UAE And Uzbekistan Sign Pact To Boost Digital Infrastructure Development

The United Arab Emirates and the Republic of Uzbekistan have taken a significant step towards bolstering their investment cooperation in the digital sector. A memorandum of understanding (MoU) was recently signed by Mohamed Hassan Alsuwaidi, the UAE's Minister of Investment, and Sherzod Shermatov, Uzbekistan's Minister of Digital Technologies. This agreement focuses on enhancing digital infrastructure within Uzbekistan, with particular emphasis on the development of data centres and the advancement of artificial intelligence (AI) technologies.

Since the launch of the Digital Uzbekistan – 2030 strategy in 2020, Uzbekistan has seen a consistent growth in its digital market. This strategy is set to transform the country's digital landscape over the next decade. Forecasts suggest that the data centre market in Uzbekistan is expected to expand by 9.82 percent from 2024 to 2028, reaching a market volume of US$361.40 million by 2028.

The MoU aims to identify and pursue joint investment opportunities for establishing new data centres in Uzbekistan. These facilities are intended to provide cloud computing and AI solutions to both private and public sectors. The agreement also outlines plans to attract leading cloud service providers to Uzbekistan, consider the feasibility of super-computer projects, develop language models tailored for the Uzbek market, and create a local talent pool for AI and computing technologies. This collaboration is designed to foster a strong partnership between the public and private sectors of both countries.

Mohamed Hassan Alsuwaidi highlighted the MoU as a testament to the strong bilateral relations between the UAE and Uzbekistan, aiming at mutual prosperity through strategic collaborations in key economic sectors. He emphasized that expanding data centre and AI capabilities in Uzbekistan would enhance its appeal as a prime destination for digital investments in Central Asia.

Sherzod Shermatov expressed his honor in signing the MoU with the UAE's Ministry of Investment, viewing it as a crucial milestone in transforming Uzbekistan into a leading IT hub. He noted that this partnership offers exceptional investment opportunities for UAE-based companies to explore Uzbekistan's potential, leveraging its strategic location and favorable business environment. Shermatov is confident that this collaboration will drive significant economic growth, innovation, and progress for both nations.

In 2023, non-oil trade between the UAE and Uzbekistan reached US$1.9 billion, marking a significant increase from US$1 billion in 2022 and more than tripling from the year before. This surge has positioned the UAE as Uzbekistan’s 17th largest trading partner globally in 2022, leading among Arab countries and accounting for 82 percent of Uzbekistan’s trade with the Arab world.

This investment memorandum between the UAE and Uzbekistan not only strengthens their economic ties but also sets a foundation for future technological advancements and innovation in Central Asia's digital landscape.

With inputs from WAM