Uzbekistan Advances Digital Transformation with Unified Platforms and IT Sector Incentives

Uzbekistan is accelerating its digital transformation through a comprehensive strategy focused on developing a national navigation system, launching a unified digital platform for public administration, and enhancing support policies for the IT and telecommunications sectors. These initiatives, reviewed and approved by President Shavkat Mirziyoyev, aim to strengthen the country’s digital infrastructure, improve government efficiency, and foster a competitive business environment.

Strategic Integration of Digital Infrastructure and Governance

Currently, Uzbekistan relies heavily on foreign navigation platforms, creating dependency risks and fragmented geospatial data standards. To address this, officials proposed creating a national navigation system that would standardize geospatial information and improve services across multiple sectors such as transport, logistics, urban planning, emergency response, and public administration.

"The unified national navigation system will serve as a foundational infrastructure, enabling seamless integration of geospatial data to enhance decision-making and service delivery," officials stated during the review.

Moreover, government agencies currently operate with independent databases and information systems, leading to inefficiencies in data analysis and policy implementation. The proposed unified digital platform for public administration aims to consolidate diverse data streams—including regional economic indicators, investment flows, environmental monitoring, public safety metrics, and infrastructure information—into a single integrated system powered by artificial intelligence (AI).

AI-driven analytics are expected to detect regional problems early, optimize resource allocation, and monitor policy outcomes more effectively. President Mirziyoyev has mandated piloting this platform in Tashkent within 2023, with plans to scale nationwide starting next year.

Unified National Classification and Enhanced IT Sector Support

Another key reform involves the establishment of a unified national classification system for goods and services. At present, customs, tax, and statistical agencies employ disparate classification systems, which complicate compliance, reporting accuracy, and inter-agency data sharing. The harmonized system is designed to simplify regulatory processes, reduce business costs, and improve statistical reliability.

Uzbekistan is also reinforcing its position as a fast-growing startup ecosystem; it recently improved its rank by 31 positions in the international StartupBlink index. Tashkent leads Central Asia in startup activity, with Samarkand and Fergana entering the global top 1,000 for the first time.

To sustain this momentum, the government plans expanded incentives, including tax breaks for IT Park employees extended through 2040, broader IT Visa and Zero Risk programs for startups, and specific support for IT exporters such as partial payroll reimbursements, certification cost coverage, and relocation assistance for attracting foreign clients and specialists.

Further initiatives include the Talent Hub program, which will enable foreign specialists and investors to remotely register businesses, open bank accounts, and access international payment services within Uzbekistan.

Telecommunications Sector Reforms to Enhance Connectivity and Investment

Despite recent improvements—coverage of populated areas by telecom services grew from 41% to 98%, and internet bandwidth expanded 65-fold—the telecommunications sector remains underdeveloped, particularly in rural areas. Fixed broadband penetration is still limited, and private investment interest is low.

To foster sector growth, officials propose merging existing licenses for designing and building telecom networks into a single streamlined license, reducing the licensing timeline from 25 to 10 working days. Additionally, new residential construction projects will be required to integrate high-speed internet infrastructure with fiber-optic connectivity from the design stage to ensure future-proof digital access.

Entrepreneurs entering telecommunications will benefit from concessional loans under the Future Entrepreneur program—up to UZS 530 million with favorable repayment terms—and preferential tariff plans will be introduced for rural and remote area operators.

Following these comprehensive proposals, President Mirziyoyev directed government authorities to expedite the integration of data systems, improve digital public services quality, bolster cybersecurity and personal data safeguards, and cultivate a supportive environment for private sector engagement in Uzbekistan’s burgeoning digital economy.

These systematic reforms reflect a strategic approach to overcoming operational fragmentation, boosting domestic digital capabilities, and positioning Uzbekistan as a competitive player in the global digital marketplace.