The president of Uzbekistan has issued a decree paving the way for the establishment of the International Digital Technology Center, aptly named ENTERPRISE UZBEKISTAN, in the IT Park area on February 1, the Ministry of Digital Technologies reported. This initiative is set to transform the nation's digital technology sector and enhance its global competitiveness.
The decree is a strategic response to the need for a more conducive environment for digital technology enterprises. With a focus on augmenting the investment appeal of Uzbekistan's digital market, the decree aims to actively draw foreign investments into the digital economy, expedite export activities, and amplify integration with international markets.
This development is aligned with the broader national strategy "Uzbekistan - 2030," outlined in the presidential decision PQ-300 on September 11, 2023. The specific goal for the IT sector, as outlined in PQ-300, is to elevate export volumes to $5bn, generate 100,000 new jobs, and facilitate a more favorable environment for foreign companies in the IT Park.
ENTERPRISE UZBEKISTAN, located within the IT Park, is designed to provide a special zone with favorable conditions for the production of digital technology products and services. To attract global tech players, a unique legal regime for foreign companies will be implemented as an experiment for a period of up to five years, starting from June 1, 2024.
Under this experimental legal framework, the International Digital Technology Center will introduce a "regulatory sandbox" for the development and testing of innovations, services, and business products in the digital technology field. This initiative is expected to accelerate the pace of technological advancements by providing a controlled environment for experimentation.
Key areas covered by the special legal regime include customs and taxation, labor relations, finance and banking, processing and protection of personal data, rendering public services, intellectual property protection, and the resolution of commercial and civil disputes. The Ministry of Digital Technologies has been designated as the competent body responsible for the implementation of this unique legal framework.
In the year 2023, IT Park residents witnessed a substantial surge in the export volume of services, reaching $344mn, marking a growth of 2.4 times compared to the preceding year. Out of the total service exports, 57% ($196mn) were attributed to service companies, while product companies and resident companies offering Business Process Outsourcing (BPO) services constituted 23% ($79mn) and 20% ($69mn), respectively.
As of the conclusion of 2023, IT Park accommodated 1,652 resident companies. Within this figure, 523 were registered in various regions, and 1,129 were situated in the capital. The majority of these companies fell into the category of service companies (890), followed by product companies (400), and educational companies (362). Furthermore, the count of firms with foreign capital in IT Park reached 426.
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