Uzbekistan on the Move: Why the World Is Now Knocking on Tashkent’s Door

Central Asia Column “Steppe Ahead”

Author: Thorsten Gutmann

In recent years, Uzbekistan has developed into one of the most dynamic economic regions in Central Asia. Where structural inertia and isolationist foreign policy once prevailed, an investor-friendly environment has now emerged that is increasingly attracting strategic attention from Europe.

In the first half of 2025, 1,829 new companies with foreign capital participation were registered nationwide—a historic high. The total number of international companies in Uzbekistan thus rose to over 16,600. Growth in the technology sector is particularly striking: more than 9,700 IT firms are now operating in the country, with an estimated annual turnover of around 4.1 billion euros. At the same time, the expansion of renewable energy is progressing rapidly. Eleven new solar power plants are under construction or have already been connected to the grid, supported by investments totaling more than 22 billion euros.

Politically, this economic upswing has been accompanied by a series of reforms that have been gradually implemented under President Shavkat Mirziyoyev since 2017. These include tax breaks, the opening of previously state-dominated sectors, and selective privatization in the banking sector. International capital flows also reflect the changed investment climate: The European Bank for Reconstruction and Development (EBRD) has invested over three billion euros in Uzbek projects over the past five years—more than in any other country in the region.

Geopolitically, Uzbekistan benefits from a location that is increasingly perceived as strategically relevant. The country borders all Central Asian republics, has functioning connections to China, and is striving for stronger economic integration with South Asia. It maintains close economic ties with Russia, though its political relations with that country are deliberately more distant. Against this backdrop, the growing attention from European actors—particularly within the framework of the Global Gateway Initiative—is as understandable as it is calculated.

At the first EU-Central Asia Summit in Samarkand in April 2025, the European Union announced an investment package worth twelve billion euros. The focus is on energy, infrastructure, and digital connectivity. The agreement reflects a growing convergence of interests: Europe is seeking alternative supply and transit routes, while Uzbekistan is systematically advancing its integration into global supply chains.

Concrete opportunities are opening up for European companies. Cluster-friendly structures are increasingly emerging in the solar industry, digitalization, mechanical engineering, and textile processing. The state-supported “IT Park” in Tashkent now employs around 200,000 people and serves as a platform for technology imports, know-how transfer, and export preparation.

Uzbekistan currently offers investors a relatively stable macroeconomic environment, predictable regulatory conditions, and political interest in long-term cooperation. The country is in the process of establishing itself as a logistical and industrial central corridor—in a region that is redefining itself between global centers.

Whether it succeeds in maintaining this course in the long term depends not only on foreign policy integration and capital inflows, but also on infrastructure development and institutional professionalization. For now, however, one thing is clear: Uzbekistan is no longer merely the object of international interest—but increasingly an actor in its own right.