Uzbekistan is demonstrating one of the highest rates of digital transformation in Central Asia. The authorities view the digital economy not as a separate sector, but as a key instrument for economic diversification and the gradual increase in the share of high-value-added products and services. At the same time, the transition to a new growth model is still far from complete: the country remains at the stage of accelerated modernisation and narrowing its technological gap.
According to Alona Lebedieva, owner of the Ukrainian industrial and investment group Aurum Group, the main criterion for success will be Uzbekistan’s ability to transform the current quantitative growth of the digital sector into the creation of competitive products for the global market.
Institutional Reforms and the Creation of Special Legal Regimes
The Tashkent International Investment Forum, held on 16–18 June 2026, sent an important signal to investors. During the forum, President Shavkat Mirziyoyev announced the establishment of an International Financial Centre in Tashkent, which will operate under English law. Residents of the centre will be offered a zero rate of corporate income tax, VAT, property tax and customs duties, as well as guarantees of the free movement of capital for a period of 50 years. An independent financial regulator and an international commercial court are also planned to be established within the centre.
According to Alona Lebedieva, the significance of this decision extends beyond a conventional instrument for attracting capital. The special legal regime could become a platform for the development of fintech companies, digital asset transactions and the implementation of international technology projects.
These steps are part of a broader economic diversification strategy. This does not mean a rapid withdrawal from commodity-based industries, but rather a gradual increase in the role of digital services, information technologies and innovation within the structure of the economy.
Growth Dynamics of the IT Sector and Exports
The results of this policy are already visible in the statistics. According to Minister of Digital Technologies Sherzod Shermatov, annual exports of IT services increased from less than USD 1 million in 2017 to nearly USD 1 billion in 2026. The next target is to increase exports of IT and AI services to USD 5 billion by 2030.
Importantly, the government has declared a transition from traditional IT outsourcing to the creation of higher-value-added products. Artificial intelligence, digital governance, financial technologies, data centres and digital infrastructure have been identified as priority areas.
In 2025, ICT services accounted for 2.7% of GDP. At the same time, value added in the information and communications sector increased by 23.9% over the year, significantly outpacing the country’s overall economic growth rate.
Human Capital and Digital Infrastructure
Demographics remain one of the key factors of competitiveness. As of the beginning of 2026, Uzbekistan’s population exceeded 38.2 million, the highest figure in Central Asia. Young people aged between 14 and 30 account for more than 9.6 million people, or approximately one quarter of the population. Internet penetration increased from 76.6% in 2021 to 94.2% in January–August 2025.
At the same time, the large-scale “5 Million AI Leaders” programme is being implemented, under which more than 1 million school pupils, students, teachers and civil servants have already acquired artificial intelligence skills.
IT Park Uzbekistan also plays an important role. In the first quarter of 2026, the park’s residents exported USD 191.8 million worth of digital services, 25% more than during the same period of the previous year. The total volume of market services provided by residents reached UZS 9.4 trillion, while investment in fixed capital amounted to UZS 500.5 billion.
What This Means for Investors
For foreign investors and technology companies, the current reforms provide several important signals. First, the establishment of an International Financial Centre operating under English law and offering 50-year tax and customs exemptions significantly reduces legal and fiscal risks for projects in fintech, digital assets and artificial intelligence. Second, the rapid growth of IT service exports, the country’s young population and the high level of internet penetration make Uzbekistan attractive for the relocation of development teams and the establishment of R&D centres. Third, the first international IPO on the London Stock Exchange demonstrates the country’s readiness for deeper integration into global financial markets.
At the same time, investors should take into account that the digital services market is still at the stage of formation, while the success of projects will largely depend on the quality of regulation, policy predictability and access to qualified professionals.
Conclusions and Key Challenges
Uzbekistan’s digital transformation is part of a broader regional trend in which Central Asian countries are increasingly competing not only for industrial and transport projects, but also for software development centres, artificial intelligence projects and highly qualified professionals.
Despite its visible achievements, Uzbekistan faces several strategic challenges that will determine the sustainability of its digital growth in the medium term.
First, there is a risk of a “race for indicators”, in which an emphasis on quantitative targets, such as export volumes and the number of people trained, may take precedence over the quality of the products and services being created. The transition from outsourcing to high-value-added products requires not only an increase in volumes, but also a substantial improvement in the complexity and competitiveness of solutions on the global market.
Second, a significant share of the incentives for the digital sector is based on tax and customs exemptions. Although a 50-year horizon appears attractive, the long-term sustainability of the model will depend on the state’s ability to gradually develop competitive advantages that are not based exclusively on fiscal preferences.
Third, the quality of human capital remains a critical factor. The “5 Million AI Leaders” programme is creating a broad base of fundamental skills. However, developing world-class products requires more advanced competencies in machine learning, cybersecurity, product management and regulatory law. Retaining and attracting highly qualified professionals will also require systematic efforts to improve working conditions and career opportunities and to prevent the outflow of talent.
Fourth, the institutional capacity of the state must correspond to its ambitions. Establishing a financial market regulator, an international commercial court and effective mechanisms for protecting intellectual property rights are complex tasks that require time and consistent implementation.
Finally, Uzbekistan will have to compete with more technologically advanced countries in the region and globally. Positioning itself as one of Central Asia’s digital services hubs is possible, but it will require the continuous improvement of regulatory, educational and business environment standards.
According to Alona Lebedieva, the main test for Uzbekistan will be its ability to simultaneously expand its digital infrastructure, improve the quality of education and create an environment in which local and international technology companies can develop products for the global market.
Provided that the current pace of reforms is maintained and the identified challenges are addressed systematically, Uzbekistan has a realistic chance of strengthening its position as a regional centre for digital services. Its success will largely depend on the quality of institutional decisions, the consistency of human capital policies and the country’s ability to transform its current advantages into sustainable competitive positions.