Uzbekistan Business & Economy - The Times Of Central Asia

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Global Business Services

GBSF 2026 Highlights Uzbekistan’s Push for Global Business Services and AI

More than 450 participants from business and government, representing over 45 countries, gathered in Tashkent on July 24–25 for the Global Business Services Forum 2026. The event centered on Uzbekistan’s effort to become a regional center for global business services and business process outsourcing (BPO), with artificial intelligence (AI) also a major focus. Organizers described it as Central Asia’s largest international forum devoted to global business services and the digital economy. The forum follows May’s Global Tech Weekend in Tashkent, which brought more than 2,500 technology and investment professionals to the capital. Opening the forum, Uzbekistan’s Minister of Digital Technologies Sherzod Shermatov said recent reforms had improved conditions for international technology companies considering investment or expansion in the country. Shermatov said companies could draw on qualified specialists and modern digital infrastructure while reaching a fast-growing regional market. He also invited international firms to invest and develop long-term partnerships. Azamat Karamatov, CEO of IT Park Uzbekistan, said the organization now has more than 3,800 resident companies, including over 1,000 international businesses. Exports of technology services have surpassed $1 billion. He said IT Park gives foreign companies a route into Uzbekistan’s technology sector while helping develop local talent. Sessions examined AI and talent development. Other discussions covered international investment and outsourcing. Speakers also outlined tax incentives and support available to foreign companies entering the Uzbek market. The Soft Landing program and Zero Risk initiative are among the available schemes. Key Account Management services provide additional assistance. One speaker was Arseny Kucheryuk, an expert at Antal Uzbekistan, part of the British recruitment company Antal International. He drew on the firm’s recruitment work and salary surveys to describe changes in the labor market. Kucheryuk, who moved to Uzbekistan nearly five years ago, said employers once struggled to find highly qualified candidates. The market has since become more balanced, although strong candidates can still receive several offers within weeks. He said companies seeking experienced professionals often need to offer salaries well above candidates’ current income. Antal research found that more than 60% of candidates expect an increase of at least 20% when changing jobs. Kucheryuk added that pay alone does not determine retention. Career prospects and management quality also influence whether skilled staff remain with an employer. He said workplace culture is especially important when addressing religion or family. Speaking to The Times of Central Asia after his presentation, Kucheryuk said foreign investment was creating career opportunities in Tashkent and elsewhere in Uzbekistan. He attributed Uzbekistan’s appeal to cooperation between the government and private sector, which he said helps international companies enter the market and supports local businesses. Kucheryuk advised foreign investors to understand local business culture before entering the market. Although companies may bring senior executives from abroad, he said operational roles requiring knowledge of local law and business practice should generally be filled in Uzbekistan. Iyad Hafez, CEO and managing partner of Staff Arabia, said his first visit to Uzbekistan exceeded expectations. “I’m positively surprised,” he told The Times of Central Asia. “Very...

Middle Corridor

Uzbekistan Seeks More Freight Capacity Through Kazakhstan’s Caspian Ports

Kazakhstan and Uzbekistan have instructed their national railway companies to draw up a plan to increase Uzbek freight shipments through the ports of Aktau and Kuryk, expanding Tashkent’s access to markets across the Caspian Sea. Kazakh Prime Minister Olzhas Bektenov and his Uzbek counterpart, Abdulla Aripov, discussed the plan during a July 23 visit to the Aktau International Sea Trade Port. The volume of Uzbek freight handled through Aktau and Kuryk increased by more than 60% in 2025, according to the Kazakh government. “Our task is to provide cargo from Central Asian countries with fast and reliable access to the markets of the Caucasus, Turkey, and Europe,” Bektenov said. Aktau and Kuryk are the main Kazakh ports on the Trans-Caspian International Transport Route, commonly known as the Middle Corridor. The rail-and-sea route links China and Europe through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and Turkey. For Uzbekistan, one of the world’s two double-landlocked countries, the Kazakh ports provide access to the western section of the corridor. Freight is carried by rail to the Caspian coast before being transferred to ships bound for Azerbaijan. The two governments did not say how much additional freight they expect to carry or when the railway companies must complete their plan. Further growth will depend on tariffs, the availability of railcars and vessels, border procedures, and the capacity of railway lines serving the ports. The combined infrastructure capacity of Aktau and Kuryk is about 22 million metric tons a year, according to Yelzhas Otynshiyev, chairman of Kazakhstan Temir Zholy, the state railway company. Aktau alone can handle as much as 12 million tons annually and operates throughout the year. Container transit through the Kazakh ports on the Middle Corridor increased 3.8-fold between 2022 and 2025, the government said. The first phase of a container hub with annual capacity of 140,000 twenty-foot equivalent units has opened at Aktau. A second phase, due in 2027-2028, is expected to lift capacity to 240,000 TEUs. Kazakhstan has also ordered six container vessels. Four are due for delivery in 2027 and two more in 2028. The additional ships are intended to reduce dependence on the limited pool of vessels operating on the Caspian Sea. Capacity constraints remain at the ports and on the rail network. Falling Caspian Sea levels have made it harder for fully loaded vessels to enter some harbors and increased the need for dredging. Kazakhstan completed dredging at Kuryk in 2025 and plans to finish similar work at Aktau by the end of 2026. The World Bank lists port capacity, rail access, and delays at the Kazakhstan-Uzbekistan border among the main bottlenecks affecting the Middle Corridor. Some freight operators use longer routes because existing border crossings and rail links cannot handle demand efficiently. The bank has also called for additional berths and modern cargo-handling equipment at Aktau as the Caspian becomes shallower. Kazakhstan is upgrading the Shalkar-Beineu and Beineu-Mangystau railway sections that carry traffic to Aktau and Kuryk. In February 2026, the World Bank approved an $846...

Labor Migration

Lukashenko Tells Uzbek Workers Seeking Higher Pay to Consider Russia

Belarusian President Alexander Lukashenko has said Uzbek citizens coming to Belarus should not expect to earn several thousand dollars, suggesting that those seeking significantly higher salaries would be better off working in Russia instead. His remarks come as Belarus expands labor recruitment from Uzbekistan following complaints from some Uzbek workers about low wages. Speaking during a nationwide government meeting on July 21, Lukashenko returned to the issue of recruiting workers from Uzbekistan following recent agreements between the two countries to expand labor cooperation. Earlier this month, he invited Uzbek citizens to move to Belarus with their families, saying the country was ready to provide jobs as well as access to healthcare and education. Following those agreements, more than 250 residents of Uzbekistan’s Andijan Region traveled to Belarus to take temporary jobs in agriculture and livestock farming. However, shortly after arriving, some workers publicly complained about wages and working conditions. In videos circulated online, they said they had been offered monthly salaries of around $500, adding that they could earn similar incomes without leaving Uzbekistan. Addressing the issue, Lukashenko said labor cooperation was driven not only by Belarus’ need for workers but also by plans to expand agricultural trade between the two countries. “The President of Uzbekistan asked not only about employing people but, first of all, about supplying meat and milk,” Lukashenko said. “They do not have enough land and they lack water resources. We have enough land and enough water. We can produce meat and milk.” According to Lukashenko, Uzbek workers would help increase agricultural production, enabling Belarus to export more food products to Uzbekistan. “If your people from Uzbekistan come through our system which is fully under control; we will employ them in Belarus as our own people,” he said. “Not only so they can earn money and receive a good salary, but to produce meat and milk. We will then sell that meat and milk on their markets. That is where the wages come from.” The Belarusian leader nevertheless acknowledged that some workers might have different financial expectations. “If someone wants to come to Belarus to earn huge money,several thousand dollars, it is better to go to Russia,” Lukashenko said. “There they can work in the oil industry or other sectors and receive very high salaries.” He said Belarus was offering stable employment in agriculture rather than exceptionally high wages. “The higher the productivity and the more goods they produce, the higher their salaries will be,” he said. Lukashenko also said foreign workers would receive the same access to healthcare and education as Belarusian citizens, while emphasizing that regional authorities should recruit migrant workers only where there was genuine demand. Concluding the meeting, he called on officials to focus on the harvest campaign and meeting export commitments, urging regional authorities and law enforcement agencies to assist farmers during the agricultural season rather than acting solely as inspectors. The Times of Central Asia previously reported that labor migration patterns across Central Asia are gradually becoming more diversified as...

Transit Trade

Pakistan and Uzbekistan Turn to China for Transit Trade Amid Regional Security Risks

Pakistan and Uzbekistan have agreed in principle to reroute some of their bilateral transit trade through China. The move follows worsening security that closed traditional routes through Afghanistan and disrupted alternatives through Iran, according to Pakistan Today. The two governments are expected to formalize the decision by signing amendments to the Pakistan-Uzbekistan Transit Trade Agreement during the visit of Uzbekistan’s deputy prime minister to Pakistan on July 21. Under the revised agreement, the China corridor will become an official transit route, allowing cargo to travel through Pakistan’s Sost Dry Port, cross western China, and continue into Central Asia. “The protocol is aimed at expanding transit options and ensuring uninterrupted movement of goods between the two countries despite evolving regional security challenges,” a Pakistani official familiar with the negotiations told Pakistan Today on condition of anonymity. The arrangement will provide Pakistan with an additional route to Central Asian markets while allowing Uzbekistan to maintain access to Pakistani seaports despite growing instability across the region. The decision marks a significant shift in regional trade planning. For years, the shortest and most commercially attractive route between Pakistan and Uzbekistan passed through Afghanistan. That corridor was also expected to become part of the planned Uzbekistan-Afghanistan-Pakistan railway linking Central Asia with ports on the Arabian Sea. Those plans have largely stalled following the sharp deterioration in relations between Islamabad and Kabul. Pakistan closed its main border crossings, including Torkham and Chaman, after cross-border clashes in October 2025. Trade through the crossings has remained suspended amid continuing security tensions and disagreements over militant groups operating from Afghan territory. The disruption has affected not only transit cargo but also Pakistan’s direct exports to Afghanistan, traditionally an important market because of its limited domestic manufacturing base. Pakistani companies supply cooking oil, cement, soap, pharmaceuticals, aluminum cans, food products, and other consumer and construction goods to Afghanistan. Business groups cited by Pakistan Today estimated earlier this year that the prolonged border closure was costing Pakistani exporters around $177 million every month, while warning that customers in Afghanistan and Central Asia could permanently shift to suppliers using other regional transport routes. Pakistan initially sought to compensate by expanding transport links through Iran. In April, Islamabad operationalized new transit corridors through both Iran and China, including an Iranian route connecting Pakistani ports with Central Asian markets while bypassing Afghanistan. However, renewed military confrontation between Iran and the United States has raised fresh concerns about that option. Continuing attacks on infrastructure and commercial shipping around the Strait of Hormuz have increased freight costs, insurance premiums, and energy-related risks, reducing the corridor’s reliability. Routing trade through China would allow both countries to bypass security problems affecting routes through Afghanistan and Iran. It would also advance Pakistan’s long-term plan to extend the China-Pakistan Economic Corridor toward Central Asia. The new route, however, is expected to come with trade-offs. Transporting goods through China will involve longer distances, additional border procedures, higher handling costs, and extended transit times. As a result, the corridor is expected to...

Allied Biofuels

Allied Biofuels Details Export Routes for Planned $6.1 Billion Uzbekistan SAF Project

Allied Biofuels has disclosed planned export routes that would carry sustainable aviation fuel from its proposed facility in Uzbekistan to customers in Europe and the United Arab Emirates via rail and sea corridors crossing Kazakhstan, the Caspian Sea, the Black Sea, and the Suez Canal. The routes are set out in a logistics agreement with Latvia-based Pro Logistic Services that was signed during the 5th Tashkent International Investment Forum in June and announced on July 20. It covers the future transport of sustainable aviation fuel (SAF) and electro-synthetic sustainable aviation fuel (e-SAF), rather than immediate exports. The production facility has not yet been built, and Allied Biofuels has said commercial fuel supplies are expected to begin in 2030. Under the agreement, Pro Logistic Services will design and implement a multimodal transport network covering dedicated rail tank cars, port handling, freight forwarding, and marine shipping. The company would coordinate delivery from the project site in Uzbekistan to customers in Europe, the UAE, and other markets. The logistics partnership forms part of Allied Biofuels’ planned $6.08 billion renewable energy and sustainable fuel project in Uzbekistan’s Khorezm region. The development is backed by a project implementation agreement with the regional authorities and has received special economic zone status under a presidential decree. The planned complex would combine biomass processing, refining, green hydrogen, and power-to-liquid technologies. Allied Biofuels says it would produce about 160,400 tonnes of SAF, 257,000 tonnes of e-SAF, and 5,040 tonnes of green diesel annually. A proposed 4.45-gigawatt renewable energy system, supported by battery storage and hydrogen infrastructure, would supply the project. In June, Allied Biofuels signed an engineering agreement with Sinopec Engineering Group covering front-end and detailed design, systems integration, and cost development. The logistics program is expected to proceed alongside engineering, production planning, financing, and negotiations with potential fuel buyers. Uzbekistan Airports and Allied Biofuels also signed a memorandum of understanding in May on future SAF and e-SAF supplies. The May announcement said cooperation would begin in 2030. Allied Biofuels’ latest statement describes the memorandum as binding and says it covers annual purchases of 117,000 tonnes. For shipments to the UAE, fuel would travel by rail from Miskin Station through the Trans-Caspian International Transport Route. The proposed journey would cross Kazakhstan and the Caspian Sea before reaching the Georgian Black Sea ports of Poti or Batumi. The cargo would then be transferred to tankers and shipped through the Black Sea, the Mediterranean, and the Suez Canal to Fujairah and other UAE ports. European exports would use a separate corridor. Fuel would travel by rail from Miskin Station to the Port of Riga in Latvia, before continuing by sea to Hamburg and other European ports. The plan reflects Uzbekistan’s wider effort to improve rail links and secure more reliable access to distant seaports. Pro Logistic Services says it has direct forwarding agreements with the national railway operators of Uzbekistan, Kazakhstan, Latvia, Turkmenistan, and Lithuania. Headquartered in Riga, the company operates more than 4,000 freight wagons and maintains a presence in...

Economic Growth

Uzbekistan Raises 2026 Growth Forecast to 8.1%

Uzbekistan has raised its 2026 economic growth forecast from 6.6% to 8.1%, after stronger-than-expected performance last year and in the first quarter of 2026. The Ministry of Economy and Finance’s updated Fiscal Strategy for 2027-2029 projects nominal GDP of 2.183 quadrillion soums this year (about $180 billion). The revision follows growth of 7.7% in 2025, above the original 6.6% forecast, and an 8.7% expansion in the first quarter of 2026. The ministry expects market services to grow by 16.6% in 2026, industrial production by 8%, construction by 12.4%, and agriculture by 5%. Inflation is forecast to slow to 6.5%, while unemployment falls from 4.8% in 2025 to 4.5%. The stronger projection rests partly on domestic demand. The strategy expects non-gold exports to rise by 20%, capital investment by 12.9%, and remittance growth to remain around 10%. Separate Central Bank figures show that remittances rose 13% to $3.8 billion in the first quarter, helping to support household spending even as Russia’s share of transfers declined. Growth is forecast to slow to 6.9% in 2027, before rising to 7.1% in 2028 and 7.4% in 2029. Inflation is projected at 5-6% in 2027 and 5% in 2028 and 2029. The government also intends to keep the fiscal deficit within its rules and public debt below 40% of GDP. The Ministry of Economy and Finance says meeting these targets will require stronger tax administration, fewer ineffective exemptions, tighter oversight of public-private partnerships, and further action against the shadow economy. It also plans more transparent medium-term budgeting and closer scrutiny of fiscal risks. The success of those reforms will determine whether rapid growth can be sustained without weakening public finances. The fiscal strategy uses the IMF’s April global outlook as part of its external assumptions. The government’s estimate is considerably more optimistic than the IMF’s 6.8% forecast. In its June assessment, the Fund said Uzbekistan’s outlook remained favorable but warned that the economy could be running above its potential. It identified weaker global conditions and domestic overheating as the principal risks. The revised figures also strengthen the government’s claim that the Uzbekistan-2030 Strategy target of an economy worth more than $240 billion remains achievable. The plan relies on private investment, export growth, higher productivity, and continued macroeconomic reforms. Economist Otabek Bakirov said the 8.1% projection would mark the strongest growth in Uzbekistan’s recent history. “According to the Fiscal Strategy forecasts, economic growth will accelerate to 8.1% in 2026. If this happens, it will become a new record for the country’s recent history,” he wrote in an analysis of the forecast. In a separate calculation, Bakirov put nominal GDP above $205 billion in 2027, $228 billion in 2028, and $257 billion in 2029. On that path, the $240 billion target would be surpassed a year early. However, he cautioned that the scenario depends on maintaining strong growth, low inflation, and exchange-rate stability, without a major domestic or external crisis. A weaker soum would reduce the dollar value of GDP even if output continued to rise quickly...