Uzbekistan Accelerates Digital Transformation to Boost Tech Startups and VC Investment

President Shavkat Mirziyoyev has endorsed an ambitious package of digital transformation proposals designed to propel Uzbekistan’s technology sector forward, with a strong focus on fostering innovation and expanding venture capital investment opportunities within the country’s burgeoning startup ecosystem.

Unified Digital Platform and National Navigation System to Enhance Efficiency

Key among the initiatives is the development of a unified digital platform for public administration, intended to consolidate disparate government databases into a single, AI-powered system that streamlines decision-making across regional economies, investment, environmental monitoring, public safety, and urban planning. This integrated platform is set for pilot introduction in Tashkent within the year, followed by nationwide rollout.

Simultaneously, Uzbekistan aims to reduce its reliance on foreign geospatial services by launching a national navigation system. This system will standardize geospatial data, enhancing transport, logistics, emergency response, and urban development services—critical infrastructure for scaling tech-enabled startups operating in logistics, smart city technologies, and emergency management solutions.

"The unified platform will enable early problem detection, better resource allocation, and more effective governance, creating a fertile environment for tech-driven innovation."

Startup Ecosystem Growth and Investment Incentives

As part of the modernization efforts, the government reaffirmed ambitious targets to boost annual IT exports to $5 billion by 2030, grow the active startup count to 5,000, and attract $2 billion in investment. Uzbekistan’s recent leap of 31 positions in the StartupBlink global rankings underscores the rapid maturation of its tech ecosystem, with Tashkent leading Central Asia and cities like Samarkand and Fergana entering the global top 1,000.

To further catalyze growth, a Talent Hub program will facilitate easier business registration and financial services access for foreign specialists and investors, enabling remote engagement with Uzbekistan’s tech sector. Extended tax incentives for IT Park employees and expanded programs like IT Visa and Zero Risk will help retain talent and encourage innovation.

Additional support measures include partial payroll reimbursements, subsidies for international certifications, and relocation assistance aimed at boosting IT exports and attracting foreign clients and specialists. Over 20 startup acceleration programs will be launched in regions such as Bukhara and Fergana to assist local startups in scaling globally.

Telecommunications Sector Reforms to Improve Connectivity and Investment Climate

Uzbekistan’s telecommunications infrastructure has dramatically improved, with coverage of populated areas increasing from 41% to 98%, and internet bandwidth capacity growing 65-fold. Nonetheless, fixed broadband penetration in remote areas remains limited, and domestic private investment in the sector is still insufficient.

To address these challenges, the government plans to simplify licensing by merging two existing categories into one with a reduced approval timeline, mandate high-speed internet infrastructure in new residential developments, and offer concessional loans under the Future Entrepreneur program with favorable repayment terms.

Preferential tariffs will target businesses in remote and rural regions, encouraging broader digital inclusion and supporting startups that rely on robust connectivity to innovate and scale.

Outlook for Uzbekistan’s Digital and Startup Future

President Mirziyoyev’s approval of these comprehensive digital reforms signals a strategic commitment to nurturing a dynamic tech startup ecosystem supported by modern infrastructure and an improved regulatory framework. Efforts to integrate government data systems, enhance cybersecurity, and protect personal data will further build investor confidence and facilitate private sector participation.

By aligning public administration modernization with targeted incentives and infrastructure upgrades, Uzbekistan is positioning itself as an attractive destination for venture capital and technology entrepreneurship in Central Asia.