The Silk Road opened a dynamic commercial and cultural corridor between East and West, and in many ways has defined the modern world. Uzbekistan is at the center of a global network of scholars, inventors, artisans, and merchants whose contact has shaped our collective understanding of everything from science and medicine to philosophy and theology. It has deepened.
With the rise of the first technology unicorn, the digital services ecosystem Uzum, Uzbekistan is once again establishing itself as a key outpost in the global quest for innovation and technological advancement. For those unfamiliar with the country, the emergence of a burgeoning technology scene in Uzbekistan may come as a surprise. But for those who have immersed themselves in Uzbek society and learned about the country's fundamental strengths and economic potential, the country's status is Central Asia's answer to Silicon Valley's numbers.
Uzbekistan's promise as a technology hub is partially supported by significant demographic strengths. Uzbekistan, which has half the population of Central Asia, has an overwhelmingly young population, with 60% of the population under 30 years old. Additionally, this dynamic population is generally highly educated, often multilingual, and has a near 100% literacy rate. Uzbekistan has a strong emphasis on STEM fields, a legacy of the Soviet Union's rigorous curriculum, and the government has shown a willingness to invest in further expansion of education, especially higher education. Not only has the Ministry of Higher Education's budget increased by 44% in 2023, but the authorities have also announced their intention to increase the number of high school graduates, especially in technical fields, by 50% by 2030, and that goal includes 30 new Includes university construction. Country.
Adding to the educational advantages enjoyed by Uzbeks, the country boasts one of the highest internet access rates in the region (31 million network users and 99% coverage) and a strong culture of technological proficiency. The popularity of IT education is evidenced by the success of the “One Million Uzbekistan Programmers” initiative, a free distance learning program focused on data analysis, Android development, front-end development, and full-stack development.
A young, tech-savvy population, combined with government policies focused on economic liberalization, is driving rapid and dramatic growth in Uzbekistan's IT sector. The sheer speed of expansion in this field can be described as exponential. For example, in 2020, the country hosted 14 foreign IT companies, but the number reached 300 within three years. Entrepreneurs are encouraged to set up through the IT Parks scheme established in 2019. Doing technology in Uzbekistan is made possible by generous tax breaks and streamlined management and funding options, making the Central Asian country the region's preeminent startup haven with over 1,200 growing startups. It surfaced.
Uzum's success, highlighted by its recent successful fundraising of $52 million, reflects the opportunities presented by the Uzbek market. Uzum, an ecosystem that combines e-commerce, fintech and banking services for individuals and small businesses, will launch in 2022 and become the country's most downloaded app with 10 million monthly users by the following year. was ranked as. More broadly, Uzbekistan's e-commerce market could grow sevenfold by 2027, according to KPMG. Uzbekistan claims to be a well-informed market with high demand for technology services and products.
“The Uzbek market has great potential, and the Uzum incident confirms this. According to our forecasts, the volume of online payments in the country will increase six times by 2026, and the e-commerce market will grow over the same period. The fintech market is expected to grow by 8-9 times. Such growth is made possible by the increasing penetration of the Internet in the country, and currently mobile Internet prices in Uzbekistan are the highest in Central Asia. Of course, there is also the government's support for small and medium-sized enterprises, the development of educational programs and the emergence of useful national digital services,” said Uzum's Chief Strategy and Business Development Officer. Nikolai Seleznev said.
However, the growth of Uzbekistan's technology sector cannot achieve impressive growth on its own. Foreign investors and companies have an important role to play, both as investors and as leaders. This reality is well understood by Uzbekistan's authorities, which are working hard to attract international investment through a number of economic liberalization and privatization policies. Uzbekistan's Minister of Investment and Trade Raziz Kudratov, while discussing the upcoming Tashkent International Investment Forum (TIIF), said: “Digitalization and attracting investment to the country's IT sector will be an essential theme for discussions at the forum. “Technology is in that field,” he said. In many ways, this is a huge opportunity that we present to the world. ”
Uzbekistan's technological prowess is evidence of the success of the country's modernization efforts, but it also reflects the nation's old identity as a Silk Road people who were actively involved in the dissemination of modernizing technologies and ideas. . While the history of many countries is a story of efforts to isolate and secure regions from outside influences and innovations, Uzbekistan's outlook is shaped by a centuries-old desire to welcome its novels. It's here. And technology is this country's newest frontier.
