AGP Executive Report

Transport & Trade Corridors: Kazakhstan, Uzbekistan and the UAE agreed to jointly explore a new CASA railway corridor linking Central and South Asia with access to Pakistan’s seaports, with technical and economic studies and a possible working group to shape financing and implementation. Infrastructure Finance: The AIIB and Uzbekistan signed a $5bn (2026-2029) pipeline of potential infrastructure projects and a $1.5m grant to prepare electricity transmission modernization, targeting grid upgrades to integrate new solar and wind. Energy Investment: The IsDB board approved US$938m in development financing across member countries, including Uzbekistan’s US$115m Kungrad wind power and battery storage project. Bilateral Economic Push: Oman and Uzbekistan discussed accelerating a preferential trade agreement, easing customs and certification steps, and advancing joint industrial and logistics projects. Regional Trade Reality Check: Central Asia’s intra-regional trade rose 82% (2020-2025) but still sits around 5% of total turnover, with Kazakhstan-Uzbekistan remaining the core corridor. Women’s Economic Agenda: Uzbekistan and UN Women advanced cooperation on expanding women’s economic opportunities, including participation in digital markets, green jobs and sustainable industries.

Uzbekistan-Belarus Ties: Local representative bodies in Khiva signed 15 agreements to expand interregional cooperation, with a focus on regional socio-economic development, entrepreneurship, and public participation. AIIB Infrastructure Push: AIIB and Uzbekistan agreed on a 2026-2029 pipeline of up to $5bn for potential infrastructure projects, plus a $1.5m grant to prepare upgrades to Uzbekistan’s electricity transmission network. Digital Trade Rules: Central Asian business leaders proposed a draft deal for mutual recognition of electronic documents and closer alignment on data and AI governance, aiming to connect regional digital markets. Oman–Uzbekistan Economic Agenda: Oman and Uzbekistan discussed deeper trade, investment, and industrial cooperation, including preferential trade talks and logistics corridors. UN Women in Uzbekistan: UN Women opened an official office in Uzbekistan, highlighting support for women’s economic opportunities and digital/green job participation. Regional Cybersecurity Funding: The U.S. allocated $5m for Central Asia’s digital sector and cybersecurity via CRDF Global, including training and critical infrastructure protection. Cash Controls Ripple: Russia capped cash exports to EAEU and neighboring states, including Uzbekistan, at 1m rubles for individuals and tightened rules for businesses. Aviation Connectivity: Centrum Air launched twice-weekly direct flights between Hyderabad and Tashkent, boosting South Asia–Central Asia air links.

Uzbekistan Investment Push: Uzbekistan tapped BlackRock to help set up its Tashkent International Financial Centre, as the country tries to deepen its foreign-investment appeal amid concerns over governance and thin liquidity. US-Central Asia Business Link: US Secretary of State Marco Rubio is set to visit Uzbekistan in mid-October with a delegation of 100+ American companies, with C5+1 ministerial talks in Samarkand. Digital & Cybersecurity Funding: The US allocated $5m for digital sector and cybersecurity work across Central Asia under the C5+1 framework, including training and protection of critical infrastructure. EU Mining Cooperation: Uzbekistan’s mining ministry met EU Ambassador Toivo Klaar and WMC Group to discuss new EU-backed mining and geology projects. Clean Energy & Agriculture Finance: The IsDB approved $938m across six countries; Uzbekistan received $115m for Kungrad wind power and battery storage and $202.15m for agriculture mechanization. Regional Trade Talks: Uzbek and Iranian leaders discussed trade, investment cooperation, and upcoming bilateral events. Social Policy Debate: Uzbekistan’s death-penalty discussion resurfaced after a child abuse case in Namangan, drawing high-level political attention. Cross-border Transport Plans: Uzbekistan-Afghanistan-Pakistan railway talks continue, with feasibility work expected to finish by end-2026. Russia Cash Curbs Impact Region: Russia tightened cash ruble export rules, cutting the individual limit to 1m rubles for travel to EAEU states plus Azerbaijan, Tajikistan, and Uzbekistan. Connectivity Boost: A new Hyderabad–Tashkent direct flight service launched, aiming to support business and tourism links between South Asia and Central Asia.

IsDB Financing Boost for Uzbekistan: The Islamic Development Bank approved a US$938m package across six member countries, including US$115m for Uzbekistan’s Kungrad wind power and battery storage project and US$202.15m for agriculture mechanization. Digital Integration Push: At the C5+1 AI conference in Astana, the US and Kazakhstan emphasized trusted digital infrastructure and cybersecurity to unlock investment, while Central Asian business groups urged compatible digital rules for e-docs, digital IDs, data protection, cybersecurity and AI governance. Uzbekistan-Russia Pension Talks: Uzbekistan is negotiating with Russia and Kazakhstan on how to account for migrant work experience and pension accruals, building on existing agreements with Kyrgyzstan and Azerbaijan. Cross-Border Cash Curbs: Russia tightened cash ruble export rules, cutting the individual limit to 1m rubles for travel to EAEU states plus Azerbaijan, Tajikistan and Uzbekistan, with confiscation for violations. New Air Link: Centrum Air launched a twice-weekly Hyderabad–Tashkent direct service, strengthening South Asia–Central Asia connectivity for business and trade. Regional Tech Outsourcing Momentum: Uzbekistan highlighted its growing role in global tech outsourcing, with rapid expansion in IT services and company numbers. Uzbekistan Wins Chess Olympiad Gold: Uzbekistan took gold in the Open section of the 46th FIDE Chess Olympiad in Samarkand, beating Ukraine in the final round.

Railway Relocation Land: Uzbekistan’s Toguz-Toro (Jalal-Abad) will reclassify 2 hectares of state pasture land for residents relocated due to the China-Kyrgyzstan-Uzbekistan railway, with new urban planning, drainage, seismic and safety requirements, and life-support infrastructure. Tech Investment Push: Uzbekistan adopted legislation for “Enterprise Uzbekistan,” offering tax exemptions on qualifying investment returns, zero-rated VAT for center sales and exports, and a special regime aimed at attracting global tech firms and enabling 100% foreign ownership, with operations expected in early 2027. Digital Economy & Enforcement: Uzbek police shut down an illegal online casino in Tashkent with about $4m turnover in six months; authorities seized servers and bank cards, detained 11 people, and opened a criminal case. Transport Dealmaking: Uzbekistan Railways discussed with Hyundai Rotem a draft deal for eight high-speed electric trains, including VIP carriage upgrades, and also talked with CRRC about a service center and modern freight wagons. Regional Integration: A World Bank report proposes an asset-light joint operator to coordinate container transport along the Trans-Caspian “Middle Corridor,” targeting better service levels and fewer institutional barriers. Startup Capital: Golden Gate Ventures will launch a two-year program in Uzbekistan for 20 Central Asian startup founders, linking them to mentors and its international network via IT Park Uzbekistan. SCO Coordination: Uzbekistan is among member states attending the SCO national coordinators meeting in Islamabad as Pakistan prepares for the 2027 Heads of State summit.

Tech & Investment Policy: Uzbekistan is moving to make Tashkent a Central Asia tech hub with “Enterprise Uzbekistan,” offering tax exemptions on qualifying investment returns, zero-rated VAT for exports and center sales, and special product-testing rules—aiming to start operations in early 2027. AI Infrastructure Push: Uzbekistan has secured over $6B in private commitments for AI compute, targeting 800MW of new capacity and a $1.5B domestic AI market by 2030, with early capacity expected online in November 2026. Renewables in Karakalpakstan: Construction has started on a $2.6B, 1.5GW wind project in Kungrad, alongside 1,500km of transmission lines and new substations to integrate the added generation. Startup Ecosystem: Golden Gate Ventures will launch a two-year program in Uzbekistan for 20 founders across Central Asia, linking them to mentors and its international network via IT Park Uzbekistan. Regional Growth Outlook: The ADB upgraded Uzbekistan’s 2026 growth forecast to 7% (inflation 6.7%), while Central Asia’s overall outlook remains solid. Energy & Trade Connectivity: A World Bank report says upgrading the Trans-Caspian/Middle Corridor could more than triple trade volumes and boost GDP, with Uzbekistan among the key corridor markets. Business Diplomacy: Uzbekistan’s Saida Mirziyoyeva met UAE President Sheikh Mohamed bin Zayed, as new legal changes expand the Presidential Administration’s framework and her international role.

Renewables & Power: Uzbekistan’s Karakalpakstan has kicked off a $2.6B, 1.5GW wind power project in Kungrad, alongside 1,500 km of transmission lines and new substations to absorb new generation by 2030. Regional Energy & Trade Links: Iran completed the Chabahar–Zahedan rail line, strengthening India’s access to Central Asia via a rail-enabled route from the deep-water port. Investment & Development Data: Bukhara Region’s 2017–2025 growth is highlighted, with GRP rising from 17.1T to 86.6T sums and industry/construction’s share climbing to 31.1%. US–Central Asia Business Push: US Secretary of State Marco Rubio is set to visit Samarkand mid-October with 100+ American companies for C5+1 talks focused on energy security, critical minerals, transport and private investment. Digital Finance Expansion: VEON and Square Group received Bangladesh Bank approval for a digital bank license, building on Banglalink’s Mukto Pay and targeting broader financial inclusion. Cross-border Payments Benchmark: India’s UPI is reported as the world’s largest retail fast-payment system by volume, while policymakers consider merchant charges to sustain the model. Diplomatic Outreach: Uzbekistan’s Saida Mirziyoyeva met UAE leadership in Abu Dhabi to expand cooperation across development goals. Governance & Labor Dispute: Courts are split on prime contractors’ employer status under the “yellow envelope” labor framework, keeping legal uncertainty in focus.

U.S.-Uzbekistan Business Push: U.S. Secretary of State Marco Rubio is set to visit Samarkand in mid-October with a delegation of 100+ American companies for C5+1 talks, with a clear focus on trade, private investment, energy security and modernization. Digital Finance in the Region: VEON and Square Group won Bangladesh Bank approval for a digital bank licence, with VEON committing $250m and targeting $1bn FDI; VEON says it already serves 59m active customers across Pakistan, Kazakhstan and Uzbekistan. Uzbekistan-UAE Ties: Uzbekistan’s presidential administration head Saida Mirziyoyeva met UAE President Sheikh Mohamed in Abu Dhabi to expand cooperation across development goals, including areas like finance, education, food security and ports. Transport & Industry Tech: Hyundai Rotem says it is accelerating overseas expansion on AI, advanced rail tech and hydrogen, pointing to Uzbekistan as its first high-speed rail export market and discussing a second deal. Central Asia Connectivity & Security: ECO discussions in New York highlighted that eliminating militancy from Afghanistan is essential for regional peace and economic integration, with Uzbekistan in the broader connectivity agenda. Global Market Signals: IMF-linked coverage says India’s UPI has become the world’s largest retail fast-payment system by volume, while central banks’ reported gold purchases reached about 130 tonnes through July.

UAE–Uzbekistan Academic Ties: The UAE ambassador in Tashkent met a joint research and education delegation from the Emirates Scholar Center and ICESCO, focusing on expanding university links, research cooperation, and cultural exchanges. FIDE Leadership in Samarkand: Timur Turlov, a Russian-born Kazakh businessman under Ukrainian sanctions, was elected FIDE president in Samarkand, with Viswanathan Anand as deputy—an event that also spotlights governance and sanctions pressures in global sports. Central Asia Security & Trade: Pakistan’s Ishaq Dar told ECO ministers that terrorism emanating from Afghanistan is a key barrier to regional peace and economic integration, urging practical steps and faster connectivity. Uzbekistan’s Finance Signal via Gold: A study citing World Gold Council data says central banks reported net gold purchases of about 130 tonnes through July, with storage shifts not necessarily meaning reduced reserves. Energy & Industry Linkages: Uzbekistan’s regional business relevance also shows up in cross-border energy and trade discussions, including SOCAR’s consideration of exporting Uzbek diesel via Georgia’s Kulevi terminal.

Chess & Governance: Kazakhstan’s Timur Turlov was elected FIDE president in Samarkand, Uzbekistan, winning a runoff after Arkady Dvorkovich stepped aside amid EU sanctions; Turlov pledges a more digital, professional chess federation. Textiles & Energy (Azerbaijan): Azerbaijan laid the groundwork for a Textile Cluster production facility in Mingachevir and opened the Minkend small hydropower plant, with the textile project covering the full chain from cotton to finished shirts. Climate Finance: Abu Dhabi Fund for Development (ADFD) published a roadmap on scaling climate finance and accelerating the global energy transition, highlighting blended finance and risk-reduction tools. Regional Security & Trade: Pakistan’s Ishaq Dar urged ECO members to eliminate terrorism emanating from Afghanistan, linking security to regional peace and connectivity projects. Uzbekistan–Halal Trade: Uzbekistan is looking to Malaysia as a “good teacher” to strengthen halal certification, including plans for a halal certification body with JAKIM support, aiming to expand access to Southeast Asia and OIC markets. Uzbekistan in Connectivity Talks: A major US business delegation is set to visit Uzbekistan in October for C5+1 talks, underscoring continued focus on trade and investment links.

Uzbekistan-US Business Push: US Secretary of State Marco Rubio will visit Uzbekistan in mid-October with a delegation of 100+ American companies, including a C5+1 foreign ministers’ meeting in Samarkand focused on trade, private investment and energy security. WTO Accession Momentum: Saida Mirziyoyeva met WTO chief Ngozi Okonjo-Iweala in the US, with Uzbekistan aiming to complete WTO accession by December 2026 after securing an investment-grade credit rating. Digital Connectivity Deal: Uzbekistan and China’s APT Satellite signed an agreement to expand satellite communications and broadband services, linking APT Satellite resources with UZ-SAT infrastructure. Halal Trade Strategy: Uzbekistan is looking to Malaysia as a “good teacher” to strengthen its halal certification system, working with JAKIM to set up a certification body and expand access to Southeast Asia and OIC markets. Climate Finance Pilot: Uzbekistan was selected as a pilot country for COP31’s Climate Implementation Bridge (BRIDGE) to turn climate pledges into finance-ready projects. Regional Transport & Logistics: Tashkent will host the 2nd National Trans-Caspian Transport Corridor conference on Sept 30, aiming to convert connectivity priorities into investment and reforms, including rail/road, digital trade documents and border facilitation. Energy & Industry Cooperation: Uzbekistan and Azerbaijan launched $389m in joint investment projects, including SOCAR filling-station plans and new infrastructure initiatives. Security & Legal Cooperation: An Uzbek national accused of financing ISIS was extradited from Georgia to the US, facing charges in Brooklyn.

U.S.-Uzbek Business Push: U.S. Secretary of State Marco Rubio will visit Samarkand in mid-October leading a delegation of 100+ American companies, with a C5+1 meeting focused on trade, energy security, and regional economic modernization. Satellite Connectivity Deal: Uzbekistan signed an agreement with China’s APT Satellite to expand satellite communications and digital infrastructure, including broadband and broadcasting services. Digital Telecom AI: Apifonica and Uztelecom will launch a Voice AI Centre in Uzbekistan, deploying voice agents on Uztelecom infrastructure as part of ICT Week Uzbekistan 2026. Startup Funding for Agri-Tech: Agrobank launched a $6.1m venture fund (AgroVentures) targeting 60–75 startups, prioritizing agri-tech and AI for smarter farming and irrigation. Regional Trade & Ports: Uzbekistan and Georgia discussed deepening strategic partnership, including using Georgia’s Poti and Anaklia ports to boost connectivity. Halal Ecosystem Expansion: Uzbekistan is looking to Malaysia as a “good teacher” to strengthen its halal certification system, working with JAKIM to set up a certification body for wider market access. Terror Case Update: An Uzbek citizen was extradited to the U.S. over alleged material support to ISIS and al-Nusrah Front.

Uzbekistan’s AI and data push: Uzbekistan is setting up AI and digital infrastructure in Karakalpakstan, including $2.28bn worth of AI data-processing and “digital currency” production centres in Kungrad and Takhiyatash, with a further planned facility in Takhtakupyr, as part of a wider $7.6bn regional development drive. Regulatory boost for tech firms: At ICT Week Uzbekistan 2026, the government unveiled “Enterprise Uzbekistan,” offering an English-law-based legal regime, tax incentives, a regulatory sandbox, and 3-year visas for foreign specialists through 2100 to reduce market-entry uncertainty for international technology companies. Transport connectivity with China: Uzbekistan’s transport ministry and China’s counterpart agreed to expand air services and road freight, signing amendments to the international road transport agreement to cut administrative barriers and strengthen corridor links. Aviation upgrade: Uzbekistan Airways became the launch customer for Jiatai’s JT220B Premium electric business-class seat for its Airbus A321neo fleet, with first deliveries due in March 2028. Energy investment in Karakalpakstan: Uzbekistan announced 58 projects worth about $7.6bn in Karakalpakstan, including a 1.5GW Kungrad wind farm with battery storage and new data centers, transport and healthcare initiatives. Regional trade and transit focus: Kyrgyzstan’s economy minister highlighted the China–Kyrgyzstan–Uzbekistan railway and digital customs/trade processes as key to expanding the Middle Corridor’s investment and growth potential.

ADB Forecast Upgrade: The Asian Development Bank lifted its 2026 growth forecast for Uzbekistan to 7% (from 6.7%), citing strong domestic demand, investment, services growth and non-gold exports, while flagging inflation risks tied to fuel and transport costs. Middle Corridor Logistics Push: Uzbekistan is looking to build “logistics lily pads” around the Caspian and Black Seas, including warehousing and transport facilities at Georgia’s Poti port and plans to expand Caspian port infrastructure, with financing still an open question. Satellite Internet Deal: Uztelecom’s UZ-SAT will distribute Amazon Leo satellite internet in Uzbekistan, aiming to extend connectivity to remote communities and businesses. Business Links with Malaysia: Uzbekistan’s Assembly of Economy signed an MoU with Malaysia’s MPPM to expand trade, investment, halal cooperation, education links and tourism, with plans for permanent coordination offices. Regional Energy Cooperation: Kazakhstan, Kyrgyzstan and Uzbekistan continued talks on Kambar-Ata HPP-1, discussing the draft intergovernmental agreement and financing/obligations, with some issues still unresolved. EU Sanctions Fallout (Uzbek Angle): EU delisting of Russian-linked oligarchs Alisher Usmanov and Mikhail Fridman triggered backlash, while Azerbaijan pardoned French citizen Martin Ryan—an episode that also drew attention to the wider geopolitics around Uzbekistan-linked business figures.

ICTWEEK & AI Push: Uzbekistan’s ICTWEEK Uzbekistan 2026 opened in Tashkent with a “Land of Startups” focus, drawing about 25,000 visitors and putting AI and foreign investment front and center. Digital Infrastructure: Uztelecom unveiled new data centers in Bukhara and Kokand plus a high-speed network, and signed with Amazon Leo to expand satellite internet access for hard-to-reach communities and businesses. Regional Trade: In Jan–July 2026, intra-Central Asia exports rose 25.4% to $8.1bn, led by Kazakhstan and Uzbekistan (over 80% of shipments), with Uzbekistan’s trade growth with Kyrgyzstan and Tajikistan standing out. Energy & Water Security: Kyrgyzstan, Kazakhstan and Uzbekistan continued talks on Kambarata HPP-1 terms, while Afghan and Uzbek officials discussed the Tuti Maidan gas block’s technical and financial hurdles. Business Links: Malaysia’s MPPM signed an MoU with Uzbekistan’s Assembly of Economy to drive trade, investment, halal business, education and tourism cooperation. Connectivity & Corridors: The U.S. is set to unveil the next step for TRIPP, with a Trans-Caspian Enterprise Fund aimed at financing implementation and supporting the Middle Corridor. Customs Watch: Tashkent airport customs seized nearly $200k of gold contraband from passengers.

EU Sanctions Drama: EU governments agreed to extend Russia-related sanctions for 36 months while delisting Russian-Uzbek metals tycoon Alisher Usmanov and Russian billionaire Mikhail Fridman, ending a tense standoff that Latvia had resisted; Ukraine condemned the move as “shameful,” while Estonia said France must explain the decision. Uzbek Energy Overhaul: President Mirziyoyev reviewed a new long-term electricity-sector framework and a shift in how fuel-and-energy investment projects are planned—starting from forecast demand, pre-building grid and land readiness, then selecting investors via open tenders. Middle Corridor Logistics: Uzbekistan is pushing “logistics lily pads” around the Caspian and Black Sea, including a planned warehousing and transport setup at Georgia’s port of Poti and deeper involvement in Aktau, Turkmenbashi and Baku, with electrification and rail upgrades in the pipeline. Satellite Internet for Remote Regions: Amazon’s Amazon Leo (Project Kuiper) signed with Uztelecom/UZ-SAT to distribute LEO broadband in Uzbekistan, aiming to reach remote areas by late 2026 with tiered terminals. Regional Trade & Disputes: A separate report on treaty policy highlights how Uzbekistan-linked arbitration and investment rules can shape predictable dispute resolution for cross-border business.