An investment agreement was signed between the Emirati Ministry of Investment and its Uzbek counterpart, the Ministry of Digital Technologies, to strengthen investment partnerships in the digital infrastructure and artificial intelligence sector, with a priority to develop data centers and artificial intelligence initiatives in Uzbekistan.
The memorandum was signed by His Excellency Mohamed Hassan Al Suwaidi, Minister of Investment, and His Excellency Sherzod Shermatov, Minister of Digital Technology in the Republic of Uzbekistan.
The Ministry of Investment stated today in a press release that the purpose of the memorandum is to explore and analyze the prospects for mutual investments to establish new data centers in Uzbekistan. This initiative aims to provide solutions in technical fields such as cloud computing and artificial intelligence, available to public and private sector institutions. It also aims to attract investors and innovators in the cloud services sector to Uzbekistan, dive into high-performance computing projects, and explore development patterns for the Uzbek language. All of this aims to build a leading local environment in the artificial intelligence and computing technology sector, in addition to enhancing partnership and cooperation between the public and private sectors in the two allied countries.
His Excellency Mohamed Hassan Al Suwaidi stated, “The signing of this agreement is a result of the strong ties and cooperation between the UAE and Uzbekistan, embodying our shared commitment to drive economic growth in this important industry. We will work to strengthen the infrastructure expansion of data centers and artificial intelligence applications, paving the way to attract digital investments on the global stage in Central Asia by transforming Uzbekistan into a hub for these investments.”
On the other hand, Mr. Sherzod Shermatov stated: “This memorandum is an important step towards turning Uzbekistan into a prominent hub in the field of information technology, offering significant investment opportunities for institutions based in the UAE. We will work together with the UAE to create new horizons in growth, innovation, and economic development, positioning Uzbekistan at a pivotal point in the global digital fabric. We are confident that this cooperation will lead to significant benefits and enhance the progress and prosperity path of both friendly countries.”
There has been a noticeable development in the electronic arena of Uzbekistan following the adoption of the “Uzbekistan Electronic Strategy 2030,” ratified in 2020, which laid the foundations for transitioning to the digital age over the next ten years. It is expected that the data center services market in Uzbekistan will flourish, with a growth rate of up to 9.82% from 2024 to 2028, leading to an increase in the market value to $361.40 million by 2028.
Commercial activities between the UAE and Uzbekistan witnessed significant progress in 2023, with non-oil trade volume reaching $1.9 billion, doubling the value of trade from the previous year in 2022, which amounted to $1 billion.
In 2022, the UAE topped the list of trading partners for the Republic of Uzbekistan globally, ranking seventeenth, and ranked first among Arab countries, with the trade exchange between them accounting for 82% of Uzbekistan’s total trade with the Arab world.
