Business & Economy - The Times Of Central Asia

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Artificial Intelligence

Uzbekistan AI: Can Its Tech Boom Deliver an AI Economy?

Uzbekistan has spent the past several years positioning itself as a fast-growing Central Asian market for IT outsourcing. The government is now seeking to build an artificial intelligence economy on that export-oriented technology sector. While the state is investing in computing infrastructure and public-sector projects, Tashkent is looking to private technology companies to drive much of AI's commercial adoption. The strategy has produced visible activity, but whether it can develop into a sustainable AI economy remains an open question. Over the past five years, the government has expanded IT Park and its incentives, simplified rules for employing foreign specialists, and introduced tax breaks for resident companies. As digital service exports have grown, artificial intelligence has increasingly been positioned as the sector's next stage. According to IT Park, its resident companies were exporting services to more than 90 countries after the first seven months of 2025. North America accounted for 45% of exports, while the Asia-Pacific region and the Commonwealth of Independent States accounted for 26%, and the European Union and the United Kingdom for 24%. The figures show the sector's geographical reach. That export base gives Uzbekistan a plausible route into AI. Local companies can use existing engineering and outsourcing capacity to develop products for foreign clients, while private companies and software exports hold a prominent role in the government's commercial strategy. Uzbekistan has not yet built a fully fledged AI economy. Under targets set by an October 2025 presidential decree, at least 100 AI projects are to be implemented by the end of 2026, AI laboratories are to open at 15 universities, and more than $1 billion in foreign investment is to be attracted for AI infrastructure by 2030. These targets show the scale of the government's ambitions. Success will depend less on the number of approved programs than on whether they produce commercially viable AI products for international markets. Microsoft's Global AI Diffusion in Q1 2026 report estimated that 7.2% of Uzbekistan's working-age population used a generative AI product during the first quarter, compared with a global average of 17.8%. Uzbekistan was nevertheless among several Central Asian countries recording rapid growth from a relatively low base. Government policy is now shifting from creating favorable conditions toward supporting commercially oriented companies. In 2026, Uzbekistan launched the President AI Award, a national program combining startup acceleration with performance-based investment. Financing is linked to measurable business results and companies' ability to bring products to market. The government is also building a venture funding structure for technology startups. IT Park Ventures, established with the support of the Ministry of Digital Technologies, invests in technology startups, with artificial intelligence, fintech, DeepTech, and education technology among its priority sectors. The fund also helps portfolio companies enter international markets and connect with foreign investors. One Uzbek AI company active in this ecosystem is Repli AI. In March 2026, the startup secured $375,000 in cloud credits from Microsoft and Google to further develop its AI-powered sales and customer service platform. These were service credits rather than...

Caspian Pipeline Consortium

Four Tankers Load at CPC as Tengizchevroil Plans Larger Batumi Shipments

Four tankers have completed loading Kazakh crude at the Caspian Pipeline Consortium’s Black Sea terminal following the July 30 attacks, providing vessel-tracking confirmation that shipments restarted. Two have left the terminal area, while at least three more were waiting nearby, Bloomberg reported. Chevron CEO Mike Wirth said on July 31 that the pipeline was flowing and ships were being loaded. CPC has not issued a detailed notice covering the restart, but the completed cargoes confirm that tanker loading resumed, though throughput remains below normal. Kazakhstan’s Energy Ministry said CPC was receiving 100,000 metric tons of crude a day as of August 1, equivalent to about 730,000 barrels per day, after temporarily suspending its pipeline system on July 31. “The CPC continues to receive oil from shippers, while storage tanks are being filled,” the ministry said. It added that further increases would depend on tankers arriving on time for loading at the marine terminal. The offshore facility is technically capable of handling the volumes recorded before the attacks, but exports still depend on vessel availability and weather conditions. The daily charter rate for a tanker calling at the terminal reached $338,000 by the end of last week, nearly double its level a month earlier, according to Baltic Exchange data. Some shipowners were avoiding the terminal after repeated attacks on vessels loading or waiting nearby. An industry source familiar with operational data told Reuters that national oil and gas condensate output averaged about 1.85 million barrels per day in July, down 14% from 2.16 million barrels per day in June. Tengiz output fell 18% month on month, while Kashagan declined 25% and Karachaganak fell 18%, the source said. Tengiz was producing about 454,000 barrels per day on July 31, compared with a June average of 961,000 barrels per day. The Energy Ministry and the field operators had not confirmed those preliminary figures. CPC carries more than 80% of Kazakhstan’s oil exports and handles most production from Tengiz, Kashagan, and Karachaganak. The pipeline runs about 1,510 kilometers from western Kazakhstan through Russia to the terminal near Novorossiysk. Russia holds 31% of the consortium, while Kazakhstan holds 20.75%. Chevron owns 15%, and ExxonMobil holds 7.5%. Tengizchevroil is also expanding a smaller alternative route. The Chevron-led venture plans to send about 100,000 metric tons of Tengiz crude by rail to Georgia’s Batumi oil port terminal in August, Reuters reported, citing two industry sources. About 20,000 tons had moved through Batumi from the start of July, marking the first shipments on the route since March. The planned volume for August is equivalent to roughly 24,000 barrels per day, five times the July total, but small beside Tengiz’s normal output and the volumes CPC can carry. Batumi cannot replace the pipeline, though it provides an additional outlet if security problems again slow tanker arrivals near Novorossiysk. On August 3, the cargo ship Nadezhda was hit by a drone about 20 nautical miles from Novorossiysk, seriously injuring three crew members. The vessel was not reported to be carrying...

Space Technology

Uzbekistan-China Satellite Project Advances with AI Module

Uzbek engineers are developing an onboard artificial intelligence module for a new Earth observation satellite being built in partnership with a Chinese aerospace company. The satellite, named Samarqand-2028, is being developed under an agreement between Uzbekistan’s national space agency, Uzbekcosmos, and China’s STAR.VISION Aerospace. The Chinese company is developing the satellite itself, while Uzbek specialists are working on an onboard AI system that will help process the information it collects. The spacecraft will use hyperspectral imaging, which can detect features invisible to the human eye. Uzbekcosmos said the satellite could be used to monitor agriculture and the environment, as well as provide information for other parts of the economy. The project could include the creation of national maps showing where cotton and wheat are grown. It remains unclear when the satellite will be launched. It was expected to enter orbit in May 2026, but that target passed without a launch. In its latest update, Uzbekcosmos referred only to an upcoming launch and did not provide a revised date. Samarkand was selected to host the 2028 International Astronautical Congress in October 2025. It will be the first time the event, one of the world’s largest annual gatherings for the space industry, has been held in Central Asia. Hosting the congress will bring international attention to Uzbekistan’s space ambitions. Its longer-term impact, however, will depend on whether projects such as Samarqand-2028 help Uzbek specialists develop skills and build technology that can be used inside the country. The government has identified the space sector as one of the country's emerging high-technology priorities and is using the 2028 congress to showcase those ambitions. As The Times of Central Asia previously reported, Uzbekistan is also preparing to launch its first domestically developed scientific satellite and has begun a program to train the country’s first astronaut.

Sustainable Aviation Fuel

Kazakhstan Considers Oilseed-Based Aviation Fuel Project with Hong Kong Investor

Kazakhstan is considering a plant in Alatau City to produce sustainable aviation fuel (SAF) from industrial oilseeds in cooperation with Hong Kong investment firm Full Vision Capital. Deputy Agriculture Minister Azat Sultanov said at a government meeting on August 4 that the proposal was under consideration. Alatau City is a new city near Almaty operating under a special legal regime. An industry analysis published on June 18 said Kazakhstan's three refineries produced about 750,000-760,000 metric tons of aviation kerosene in 2025, while total demand was estimated at 1.2 million tons. The analysis, citing Ministry of Energy data, said domestic production covered the needs of domestic airlines, but international carriers and transit or cargo operations left an overall shortfall of roughly 450,000 tons. Russia has traditionally supplied much of the balance. Ukrainian drone attacks have disrupted Russian refineries in 2026, affecting fuel exports to Central Asia. Jet fuel exports by rail to Central Asia and Afghanistan fell by more than 92% in June from May, while Russia restricted exports of jet fuel and other refined products, Reuters reported. Speaking at the cabinet meeting, Sultanov said the government was expanding support for agricultural processing projects that produce higher-value goods. "To expand exports, including to more distant markets, we are developing deeper processing industries," Sultanov said. "Alongside major projects producing starches, amino acids, gluten, feed additives and other value-added products, the administration of Alatau City, together with Full Vision Capital, is also considering a project to produce aviation fuel from oilseed crops." The August 4 remarks followed discussions held in July. Agriculture Minister Aidarbek Saparov met company representatives on July 9 to discuss SAF production from industrial oilseeds, with agricultural and food waste considered as additional feedstock. A day earlier, Deputy Prime Minister Kanat Bozumbayev met a delegation from Towngas and Full Vision Capital to discuss a possible SAF plant using EcoCeres technology in Alatau City. Full Vision Capital is the family office of Hong Kong businessman Peter Lee. Its portfolio includes EcoCeres, which produces SAF and hydrotreated vegetable oil. Officials in Kazakhstan have identified Alatau City as a priority location for the proposed plant, which remains under discussion. The proposal would add a domestic source of aviation fuel if it proceeds. As previously reported by The Times of Central Asia, Kazakhstan is also considering processing Russian crude at its refineries, with part of the output sold domestically and part returned to Russia.

Central Asia Tourism

Central Asia Tourism Growth Outpaces Other Regions

Central Asia emerged as one of the world's fastest-growing tourism regions in 2025, with travel and tourism contributing $20.1 billion to the regional economy. According to an analysis based on World Travel & Tourism Council (WTTC) data, the sector's economic contribution grew by 17.7% during the year, the highest rate among the regions covered. By comparison, tourism GDP grew by 8.7% in Northeast Asia and 7.6% in Southeast Asia. The number of jobs supported by tourism grew by 9.5%, while spending by international visitors increased by 26.4%. Despite this rapid expansion, tourism remains a relatively small part of Central Asia's economy. It accounted for 4.3% of regional GDP in 2025, slightly below its pre-pandemic share of 4.5% in 2019. The slight fall in its share reflects the wider growth of the region's economies. The increase is being driven primarily by travel within Central Asia and from neighboring Russia. Kazakhstan, Uzbekistan, Russia, and Kyrgyzstan together accounted for 90% of the region's recorded inbound arrivals in 2025. Uzbekistan's official statistics, for example, show that visits to relatives accounted for most foreign visits recorded for tourism purposes during the first eight months of 2025. Comparisons between countries require caution because governments use different statistical methods, including whether they count border crossings or unique visitors. Uzbekistan remains the regional leader in terms of tourism's importance to the national economy. The sector accounted for 6% of GDP in 2025 and contributed $8.3 billion. Even there, however, tourism is considerably less economically important than in established destinations such as Spain, where WTTC forecast that it would account for almost 16% of GDP in 2025. Kazakhstan has the region's largest tourism economy in absolute terms, contributing $9.3 billion in 2025. Tourism nevertheless represented only 3.2% of the country's GDP, reflecting the larger role of industry and trade. The upward trend has continued into 2026. According to the Bureau of National Statistics, Kazakhstan welcomed three million foreign travelers in the first quarter. Uzbekistan was the largest source, accounting for 1.1 million travelers. Kyrgyzstan and Russia were the next largest sources. Revenue generated by accommodation providers rose by 13.9% compared with the same period a year earlier. WTTC forecasts almost 13% growth in the sector's economic contribution in Kazakhstan in 2026. Tourism in Central Asia is expanding and generating substantially more revenue. However, visitors from neighboring countries and Russia still dominate the regional market, leaving longer-haul tourism to grow from a comparatively low base.

E-Commerce

After Wildberries Drone Attacks, Kazakhstan Minister Urges Support for Local Marketplaces

Kazakhstan's Trade and Integration Minister Arman Shakkaliyev has encouraged consumers to shop on domestic online marketplaces, urging them not to base their purchases solely on the lowest prices offered by foreign platforms and invoking what he called “economic patriotism.” Speaking to reporters, Shakkaliyev advised consumers to use marketplaces they trust, saying that domestic platforms offered greater assurance that purchases would be delivered. He was responding to questions about the disruption affecting Wildberries after drone attacks on its Russian facilities. On August 2, Ukrainian drones struck a Wildberries warehouse in Novosemeykino, in the Samara region, causing a fire. The following day, Wildberries said a separate logistics facility in the Vladimir region had also caught fire following an attack. No casualties were initially reported at either site. Shakkaliyev's remarks come amid reports that Wildberries is seeking additional warehouse capacity in Kazakhstan. According to sources familiar with the discussions, the company is looking for approximately 100,000 square meters of warehouse space in Kazakhstan, although no single vacant facility of that size is currently available on the local market. The issue has also drawn attention in Moscow. Speaking on the sidelines of the Third Russia-Kazakhstan Media Forum, Russian Deputy Foreign Minister Mikhail Galuzin said efforts to integrate Russian and Kazakhstan-based online marketplaces had begun well before the recent attacks on logistics infrastructure and were continuing. He noted that more than 100,000 suppliers from Kazakhstan were registered on the Russian marketplaces Wildberries and Ozon, another e-commerce giant. Kazakhstan's Ministry of Trade and Integration has previously stated that it has not yet received an official request from Wildberries to establish additional warehouse facilities in the country. The ministry said that any such proposal would be reviewed in accordance with Kazakhstan's legislation and national interests. It added that all market participants would be subject to the same rules, without special preferences or exemptions.