Uzbekistan Business & Economy - The Times Of Central Asia

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Logistics Dry Port

DP World to Begin Construction of $288 Million Tashkent Dry Port

DP World, one of the world’s largest port and logistics operators, plans to begin construction of a multimodal terminal in Tashkent worth more than $288 million in October 2026. The dry port will bring rail and road freight, warehousing, and customs infrastructure together at a single site and is intended to reduce cargo-handling costs in the landlocked country. The construction timetable was announced at an August 25 ceremony by Tashkent Mayor Shavkat Umurzakov. Dubai-based DP World and Tashkent Invest signed an agreement on the project in October 2025. DP World holds an 85% stake in the joint venture, while the remaining 15% belongs to Tashkent Invest, an investment company owned by the city administration. The terminal will occupy about 82 hectares in the Yangi Avlod Special Industrial Zone in southern Tashkent. It will include a rail-connected dry port, customs and warehouse facilities, vehicle storage areas, and its own freight railway station, with access to the national rail network, major highways, and Tashkent International Airport. The first of three construction phases will include a rail terminal with an annual capacity of 150,000 TEUs and 63,000 square meters of warehousing. A TEU is the standard unit used in container shipping and is equivalent to one 20-foot container. Another 163,000 square meters of warehouse space is planned in subsequent phases, depending on demand. Improving Uzbekistan's Logistics Uzbekistan is one of just two double-landlocked countries in the world, alongside Liechtenstein. Long distances, multiple borders, and the need to transfer cargo from one form of transport to another increase the cost of foreign trade. In the World Bank’s latest global Logistics Performance Index, Uzbekistan ranked 88th among 139 economies, up from 129th in 2014. Pressure on the transport system is increasing along with the economy and trade. According to the World Bank, transport accounts for nearly 8% of Uzbekistan’s GDP and around 1 million jobs. The Bank estimates that road capacity will need to increase by around 500% by 2030 to accommodate projected growth in freight volumes. In March 2026, the World Bank approved $200 million to modernize transport infrastructure and support sector reforms. Uzbekistan is also expanding its external freight routes. The China-Kyrgyzstan-Uzbekistan railway is under construction, while to the west the country is seeking more freight capacity through Kazakhstan’s Caspian ports, which connect it to the Middle Corridor toward the South Caucasus, Turkey, and Europe. Uzbek freight handled through the ports of Aktau and Kuryk increased by more than 60% in 2025. To the south, a new cargo terminal opened on the Hairatan-Mazar-i-Sharif railway in Afghanistan in May, while the proposed Trans-Afghan railway remains at the feasibility-study stage and is intended eventually to provide access to Pakistani seaports. The DP World terminal would give Tashkent a major inland hub for freight moving along these routes. The company says the facility is intended to connect Central Asia with its network in the Middle East and Europe and reduce logistics costs. Its impact will still depend on how efficiently cargo can move across Uzbekistan’s borders...

Uzbekistan's Economy

Mirziyoyev Sets Goal of Doubling Uzbekistan GDP by 2030

Uzbekistan plans to increase its GDP to $300 billion by 2030 – nearly double the level expected in 2026. President Shavkat Mirziyoyev announced the new target ahead of the country’s 35th anniversary of independence. For a country with a population of about 39 million, growth on this scale will require further investment inflows and the creation of millions of better-paying jobs. In his anniversary address, Mirziyoyev unveiled seven national development programs for the coming decade. In the economic program he set targets for investment, productivity, technology, and employment. Uzbekistan is already on a strong economic trajectory. According to the World Bank, nominal GDP stood at about $72 billion in 2017, when the current wave of reforms was getting underway. By 2025, it had reached approximately $147 billion. Growth has remained strong since then. The economy expanded by 7.7% in 2025, accelerating to 8.7% year-on-year in the first quarter of 2026. The IMF projects growth of 6.8% for this year and 6% in 2027. Just three years ago, the authorities were targeting GDP of $160 billion by 2030. Now, Mirziyoyev said the country would surpass that level as early as this year. The new target is $300 billion by the end of the decade, while GDP per capita is expected to exceed $10,000 within the next ten years. The government also aims to create 2 million high-income jobs in industry by 2030. Rising Foreign Investment Government figures also point to a sharp rise in investment. According to the Ministry of Investment, Industry and Trade, Uzbekistan recorded $43.1 billion in utilized foreign investment in 2025, up 24% from the previous year. The ministry classified $38.2 billion of that amount as foreign direct investment, with another $4.9 billion coming from international financial institutions. The government aims to increase foreign investment to $53 billion in 2026. The government’s figures measure foreign investment put to use in projects during the year, which is broader than the standard measure of FDI used in international statistics. Mirziyoyev has also set a target of attracting $450 billion in foreign investment over the next decade. The government has not specified whether that target will be measured using the same methodology as its annual investment figures. Challenges to Sustaining Growth The IMF regards further private-sector development, stronger competition, and reform of state-owned enterprises and banks as important conditions for raising productivity. After nearly a decade of economic liberalization, sustaining rapid growth will increasingly depend on productivity gains and more efficient private investment rather than the initial effects of reform. Demographics are adding pressure to the labor market. Uzbekistan’s population is approaching 39 million and remains the largest in Central Asia. The IMF estimates GDP per capita at about $4,528 in 2026. Over the past decade, the country’s population has grown by around 8 million. The government sees the technology sector as one source of more productive employment. Mirziyoyev has set a goal of involving 10 million young people in information technology, artificial intelligence, the creative economy, and other emerging professions....

Renewable Energy

Acwa and KOWEPO Explore Renewable Energy Projects in Uzbekistan

South Korea’s KOWEPO, which is wholly owned by state-controlled Korea Electric Power Corporation (KEPCO), is moving into Uzbekistan’s rapidly expanding green energy market alongside Saudi Arabia’s Acwa, one of the market’s largest players. No specific projects have been announced yet, but the companies will explore opportunities in renewable generation and energy storage while considering the possibility of attracting South Korean financing. The memorandum was signed in Tashkent on August 25. For KOWEPO, the agreement offers an opportunity to bring to Central Asia the experience it has gained through projects in the Middle East totaling 3.5 GW of renewable capacity and 877 MW of gas-fired generation. For Acwa, Uzbekistan has already become its second-largest market after Saudi Arabia. The company has operated there since 2019 and is developing 19 projects with a combined capacity of more than 10 GW and potential investment estimated at $15 billion. Abid Malik, Acwa’s president for Central Asia, said the companies would also seek to “facilitate engagement with Korean financial institutions” as they assess potential projects. Acwa’s portfolio in Uzbekistan includes solar and wind power, conventional generation, green hydrogen, and energy storage. Storage is becoming increasingly important as the share of solar and wind grows because utility-scale batteries can store surplus electricity and return it to the grid when renewable generation falls. Uzbekistan aims to expand renewable energy capacity to around 25 GW by 2030, with renewables targeted to account for 54% of electricity generation. The rapid construction of solar and wind farms comes as electricity demand rises and Uzbekistan seeks to modernize a power system that has historically relied heavily on gas-fired generation. Acwa has already secured contractual priority to develop up to 2 GWh of new battery energy storage capacity in the country. KOWEPO could therefore provide additional expertise and capital. Uzbekistan’s energy transition has already attracted major investors from Saudi Arabia, the United Arab Emirates, China, and elsewhere. For now, the agreement with KOWEPO remains a framework arrangement, with the capacity, cost, locations, and timelines of any joint projects yet to be announced. Its practical significance will become clearer if the companies move from exploring opportunities to concrete investment decisions.

Nuclear Energy

Uzbekistan Plans Second Nuclear Power Plant Before First Is Ready

Uzbekistan will soon begin preparations for the construction of a second nuclear power plant (NPP), President Shavkat Mirziyoyev announced during an August 17 visit to Khorezm region. The announcement came a little more than two months after construction officially began on the country’s first NPP. The authorities have not yet disclosed where the new plant will be located or how much capacity it will have. They have also not named a technology partner. Discussing energy in connection with new industrial projects, Mirziyoyev said investors need an acceptable electricity price and a guarantee of uninterrupted supply. Uzbekistan is building its first NPP with the participation of Russia’s state nuclear corporation Rosatom. On June 4, first concrete was poured for the foundation of the first unit of the integrated NPP in Farish district, Jizzakh region, officially marking the start of construction. Mirziyoyev and Russian President Vladimir Putin launched the project by video link. International Atomic Energy Agency (IAEA) Director General Rafael Grossi also participated in the ceremony. The project itself has changed considerably over the past two years. In 2024, Uzbekistan and Russia agreed to build a small nuclear power plant with six RITM-200N reactors, each with a capacity of 55 MW. Tashkent later decided to combine small modular and large-scale nuclear generation at a single site. Under the current configuration, the Jizzakh project will have two large VVER-1000 units and two small RITM-200N units. The complex will have a total capacity of 2.11 GW and is expected to generate about 15.4 billion kWh of electricity annually. The first small reactor is expected to come online in 2029. The first large unit could begin operating in 2033, with the entire complex expected to be commissioned by 2035. Plans for a second NPP come as electricity demand is rising rapidly. Uzbekistan’s 2020–2030 electricity plan aimed to raise annual generation from 63.6 billion kWh to 120.8 billion kWh by 2030. A more recent government forecast puts electricity consumption at 121 billion kWh by 2035. Some of the growing demand is expected to be met by solar and wind power. Nuclear energy is intended to provide baseload generation, including for industry. Mirziyoyev specifically linked preparations for the second plant to investors’ need for a stable electricity supply. Uzbekistan is therefore expanding its nuclear program before its first reactor has entered operation. The country is continuing to develop the infrastructure and expertise needed for the new industry. Following a June review, the IAEA said Uzbekistan had made significant progress but needed to complete work on its nuclear regulatory body and finalize feasibility studies. So far, Mirziyoyev has said only that preparations for the second NPP will begin. Its cost, timetable, capacity, and technology have not been announced, nor has a potential contractor been named. The first NPP involves long-term cooperation with Russia’s nuclear industry. Rosatom is participating in the project, which will use its reactor technology. Mirziyoyev said in June that Uzbekistan planned further nuclear power projects with Russia, but whether the same model will be used for the second plant or Tashkent will consider...

Foreign Investment

Tashkent’s Rise Reshapes Central Asia’s Business Landscape

Tashkent is changing faster than it can adjust to its own growth. The city is already pressing against the limits of its existing airport; a vast new city designed for up to two million people is being built alongside it, and a separate financial jurisdiction drawing on English common law is being created. Uzbekistan is opening up further to foreign investment, and nearly two-thirds of the country’s foreign-invested enterprises are already concentrated in the capital. But being the leading business city in your own country and becoming a regional hub are not the same thing. Tashkent already has strong competitors in Central Asia. Given that competition, it is more useful to examine why companies are choosing Tashkent now and what the city still lacks than to declare it the region’s new business capital. As of July 1, 2026, Uzbekistan had 20,502 operating enterprises with foreign investment. Their number had increased about 1.4 times over five years. China accounted for the largest number, with 6,060 companies, followed by Russia with 3,454, Turkey with 2,293, and Kazakhstan with 1,307. As of June 1, 12,480 of the 19,921 enterprises with foreign investment then operating in Uzbekistan were located in Tashkent. That was almost 63%. Why Tashkent? Part of the answer is obvious: the institutions and services businesses rely on are concentrated there, from government and finance to professional services, technology firms, and skilled workers. That creates a network effect: companies come because partners, clients, and suppliers are already there. But the capital had roughly the same administrative advantages ten years ago without attracting business on anything like the current scale. What changed first was Uzbekistan’s economy itself. After 2016, the country began moving away from its previous closed economic model. One of the first major steps was currency liberalization in 2017. Changes followed in trade, taxation, privatization, and the treatment of foreign investors. The state still plays an enormous role in the economy, but it has become considerably easier for foreign private businesses to operate. Uzbekistan’s GDP grew by 7.7% in 2025. The IMF expects growth of about 6.8% in 2026, while pointing to a longstanding problem: the state’s large footprint in the economy, including major state-owned enterprises and banks, continues to constrain competition and private-sector development. The combination of rapid growth and a gradually more open economy has benefited Tashkent more than any other city in the country. Uzbekistan also has an advantage that cannot be created by government decree. With a population of about 38.5 million, it is Central Asia’s most populous country and has a large domestic consumer base. It is also the region’s only country that borders all four other Central Asian republics. For an international company, Tashkent can serve both as an office for the Uzbek market and as a gateway to neighboring countries. Now, Tashkent is entering territory long occupied by others. For decades, Almaty has concentrated banks, international representative offices, private companies, and professional talent. In 2018, the Astana International Financial Centre began operations, with a...

Cybersecurity

Uzbekistan’s Cerberus Wins Road to TechCrunch Regional Final

Uzbek startup Cerberus has won the regional final of Road to TechCrunch Startup Battlefield 2026, earning a ticket to San Francisco. For Uzbekistan’s young technology industry, the result is another sign of its push beyond the domestic market. For Cerberus, the challenge is now to convince international investors and clients that an AI tool developed in Tashkent to find vulnerabilities can compete in the global cybersecurity market. Cerberus took first place in the regional final on August 12. WeGlobal AI finished second, followed by LOOQ. Twenty-two startups reached the final after being selected from 726 applications from 39 countries. Uzbekistan was represented by six projects. The three winners will represent Central Eurasia at Startup Battlefield 200 in San Francisco. TechCrunch Disrupt 2026 will run from October 13 to 15. Twenty of the 200 companies will be selected to pitch on the main stage, with five advancing to the final round to compete for the $100,000 equity-free grand prize and the Disrupt Cup. The three regional winners will share a $100,000 investment pool, with Cerberus receiving $50,000. Competition rules state that each investment will be made on standard market terms in exchange for equity. Astana Hub Ventures and IT Park Ventures are providing the funding in partnership with Silkroad Innovation Hub. According to the organizers, the winners will also receive a combined $100,000 in OpenAI API credits. Cerberus founder and CEO Aziz Akhmedkhodjaev told The Times of Central Asia that two factors were behind the company’s success: the product and the team’s ability to explain the problem it solves. “I would say there are two main things here. The first, of course, is the product. Everyone understood that we had created something the market really needs,” he said. “I think that was the key to winning. I didn’t spend a single second of the pitch on anything other than clearly explaining the problem, how the solution works, and its potential.” Cerberus describes its product as an AI-powered cybersecurity system capable of finding vulnerabilities in corporate applications and IT infrastructure. Demand for such tools is growing alongside the spread of generative AI: companies and individual developers can write software faster, but the volume of code that needs to be checked for errors and potential attack vectors is also increasing. “Literally everyone is writing code with artificial intelligence now. Vulnerabilities, coding errors, and other weaknesses are appearing much faster,” Akhmedkhodjaev said. The company says Cerberus allows users to give its AI agent access to an application or IT infrastructure and task it with finding vulnerabilities. The agent can also test authentication and perform other security checks. According to Akhmedkhodjaev, however, using a general-purpose AI model for such work can itself create risks. “If you give Claude or another AI access to a vulnerability in a real bank, even the smallest mistake can lead to serious financial losses,” he said. The company says Cerberus is designed to restrict what its AI agent can do after identifying a weakness. “In our project, there is a...