Over the past three years, Uzbekistan’s service sector has seen significant expansion. More than 1.5mn people have gained permanent employment in the industry, while the sector's total volume has surged from $19bn in 2018 to $65bn. Key areas such as information technology, financial services, tourism, aviation, education, and healthcare have experienced rapid growth.
On February 7, President Shavkat Mirziyoyev chaired a videoconference meeting focused on expanding service sectors across Uzbekistan. The discussion reviewed progress in the industry and outlined new initiatives to drive further growth.
President Mirziyoyev noted that many opportunities remain unutilized, with inconsistencies in regional and sectoral implementation. For example, while plans are in place to attract 6mn tourists to Khorezm, a lack of sufficient air and rail transport poses a challenge. Similarly, while private investment in medicine, aviation, and energy has exceeded $20bn, sectors such as drinking water, sewage, and road infrastructure remain largely underdeveloped.
Recognizing the rising demand for services—driven by a doubling of household incomes over the past seven years—the government aims to increase the sector’s total value by 15% to $82bn this year. Service exports are expected to reach $8.5bn, while 2.5mn new jobs are projected.
The financial sector is seen as a major driver of growth. To enhance commercial property access for businesses, a proposal was made to allow banks to purchase and lease non-residential premises on favorable terms. This initiative could bring 50,000 square meters of commercial space into circulation and create 100,000 jobs. Additionally, financial services are expected to grow by 30% through improved banking accessibility and digitization.
A decentralized approach to service sector development will be implemented in districts, with 1,156 local projects receiving government backing. A total of UZS 1 trillion ($77.2mn) will be allocated for infrastructure development. Planned initiatives include:
- Tourism and Leisure: Establishment of 72 coastal recreation areas, 154 24-hour tourism and gastronomy streets, and modernization of 62 parks.
- Roadside and Public Services: Construction of 364 service facilities along major highways.
- Tax Incentives: The 1% social tax for trade and service enterprises has led to a 1.5-fold increase in businesses and higher wage transparency. Given its success, this benefit will be extended for another three years, with a focus on young workers earning at least UZS 3mn ($232) per month.
Efforts to expand private sector involvement in public services will continue, with 29 additional services set to be outsourced. Meanwhile, streamlined access to state property and land will encourage business development. Starting March 1, unsold state-owned properties under 10,000 square meters will be leased to entrepreneurs for 10 years, with an option for full privatization after four years.
Additionally, the government aims to increase IT services by 30% to UZS 80 trillion ($6.2bn), with exports growing by $1bn. To support this, $50mn will be allocated for startup projects in the creative economy, particularly for youth-led initiatives and skilled professionals working in global tech firms.
Transport services, crucial for economic growth, are also set for expansion. In 2024, the sector grew by 8.6% to reach UZS 145 trillion ($11.2bn), but further investment is needed. Planned measures include increasing domestic air and rail connectivity, building multimodal logistics centers, and enhancing taxi services. The transport sector is projected to reach UZS 185 trillion ($14.3bn) in volume, with exports hitting $2.3bn.
Tourism remains Uzbekistan’s largest service industry, with visitor numbers quadrupling in recent years due to improved diplomatic relations with over 90 countries. Tourism service exports reached $3.5bn in 2024. To further boost the sector, the government will launch the “Umrah Plus” program, catering to Muslim travelers from Malaysia and Indonesia. Additionally, major international concerts and forums in Samarkand, Shakhrisabz, Bukhara, Khiva, and Tashkent will drive tourism-related spending.
The “Medical Hospitality” program, introduced last year, aims to attract foreign patients seeking medical treatment. Meanwhile, higher education remains an underutilized export sector, despite 125 new institutions opening in the past eight years. Plans are in place to expand educational exports and involve the private sector in operating vacant cultural and arts centers.
The meeting concluded with officials outlining their goal of creating 2.5mn jobs in the service sector in 2025. President Mirziyoyev emphasized the importance of open market conditions, digital transformation, and strategic investment to sustain high economic growth and employment opportunities.
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