Uzbekistan Business & Economy - The Times Of Central Asia

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Space Technology

Uzbekistan’s AI Module Reaches Orbit Aboard Samarqand-2028 Satellite

A Chinese-built Earth observation satellite carrying artificial intelligence developed by Uzbek specialists was launched from a sea platform off China’s Shandong province on August 5. The Samarqand-2028 satellite was launched alongside Lampung-1, another Earth observation satellite from China’s STAR.VISION Aerospace. A livestream showed the rocket lifting off from the platform. STAR.VISION developed Samarqand-2028, while specialists from Uzbekistan’s national space agency, Uzbekcosmos, created its onboard AI module. Uzbekcosmos said this was the first time Uzbek specialists had participated in developing artificial intelligence for a satellite. Samarqand-2028 carries a hyperspectral sensor that records reflected light in 22 wavelength bands. A conventional color image records visible light in only three broad bands, while the additional bands can reveal details difficult to see with the human eye. Uzbekcosmos plans to use the images to create national maps of cotton and wheat cultivation and make initial assessments of air quality. As The Times of Central Asia reported on August 4, processing images onboard the satellite could reduce the amount of data transmitted to Earth and allow useful information to reach officials more quickly. Samarqand-2028 is separate from Uzbekistan’s first national scientific satellite, Mirzo Ulugbek. Seven Uzbek engineers studying at Kyushu Institute of Technology in Japan have begun developing the 6U satellite, which is scheduled for launch in 2028. The program is intended to train specialists and establish a domestic satellite engineering team. The next stage will be commissioning Samarqand-2028 and testing whether its AI module functions as intended in orbit. Its practical value will depend on whether Uzbek institutions can convert the imagery into useful information for agriculture and environmental monitoring.

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...

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.

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.

Aviation

Uzbekistan Turns to Georgia and Iraq as Jet Fuel Demand Rises 27%

Uzbekistan says it has arranged aviation fuel imports from Georgia, Iraq, and other countries as changes in regional air traffic drive up demand. President Shavkat Mirziyoyev's office said on August 3 that demand for aviation fuel will reach an estimated 375,000 metric tons from July through December, 27% higher than in the same period in 2025. The government linked the increase to more flights through Central Asia and a rise in services to Uzbekistan, according to an official statement. “Most of this demand will be met by domestic oil refineries,” the president’s office said, adding that alternative import channels, including supplies from Georgia and Iraq, had been established in response to export restrictions imposed by certain partner countries. The statement did not identify the countries imposing the restrictions. It also gave no details about suppliers, import volumes, prices, delivery routes, or whether shipments from Georgia and Iraq have begun. Batumi Oil Terminal resumed handling European-produced aviation fuel in July, while Georgia’s Kulevi refinery does not plan to begin producing aviation kerosene until 2027. Uzbekistan has not said whether the supplies listed as coming from Georgia are produced there or re-exported through the country. State-owned Uzbekneftegaz aims to produce 310,000 tons of aviation fuel in 2026. This is only the company’s production target, not Uzbekistan’s total domestic output. The government has not said how much of the country’s aviation fuel demand will be met by Uzbekneftegaz, other domestic producers, or imports. Uzbekistan's airports handled 64,831 flights during the first half of 2026, up 8% from a year earlier. Passenger traffic rose 16% to more than 8.15 million, according to Uzbekistan Airports data. International services accounted for 47,371 flights and nearly 6.7 million passengers, with Tashkent International Airport handling 40,283 flights, up 7%, while passenger traffic increased 17% to 5.36 million. Tourism is also adding to passenger demand. Uzbekistan recorded 6,565,410 foreign visits for tourism purposes in January-June, up 24.9% from a year earlier, according to the National Statistics Committee. The increase forms part of a wider regional travel boom. However, almost three-quarters of those came from Kyrgyzstan, Kazakhstan, and Tajikistan, which together accounted for 4.9 million arrivals. The total therefore includes substantial land-border traffic and cannot be read solely as an air-passenger figure. Geopolitical disruption is another factor driving demand. The war involving Iran has constricted a main Europe-Asia aviation corridor and forced airlines away from high-risk airspace. Some services are now using a northern arc through the Caucasus and Central Asia, increasing the value of the region’s airspace. Pressure from the north predates the Iran conflict. Since Russia’s full-scale invasion of Ukraine in 2022, many Western carriers have avoided Russian airspace. Uzbekistan Airways began routing Europe services around Russia and Belarus in January 2025. Its Tashkent-Munich route grew by 307 kilometers, adding 30 to 40 minutes to the journey time. Uzbekistan already had a growing air transit base. Uzaeronavigation served 188,000 flights in 2023, including 143,000 by foreign airlines. More than 74,000 flights were handled in Uzbek airspace during January-April...

Digital Payments

Apple Pay and Google Pay Mobile Wallets Could Launch in Uzbekistan Within Months

Apple Pay and Google Pay could become available in Uzbekistan within the next few months, Jamshid Usmanov, head of the Central Bank’s Payment Systems Development Department, told Spot. Usmanov said the Central Bank began negotiations with Apple and Google after amendments to Uzbekistan’s personal data legislation came into force. The regulator has since been working with commercial banks and the national payment systems Humo and Uzcard to complete the technical integration required to launch the services. “Commercial banks are actively carrying out integration work. There are also issues related to card tokenization that are being addressed,” Usmanov said. The project extends beyond support for international payment cards such as Visa and Mastercard. The Central Bank is also working to make Humo and Uzcard cards compatible with Apple Pay and Google Pay, enabling customers to use Uzbekistan’s domestic payment systems through the digital wallets. Usmanov said one or more commercial banks could be the first to introduce the services. He confirmed that Central Bank representatives met with Apple and Google in April and May and added that positive news could be expected in the coming months. Alongside the mobile payments initiative, Uzbekistan is continuing work on a National Payment Switch, which is scheduled to be launched in 2027 under a presidential decree. The new platform would provide unified infrastructure for processing domestic payment transactions. At present, some transactions made with international bank cards are processed through centers outside Uzbekistan. The National Payment Switch will allow those transactions to be processed domestically. Usmanov added that many countries are gradually adopting national payment switches because they reduce dependence on foreign payment infrastructure providers and allow payment data to remain within national jurisdictions. The Central Bank expects the new system to improve the resilience of Uzbekistan’s payment infrastructure and provide better data protection. Regulatory documents are currently being prepared, while technical implementation will proceed during the next phase of the project. The Times of Central Asia previously reported that Uzbekistan was also moving toward integrating PayPal, with negotiations between the Central Bank and the company underway following changes to the country’s personal data legislation.