Uzbekistan pushes digital economy to drive diversification

Uzbekistan is using its fast-growing digital sector to diversify beyond commodities, with new tax, legal and infrastructure reforms aimed at attracting fintech, AI and global tech investment. The test now is whether the country can turn rapid expansion into durable products, talent and institutions that compete internationally.

Why it matters: - Uzbekistan is trying to use digital growth as a diversification engine, not just a standalone sector. - The country’s success will depend on whether fast expansion in IT, AI and digital infrastructure can become globally competitive products and services. - Investors are watching for signs that legal reforms, tax incentives and talent pipelines can support long-term projects.

What happened: - Uzbekistan has posted one of the fastest rates of digital transformation in Central Asia. - President Shavkat Mirziyoyev announced an International Financial Centre in Tashkent during the Tashkent International Investment Forum on 16–18 June 2026. - The centre will operate under English law and is designed to attract foreign capital and technology projects. - Alona Lebedieva, owner of the Ukrainian industrial and investment group Aurum Group, said the key test is whether Uzbekistan can convert digital sector growth into exportable products for global markets.

The details: - Residents of the Tashkent International Financial Centre will get zero corporate income tax, VAT, property tax and customs duties. - The centre will also offer guarantees of free movement of capital for 50 years. - An independent financial regulator and an international commercial court are planned. - The special legal regime could support fintech companies, digital asset transactions and international technology projects. - Uzbekistan’s strategy is not a quick exit from commodity industries. The policy is a gradual shift toward digital services, information technologies and innovation. - Annual IT service exports grew from less than $1 million in 2017 to nearly $1 billion in 2026, according to Minister of Digital Technologies Sherzod Shermatov. - The government’s next target is $5 billion in IT and AI services exports by 2030. - Uzbekistan is prioritizing artificial intelligence, digital governance, financial technologies, data centres and digital infrastructure. - ICT services accounted for 2.7% of GDP in 2025. - Value added in the information and communications sector rose 23.9% in 2025. - Uzbekistan’s population exceeded 38.2 million at the start of 2026, the largest in Central Asia. - People ages 14 to 30 numbered more than 9.6 million, or about one quarter of the population. - Internet penetration increased from 76.6% in 2021 to 94.2% in January–August 2025. - More than 1 million school pupils, students, teachers and civil servants have gained basic AI skills through the “5 Million AI Leaders” program. - IT Park Uzbekistan residents exported $191.8 million in digital services in Q1 2026, up 25% from a year earlier. - IT Park Uzbekistan’s total market services reached UZS 9.4 trillion in Q1 2026. - Investment in fixed capital at IT Park Uzbekistan totaled UZS 500.5 billion in Q1 2026.

Between the lines: - Uzbekistan is competing for more than factories and transport links. Central Asia’s governments are also vying for software hubs, AI projects and skilled workers. - The reforms signal a push to reduce legal and fiscal risk for fintech, digital assets and AI projects. - A first international IPO on the London Stock Exchange points to a broader effort to integrate with global financial markets. - The digital strategy still faces a clear risk: export growth and training numbers can outrun product quality. - Tax exemptions can help early growth, but long-term competitiveness will depend on institutions, regulation and talent. - Basic AI training is useful, but world-class products require deeper skills in machine learning, cybersecurity, product management and regulatory law. - Talent retention will matter as much as training, especially if Uzbekistan wants to keep high-skilled workers and attract international teams. - The new regulator, court system and intellectual property protections will be difficult to build and will need consistent implementation.

What’s next: - Uzbekistan will need to prove that digital reforms can support higher-value exports, not just more outsourcing. - The country’s next stage depends on whether policymakers can keep regulation predictable and expand advanced technical education. - Investors will look for evidence that the International Financial Centre becomes a durable platform for fintech, AI and cross-border technology deals. - Uzbekistan’s regional role will likely depend on whether it can keep improving the business environment faster than competing Central Asian hubs.

The bottom line: - Uzbekistan has momentum, scale and policy ambition. - The open question is whether those advantages become a lasting digital economy or remain a fast-growing but still fragile transition.