Uzbekistan Business & Economy - The Times Of Central Asia

Viewing results 7 - 12 of 820

Tourism Development

Tashkent Tourism Infrastructure to Be Upgraded After 3 Million Visitors

Nearly three million foreign tourists have visited Tashkent since the start of the year, prompting authorities to plan a series of practical upgrades aimed at making the Uzbek capital easier to navigate on foot. The measures, discussed at a July 4 government meeting on Tashkent’s development, include free digital tourist maps, more public toilets, and an increase in waste bins across the city. According to official figures cited at the meeting, close to three million foreign visitors have travelled to Tashkent so far this year. Officials said many tourists explore Tashkent on foot. Authorities now plan to install free tourist maps at transportation points across the city, with walking routes also available for download to mobile phones. The plans point to a growing challenge for Tashkent: the city is receiving more visitors, but still lacks some of the basic infrastructure expected in a major tourist destination. Navigation, public sanitation, and waste collection are increasingly part of the tourism offer, particularly for visitors exploring the city independently rather than through organized tours. The shortage of public toilets was identified as a particular problem in areas popular with pedestrians and tourists. Officials have been told to prepare a dedicated program within one month, with land plots to be auctioned this year for the construction of 15 to 20 modern public toilets in each district of the capital. The initiative builds on earlier attempts to modernize public sanitation in Tashkent. In 2023, the city opened Uzbekistan’s first automated public toilet on Lokomotiv Street in the Mirabad district. According to Gazeta.uz, the facility operates around the clock, includes shower facilities, is accessible for people with disabilities, and has a vending kiosk selling hygiene products and diapers in the women’s section. Authorities have also allocated 80-100 square meter plots through electronic auctions to more than 150 private businesses for the installation of additional modern public sanitation facilities. Waste collection is another part of the program. Authorities plan to increase the number of bins on streets, especially around tourist zones, a relatively small intervention but one that can have an immediate effect on how visitors experience the city. The focus on sanitation also reflects broader environmental and public-health challenges. In Yale University’s 2024 Environmental Performance Index, Uzbekistan ranked 107th out of 180 countries, with an overall score of 42.6. The country ranked 67th for unsafe sanitation and 43rd for unsafe drinking water, while its controlled solid waste score was listed at zero, highlighting continued weaknesses in waste management and urban services.

Central Asian Migrants

Russia Still Dominates Uzbek Remittances Despite Falling Share

Remittances to Uzbekistan continued to rise in the first quarter of 2026, even as Russia’s share of migrant transfers declined, according to a new labor market review by the Central Bank of Uzbekistan. Uzbek migrant workers sent home $3.8 billion in the first three months of the year, up 13% from the same period in 2025. Russia remained by far the largest source of those transfers, accounting for 72.4% of the total, but its share fell from 77.6% a year earlier. More than 1.63 million Uzbek citizens traveled abroad in the first quarter of 2026, an increase of 11.6% compared with the same period last year, according to the Central Bank. The figure covers outbound travel by Uzbek citizens, rather than labor migration alone, but it points to continued growth in population mobility. Air travel also expanded sharply during the first three months of the year, with 2.25 million passengers transported by air, up 32% year-on-year. Russia remained the main destination for Uzbek labor migrants, although the number of citizens working there under the country’s patent system declined. A work patent is the permit used by many visa-free foreign nationals, including Uzbeks, to work legally in Russia, with workers making regular tax-style payments to maintain the document. According to the Central Bank, 1.34 million Uzbek citizens were working in Russia under work patents in the first quarter, down 8.8% from the previous quarter and 1.8% compared with the same period in 2025. The bank said the decline reflected seasonal factors as well as changing conditions in external labor markets. Those "changing conditions" include a weaker ruble and tighter migration enforcement in Russia, where the price of a work patent has also risen. In Moscow, for example, the monthly payment required to maintain a migrant work patent increased from 8,900 rubles (about $120) to 10,000 rubles (about $135) from January 2026. There has also been a gradual opening of alternative destinations for Uzbek workers. Citing Turkey’s migration authority, the Central Bank said the number of Uzbek citizens in Turkey holding official residence or migration permits reached nearly 70,000 in the first quarter, up 14% year-on-year. The number of Uzbek nationals residing in South Korea also continued to grow, reaching 99,600. Meanwhile, Kazakhstan’s share of remittances rose from 3.1% to 4.1%, Europe’s increased from 2.3% to 3.3%, and South Korea’s rose from 3.5% to 4.1%. The combined share of other countries climbed from 13.6% to 16.2%. The figures suggest that Uzbek labor migration is becoming more geographically varied, but Russia remains dominant. Its 72.4% share of remittances is still more than 17 times the share of Kazakhstan or South Korea, and almost 22 times Europe’s share. The latest figures build on a broader trend identified by the Central Bank last year. As The Times of Central Asia previously reported, Uzbek migrant workers sent home $4.8 billion in the second quarter of 2025, up 21.4% year-on-year. At the time, the Central Bank linked the increase to stable exchange rates in host countries, rising wages, and continued economic activity, while noting particularly strong growth...

Investor Perception

Foreign Investors Remain Interested in Central Asia Despite Volatility, Survey Finds

International investors continue to view Central Asia and the Caucasus as attractive destinations despite heightened geopolitical tensions and market volatility, according to the third annual Investor Perception Report released by Montfort Eurasia. The survey, conducted among institutional investors in the United Kingdom and the United States, found that interest in the region remains high. Overall, 66.3% of respondents reported either strong or moderate interest in investing in Central Asia and the Caucasus, suggesting that the region is increasingly being considered as part of broader emerging-market strategies rather than as a niche destination. Among UK investors, 67.1% expressed strong or moderate interest, while the figure stood at 65.5% in the U.S. Around one-third of respondents in both countries reported very strong interest in the region, with 32.8% in the UK and 34.6% in the U.S. Recent U.S. commercial engagement in Central Asia has also moved from dialogue toward specific deals. The Montfort Eurasia report suggests that investor attitudes have shifted over the past three years. While early interest was driven largely by curiosity, investors are now approaching the region with more detailed financial analysis and due diligence. “Two years ago, the challenge for Central Asia and the Caucasus was getting noticed. Today it is being understood,” said Eleanor Kramers, managing director of Montfort Eurasia. “Investors have arrived and they have arrived as analysts, reaching for financial data and due diligence ahead of headlines. The region has answered their early interest with proof rather than promise, from international listings to sovereign-rating upgrades. The opportunity now is to meet a more serious, more demanding audience with the depth and consistency of information it expects.” One of the clearest signs of that shift is where investors obtain information. Financial analysis has overtaken international news media as the leading source of intelligence about the region, cited by 68.6% of UK respondents and 56.6% of U.S. respondents. According to the report, investors are increasingly evaluating the region through company performance, financial statements, and sector data rather than through media coverage alone. Although interest remains high, the report found that investors’ knowledge of the region has stopped improving. Respondents rated their understanding at 6.63 out of 10 in the UK and 6.79 out of 10 in the U.S., slightly below last year’s peak. Factual awareness also weakened. Only 29% of UK investors correctly estimated trade volumes between the UK and the region, compared with 39% a year earlier, while roughly one-quarter of respondents in both countries could not identify the region’s most business-friendly country. Political and economic risks also remain key considerations. Investment security ranked as investors’ biggest concern, cited by 72.3% of UK respondents and 64.7% of U.S. respondents. Political stability followed closely behind, with 56.2% of UK investors and 52.9% of U.S. investors identifying it as a major factor. Among British respondents, improved political stability was the most frequently cited condition for increasing investment in the region.

Labor Migration

Opinion: Russia’s Migration Crackdown Tests Central Asia’s Labor Alternatives

Russia is no longer the unquestioned labor destination it once was for Central Asian workers. That shift is real, but it is easy to overstate. The Times of Central Asia recently reported that labor migration from the region is becoming more diverse. Workers are looking not only to Russia, but also to South Korea, the Gulf states, the United Kingdom, Poland, Belarus, and other destinations. The old Russia-centered model is weakening, even if it has not collapsed. The question is scale. It now intersects with two other filters: legal status and banking access. Alternative labor markets can absorb some Central Asian workers, but they cannot yet replace the Russian labor outlet. Russia did not function as an ordinary destination. For years, it acted as the region's largest external labor valve: geographically close, linguistically familiar, legally accessible for some, and large enough to absorb millions of workers across construction, services, logistics, agriculture, and municipal labor. South Korea, the UK, Poland, and the Gulf can offer higher wages and more formal recruitment channels. They can also reduce overdependence on Moscow. But they are more selective, more bureaucratic, and much smaller in immediate absorption capacity. That leaves a more important question: can new destinations expand fast enough to offset a narrowing Russian market? For now, the answer is probably no. Diversification Is Real, but Not Replacement The difference between diversification and replacement is crucial. A worker from Kyrgyzstan leaving for seasonal work in the UK, or a worker from Uzbekistan entering an organized recruitment program in South Korea, represents a genuine shift. These routes can be safer, better paid, and less exposed to the social hostility now facing many Central Asian migrants in Russia. But they cannot absorb workers on the same scale. Russia's labor market absorbed Central Asian workers in very large numbers because it had a combination few other destinations can match: proximity, low entry costs, dense migrant networks, Russian-language familiarity, and long-standing informal labor channels. Even as those channels become more restrictive, they remain embedded in household economies across the region. This is why diversification should be read as a partial adaptation, not a full exit. For governments in Tashkent, Bishkek, and Dushanbe, the search for new labor markets is necessary. It reduces exposure to Russian policy shocks. It gives workers more choices. It also helps governments negotiate better legal recruitment schemes. Yet the structural problem remains. If Russia closes the door faster than alternatives can open, pressure does not disappear. It returns home through unemployment, lower remittances, and frustrated expectations. The EAEU Line Russia's migration crackdown does not affect Central Asia evenly. The most important dividing line is not geography. It is legal status. Kyrgyzstan and Kazakhstan are members of the Eurasian Economic Union (EAEU), which allows the free movement of labor among member states. In practical terms, citizens of Kyrgyzstan and Kazakhstan have a different legal status in Russia than citizens of Uzbekistan and Tajikistan. They do not face the same work-permit and labor-patent system. That does not...

Transport and Logistics

Uzbekistan’s Logistics Push Aims to Turn Transit Growth into Revenue

Tashkent is trying to turn a fast rise in transit cargo into a larger role in Eurasian trade. President Shavkat Mirziyoyev reviewed proposals on July 1 to expand logistics centers, modernize border infrastructure, digitalize warehouse and customs systems, and attract private investment into transport hubs. Transit cargo through Uzbekistan reached 15.3 million tons in 2025, up 54% from 2021. Yet Uzbekistan's share of China-Europe transit freight remains only 1-2%. Annual China-Europe trade is estimated at $800 billion, while freight traffic reaches 120-150 million tons. Officials estimate that an extra 15-20 million tons of international transit cargo could bring $400-600 million in added revenue, attract $3 billion of investment into logistics centers and terminals, and create 50,000 permanent jobs. The logistics push comes as Uzbekistan’s trade base becomes larger and more exposed to transport costs. Uzbekistan's foreign trade turnover reached $81.2 billion in 2025, up 20.7% from 2024, with exports at $33.8 billion and imports at $47.4 billion. The 2026 figures are more uneven. In January-May, turnover rose 3.7% year on year to $32.8 billion, but imports climbed 20.8% while exports fell 15.5%. Gold sales drove much of the export decline. Excluding gold, goods exports grew 29.4%, which gives Tashkent a clear reason to cut freight costs, speed up customs clearance, and expand container capacity. Uzbekistan already has about 4,000 kilometers of international transit corridors and a 4,700-kilometer railway network, but officials say the system remains too thin for the cargo volumes Tashkent wants to attract. Modern transport and logistics centers and dry ports are being developed in Tashkent, Navoi, and Namangan, while Navoi Airport serves Eurasian cargo routes. The July 1 proposals show how much still needs to change. Uzbekistan has 27 logistics centers that meet international standards, with total capacity of 27.2 million tons, but only one is in the highest category. Class A automated warehouses meet only 10-15% of demand. Officials also cited weak capacity at many border checkpoints, refrigerated and customs warehouse shortages, low containerization, and poor digital links. The new plan would specialize six areas as logistics zones. Khanabad would handle China-linked routes toward the Caspian, Europe, Afghanistan, Pakistan, and Iran. Angren, Yangiyul, and Akhangaran would distribute transit and foreign trade cargo. Alat would support Middle Corridor routes, and Termez would focus on Pakistan via Afghanistan. Entrepreneurs who build logistics centers in these locations would be offered 50 hectares of land in each area. The government plans to allocate $200 million a year in concessional and low-interest credit lines, with the budget covering external infrastructure. Projects also include customs terminals and parking in Qibray and Termez, a rail border checkpoint in Khanabad, Yangiyul station expansion, and a Class A center in Akhangaran. Digital systems form another part of the package. The proposals call for terminal and warehouse management systems linked to the E-logistika platform. They also include online monitoring, license plate recognition, electronic vehicle registration, and one-stop border clearance. Customs duties and certification rules may be eased for imported warehouse equipment, cargo-handling machinery, spare parts, and...

Tech Startups

Uzbekistan Expands President Tech Award to $5 Million, Launches $1 Million AI Startup Competition

IT Park Uzbekistan has opened a new season of the President Tech Award, the country’s largest technology competition, and launched a separate national contest focused on artificial intelligence, the President AI Award. The official presentation of both programs took place on July 1 during the Powering the Startup Ecosystem event at the Congress Hall of Uzbekistan’s Ministry of Digital Technologies. Organizers said the competitions will support technology startups through grants, venture investment, mentoring, and access to international markets. Azamat Karamatov, CEO of IT Park Uzbekistan, said the decision to increase the President Tech Award prize pool to $5 million and create the President AI Award reflected investment in a new generation of technology companies. “Our task is to create conditions under which talented developers and entrepreneurs can turn ideas into global products and contribute to the development of Uzbekistan’s digital economy,” he said. Launched on a presidential initiative, the President Tech Award has become one of Uzbekistan’s main platforms for technology projects. Organizers said more than 6,000 people took part in the most recent cycle and 862 startup teams competed, nearly double the previous season’s figures. Since the competition began in 2023, more than 13,000 people have applied and around 1,800 teams have been formed. Of the 45 projects that previously received awards, winners have created more than 400 jobs and attracted more than $10 million in post-competition investment. For 2026, the President Tech Award prize fund has been increased from $1 million to $5 million. The total includes $1 million in non-repayable grants and $4 million in venture investment for selected startups. The program will include three tracks. Early-stage teams will enter an incubation track focused on product-market fit and international mentoring, with 25 winners sharing $1 million in grants. Startups in the growth stage will compete for $1.5 million in investment through the acceleration track. A third track, Best Startup Project, will offer $2.5 million in investment from IT Park Ventures across 10 sectors, with winners selected by an international jury. The President AI Award is Uzbekistan’s first state competition dedicated fully to AI startups. It is designed to identify and develop AI projects that offer practical solutions for economic and social needs. The competition will focus on public administration, industry and entrepreneurship, healthcare, education, and the green economy and agritech. After selection, 25 startups, five from each field, will enter an acceleration program. They will work with mentors and experts to refine their products, prepare investor pitches, and raise their profile in Uzbekistan. The total investment pool for the President AI Award is $1 million, with 15 winners to receive financing across the five fields. Awards will be distributed as investments in two tranches tied to agreed performance indicators. Each field will have three winners, with $100,000 for first place, $60,000 for second, and $40,000 for third. Sherzod Shermatov, Minister of Digital Technologies, traced the awards to a shift in national policy. Uzbekistan initially promoted an outsourcing-focused IT sector, he said, but soon saw a rapid rise...