Uzbekistan faces a historic opportunity to transform its region into a stable and prosperous area – this is how President Shavkat Mirziyoyev characterized the current stage of international integration. In 2024-2025, the country is actively pursuing economic diplomacy, concluding significant investment agreements, and implementing strategic energy projects. At the same time, Tashkent is expanding cooperation with key partners – from the European Union to countries in Asia and the Middle East – and advancing new transport corridors, transforming the landlocked country into a connecting hub between regions. Such a multi-vector policy is already bearing fruit: Uzbekistan entered the top three fastest-growing economies in Europe and Central Asia in 2024, while its foreign trade reached a record $66 billion. Below are key aspects of this dynamic process, from diplomatic summits to the “new Silk Roads” of Central Asia.
Economic Diplomacy and Investment Projects
Uzbekistan demonstrates diplomatic finesse and a measured yet inspiring approach on the international stage, initiating significant economic forums and agreements. In April 2024, Tashkent hosted the first-ever high-level “European Union – Central Asia” summit. President Mirziyoyev described the dialogue with the EU as a unique engagement platform, emphasizing the partnership’s mutual benefits: “Our partnership with the European Union is a two-way street, from which both sides should benefit”. The joint summit declaration noted that the EU has become the region’s second-largest trading partner (accounting for 22.6% of external trade) and the main investor (over 40% of all investments). Tashkent anticipates that the forthcoming signing of a new Enhanced Partnership and Cooperation Agreement with the EU will pave the way for increased trade and investment.
In 2023, “Central Asia – Germany” meetings (with the participation of the Chancellor of Germany) and sessions of economic cooperation of the Organization of Turkic States took place. At each forum, Shavkat Mirziyoyev consistently promoted ideas for deeper collaboration, investment attraction, and joint infrastructure development. For instance, at the SCO summit in July 2024, the Uzbek side proposed establishing a Center for Innovative Climate Solutions in Tashkent and launching a Turkic Investment Forum, highlighting Uzbekistan’s ambition to become a regional innovation hub.
Concrete agreements and projects back this economic diplomacy. Throughout 2024, Tashkent signed dozens of agreements with international investors in the energy, industry, and transportation sectors. For example, an agreement was reached with neighboring Kyrgyzstan to promptly begin constructing the joint Kambarata HPP-1 hydroelectric power station on the Naryn River, a strategically significant project for the entire region. In green energy, Uzbekistan collaborates with the UAE and Saudi Arabia, implementing solar and wind power station projects to turn the country into an exporter of renewable energy. At international platforms, President Shavkat Mirziyoyev emphasizes that Central Asia could become a reliable partner for Europe’s energy stability and contribute to global decarbonization. Reinforcing these statements, Uzbekistan actively participates in initiatives to develop a green energy corridor through the Caspian and Black Seas, supplying clean energy to Europe.
Expanding Relations with Key Partners
European Union. Uzbekistan’s relations with the EU have reached a new level of strategic partnership in recent years. In 2024, trade turnover with EU countries increased to $6.4 billion (+5.2%), and over 1,000 joint ventures are operating in the country, with the total portfolio of European investment projects amounting to €30 billion. Brussels welcomes Tashkent’s reforms to improve the business climate and views Uzbekistan as a reliable partner in Central Asia. In 2024, the EU and Uzbekistan initiated the Enhanced Partnership and Cooperation Agreement (EPCA), designed to consolidate cooperation across all areas institutionally. Furthermore, Uzbekistan proposes aligning the European Global Gateway strategy with regional projects, particularly through developing a joint action plan for advancing the Trans-Caspian International Transport Route (TITR). According to Shavkat Mirziyoyev, such an initiative “will stimulate investment growth, infrastructure development, and the introduction of innovative technologies”. The EU has responded positively to these proposals: following the EU – Central Asia summit, the parties announced a dedicated investment forum on the Trans-Caspian corridor to be held in Uzbekistan in 2025. Additionally, the EU is preparing a memorandum of partnership with Uzbekistan on critical raw materials (rare-earth metals and others), highlighting Brussels’ intention to diversify supply sources. Thus, cooperation with Europe is becoming comprehensive, covering areas from trade and standardization to green energy and the digital economy.
China. Relations between Tashkent and Beijing are flourishing and are characterized as an “all-weather comprehensive strategic partnership of a new era”. In January 2024, Shavkat Mirziyoyev paid a state visit to China, where negotiations with President Xi Jinping led to agreements on further deepening cooperation across all areas. Both leaders emphasized that bilateral relations have reached an unprecedentedly high level over the past seven years. Xi Jinping highlighted Uzbekistan’s support for China’s Belt and Road Initiative and urged swift progress on constructing the China – Kyrgyzstan – Uzbekistan railway, which aims to transform Uzbekistan from a landlocked country into one that is land-linked. This concept symbolizes the country’s growing role as a transit hub in Eurasia. Trade with China has already exceeded $12 billion, firmly establishing China as Uzbekistan’s largest trading partner. During the 2024 visit, the parties signed approximately 20 documents, including a joint statement on a new partnership level and agreements covering trade, technology, environmental protection, and cultural exchanges. Shavkat Mirziyoyev praised China’s achievements and expressed confidence that relations between China and Uzbekistan would reach even greater heights under Xi Jinping’s leadership. Beijing, in turn, expressed readiness to increase imports of Uzbek products and expand investments, from agriculture to renewable energy projects. In practice, cooperation with China spans the entire spectrum – covering infrastructure, industry, finance, and cultural ties – and serves as a crucial driver of growth for the Uzbekistan economy.
Turkey. Relations between Uzbekistan and Turkey are characterized by fraternal partnership, strengthened by shared historical and cultural roots. Since President Shavkat Mirziyoyev assumed office in 2016, bilateral ties have emerged from a prolonged period of stagnation and have gained renewed momentum. Mutual trade has tripled, increasing from $1.2 billion in 2016 to $3.5 billion in 2024. President of Turkey, Recep Tayyip Erdoğan, speaking earlier in Samarkand, set ambitious goals: achieving bilateral trade of $5 billion as a first step, eventually reaching a target of $10 billion. In 2022, relations were elevated to a comprehensive strategic partnership, unlocking new mechanisms for cooperation in politics, economics, defense, transport, and tourism. In recent years, Ankara and Tashkent have implemented several significant projects, with Turkish companies participating in the construction of modern textile factories, improvements in transport infrastructure, and agricultural processing development. Turkey has become Uzbekistan’s fourth-largest trading partner (accounting for 5% of its foreign trade) and one of the leaders in the number of joint ventures established in the country. In 2024, the two countries agreed to open Uzbekistan’s trade office in Istanbul and activate the working group tasked with increasing mutual trade. Expanding ties between Uzbekistan and Turkey contribute to greater stability across the Turkic world and create new supply chains linking Europe and Asia.
United Arab Emirates. In recent years, the UAE has become one of the leading investors in Uzbekistan’s economy. In January 2025, Presidents Shavkat Mirziyoyev and Sheikh Mohamed bin Zayed Al Nahyan signed a Declaration on Comprehensive Strategic Partnership and witnessed a series of agreements between their governments. These documents cover various fields: industry, advanced technology, agriculture, investment protection, mining, standardization, and defense industries, among others. Cooperation with the Emirates is particularly prominent in the energy sector, with the UAE’s Masdar company constructing the region’s largest solar and wind power plants in Uzbekistan, with investments already exceeding $1 billion. During negotiations in January 2025, the leaders set ambitious targets: to increase mutual trade tenfold by 2030 and expand the total investment portfolio to $50 billion. They also announced new economic cooperation across six priority areas – from artificial intelligence and digitalization to green energy and urban infrastructure. 2025-2027 were declared a New Era of Economic Partnership between Uzbekistan and the UAE. Emirati capital already participates in numerous projects, ranging from transportation hub modernization (such as developing Navoi airport into an international logistics hub) to establishing the Center of Islamic Civilization in Tashkent. Shavkat Mirziyoyev’s visit to Abu Dhabi also resulted in agreements on joint investments in the chemical industry and the agricultural sector. The UAE’s extensive expertise in innovation and finance substantially supports Uzbekistan’s economy, while Tashkent, in turn, opens promising Central Asian markets to Dubai and Abu Dhabi.
Republic of Korea. Uzbekistan and South Korea share a special bond – the official status of their “special strategic partnership” was formalized in 2019. Since then, Seoul has remained one of Tashkent’s key economic allies. In June 2024, South Korean President Yoon Suk Yeol paid a state visit to Uzbekistan. Following the summit in Tashkent, the leaders signed a joint declaration on deepening their partnership along with approximately 20 agreements, marking a new era of high-tech and innovative cooperation. “A new era is beginning in our relations. I am confident that the joint declaration and signed documents will serve these noble purposes”, Shavkat Mirziyoyev remarked during the signing ceremony. Within the framework of the Uzbekistan – Korea Business Forum, an investment package totaling $9.6 billion was prepared, covering projects ranging from deliveries of Hyundai Rotem high-speed electric trains to establishing the innovative pharmaceutical cluster Pharma Park and upgrading heating systems. Particular attention is devoted to cooperation in mining and metallurgy: a partnership agreement on critical minerals was signed, providing for joint exploration, extraction, and processing of rare metals. The Republic of Korea has already invested over $7.5 billion in direct investments in Uzbekistan’s economy, and hundreds of Korean-capital enterprises operate in the country, from the automobile plant in Asaka (UzAuto with Hyundai involvement) to joint ventures in textiles and construction. In recent years, mutual trade has doubled, surpassing $2 billion. Both sides have agreed to begin preparations for a Free Trade Agreement (FTA) to facilitate market access. South Korea’s technological development and digitalization expertise are highly valued in Uzbekistan, where initiatives like E-Government and Safe City, implemented with Seoul’s support, have proven successful. All these factors make cooperation with the Republic of Korea a significant driver of innovative growth for Uzbekistan’s economy.
India. Uzbekistan and India, bound by longstanding historical ties, are actively enhancing their economic cooperation today, focusing particularly on transportation and investment. In September 2024, Tashkent and New Delhi signed a Bilateral Investment Treaty (BIT) to stimulate mutual investments. Against this backdrop, Uzbekistan is actively seeking integration into the International North-South Transport Corridor (INSTC) to secure access to the Indian Ocean through Iran. In 2024, the first test cargo shipment from Uzbekistan to India via the INSTC route was successfully dispatched, and the Uzbekistan authorities officially expressed their interest in joining this corridor. A crucial link is Iran’s Chabahar port, where India secured a ten-year terminal management contract in May 2024. Uzbekistan views Chabahar as a promising gateway for its exports, particularly considering instability in routes through Afghanistan, and is engaging in discussions with India and Iran on infrastructure modernization projects. Beyond logistics, New Delhi and Tashkent are expanding collaboration in pharmaceuticals, information technology, and education. Indian educational centers have opened in Uzbekistan – most notably AIIMS in Andijan, which is dedicated to medical training – and joint pharmaceutical enterprises operate in Navoi. In tourism, visa procedures have been simplified, boosting reciprocal travel. Although trade volumes between the two countries remain modest compared to Uzbekistan’s other partners (approximately $500-600 million annually), significant growth potential exists. Uzbekistan has invited India to invest in its free economic zones and to consider establishing direct flight connections. Participation in Indian-led initiatives helps Uzbekistan integrate into South Asian markets and diversify its foreign economic relations.
New Transport Routes Across Eurasia
Uzbekistan’s central geographic location is increasingly becoming its strategic advantage, as the country invests in the development of transport corridors that connect major economic regions – East Asia, Europe, Russia, South Asia, and the Middle East. President Mirziyoyev has repeatedly emphasized that efficient transport and logistics routes will enable Central Asia to become “not merely a bridge between Europe and Asia, but an active participant in global economic processes”. In 2024-2025, several key projects in this domain have entered the practical implementation stage.
A breakthrough has been the launch of the Trans-Afghan Railway project along the Termez – Mazar-i-Sharif – Kabul – Peshawar route, which will connect Central Asia with Pakistan’s seaports. Although Uzbekistan, Afghanistan, and Pakistan signed a project roadmap in February 2021, developments in Afghanistan temporarily stalled progress. However, the project has regained momentum: the optimal route was finalized at the end of 2023, and agreements were reached with international donors. According to Transport Minister Ilkhom Mahkamov, construction of the 573-kilometer railway is scheduled to begin in 2025. The first stage – laying 80 kilometers of track through Afghan territory – will open access to ports in Pakistan and Iran. The new line is designed to handle up to 20 million tons of freight annually, significantly reducing the time and cost of transporting goods between Southeast Asia, South Asia, and Europe. A dedicated project office has been established in Tashkent to coordinate all parties involved. In August 2023, President Shavkat Mirziyoyev called the Trans-Afghan corridor “the best, cheapest, and safest route” for Central Asia to access the Arabian Sea. The project is expected to take at least five years to complete, but is projected to pay off through increased trade and improved regional logistics integration. The strategic importance of this railway is acknowledged by neighboring countries as well: Kazakhstan has expressed readiness to join the initiative, viewing it as a vital route for its cargo to reach the Indian Ocean. International institutions such as the EBRD and the Islamic Development Bank have also shown interest in financing the corridor, recognizing its potential for economic impact and peacebuilding in Afghanistan. The Peshawar-bound railway thus can transform the region’s transit landscape, reinforcing Uzbekistan’s role as a driving force behind regional connectivity initiatives.
Another strategic priority for Tashkent is the development of the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, from China to Europe, bypassing Russia. Although Uzbekistan does not have direct access to the Caspian Sea, it integrates into this corridor via the transport networks of Kazakhstan and Turkmenistan. In 2023, Uzbek authorities joined the TITR Coordination Committee, and in 2024, they actively advocated for European Union support of the route. President Shavkat Mirziyoyev proposed aligning the EU’s Global Gateway initiative with the development of the TITR, which would significantly boost the corridor’s capacity. Uzbekistan is already increasing the volume of container train shipments via the Caspian: regular routes have been established to the Alat port in Baku, from where cargo continues to Georgia, Turkey, and further into the EU. According to EU data, Central Asia’s trade with the EU has quadrupled over the past seven years, reaching €54 billion, and the Middle Corridor’s contribution to this growth continues to rise steadily. In 2025, Tashkent is set to host an investment forum on the TITR with participation from European and Asian partners. At this event, Uzbekistan will present projects to modernize its railway infrastructure, including efforts to expand the capacity of the Bukhara – Beyneu line leading to the port of Aktau. Discussions are also underway regarding constructing a ferry terminal on the Amudarya River in Termez, facilitating rail-linked access to Caspian ports via Turkmenistan. All these steps aim to reinforce Central Asia’s role as a bridge between China and Europe – an idea underlined in a recent interview with President Shavkat Mirziyoyev on Euronews: “Central Asia can become not just a ‘bridge’ between Europe and Asia, but an active participant in global processes”.
A project of strategic importance, the China-Kyrgyzstan-Uzbekistan (CKU) railway has been envisioned for nearly a quarter of a century. In June 2024, a trilateral intergovernmental agreement was signed in Beijing to launch the construction of this long-anticipated corridor. On December 28, 2024, an official groundbreaking ceremony was held in Jalal-Abad, Kyrgyzstan. The 454-kilometer railway will traverse the Tian Shan Mountains, connecting Xinjiang (China) with Fergana Valley and further to Uzbekistan’s rail network, creating a direct link between China and Central Asia while bypassing the longer detour through Kazakhstan. Dubbed the “railway of the new century” by local experts, the CKU is expected to unlock massive potential for trade, tourism, and industrial development across the region. According to China Railway Group, construction of the Kyrgyz section will begin in July 2025 and take approximately six years to complete. The project is being implemented under the personal supervision of the leaders of all three countries. “Support from the leadership of China, Kyrgyzstan, and Uzbekistan has made this project a reality,” a Kyrgyz official noted. For Uzbekistan, the CKU offers the shortest overland route to China’s Pacific ports and Southeast Asian countries. Moreover, the railway will complete a new transit arc: through Uzbekistan and onward via the Trans-Afghan corridor to Pakistan’s ports, creating an alternative trade route from China to the Indian Ocean. Together, the transport initiatives spearheaded by Tashkent form a cohesive network of “New Silk Roads.” In the long term, these projects are set to significantly enhance Uzbekistan’s role in the global economy, positioning the country as a transcontinental hub for trade and cooperation.
An Inspiring Path to Prosperity
Uzbekistan has entered the mid-2020s with a renewed foreign economic philosophy rooted in openness, mutually beneficial cooperation, and constructive regional leadership. The country’s diplomatic and measured approach is complemented by bold initiatives capable of transforming the entire Central Asian region. Agreements concluded with the EU, China, the United States, Russia, Turkey, Arab states, and other partners form a solid foundation for further investment growth and technological advancement. The results are already evident: Uzbekistan is demonstrating consistently high GDP growth (~6% in 2024), a sharp increase in non-commodity exports (+8.4% in 2024), and the implementation of joint projects worth tens of billions of dollars. Yet perhaps even more significant is the sense of inspiration with which the country looks towards the future. “We face a historic opportunity to make our region prosperous”, President Shavkat Mirziyoyev stated – a sentiment now shared by many world leaders. As a bridge between Asia and Europe, North and South, Uzbekistan is evolving into the heart of a new Eurasia, where mutual trust and economic progress go hand in hand. Inspired by this great ambition, the country is confidently moving towards seizing a historic opportunity that promises stability and prosperity not only for the Uzbek people but for the entire Central Asian region.
