Uzbekistan is quickly becoming a burgeoning IT hub strategically located in the heart of Central Asia. With world’s finest conditions for offshore outsourcing and a rich, youthful human capital, the country is emerging as a prime ITeS-destination and a gateway for global business growth.
Jamila Khalibaeva, Global Marketing Director
Foreign companies that establish a representative office in Uzbekistan gain the opportunity to access new markets. In particular, Uzbekistan will serve as an excellent hub for initiating operations with the entire CIS region, offering strategic location for global expansion within the convenient time zone difference, as well as a rich young talent pool of 21 million working-age population.
Why Uzbekistan
Uzbekistan is undergoing active economic reforms aimed at liberalizing the economy and improving the business climate. The macroeconomic environment, including controlled inflation, a stable currency, and a balanced state budget, instills confidence in investors for the long term. Moreover, Uzbekistan is renowned for its friendly policies, which contribute to long-term geopolitical stability and positive international relations.
The processes of opening and running a business in Uzbekistan have significantly simplified in recent years, as confirmed by international rankings — the country ranked №8 in starting a business by The World Bank in 2020. Uzbekistan has been listed among the most favorable countries for starting a business by U.S. News & World Report. Additionally, Uzbekistan has distinguished itself in the area of "Protecting Minority Investors," ranking 37th and being recognized among the best for mechanisms ensuring shareholder protection against improper control by the board of directors.
At the same time, the development of the e-government services platform has further eased the process, allowing entrepreneurs to conduct operations without mandatory visits to relevant authorities. As of now, the unified portal provides more than 700 types of services.
Thanks to significant infrastructure development, 99% of the country now has Internet access, with some of the lowest prices worldwide. Uzbekistan ranks 23rd globally in mobile internet pricing at $0.30 per GB. In terms of Mobile Data Affordability, the country is 43rd out of 179, with a cost of $4.36 per 10 GB. On a global scale, the average monthly mobile plan with over 10 GB of data costs $24.20.
Uzbekistan also boasts a developed human capital with a large pool of young and qualified specialists proficient in international languages. With a population exceeding 37 million, 66% of whom are under 30, the country has a substantial workforce. Around 20.8 million of working-age specialists are ready to contribute to the labor market, with the IT talent pool growing by more than 125 000 people annually. Over 5 000 000 citizens speak English fluently, making it the most popular foreign language, which makes Uzbekistan №1 English-speaking country in Central Asia. Moreover, young population of the country speaks German, French, Japanese, Korean, Spanish, Arabic, and many other languages.
Benefits for ITeS-companies in Uzbekistan
Uzbekistan, through IT Park programs, offers simplified processes for launching companies that provide IT-solutions or other digital services abroad. Remote company registration is now possible via the One Stop Shop service. IT Park specialists handle complex bureaucratic tasks such as legal entity registration, initial documentation, bank account opening, and tax registration, all within two weeks, by simply submitting an application through the service page. At the same time, the “Virtual Office” service is available for member companies, providing them with the opportunity to run their operations without a physical presence, saving costs on renting office space and associated expenses.
Also important to mention the significant tax breaks available for IT Park members:
IT Park Uzbekistan stands as the key facilitator of the country's IT industry. It promotes outsourcing excellence, creates a comfortable business environment to support the growth of tech and service companies, and attracts IT companies and service providers from other countries. For instance, the organization assumes all risks and helps companies enter the market without unnecessary hassle, with comprehensive support within the framework of “Zero Risk program”.
IT Park offers unprecedented opportunities for foreign companies establishing a presence in Uzbekistan. The Zero Risk program significantly reduces costs by providing the following benefits:
— free office space in regions for 12 months
— assistance in equipping the office with furniture and equipment for up to 100 people, with a 15-month grace period for payments
— reimbursement of up to 15% of salary expenses for Uzbek employees
— reimbursement of up to $5000 of training and professional development costs.
To ensure a comfortable stay for foreign IT specialists in Uzbekistan, the IT-Visa program has been developed. This program grants foreigners the same social rights and opportunities as Uzbek citizens. It is available to any investor, IT specialist, or founder of a company resident of the IT Park.
Moreover, IT Park are working on the launch of the "Enterprise Uzbekistan" International Digital Technologies Center, which will be a zone with a special legal regime for the next 100 years, based on the best practices from Ireland, Germany, the USA, the UAE and other countries.
In collaboration with DataVolt, Uzbekistan is establishing green data centers. Soon, three facilities worth $5 billion in investments will be available for companies. The capacities of these data centers will be used for leasing and providing services to the technology sector, ensuring uninterrupted operation powered by renewable energy sources.
Comprehensive support for the residents of IT Park
IT Park offers comprehensive support to its residents, including business registration consultations, legal support, and accounting services. Additionally, mentorship programs are available to help companies adapt to the local market and develop their projects. Assistance in finding and recruiting qualified local specialists is also provided.
Additionally, IT Park Uzbekistan has launched the “Local2Global” program, which helps local companies scale their products and expand into new markets through collaborations with foreign accelerators and investment funds.
Currently, IT Park is actively assisting Uzbek startups and IT companies in attracting investments, developing international connections, collaborating with foreign IT companies and investors, and participating in international exhibitions and forums.
Beyond business, Uzbekistan offers a wide array of leisure activities year-round, catering to diverse interests and ensuring enjoyable pastimes for the entire family. From engaging in active pursuits and sports tourism to delving into the nation’s rich historical legacy, or simply relishing a day out at cinemas, bars, or restaurants, there’s something for everyone.
