The Ministry of Investment of the UAE and the Ministry of Digital Technologies of the Republic of Uzbekistan have signed an investment memorandum, establishing a framework for investment cooperation in digital infrastructure with a focus on data centre and artificial intelligence projects in Uzbekistan.

The memorandum was signed by Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE, and Sherzod Shermatov, Minister of Digital Technologies of the Republic of Uzbekistan.

In 2023, the non-oil trade between the UAE and Uzbekistan rose to $1.9 billion, representing a twofold increase from $1 billion in 2022 and a more than threefold increase from the previous year.

The UAE emerged as Uzbekistan’s 17th largest trading partner globally in 2022, outpacing other Arab countries and accounting for 82 per cent of Uzbekistan’s trade with the Arab world.

Uzbekistan’s digital market has been experiencing steady growth since the adoption of the Digital Uzbekistan – 2030 strategy in 2020, which paved the way for the country’s transformation over the next decade. The data centre market in the country is projected to grow by 9.82 per cent between 2024 and 2028, resulting in a market volume of $361.40 million in 2028.

The memorandum aims to explore and evaluate joint investment opportunities for new data centres in Uzbekistan, which would provide cloud and AI solutions to both private and government entities. Additionally, the agreement seeks to attract major cloud service providers to the country, assess the potential for super-computer projects, explore the development of language models specific to Uzbekistan, and establish a local talent ecosystem for AI and computing, apart from facilitating strong and effective collaboration between the public and private sectors in the two nations.

Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE, said: “This memorandum builds on the strong relations between the two nations, reflecting our commitment to mutual prosperity through collaboration in economically crucial sectors. Moreover, 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, commented: “I am honored 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 favorable 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. I am confident that this collaboration will yield substantial returns, driving progress and prosperity for both nations.”

Established in July 2023, the Ministry of Investment aims to accelerate foreign direct investment into the country and further strengthen the UAE’s position as a globally leading investor.

Meanwhile in the last week of April, Shavkat Mirziyoyev, President of the Republic of Uzbekistan, received Suhail Bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure, and his accompanying delegation, who is on a visit to Uzbekistan.

Al Mazrouei headed a high-level UAE delegation to the Republic of Uzbekistan, where he held meetings with a number of ministers and officials to explore opportunities to enhance cooperation between the two countries in all fields.

The UAE Minister of Energy and Infrastructure stressed the UAE’s commitment to developing bilateral relations between the two countries in various fields, especially in the field of energy, renewable energy, infrastructure and transport, in addition to the interest of the Abu Dhabi National Energy Company in investing in the Republic of Uzbekistan in renewable energy projects.

The UAE delegation included senior officials representing government agencies and the private sector. These included representatives from the Ministry of Foreign Affairs, the Ministry of Energy and Infrastructure, the Ministry of Economy, AD Ports Group, Etihad Rail, Mubadala, EDGE, Abu Dhabi Sustainable Water Solutions Company and Masdar.

A few day earlier, Suhail Bin Mohammed Al Mazrouei headed the UAE delegation participating in the second Joint Ministerial Meeting of GCC-Central Asian Countries Strategic Dialogue, which was held on Monday in Tashkent.

Bakhtiyor Saidov, Minister of Foreign Affairs of the Republic of Uzbekistan, stressed the importance of relations between GCC and Central Asian countries and expressed his aspiration to strengthen cooperation and coordination in areas of mutual interest to seize opportunities and bolster mechanisms for coordination and cooperation.