UAE and Uzbekistan Sign Pact to Boost Digital Infrastructure Development

UAE, 6 May, 2024 :The Ministry of Investment of the UAE and the Ministry of Digital Technologies of Uzbekistan have inked an investment memorandum, signaling a collaborative effort to bolster digital infrastructure development. The agreement, signed by Mohamed Hassan Alsuwaidi, UAE's Minister of Investment, and Sherzod Shermatov, Uzbekistan's Minister of Digital Technologies, focuses on fostering investment cooperation in digital infrastructure, particularly in data centers and artificial intelligence (AI) projects within Uzbekistan.

Uzbekistan's digital market has been on an upward trajectory since the implementation of its Digital Uzbekistan – 2030 strategy in 2020. With the data center market projected to grow by 9.82 percent between 2024 and 2028, reaching a market volume of US$ 361.40 million in 2028, the memorandum aims to explore joint investment opportunities for new data centers. These centers would offer cloud and AI solutions to both private and government entities, while also attracting major cloud service providers to Uzbekistan. Additionally, the agreement seeks to evaluate the potential for super-computer projects, develop language models specific to Uzbekistan, and establish a local talent ecosystem for AI and computing.

Minister Alsuwaidi highlighted the memorandum's significance in reinforcing bilateral ties and promoting mutual prosperity through collaboration in vital economic sectors. He emphasized that expanding data centers and AI capabilities in Uzbekistan will enhance its appeal as a prime digital investment destination in Central Asia.

Minister Shermatov expressed his honor in signing the memorandum, marking a pivotal step towards transforming Uzbekistan into a leading IT hub. He emphasized the partnership's potential to provide UAE-based companies with unprecedented investment opportunities, leveraging Uzbekistan's strategic location and conducive business environment. Together, the collaboration aims to unlock new avenues for growth, innovation, and economic development, positioning Uzbekistan as a key player in the global digital arena.

In 2023, non-oil trade between the UAE and Uzbekistan surged to US$1.9 billion, marking a twofold increase from 2022 and a more than threefold increase from the previous year. The UAE emerged as Uzbekistan's 17th largest trading partner globally in 2022, surpassing other Arab countries and constituting 82 percent of Uzbekistan's trade with the Arab world.

Source : www.wam.ae