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Start-ups

Central Asian Startups Go Global

Startups with their roots in Central Asia are increasingly building businesses for customers in the United States, Europe, Asia, and the Middle East. International funds are investing hundreds of millions of dollars in these companies, founders are joining Y Combinator and other Silicon Valley programs, and some startups are moving their headquarters abroad while retaining development teams and ties to the region. Central Asian startups attracted a record $320 million in 2025. However, a large share of the funding was concentrated in just two deals: Higgsfield AI and Uzbekistan’s Uzum accounted for 61% of the total. Excluding them, the market amounted to $124.5 million, still 31% higher than in 2024. This points to two aspects of the current growth: venture capital in the region is already measured in hundreds of millions of dollars, but remains heavily concentrated in a handful of companies. Relatively small technology teams from Central Asia are incorporating in the United States, raising money from American investors, and selling products to global customers. Kazakh Roots, American Market So far, the trend is most visible in Kazakhstan. In 2025, venture investment in Kazakh startups reached $209 million, up from $71 million a year earlier, while the aggregate valuation of funded Kazakh startups stood at $2.16 billion. RISE Research also reported that U.S.-focused startups with Kazakh roots raised more than $214 million. One of the biggest examples is Higgsfield AI, whose co-founders include Uzbekistan-born Alex Mashrabov and Kazakhstan’s Yerzat Dulat. Based in San Francisco, the company develops AI tools for generating images and video. In August 2026, Higgsfield raised $400 million in a Series B round at a $5.4 billion valuation. The round was led by DST Global, with investors including Goldman Sachs Alternatives, Tribe Capital, Intel Capital, and other international funds. By then, the company had more than 30 million users. In September, Higgsfield said its technology was being used in campaigns for 390 Fortune 500 companies. Another route into the U.S. market runs through Y Combinator, one of Silicon Valley’s best-known startup accelerators. In 2025, three startups with Kazakhstani founders – Nozomio, Leaping AI, and Hillclimb – joined the program. Arlan Rakhmetzhanov’s Nozomio develops tools that help AI agents work with large software codebases. After Y Combinator, the company raised $6.2 million from CRV, BoxGroup, LocalGlobe, and other investors. Rakhmetzhanov began working on the project while still in school before moving its development to the United States. Leaping AI, whose co-founder and chief technology officer Arkadiy Telegin is from Kazakhstan, develops voice AI agents for businesses. The company went through Y Combinator, raised a $4.7 million seed round, and shifted its center of operations from Germany to San Francisco. Hillclimb, whose founders include Kazakhstan’s Ibrakhim Ustelbay, develops data and virtual environments for training AI models through reinforcement learning, in which an algorithm improves by receiving feedback on its actions. The U.S. market is also attracting startups outside Y Combinator. Kazakh entrepreneur Bakytzhan Dos is developing Nace.AI in the United States, a platform designed for complex enterprise workflows...

Digital Policy

Central Asia Common Digital Space Proposed at Astana Roundtable

Experts and business representatives from across Central Asia have proposed mutual recognition of electronic documents to make cross-border business easier. Their draft agreement also calls for closer alignment of rules on data and artificial intelligence. The draft Agreement on Cooperation among Central Asian States in Digital Policy and Artificial Intelligence Governance was presented at a regional roundtable in Astana on September 28. The business-led proposal aims to connect the region’s five digital markets, serving more than 80 million people. The initiative is being developed within B5+1, a business cooperation platform linking the United States and the five Central Asian states and designed as a private sector counterpart to the diplomatic C5+1 format. E-commerce and information technology are among its priority areas. Over the past year, the regional IT & AI working group has held consultations with entrepreneurs, industry associations, and experts. In the previous cycle, consultations involved business communities representing more than 60 companies and organizations from Central Asia and the United States, including Meta, Mastercard, and Google. Under the draft, the five countries would retain their own regulations while making their digital systems and laws more compatible. It covers electronic document management, digital identification, personal data protection, cybersecurity, and AI regulation. The proposals would allow electronic documents, electronic signatures, and digital identification tools to be recognized across borders. This could reduce administrative barriers for companies expanding into neighboring markets. “Our task is not to create another layer of regulation. We need to build digital bridges between the countries of Central Asia. If electronic documents, digital identification, data rules, and approaches to AI are mutually compatible, it will become significantly easier for technology companies to scale across the entire region,” said Aziza Shuzheeva, Chair of the Board of the TechnoWomen non-profit organization. A draft Code of Ethics for the Responsible Use of Artificial Intelligence in Central Asia was also presented in Astana. The document is advisory and sets out common ethical principles for the use of AI across the five countries. Its authors propose that decisions significantly affecting a person’s rights and interests should not be left solely to algorithms. Practices identified as unacceptable include harmful manipulation, exploitation of the vulnerabilities of children and other groups, discrimination, unlawful use of personal data, and the creation of synthetic content for fraud or other harmful purposes. Another priority is the development of language resources and datasets for Kazakh, Kyrgyz, Uzbek, Tajik, and Turkmen. The aim is to improve the ability of AI systems to work with the region’s languages. Similar forms of digital integration are already being developed elsewhere. In the European Union, the European Digital Identity framework is designed to allow digital identity wallets to be used across borders to access public and private services. ASEAN, meanwhile, concluded negotiations at the end of May 2026 on its Digital Economy Framework Agreement, or DEFA, covering digital trade, data, cybersecurity, AI, and other areas of regional digital integration. The proposals also overlap with efforts to digitize transport and trade. On September 28, the...

digital economy

How Kazakhstan Became Central Asia’s Digital Hub

From October 1 to 3, Astana will host the AI & Digital Bridge conference, which is expected to draw more than 20,000 participants and over 100 technology companies. The wider AI Month begins on September 23 with HackAlem AI powered by OpenAI. Earlier editions of Digital Bridge have drawn a total of more than 127,000 participants from over 100 countries. Kazakhstan can bring such a gathering together because two decades of development have created the institutional and commercial base for its present AI strategy. Advanced computing capacity and large-scale technological investment now reinforce that base. Building the Digital Base Well before artificial intelligence became a central policy concern, Kazakhstan began building the digital-state capacity that underpins its current position. The e-government program dates from the mid-2000s. The 2017 Digital Kazakhstan program broadened that effort by linking the transition to a digital state with four other priorities: digitalization of economic sectors, development of the Digital Silk Road, human-capital development, and the creation of an innovation ecosystem. Startup formation thereby entered policy not as a one-off technology initiative but as part of a wider program of institutional and economic digitization. Kazakhstan ranked 24th globally in the UN E-Government Development Index in 2024. By 2025, about 90% of public services were available online. By then, the eGov portal had more than 15 million registered users, while its mobile application had more than 11 million. Large-scale digital interaction between citizens and the state had thus become a daily fact of life before the present AI push began. Public services inhabit the same digital environment as ordinary commercial transactions. Kaspi.kz reported 15.7 million average monthly active users in Kazakhstan at the end of 2025 and about 764,000 active merchants. Its Super App integrates payments with finance and commerce; it also carries government services. Digitalization has become part of everyday consumer behavior. In July 2026, internet and mobile banking accounted for 77.6% of non-cash transactions by number and 89.6% by value. Commercial adoption has accustomed much of the population to carrying out both routine transactions and more significant business transfers through digital systems. Infrastructure spending alone would not have produced the same result without the surrounding policy and commercial environment. Almaty supplies the financial and corporate side of the ecosystem, complementing Astana’s policy and startup institutions. Together, the two cities anchor an economy accounting for more than half of Central Asia’s GDP. Kazakhstan also holds roughly two-thirds of the region’s inward foreign investment stock, according to TCA’s Central Asia Balance Sheet. Institutional Concentration These developments acquired an institutional center through Astana Hub, established in 2018. It brings firms and founders into the same network as investors. Participation brings concrete operating advantages, including tax preferences and simplified arrangements for hiring foreign specialists. Companies may hire such specialists without a numerical limit, with work visas available for up to five years. They can also enter incubation or acceleration programs and obtain access to financing mechanisms. A 2026 World Bank appraisal described Kazakhstan as having built a credible technology-driven...

ICTWEEK Uzbekistan

ICTWEEK Opens in Tashkent With Focus on AI and Foreign Investment

Thousands of technology executives, investors, startup founders, and government representatives have gathered in Tashkent for ICTWEEK Uzbekistan 2026, as Uzbekistan seeks to expand its technology sector and attract more foreign companies. The four-day event opened on September 22 at the Central Asian Expo Uzbekistan (CAEx) exhibition center and runs through September 25 under the theme “Land of Startups.” Organizers expect around 25,000 visitors. More than 2,000 participants from abroad, representing 70 countries, have already arrived in Uzbekistan to attend the event, according to Rustamjon Ozodjonov, head of global marketing at IT Park, Uzbekistan’s national technology hub, which supports startups and operates a residency program for IT companies. [video width="3840" height="2160" mp4="https://timesca.com/wp-content/uploads/2026/09/document_5303121082444720559.mp4"][/video] “As part of ICTWEEK, we expect B2B meetings, international forums, agreements, and strategic panel sessions,” Ozodjonov told The Times of Central Asia. Ozodjonov said young companies are presenting their projects to potential investors and partners at a dedicated Startup Alley. Artificial intelligence was one of the themes of the opening ceremony. The Bravo Orchestra first performed under the direction of an AI conductor named Timur, before conductor Alibek Kabdurakhmanov took over. Uzbekistan’s Minister of Digital Technologies Sherzod Shermatov used the experiment to question the role humans will play in the economy as AI develops. “Everyone is thinking about what will happen with AI. What will we humans do? I hope this conversation will be real and that people will still remain in demand,” Shermatov told the audience. He linked the issue to Uzbekistan’s young and growing population. The minister said he could not imagine a future in which “everything will be AI” and people are no longer needed. “The most important asset we have is human capital,” he added. Shermatov pointed to the expansion of higher education and digital skills programs, including One Million Coders and training in Python and artificial intelligence. He said Uzbekistan is also sending more young people to study at leading universities abroad. Another goal of ICTWEEK is to connect young professionals and startups directly with international companies and investors. Shermatov encouraged participants to learn foreign languages, particularly English, and use the event to find international partners. Uzbekistan is also seeking to attract more foreign technology companies. “More than a thousand foreign-owned companies are already residents of IT Park,” the minister said. IT Park is also expanding its network of overseas offices and representatives, including in the United States, Germany, South Korea, Saudi Arabia, and China. ICTWEEK also featured Enterprise Uzbekistan, a special legal jurisdiction for international technology companies. “Enterprise Uzbekistan is a territory based on the common law of England and Wales and provides a special jurisdiction for global technology companies,” Sultonmurod Rasulov, head of strategic partnerships at Enterprise Uzbekistan, told The Times of Central Asia. “Our goal is to create one of the best jurisdictions in the world, modeled on international financial centers but designed specifically for global technology.” According to Rasulov, Enterprise Uzbekistan aims to create a predictable legal environment for international technology companies and allow them to conduct business from Uzbekistan...

digital economy

ICT Week Uzbekistan 2026 Brings Startups and Investors to Tashkent

Tashkent will host ICT Week Uzbekistan 2026 from September 22 to 25, bringing together startup founders, investors, technology companies, and industry experts from Uzbekistan and abroad. The four-day event will be held at CAEx, the Central Asian Expo Uzbekistan exhibition center. Its startup and investment programme will focus on technology entrepreneurship, venture capital, and the international expansion of Uzbek companies. The Times of Central Asia is a media partner of ICT Week Uzbekistan 2026 and will cover key developments and discussions taking place during the event. The startup and investment programme will begin on September 22 with the Startup & Venture Summit, which is expected to bring together representatives of the global startup ecosystem. Discussions will focus on developing the regional venture market, access to capital, international expansion, and the roles of public and private investors in building startup ecosystems. On September 23, the Enterprise Uzbekistan Summit will focus on Uzbekistan’s development as a technology jurisdiction for international businesses. The programme will address legal certainty, institutional infrastructure, and conditions for attracting foreign technology companies and investment. The summit will include presentations by Enterprise Uzbekistan, keynotes from EY and BDO, a fireside chat involving IT Park Uzbekistan and Enterprise Uzbekistan, and a panel discussion titled “Rethinking Jurisdictions for the Global Technology Economy.” The same day will also feature the Global Startup Ecosystem Awards by StartupBlink, held in cooperation with IT Park Uzbekistan. The ceremony will recognize cities, countries, and regions that have performed strongly in StartupBlink's global rankings. It will be followed by a discussion on best practices in startup ecosystem development, with participants expected to examine factors behind successful ecosystems and how developing technology markets can use existing experience. One of the main events of the week will be the regional final of the Startup World Cup on September 24. Selected startups will present live pitches to an international jury and venture capital representatives. The winner will have an opportunity to advance to the global Startup World Cup in San Francisco, where finalists from around the world will compete for a $1 million investment prize. Artificial intelligence will also have a major role in this year’s programme. The AI Native: Ideas to Innovation event on September 24 will explore the development of AI ideas into technology and business products, covering areas such as large language models, cloud technologies, multilingual AI, robotics, AI agents and business automation. The programme will also look at opportunities for young specialists through AI education, hackathons and career paths. The technical side of technology growth will receive attention on September 25 during AWS Community Day Uzbekistan, which will focus on cloud technologies and solutions for scaling digital products. The final day will also feature the Ignyte AI Challenge, where startup teams will present AI-based solutions to international experts, as well as TAQDIMOT, a Startup Show & Pitch Battle featuring short presentations from technology projects. The startup-focused programme is part of a broader ICT Week agenda. Other events include several AI-focused forums and sessions, the Fintech Forum,...

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...