Uzbekistan: Central Asia’s Fastest-Rising Startup Ecosystem

This investment spike reflects not just isolated success, but a systemic shift. As of 2025, over 12 active venture capital funds operate in Uzbekistan with combined assets exceeding $136 million, a tenfold increase in just five years. These funds have been vital in catalyzing the growth of sectors like Fintech, EdTech, AI, and Ecommerce.

"We are now witnessing not just growth, but a systemic rethinking of Uzbekistan's role in the global digital economy," notes Sherzod Shermatov, Minister of Digital Technologies of the Republic of Uzbekistan. "With regards to consistent reforms, openness to international business and support from the government, we will be able to confidently position Uzbekistan as a key player in the global IT industry."

Talent-Rich, Youthful, and Globally Connected

Fueling this momentum is Uzbekistan’s dynamic and multilingual workforce. With 21 million working-age citizens and a youthful average age of 29, the country graduates 125,000 university students annually, including over 60,000 in ICT and business services. This talent pipeline is reinforced by the presence of 210 universities and 30 international institutions such as Webster University, American University of Technology by Arizona State University, Amity, and IT Park University, creating a steady supply of globally-minded professionals.

Moreover, the nation is linguistically diverse and strategically oriented toward international cooperation, with more than 90 countries enjoying visa-free or visa-simplified entry. Uzbekistan’s time zone overlaps conveniently with Asia, Europe, and North America, enhancing its viability as an IT services destination.

A Magnet for Foreign Founders and Investors

Uzbekistan’s allure extends far beyond its talent base. Its political and economic landscape offers rare stability for the region: the country ranks #1 in political stability in Central Asia and is listed among the top 10 safest places to live globally. The economy has grown 46% since 2017, and foreign direct investment has tripled, reaching $11.9 billion in 2024.

“Startups that choose Uzbekistan gain more than market access — they gain momentum. Positioned at the crossroads of Europe, Asia, and the Middle East, we provide the tools, capital, and regulatory freedom they need to scale globally,” highlights Abdulakhad Kuchkarov, CEO of IT Park Uzbekistan.

Supporting this goal is a founder-friendly regulatory framework. Business incorporation, office setup, IT Park membership, and talent onboarding can all be completed within 6–8 weeks. The cost of doing business is further reduced by Uzbekistan’s generous tax incentives: IT Park members are fully exempt from corporate and personal income taxes, VAT, property tax, land tax, and customs duties until 2040. These exemptions create one of the most fiscally attractive environments in the region for both local and international startups.

Moreover, IT Park Uzbekistan has implemented the “Zero Risk Program,” which provides up to 12 months of free office space, free technical equipment, and payroll compensation to reduce operational costs for foreign companies entering the market.

Uzbekistan is actively positioning its startups on the global stage. Through its network of international offices in the U.S., Germany, Saudi Arabia, South Korea, and Japan, IT Park Uzbekistan has created strategic launchpads for local and foreign founders. These offices facilitate market entry, promote outsourcing opportunities, and help startups forge cross-border partnerships. Since 2024, over 90 regional startups have participated in international exhibitions and competitive forums, gaining vital exposure, business development opportunities, and access to international investor networks

Government-Backed Innovation: IT Park and Beyond

Since its establishment in 2019, IT Park Uzbekistan has become the nation’s flagship technology and innovation hub. Created under the Ministry of Digital Technologies, IT Park now supports over 2,800 companies — including more than 730 foreign firms and is witnessing rapid growth in the volume of international partnerships and technology exports.

The IT Visa program, introduced in 2022, exemplifies Uzbekistan’s openness. It offers foreign tech founders, investors, and specialists up to three years of multiple-entry residence, including the right to purchase property, access healthcare and education, and relocate with family members — all without needing a local sponsor.

Complementing this is the Softlanding Program, which streamlines market entry for international companies by offering end-to-end support — ranging from mentorship, legal and market-entry advisory, and reimbursement up to 50% for costs related to international acceleration, expert services, and IP protection. To further strengthen global engagement, the Local2Global Initiative empowers Uzbek startups to expand internationally through export acceleration services, participation subsidies for global events, and access to cross-border business development and networking opportunities. Together, these programs reflect Uzbekistan’s strategic commitment to building a globally connected, investor-ready startup ecosystem.

A Bold Policy Blueprint: Uzbekistan's Legislative Leap into Venture Capital Leadership

As part of its commitment to nurturing startup success, Uzbekistan has implemented a 1+1 co-funding mechanism under the Digital Startup Program, in which the government matches foreign venture capital investments up to $100,000 for startups attracting overseas venture capital, provides reimbursements for participation in top-tier global accelerator programs, and offers mentorship and training subsidies and non-collateral loans of up to $23,500 (300 million UZS). This doubling mechanism not only strengthens early-stage capital availability but also sends a powerful signal of stability to investors, ensuring startups have the financial runway to scale confidently.

In 2024, a Presidential Decree for further developing the startup ecosystem and venture financing laid the legislative foundation for a new era in Uzbekistan’s innovation economy. The decree not only formalized the Digital Startup Program, but also introduced a robust ecosystem governance framework, financial mechanisms, and institutional mandates to accelerate startup and venture capital development nationwide.

Among the key measures, the decree authorized state-majority banks (with ≥50% public ownership) to establish venture funds and startup studios, lease real estate and technical infrastructure to startups at subsidized rates, and procure digital products and services from startups for contracts up to $39,200 (500 million UZS) annually — provided the startups allocate at least a 5% equity stake to the contracting institution.

Oversight and coordination of the entire program is entrusted to a Coordination Council, chaired by the Minister of Digital Technologies and convening quarterly to monitor implementation, evaluate incubator performance, and adjust strategy through the 2024–2026 ecosystem roadmap. The Prime Minister has been assigned overall supervisory responsibility, demonstrating the highest level of political commitment to Uzbekistan’s startup future.

This decree not only institutionalizes financial and structural support; it effectively repositions Uzbekistan as a regional leader in startup policy design and venture capital orchestration, making the country attractive to both local entrepreneurs and international stakeholders.

A Future-Facing Ecosystem with Global Reach

As Uzbekistan continues its evolution, upcoming events such as ICT Week Uzbekistan in September and the GBS Forum in July position the country as a thought leader and regional convenor for innovation. These platforms aim to attract further partnerships, VC interest, and B2B connections from across Central Asia and beyond. 

Uzbekistan is rapidly emerging as a hub for tech innovation, with a record number of events and competitions held across the country in 2024. Throughout the year, more than 50 startup-focused initiatives were launched, including hackathons, acceleration and incubation programs, while the IT Park delegation showcased the country’s potential at 40 international events. The flagship initiative is the President Tech Award — a national competition with a significant $1 million prize fund aimed at empowering young talent and supporting the development of globally-competitive digital solutions. 

With an unmatched combination of economic stability, scalable talent, bold government vision, and global ambition, Uzbekistan is no longer just a rising star — it is rapidly becoming a gravitational center for startups, investors, and innovators looking to break into the world’s next great frontier