Uzbekistan as a New Hub for International IT Business

 

On October 23, 2024, at the Renaissance Hall complex in Tashkent, the panel session “Uzbekistan as a New Hub for International Business: Opportunities for Foreign Companies” was held as part of the International Cooperation Initiatives Week. This event provided a significant platform for discussions on the future of the IT industry and the attraction of foreign investments to Uzbekistan, considering the rapid expansion of the IT sector and the reforms currently being implemented by the government.

 

 

Among the distinguished participants were Sherzod Shermatov, the Minister of Digital Technologies of Uzbekistan; Raimonds Vējonis, former President of Latvia; Boris Tadić, former President of Serbia; Sean McEllin, Regional Director for the Middle East at IDA Ireland; Hamadoun Touré, former Secretary-General of the International Telecommunication Union; and Akihiro Sakurai, former Vice President of NEC Corporation.

 

 

In his remarks, Sherzod Shermatov highlighted that from 2017 to 2023, Uzbekistan's IT sector demonstrated remarkable growth. The export volume of IT Park members increased by a factor of 573, reaching $344 million by the end of 2023. IT Park Uzbekistan has become a key driver in this process, evolving into a dynamic hub for the country's technological sector.

 

 

Raimonds Vējonis emphasized that the reforms aimed at improving Uzbekistan’s investment climate are pivotal in attracting European companies. He noted that the extension of benefits for IT Park memvers until 2040 creates highly favorable conditions for foreign investors. This is aligned with Uzbekistan’s ambitious objectives, including reaching $5 billion in IT service exports by 2030, further enhancing the country’s investment appeal on the international stage.

 

 

Boris Tadić noted that, due to the government's focus on digitalization, Uzbekistan is rapidly transforming into a regional IT hub, becoming one of the most attractive markets for international companies. He underlined the country’s advantages, such as the government’s strong commitment to IT industry development, a favorable business climate, and the nation's economic and political stability. "Those who invest in Uzbekistan are investing in peace and prosperity," stated Mr. Tadić.

 

 

Sean McEllin highlighted that recent legislative changes, aimed at enhancing the country’s export potential, provide even more opportunities for both local and international companies, supporting exporters and making Uzbekistan an attractive destination for IT businesses seeking to enter new markets.

 

 

Hamadoun Touré remarked that Uzbekistan has emerged as one of the leading developing countries, rising 24 places in the UN E-Government Development Index. The country now ranks 22nd in terms of internet service accessibility. The advancements in telecommunications over the past four years have surpassed those made before 2020, with the deployment of 5G and increasing internet speeds reinforcing Uzbekistan’s digital progress.

 

 

Akihiro Sakurai, in his address, highlighted Uzbekistan’s substantial resources for entering the international IT market, including a workforce of 300,000 qualified young professionals. The growth of the IT sector presents significant opportunities for increasing service exports, particularly to countries facing labor shortages.

The continued expansion of Uzbekistan’s IT industry and the influx of foreign investments are expected to have a profound impact on the country's economy. This growth will solidify Uzbekistan’s position as a global IT hub, create thousands of new jobs, enhance its export potential, and contribute to the modernization of infrastructure. The expansion of the digital economy will elevate the standard of living for the population and strengthen Uzbekistan's integration into the global economy, establishing it as a prime destination for international business and innovation.