A digital ambition: How Uzbekistan is emerging as a global IT hub

CNN || Shining BD

Published: 12/11/2024 7:17:52 AM

A network of IT Parks across Uzbekistan is boosting the country’s position as a major outsourcing center and driving its burgeoning information technology industry.

As Uzbekistan optimizes its business environment and advances its digital economy, the Central Asian country is fast becoming an international hub for information technology and digital service businesses to thrive.

This dynamic growth is accompanied by a thriving job market, with over 100,000 people employed in the sector, presenting foreign companies with significant opportunities in one of the fastest growing and highest potential IT markets globally.

As part of its ‘Digital Uzbekistan 2030’ strategy, the country is accelerating further industry growth, aiming to attract 1,000 foreign ITES (Information Technology Enabled Services) companies, create 300,000 new jobs, and boost IT exports to $5 billion by the decade’s end.

Central to this vision is the launch of IT Park Uzbekistan, a key driver of the country’s growing IT sector. The park offers a zero-tax environment for IT companies, fostering cost-efficient scaling and innovation. With a focus on international partnerships, it provides a strategic platform for digital enterprises, startups, and investors looking to establish a strong presence in Central Asia’s expanding tech landscape.

IT Park offers a zero-tax environment for IT companies to scale confidently

With 14 branches across the country, the IT Park has already attracted over 2,400 companies since its inception in 2019, including more than 550 foreign companies. Global tech giants like EPAM Systems, East Games, ITransition, Vention, G-Core, Dyninno, and others have already established a presence in Uzbekistan, signaling the magnetism of the country’s IT landscape.

Driven by Uzbekistan’s dynamic social environment and competitive business incentives, the IT Park continues to demonstrate strong growth potential, offering companies a high ROI. As the sector expands, the opportunity for continued profitability and business success remains robust and promising.

Access to a highly skilled talent pool

Uzbekistan is home to a young and growing population. With 60% of its more than 37,5 million residents under the age of 30, it presents established and emerging IT businesses with an opportunity to tap into a new, skilled, and multilingual employee market. Proficiency in foreign languages such as English (5 mn), German (550k), French (100k), and others makes Uzbek youth competitive and highly sought-after professionals for international companies.

Uzbekistan’s transformation strategy focuses on high-quality IT education and infrastructure to prepare the next generation of talent. With 100% internet coverage nationwide, all schools are connected to high-speed internet, supporting digital learning. Over 60 universities, including Tashkent University of Information Technologies, Inha University, and Amity University, educate more than 29,000 students annually in fields like AI, Data Science, and Information Security.

The IT Park itself includes around 300 private educational institutions, offering members access to approximately 400 courses in specialized subjects. Additionally, IT Park University, established in partnership with global tech giant EPAM, currently educates about 400 students. This robust infrastructure ensures investors have access to a skilled, tech-savvy workforce poised to drive digital economy growth.

Uzbekistan is also leading globally in the share of Coursera learners among its working-age population, reflecting a rapid rise in IT education. The government fully funds IT training and certifications for those with B2-level foreign language skills and subsidizes IT training companies with up to $2,000 per graduate successfully employed in an ITES company—or $3,000 for graduates with disabilities. This initiative is a key part of Uzbekistan’s strategy to cultivate a highly skilled IT workforce.

Conditions for success

The IT Park is fostering a strong startup and venture ecosystem through several key initiatives designed to create favorable conditions for both new and expanding businesses. One standout initiative is the “Zero Risk” program, specifically designed for foreign IT companies looking to enter the Uzbek market. This program offers significant support, including free office space for the first 12 months, reimbursement of up to 15% of employee salaries, and up to 50% of training costs. For investors, the “Zero Risk” program provides a rare opportunity to explore growth opportunities, minimize initial costs, and test the market without financial risk.

The “Zero Risk” program is for foreign IT companies looking to enter the Uzbek market without risk

The IT Visa program also offers foreign investors, founders, senior management, and IT Park members, as well as foreign professors and lecturers with PhD/DSc degrees in IT, a multiple-entry visa valid for three years. It includes access to medical services and education (equal to those available to Uzbek citizens), temporary residence registration, and opportunities to buy real estate.

The “One-Stop-Shop” service is designed to streamline the setup process, enabling businesses to establish operations quickly and efficiently. This service provides IT Park members with comprehensive support, including assistance with document preparation, personal identification, company registration, and opening a business bank account—saving time and reducing administrative hurdles.

Uzbekistan is also developing a new International Digital Center in collaboration with global business consultancy EY. This initiative, “Enterprise Uzbekistan”, is designed to provide a stable and secure environment for large international tech companies looking to expand. The center will offer a range of corporate products and services that prioritize both compliance and innovation. Key offerings include specialized regulatory frameworks, robust protection of personal data and intellectual property, and seamless access to global financial systems for cross-border transactions. With this proven model in place, investors can enter the Uzbek market with confidence, knowing they’re supported by an infrastructure designed to support long-term success.

Uzbekistan is quickly establishing itself as a leading global IT hub. Offering access to a dynamic investment climate, highly skilled workforce, and business-friendly policies, all within a stable economy that is at the crossroads of Europe and Asia, the country is becoming a magnet for visionary businesses seeking high-growth opportunities in the heart of Central Asia.

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