AGP Executive Report

Uzbekistan–Kyrgyzstan Land Swap: In Kadamjai (Batken), Kyrgyz and Uzbek officials met to move the border territory exchange from paperwork to implementation, focusing on residents’ citizenship, resettlement, state property transfers, property rights registration, land use, and social protection (including continuity of education). A joint working group was approved and has started field visits. Presidential Governance Update: Uzbekistan’s president signed a constitutional law defining the Administration of the President’s powers and functions, aiming to clarify how the presidential administration interacts with other state bodies; the new framework covers policy analysis, coordination with law enforcement and regulators, domestic and foreign policy proposals, and support for citizenship and pardons. Afghanistan–Uzbekistan Trade Push: At a Surkhandarya–China business forum in Termez, Afghanistan’s commerce minister said Kabul is ready to attract Uzbek and Chinese investment and called for new transit corridors to route Afghan exports—especially to China—through Uzbekistan. Central Asia Power Dispute: Kazakhstan and Kyrgyzstan gave conflicting accounts of the Aug. 14 blackout trigger, with different reported disconnection times and sequences complicating the investigation. Afghanistan Embassy Bid: Five years after the U.S. withdrawal, Taliban officials urged Washington to reopen its Kabul embassy and invest in minerals, dams, and roads, as aid and rights groups warn of worsening crises. Uzbekistan Cotton Spotlight: Uzbekistan will host World Cotton Day 2026 in Tashkent on Oct. 7, bringing together global cotton and textile stakeholders under a “Cotton for Good” theme.

Afghanistan–Uzbekistan Trade: Afghanistan’s commerce minister Nooruddin Azizi told the Surkhandarya–China business forum in Termez that Kabul is ready to attract Uzbek and Chinese investment, expand trade and transit corridors, and deepen economic cooperation as ties with Uzbekistan enter a “new phase.” Labor Migration Watch: Russia’s plan to overhaul foreign-worker recruitment from 2027—tying migrants to specific employers, jobs and regions—could hit Central Asian workers and push some into informal work, raising concerns for labor shortages. Regional Land Deal: Kyrgyzstan and Uzbekistan advanced land-exchange implementation in Kadamdzhai, agreeing on citizenship, resettlement, property and social protection steps via a joint working group. Central Asia Connectivity & Finance: BRICS discussed linking instant payments and central bank digital currencies to cut cross-border costs, with India driving agenda momentum. Uzbekistan Business Calendar: Uzbekistan and the International Cotton Advisory Committee will host World Cotton Day 2026 Partners Conference in Tashkent on Oct. 7. Culture & Heritage: Kazakhstan reported new medieval archaeological finds across several regions, adding detail to Great Steppe history.

Uzbekistan Governance: President Shavkat Mirziyoyev approved a law reshaping the presidential administration’s structure and duties, including decree preparation, implementation monitoring, and more open engagement with citizens and businesses; the president’s daughter Saida Mirziyoyeva is set to become deputy head of the Security Council. Central Asia Energy: Power outages hit Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan after disruptions in the interconnected regional grid, with authorities pointing to generator shutdowns and cross-border transmission problems. Kyrgyzstan–Uzbekistan Land Swap: A joint working commission met in Kadamdzhai to advance land exchange arrangements, focusing on citizenship, resettlement, property transfers, land use, and social protection. Regional Trade & Industry: Uzbekistan will host World Cotton Day 2026 in Tashkent on Oct. 7, bringing global cotton and textile stakeholders to discuss “Cotton for Good.” Central Asia–SCO Education: Uzbekistan’s higher education officials highlighted plans to deepen education and science integration across Central Asia under the Shanghai Cooperation Organization.

Uzbek Governance Update: President Shavkat Mirziyoyev approved a new law defining the structure and duties of the presidential administration, including drafting decrees and monitoring implementation, plus “open interaction” with citizens and businesses; the president’s eldest daughter, Saida Mirziyoyeva, is set to become deputy head of the Security Council. Regional Power Shock: A sudden change in the Central Asian electricity grid triggered blackouts across Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan on Aug. 14, with authorities citing disruptions in neighboring systems and launching investigations. Trade & Industry Linkages: Uzbekistan and Azerbaijan will hold the 4th Interregional Forum in Tashkent on Aug. 22, targeting expanded trade, investment and joint projects across sectors from agribusiness to logistics and digital solutions. Cotton Spotlight in Tashkent: World Cotton Day 2026 will bring global cotton and textile stakeholders to Tashkent on Oct. 7 under the theme “Cotton for Good,” with a partners conference involving ICAC, FAO, IAEA, ITC, UNCTAD, UNIDO and WTO. Aviation/Connectivity: Etihad Airways’ new Tashkent services and route expansion continue to boost Central Asia cargo and passenger connectivity. Afghanistan Economy & Isolation: Multiple reports mark five years since the Taliban returned to power, highlighting economic activity and trade expansion alongside declining aid, banking hurdles, and worsening humanitarian and women’s rights restrictions.

Central Asia Power Shock: A sudden disruption in the interconnected regional grid triggered blackouts across Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan on Aug. 14, with authorities citing generator shutdowns and grid-flow changes while restoration work and investigations get underway. Uzbekistan Governance: President Shavkat Mirziyoyev approved a law defining the presidential administration’s role, including drafting decrees and monitoring implementation, plus “open interaction” with citizens and businesses; Saida Mirziyoyeva is set to become deputy head of the Security Council. Regional Energy & Risk: The outage highlights how tightly linked infrastructure can turn a neighbor’s problem into a business and travel headache across borders. Trade & Logistics Push: Uzbekistan and Kazakhstan delegations visited China-border logistics facilities to expand freight volumes and terminal capacity, aiming to strengthen corridor connectivity. Textiles in Focus: Tashkent will host CAITME 2026 and Global Textile Days, bringing 250 companies from 17 countries to upgrade the region’s textile machinery base. Azerbaijan Link: Tashkent will host the Azerbaijan-Uzbekistan interregional forum on Aug. 22 to deepen trade, investment and joint projects across sectors like agribusiness, IT, logistics and energy. Afghanistan Diplomacy Watch: The Taliban marks five years in power while more countries renew ties despite ongoing rights concerns, keeping the region’s political and humanitarian risk in the spotlight. Uzbek Exports Under Pressure: Uzbek firms report export declines on Russia’s Wildberries amid drone strikes hitting logistics, with textile exporters warning of lost sales. Cotton Benchmarks: Global cotton prices edged up as USDA revised production and demand outlooks, supporting market sentiment.

Power Disruptions: A major blackout hit Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan on Aug. 14 after a sudden change in the Central Asian power flow, with authorities working to restore supplies and warning of knock-on effects for cities, transport and business. Textile Industry: Tashkent will host CAITME 2026 and the Global Textile Days week, bringing 250 companies from 17 countries to showcase textile machinery and upgrades for regional garment producers. Trade & Logistics: Uzbekistan and Azerbaijan will hold their 4th interregional forum in Tashkent on Aug. 22 to expand trade, investment and joint projects across sectors from agribusiness to IT and logistics. Aviation Connectivity: Etihad launched daily Abu Dhabi–Tashkent flights, positioning Tashkent as its first Central Asia destination and boosting direct links for tourism and business travel. Regional Integration: A Washington roundtable on “Cholpon-Ata Summit and Next Steps” pushed practical integration steps for the C6 group, focusing on customs, rail, digital trade and Caspian connectivity. Health & Economy: WHO data shows 64% of Uzbek adults are overweight or obese (2024), underscoring rising health risks tied to diet and activity. Energy & Finance: Iran’s central bank governor says Tehran will soon join the BRICS-linked New Development Bank, signaling continued efforts to diversify financing amid sanctions. Agriculture: Uzbekistan’s vegetable exports faced a setback when 28 tons were rejected in Kyrgyzstan over missing mandatory labeling, sending the cargo back.

Aviation & Tourism: Etihad Airways launched daily Abu Dhabi–Tashkent flights, choosing Tashkent over Almaty as its first Central Asia destination, with the Almaty route now pushed to 2027. Energy & Investment: Condor Energies reported Uzbekistan Q2 output averaging 13,851 boe/d (natural gas plus condensate), with a new 17,925 boe/d production record during Aug 6–12. Trade & Compliance: Kyrgyzstan rejected 28 tons of Uzbek vegetables (onions and carrots) over missing mandatory packaging labeling, sending the cargo back. Regional Rail Plans: Kyrgyz President Japarov outlined plans to extend the Balykchy–Kochkor–Kara-Keche–Makmal railway, targeting completion by 2032–2035 if investment is secured. Consumer Finance Rules: Uzbekistan’s Senate approved amendments to require loan and microloan ads to include financial risk warnings, as microborrowers rise. Health Snapshot: WHO data show 64% of Uzbekistan adults are overweight or obese (2024), among the highest in the former Soviet space. Digital Payments: Uzbekistan-linked telecom VEON’s Banglalink in Bangladesh received a license to launch Mukto Pay, highlighting regional momentum in fintech.

Aviation & Trade Links: Etihad Airways has picked Tashkent as its first Central Asia destination, launching daily Abu Dhabi–Tashkent flights while postponing the Almaty route to 2027, a move aimed at boosting both passenger traffic and Etihad Cargo’s airfreight access for Uzbekistan. Consumer Finance Rules: Uzbekistan’s Senate approved amendments to the “On Advertising” law requiring loan and microloan ads to carry mandatory warnings about financial risks, as the number of microloan borrowers keeps rising. Auto Market Watch: Uzbekistan sold 210,837 cars in Jan–July 2026, down 3.6% year on year, with Chinese brands gaining share as demand shifts toward higher-priced models. Digital Economy & Media: The Union of Journalists says it will support bloggers facing information-blocking or pressure, though leadership for the new bloggers’ council remains unclear. Health Snapshot: WHO data show 64% of Uzbekistan adults are overweight or obese, one of the highest rates among former Soviet republics. Regional Science Cooperation: Uzbekistan and China launched the joint hyperspectral satellite “Samarkand-2028,” targeting agriculture, water management and environmental monitoring, with an Uzbek AI module for onboard data processing. Energy Security: President Mirziyoyev reviewed measures to keep oil and gas supplies stable for the economy and population, including planned well commissioning in August.

Caspian Environment: Turkmenistan marked Caspian Sea Day with an Awaza conference on protecting the Caspian ecosystem under the Tehran Convention, bringing together Caspian states including Uzbekistan and EU bodies to push regional cooperation. Uzbek Auto Market: Uzbekistan sold 210,837 cars in Jan.–July 2026, down 3.6% year on year, with July sales up month on month but sharply lower versus last year; Chinese brands’ share rose to 17.8%. Oil & Gas Stability: President Mirziyoyev reviewed steps to keep Uzbekistan’s oil and gas market stable and prevent unjustified price hikes, including commissioning plans for new gas wells. Business-Policy Dialogue: A review highlights how Uzbekistan’s five-year “dialogue with entrepreneurs” has shifted from removing individual barriers to changing rules across taxation, lending, land access, exports, digital services, and investor protection. Digital Payments (Regional): VEON’s Banglalink received Bangladesh Bank approval for Mukto Pay, with VEON noting financial services growth and active users across Pakistan, Kazakhstan and Uzbekistan. Trade & Logistics: Etihad launched its inaugural Tashkent cargo service via Abu Dhabi, aiming to boost Uzbekistan’s airfreight connectivity for high-value goods. Migration Pressure: Russia’s migrant-labor restrictions are biting: Central Asian arrivals fell in H1 2026, with Uzbekistan down 13.2% to 1.1 million workers.

Trade & Food Security: The International Dairy Foods Association flags Uzbekistan as a top emerging market for U.S. dairy exports, pointing to a June trade framework and a “Project Diversify” push to open new dairy opportunities across Central Asia. Energy Market Stability: President Shavkat Mirziyoyev reviewed measures to keep Uzbekistan’s oil and gas supply steady, including Uzbekneftegaz plans for new well commissioning and daily oversight to prevent unjustified price hikes. Air Cargo Connectivity: Etihad Airways launched its inaugural daily Tashkent service, positioning Abu Dhabi as a cargo gateway for Uzbekistan-bound high-value goods and expanding logistics links via a codeshare with Uzbekistan Airways. Digital Payments Expansion: VEON’s Banglalink received a Bangladesh Bank PSP licence to launch Mukto Pay, underscoring the broader regional momentum toward cross-border digital finance. Bilateral Business Push: South Korea and Uzbekistan agreed to deepen cooperation via a business roundtable in Seoul, with focus on critical minerals, AI, manufacturing, and government support for Korean firms. Industrial Distribution Deal: ATIRE signed a strategic distribution partnership with Bohnenkamp covering industrial tyres across Baltics, Ukraine, Kazakhstan, Azerbaijan, Uzbekistan and Romania. Regional Economic Scale: A new Central Asia snapshot puts the region’s combined GDP at about $543bn, with Uzbekistan at $147bn and Kazakhstan still dominating exports and investment flows.

Aviation & Connectivity: Etihad Airways launched its first-ever daily Abu Dhabi–Tashkent route, with a sold-out inaugural flight and a codeshare with Uzbekistan Airways that boosts onward travel to multiple Uzbek cities—an immediate win for business and tourism links. Trade & Investment Diplomacy: At a Korea–Uzbekistan Business Roundtable in Seoul, both sides flagged cooperation in critical minerals, AI, advanced manufacturing and infrastructure, citing 13% bilateral trade growth in H1 and looking ahead to the Sept. Korea–Central Asia summit. Payments & Cross-Border Finance: Al Etihad Payments (AEP) and UnionPay International agreed to expand acceptance of AEP’s Jaywan cards across 183+ countries and 1.8m ATMs, routing transactions via the UAE switch to support cross-border commerce. Agribusiness Support: ICBA, with Abu Dhabi Fund backing, launched a one-month Farmers’ and Agro-Entrepreneurs Accelerator in Karakalpakstan for 200 participants, focusing on value-added products and market access. Industrialization Push: Uzbekistan is moving from raw exports toward deeper processing of critical minerals, inviting Indian firms to invest in mining and metallurgical “deep processing” for higher value. Environment & Risk: Uzbekistan’s RESILAND Uzbekistan project under the World Bank’s RESILAND CA+ program targets degraded-land restoration and modern monitoring tools, aligning local income support with climate resilience.

Aviation & Trade Links: Etihad Airways launched its first-ever daily Abu Dhabi–Tashkent route, with a sold-out inaugural flight and an Airbus A320 service that could further boost UAE–Uzbekistan business travel and tourism, supported by a codeshare with Uzbekistan Airways. Banking & Finance: Uzbekistan’s Ipoteka Bank posted strong Q1 results (profit up 34% y/y), highlighting continued momentum in frontier-market lending and OTP Group’s expansion into Uzbekistan. Investment Climate: Uzbekistan reported 338.9 trillion UZS in fixed capital investment in Jan–Jun 2026 (+17.5% y/y), with manufacturing the biggest share—useful context for firms planning capacity and supply-chain moves. Currency Rules: Uzbekistan raised the cash foreign-currency purchase limit without ID to $500 and tightened anti-money-laundering thresholds, affecting how individuals and small businesses handle FX. Agri-Value Chains: ICBA and Uzbekistan’s Agency for Innovative Development launched a Farmers’ and Agro-Entrepreneurs Accelerator in Karakalpakstan for 200 participants, focusing on value-added products and market access. Industrial Strategy: Uzbekistan is pushing deeper processing of critical minerals—seeking technology and investment for copper and rare earths—aiming to move beyond raw exports. Environment & Land Restoration: RESILAND Uzbekistan supports Bonn Challenge goals, targeting large-scale degraded-land restoration and modern monitoring tools. Regional Business Context: Central Asia growth forecasts diverge sharply between the EDB and IMF, with Uzbekistan among the countries where the outlook depends on how long investment-led momentum can last.

Aviation & Tourism: Etihad Airways launched daily non-stop Abu Dhabi–Tashkent flights, with the inaugural service sold out and a daily Airbus A320 schedule set to shift slightly from Sept. 1—boosting UAE access for Uzbekistan’s growing tourism and business travel. Air Connectivity & Codeshare: Etihad’s new route also comes alongside a codeshare partnership with Uzbekistan Airways, letting passengers connect from Tashkent to multiple domestic destinations. FX Rules: Uzbekistan raised the cash foreign-currency purchase limit at banks without ID to $500 (from $100) from Aug. 9, alongside tighter AML/CTF thresholds and enhanced monitoring for transfers and card activity. Industrial Output: Uzbekistan’s manufacturing GDP hit JOD 1.6bn in Q1, as the country pushes competitiveness, export capacity, investment, and digital transformation in industry. Regional Trade Logistics: CargoPoint opened an Almaty office to expand its Truck+Air China–Europe corridor, aiming to cut transit times by at least two days via Kazakhstan. Energy & Investment Watch: Sea Breeze Uzbekistan’s $5bn Charvak resort is still awaiting key documents for the next stage of the state environmental review. Agribusiness Exports: A Czech firm discussed importing IQF frozen fruits from Uzbekistan (raspberries, apricots, plums) and agreed to set up B2B meetings with Uzbek exporters. Finance & Growth: Freedom Holding Corp reported a 40% jump in net revenue to $732.5m in Q1 FY2027, driven by brokerage and banking expansion. Gold Market: Gold prices rose on rate optimism and central bank buying, while India’s import controls weighed on silver demand.

Aviation & Connectivity: Etihad Airways launched its inaugural Abu Dhabi–Tashkent daily non-stop flight, boosting UAE links for Uzbekistan travelers and business travel, and adding a codeshare with Uzbekistan Airways to connect onward to eight Uzbek cities. Real Estate & Environment: Uzbekistan’s $5bn Sea Breeze resort at Charvak is still awaiting key documents for the second stage of the state environmental review, leaving the project’s next steps uncertain. Monetary Policy & Growth: Uzbekistan’s central bank warned the economy is “overheating” after growth ran above potential, urging restraint on spending and keeping interest rates relatively high. Energy & Industry: Condor Energies reported a production milestone at its Uzbekistan project, averaging 17,925 boe/d after tying new Kumli-43 and Kumli-44 wells into facilities. Trade & Logistics: CargoPoint opened an Almaty office to expand its China–Europe Truck+Air network, cutting transit times by up to two days via Uzbekistan and Kazakhstan. Regional Water Security: Central Asian states agreed to prepare a plan for automated water monitoring on the Syr Darya to improve basin-wide data and reduce coordination losses. Finance & Business: Freedom Holding Corp. posted a 40% jump in net revenue to $732.5m in Q1 FY2027, driven by brokerage and banking growth. Gold & Risk Sentiment: Gold prices surged on rate-optimism and central bank buying, with analysts pointing to renewed momentum amid global uncertainty. Geopolitics Impacting People: Reuters reported seven Uzbek citizens were killed in a Ukrainian drone attack on Russia’s Tatarstan region, underscoring risks for Uzbek workers abroad.

Monetary Policy Watch: Uzbekistan’s central bank says the economy may be overheating, with growth above potential driven by strong demand and government spending—urging restraint and keeping interest rates relatively high. US-Uzbek Business Push: President Mirziyoyev and Donald Trump discussed implementation of agreements, a three-year economic cooperation program, and the first US-Uzbek Business and Investment Council meeting, with visa-free access boosting commercial ties. Trade Facilitation: Uzbekistan and Belarus move to deepen customs cooperation, including using electronic systems for origin certification and recognizing authorized economic operators to simplify cross-border trade. AI Drive: Uzbekistan outlines an AI roadmap—improving its Global AI Readiness Index ranking and targeting top-50 status by 2030, alongside new projects and expanded computing capacity. Economic Crime: Uzbekistan’s economic crimes agency reports a tax fraud case involving companies and tax officials, citing missed VAT revenues and unreported sales. Gold Reserves: World Gold Council data shows Uzbekistan added 41 tonnes of gold in H1 2026, ranking second globally among official buyers. Food Safety & Standards: Uzbekistan and Malaysia’s palm oil industry group discuss food safety, international standards, and joint lab and training cooperation. Regional Connectivity: The China–Kyrgyzstan–Uzbekistan rail corridor advances, with experts highlighting its broader impact on Central Asia’s trade routes.

Uzbekistan–US ties: President Shavkat Mirziyoyev spoke by phone with Donald Trump, highlighting visa-free access for Americans and progress on a three-year economic cooperation program, with joint projects spanning civil aviation, automotive, mining, infrastructure, energy, metallurgy, AI and digital tech. AI push: Uzbekistan’s AI ecosystem is improving fast, with the country up 25 places to 62nd in the Global AI Readiness Index and aiming for the top 50 by 2030, alongside plans to grow AI software/services to $1.5bn and launch 200+ projects. Central Asia connectivity: The China–Kyrgyzstan–Uzbekistan railway is moving from planning to construction, while Uzbekistan and Kyrgyzstan also discussed border village transfers and regional trade links. Trade & logistics: Uzbekistan’s economic crime agency says it found a tax fraud scheme costing the state 42.5bn soums, involving VAT refund abuse and unreported sales. Finance & reserves: World Gold Council data shows central banks kept buying gold in H1 2026; Uzbekistan added 41 tonnes, ranking second globally. Energy/industry signals: Uzbekistan’s AI and logistics momentum is matched by regional infrastructure deals and export-focused rail services, including a Belarus–Central Asia block train reaching Tashkent.