including desertification control measures and smart agriculture solutions.
Simultaneously, to strengthen scientific research activities, plans have been made to establish modern laboratories, a business accelerator, a training center, a technopark, experimental sites, and data analysis centers.
The Center aims to implement large-scale joint projects by further expanding cooperation with international organizations. Additionally, one of the Center’s priority directions is developing programs focused on fostering innovative ideas, creating startups, and enhancing professional skills for farmers, entrepreneurs, local communities, youth, and women.
Conclusion
The Strategic significance of the initiative to transform the Aral Sea region into a global hub for climate technologies.
The initiative to transform the Aral Sea region into a global hub for climate technologies holds strategic significance not only on a regional scale but also worldwide. Its core essence lies in ensuring environmental sustainability, conserving water resources, mitigating desertification processes, and restoring biodiversity.
At the same time, the introduction of solar and wind energy, modern irrigation systems, and innovative technologies will open broad avenues for the development of a green economy in the region. This initiative will strengthen cooperation with international organizations such as the United Nations and the Green Climate Fund, creating new employment opportunities for the local population and enhancing overall prosperity.
Most importantly, the Aral Sea region’s experience will serve as an effective model in addressing climate change and water resource challenges on a global scale in the future.
Director of the Aral Sea International Innovation Centre under the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan
B.S.Khabibullaev