UAE and Uzbekistan sign agreement to enhance digital infrastructure development through investment

The Ministry of Investment of the UAE and the Ministry of Digital Technologies of the Republic of Uzbekistan have recently signed an investment memorandum, paving the way for collaboration in digital infrastructure projects in Uzbekistan. The memorandum, signed by Mohamed Hassan Alsuwaidi, Minister of Investment, and Sherzod Shermatov, Minister of Digital Technologies of Uzbekistan, focuses on data centre and artificial intelligence projects in the country.

Uzbekistan has been experiencing steady growth in its digital market since the adoption of the Digital Uzbekistan – 2030 strategy in 2020. The data centre market in the country is projected to grow by 9.82% between 2024 and 2028, reaching a market volume of USD 361.40 million in 2028.

The investment memorandum aims to explore joint investment opportunities for new data centres in Uzbekistan, providing cloud and AI solutions to both private and government entities. It also seeks to attract major cloud service providers to the country, assess the potential for super-computer projects, develop language models specific to Uzbekistan, and establish a local talent ecosystem for AI and computing. The agreement also aims to facilitate collaboration between the public and private sectors of the two nations.

Minister Alsuwaidi expressed his optimism about the collaboration, 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 will enhance its position as a preferred destination for digital investments in Central Asia.”

Minister Shermatov also commented on the partnership, saying, “I am honoured to sign this memorandum with the Ministry of Investment of the UAE, marking a significant milestone in our efforts to transform Uzbekistan into a leading IT hub. 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.”

In 2023, the non-oil trade between the UAE and Uzbekistan rose to USD 1.9 billion, representing a significant increase from previous years. The UAE emerged as Uzbekistan’s 17th largest trading partner globally in 2022, accounting for 82% of Uzbekistan’s trade with the Arab world.

The collaboration between the UAE and Uzbekistan in digital infrastructure projects is expected to drive progress, innovation, and economic development in both nations, positioning Uzbekistan as a key player in the global digital landscape. This partnership is set to unlock new avenues for growth and prosperity, benefiting both countries in the long run.