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UAE, Uzbekistan signal funding memorandum to spice up virtual infrastructure building – Trade – Financial system and Finance

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, and Sherzod Shermatov, Minister of Digital Technologies of the Republic of Uzbekistan.

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 percent between 2024 and 2028, resulting in a market volume of US$ 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 honoured 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 favourable 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.”

In 2023, the non-oil trade between the UAE and Uzbekistan rose to US$1.9 billion, representing a twofold increase from US$ 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 percent of Uzbekistan’s trade with the Arab world.



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