Uzbekistan's burgeoning IT industry has witnessed a surge in exports, reaching an impressive $344mn in 2023, marking a substantial leap from $140mn in 2022, Daryo correspondent reported. The exponential growth underscores Uzbekistan's emergence as a prominent player in the global digital landscape.
As per Sherzod Shermatov, the Minister of Digital Technologies, this achievement can be attributed to a concerted effort to create a conducive environment for foreign companies to thrive within the country. Minister Shermatov emphasized that Uzbekistan is not coercing companies but rather attracting them through favorable conditions, resulting in an influx of foreign investments.
“In the last 2 years alone, if we compare 2023 with 2021, the number of companies with foreign capital has increased 20 times. Exports increased 7.5 times, which is not for nothing, because Uzbekistan has become a good, attractive place for foreign companies to come. We are not forcing anyone, they are coming to Uzbekistan from other places,” Sherzod Shermatov shared.
The minister highlighted the pivotal role of tax incentives provided to IT companies by the government, coupled with robust infrastructure development and concerted efforts in talent acquisition and training. He emphasized the holistic approach taken by Uzbekistan's government, focusing on creating a comprehensive ecosystem to support the growth of the IT sector.
Significantly, the United States emerged as a major destination for Uzbekistan's IT exports, with services worth $150mn being exported to the U.S. alone in 2023. Minister Shermatov revealed that over half of Uzbekistan's total exports to America are in the IT sector, positioning the nation as a significant contributor to the US digital economy.
“In 2022, 63% of total exports to the U.S. were IT-related services. Due to this, Uzbekistan's exports to the USA increased from the 20th country to the 15th country level, precisely because of the increase in the exports of our industry there. That is, we have an opportunity to reach a developed country far away from us through our IT export, and we can increase [this],” Shermatov noted.
Shermatov also underscored the role of outsourced companies like EPAM System in driving IT service exports, stressing the need for greater engagement from such entities. During official visits to Dubai and New York, proposals were extended to several companies, aiming to further enhance collaboration and investment opportunities.
Moreover, the minister highlighted ongoing efforts to diversify export offerings, particularly in IT solutions production and Business Process Outsourcing (BPO), which are expected to generate additional employment opportunities and bolster the industry's growth trajectory.
Uzbekistan’s Digital Talent at Web Summit in Qatar
Uzbekistan made its debut in the Middle East tech scene by participating in the renowned Web Summit held in Qatar, signifying a significant step towards expanding its digital footprint globally. Rustam Karimjonov, the deputy minister of Digital Technologies, led a delegation of around 50 individuals from Uzbekistan to the event, which attracted over 15,000 attendees including startups, venture capitalists, and tech enthusiasts. In an interview with Daryo's correspondent, Karimjonov emphasized the potential for strengthening ties between Uzbekistan and Qatar through collaborative efforts in digital innovation.
Highlighting Uzbekistan's active participation, Karimjonov mentioned the presence of 10 startups from the country, with IMAN making it to the prestigious PITCH finals, underscoring the nation's burgeoning entrepreneurial spirit. He also revealed plans for several Uzbek startups to establish offices in Qatar, emphasizing the mutual benefits of leveraging Uzbekistan's digitally skilled workforce for outsourcing opportunities in Qatar.
Addressing gender disparities in the tech industry, Karimjonov emphasized Uzbekistan's commitment to promoting women's participation in ICT, acknowledging the need for societal mindset shifts and highlighting the potential for women to achieve financial independence through digital skills.
Karimjonov also discussed infrastructure challenges hindering Uzbekistan's IT sector growth, particularly the need for stable electricity and internet access beyond the capital city. He underscored the importance of addressing these issues, especially for outsourcing companies reliant on stable energy resources.
IT Park 2024: Achievements & Vision
In January 2024, the Ministry of Digital Technologies of Uzbekistan hosted the "IT Park 2024: Achievements & Vision" event, unveiling the outcomes of 2023 and outlining plans for the future. With a focus on expanding the IT sector, President Shavkat Mirziyoyev aims for Uzbekistan to achieve a $5bn export volume of IT services by 2030.
In 2023, the number of IT Park residents soared to 1,652, generating $1bn in revenue, with exports reaching $344mn. The workforce surpassed 26,000 individuals, primarily concentrated in Tashkent. Despite this, there's growing interest in the IT sector among youth in regions, evident in the rising number of educational institutions and students.
The influx of foreign companies to IT Park, which rose to 426, indicates global interest in Uzbekistan's IT market. However, a portion of operations remains centered in Tashkent, hindering economic growth in other regions. To address this, IT Park aims to bolster regional presence and promote job creation beyond the capital.
Exports of IT Park residents surged to $344mn in 2023, with a focus on the USA, UK, EU, CIS, Asia-Pacific, and MENA regions. Various programs, including "Zero Risk" and "Local2Global," are introduced to support foreign and local companies in entering new markets.
Furthermore, IT Park undergoes restructuring to enhance its support for local companies and attract foreign investments. Tax incentives are extended for export-oriented companies, and the International Digital Technology Center is to be established to provide a conducive environment for digital innovation.
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