Central Asia: The New Uzbekistan and the old competition

Op-Ed by Chairwoman Jovanka Porsche

China’s infrastructure initiative along the New Silk Road is making an impact – Europe’s responses remain unclear. While Brussels continues to hesitate, Tashkent is offering concrete proposals for a more integrated Central Asia strategy at the International Investment Forum. The region is becoming a geopolitical testing ground for competing visions and influences.

At the fourth Tashkent International Investment Forum (TIIF), more than 8,000 participants from 97 countries—including heads of state, investors, and representatives of international organizations—discussed the economic future of Uzbekistan and Central Asia. Agreements signed at the forum amounted to $30.5 billion—a milestone that reflects not only quantitative growth but also a qualitative shift in global perceptions of Uzbekistan and the entire region. 

The question arises: Can Central Asia achieve a developmental breakthrough similar to that seen in the Southeast Asian tiger economies? Since the collapse of the Soviet Union, the five Central Asian states—Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan—have faced the dual challenge of obtaining economic independence while fostering regional integration. Progress is evident: cross-border infrastructure projects are emerging, trade barriers are decreasing, and multilateral formats such as C5+1 with China or the USA are gaining importance.

Uzbekistan aims to take on a leadership role in this transformation. In his opening speech, President Shavkat Mirziyoyev identified investment as the key not only to dynamic development but also to peace and stability. The country is focusing on digitalization, green transformation, FinTech, and the strategic development of critical raw materials.

Central Asia is increasingly seeking regional success models while striving to carve out its own path. The EU is no longer viewed as a model for regional integration—the C5 states are hesitant to compromise their political sovereignty. In contrast, despite structural differences, ASEAN serves as a functional example of economic integration. Intra-regional trade, technological cooperation, and platforms such as ASEAN+3 show that regional unity can be achieved without political union.

For Central Asia, ASEAN’s model could provide certain guidance, not by replicating institutional structures, but by embracing its pragmatic principles: voluntary cooperation, flexible institutions, and economic resilience as a shared goal. ASEAN’s motto, “Unity in Diversity,” can be applied to the C5 states.

Central Asia does not need external prescriptions; rather, it requires supportive partnerships. Europe can contribute through targeted investments, technology transfers, and knowledge-sharing platforms—not as a mentor, but as an enabler.

Central Asia has long served as a platform for competing geoeconomic strategies. China’s Belt and Road Initiative (BRI) has produced tangible results, with rail links, pipelines, and industrial parks currently operational or under construction. Chinese investments in the region are regarded as pragmatic and focused on implementation.

In contrast, the European Global Gateway initiative remains unclear. TIIF made this evident: while China’s presence was large-scale and supported by visible projects, Europe seemed fragmented, primarily offering strategic declarations of intent. Although the political will to cooperate exists, what is lacking is implementation power and on-the-ground visibility.

However, the potential for a Europe–Central Asia infrastructure and innovation alliance is significant. The region is actively seeking access to technology and sustainable development and fully recognizes the benefits of diversifying its international partnerships.

Global Gateway could make a genuine offer—if followed by concrete action. These actions should include locally rooted investments, project offices on the ground, long-term partnerships with regional actors, and a clear understanding of local contexts.

The conditions are favorable: the region has a young, growing, tech-savvy population with an average age below 30. The Uzbek government is actively working to create new jobs, especially in the IT sector. Initial successes are visible: in the IT Park located within the Ministry for Digital Technologies, young developer teams are developing innovative digital governance solutions—from agricultural registration to healthcare systems to AI applications. 

The country recently witnessed the emergence of its first tech unicorn—Uzum. Even traditional outsourcing destinations, such as India, the United States, and several European countries, are beginning to relocate their IT services to Uzbekistan. The government aims to boost IT service exports to $5 billion by 2030. 

These developments have not gone unnoticed, particularly in the Middle East, which was well represented at the forum. Across from the IT Park in Tashkent, a new data center is currently under construction by the leading Saudi company Data Volt, with investments totaling $150 million. However, it’s not just the digitalization of the agricultural and energy sectors experiencing dynamic growth—the spectrum of emerging industries is wide. The presence of LVMH Moët Hennessy Louis Vuitton SE at the TIIF highlights the growing interest in Uzbekistan’s luxury goods market.

At the same time, political perceptions are also shifting: the advantages of economic regional integration, acting together as a region on the world stage, and diversifying international partnerships are increasingly recognized as strengths. What is needed now are clear political decisions, courageous institutions, and global partners willing to support with concrete actions. However, participation in the TIIF highlighted the lack of awareness of these developments in Europe, particularly in Germany.

The enormous potential in Central Asia is tangible—Europe should not hesitate now. Will the new German federal government seize this opportunity?

This Op-Ed first appeared in German at Germany’s leading briefing publisher, Table.Media: Zentralasien: Das neue Usbekistan und de • Table.Briefings

Translation done by Global Neighbours.