UAE and Uzbekistan ink deal to enhance digital infrastructure development – Business – Economy and Finance

The Ministry of Investment of the UAE and the Ministry of Digital Technologies of the Republic of Uzbekistan have joined forces to boost digital infrastructure and investment cooperation in Uzbekistan. The signing of an investment memorandum between the two countries marks a significant step towards enhancing Uzbekistan’s position as a key player in the global digital landscape.

The memorandum, signed by Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE, and Sherzod Shermatov, Minister of Digital Technologies of Uzbekistan, focuses on the development of data centre and artificial intelligence projects in Uzbekistan. This collaboration comes at a time when Uzbekistan’s digital market is experiencing steady growth following the implementation of the Digital Uzbekistan – 2030 strategy in 2020.

According to projections, the data centre market in Uzbekistan is set to expand by 9.82 percent between 2024 and 2028, reaching a market volume of US$ 361.40 million in 2028. The investment memorandum aims to explore joint opportunities for establishing new data centres in Uzbekistan, offering cloud and AI solutions to both private and government entities.

In addition to attracting major cloud service providers to the country, the agreement also seeks to assess the potential for super-computer projects, develop language models specific to Uzbekistan, and create a local talent ecosystem for AI and computing. The collaboration between the UAE and Uzbekistan is expected to facilitate strong and effective partnerships between the public and private sectors in both nations.

Minister Mohamed Hassan Alsuwaidi highlighted the significance of the memorandum, stating, “This memorandum builds on the strong relations between the two nations, reflecting our commitment to mutual prosperity through collaboration in economically crucial sectors. Expanding data centres and AI capabilities in Uzbekistan contributes to enhancing its position as a preferred destination for digital investments in Central Asia.”

Sherzod Shermatov, Minister of Digital Technologies of Uzbekistan, expressed his optimism about the partnership, saying, “This partnership presents unparalleled investment opportunities for UAE-based companies to tap into Uzbekistan’s vast potential, leveraging our country’s strategic location and favourable business environment. Together, we will unlock new avenues for growth, innovation, and economic development, positioning Uzbekistan as a key player in the global digital landscape.”

The growing economic ties between the UAE and Uzbekistan are evident in the significant increase in non-oil trade between the two countries. In 2023, the non-oil trade reached US$1.9 billion, marking a twofold increase from the previous year. The UAE has emerged as Uzbekistan’s 17th largest trading partner globally, surpassing other Arab countries and accounting for a significant portion of Uzbekistan’s trade with the Arab world.

The collaboration between the UAE and Uzbekistan in the digital sector is expected to drive progress, innovation, and economic development in both nations. With a focus on data centres and artificial intelligence projects, this partnership is set to create new opportunities for growth and establish Uzbekistan as a prominent player in the global digital economy.