An event in London brings the potential of Uzbekistan’s IT sector to the attention of the UK’s buyers and investors.

Ever since I returned from the Uzbek ICT Week in Tashkent, Uzbekistan, in October, I have been taking a closer look at the country’s IT sector.  

I have previously outlined how and why I thought Uzbekistan could become a regional tech hub; Connecting it with the UK and exploring opportunities for UK companies was a natural next step, so I was delighted to have hosted a seminar in London earlier this week designed to do just that. 

Although Uzbekistan is currently focused on the development of its IT sector, its software development experience is nothing new.  

According to Abdukarim Kadirov, Investment Director at Realsoft, an Uzbek company operating in the country for two decades and now present in several other geographies, software development in Uzbekistan dates back to the 1980s, although it was the independence of Uzbekistan three decades ago that gave the sector a significant boost.  

“Right after independence, the government was the biggest buyer of software solutions, so we started by digitising the inefficiencies in government processes,” he said during the session in London. 

Biyi Oloko, CEO at Stephen Simeon Limited headquartered in the UK, who recently brought three companies from his portfolio to Uzbekistan, talked about some of the experiences one of his companies had with implementing facial recognition technology.  

“We walked into Uzinfocom and they already had that running. They have an entire building operational with face ID used every single day. That interaction showed us that the skillset exists there,” Oloko said. 

While lower costs are a factor in companies selecting Uzbekistan, so is the government’s commitment to developing the IT sector. 

“We are actively engaged with the Uzbek government where there is a lot of appetite to digitalise and to integrate with the rest of the technology world. Over the last six or seven years the country has been among the global front runners of digitalisation,” Kadirov said. 

The World Bank is committed to supporting the development of the Uzbek digital economy and broadening access to digital skills and employment opportunities in information technology-enabled services for young people in rural and remote locations, and last week granted a 50 million US dollars concessional loan to implement the Uzbekistan Digital Inclusion Project.  

According to the 2030 National Development Strategy, by 2030, Uzbekistan plans to become a Central Asian IT hub, increase the annual volume of IT exports to five billion US dollars, attract 1,000 foreign IT companies to launch operations in the country and provide employment opportunities for 300,000 youths in the IT sector. 

Focus on education and expertise 

“Uzbekistan is a very young nation where over 60 per cent of the population is below the age of 30. The best way to provide the opportunities and prospects for this new generation is to provide them with jobs that are in high demand all over the world. They are active, hungry for new knowledge and new skills,” Kadirov added. 

I saw this firsthand during my visit to the country—just how many initiatives promoting education there are in Uzbekistan, both public and private, and how much demand there is for educational services, language courses and IT-related skills.  

Even if public universities do not keep up with the demand, the private sector steps in and fills the breach. Several international universities have opened subsidiaries in Uzbekistan, including Westminster University and Webster University. 

Rohitashwa Aggarwal, Partner, Global Business Advisory and Research at Everest Group, first started looking at Uzbekistan several years ago. 

“When we look at firms operating in the UK, about a quarter make use of IT talent based in the UK, another quarter is based in Europe, another quarter in India, and the fourth quarter is based throughout the rest of the world,” he said.  

“The problem is that most of alternatives to India are very small, and you cannot immediately find more than 1,500 people. It takes time. We have been tracking some of these locations that we call the dark horses. Talent, hunger and investment: these are positives that needs to be sustained.”  

Aggarwal also mentioned that about 40 per cent of buyers in Everest Group’s research indicated cost as their top concern. Considering the wide range of incentives that Uzbekistan’s IT Park has to offer, including the ‘Zero Risk Programme’ which provides rent-free offices, free technical equipment, training grants of up to 5,000 US dollars, and subsidies covering up to 15 per cent of the salaries of 100 employees, Uzbekistan could be a viable alternative. 

The digital skills gap in the UK is estimated to cost the economy 63 billion UK pounds per year in lost potential GDP and is expected to widen, resulting in a workforce inadequately equipped to meet the demands of the digital age.  

Employers say that only 48 per cent of people leaving full-time education have the advanced digital skills required, and many companies cite the lack of available talent as the single biggest constraining factor to their growth. 

Going forward 

According to IT Park Uzbekistan’s data, services exported to the UK by resident companies currently amount to 27 million UK pounds annually. Software development accounts for almost two thirds of that amount, the rest made up by game development business process outsourcing. 

There is room for growth.  

“This is my introduction to Uzbekistan. I’m learning about the available talent about the government and investment endorsement, and it’s just phenomenal. But I’ve never received any information about Uzbekistan’s value proposition,” said Kerry Hallard, CEO of the Global Sourcing Association, Founder of the Global Technology and Business Services Council.  

“I did a presentation six years ago about the Lviv IT Cluster in Ukraine and its biggest problem was that nobody knows its name. Obviously, now everybody knows about Brand Ukraine and what it stands for. I think Uzbekistan has got the same opportunity. The opportunity of building brand Uzbekistan is phenomenal. But you’ve all got to come together and do it collaboratively—every individual, every company, as well as the government,” Hallard added. 

Kadirov confirmed that a lack of awareness was a key issue in bringing more British partners on board. “Uzbekistan is a sleeping dragon on Asia’s IT landscape,” he added 

“If Uzbekistan can become one of the default options that executives look at when thinking about where to go next, I would consider that a success,” David Rumble, Director at Maistro Group and Managing Partner at On Consultancy, concluded. 

Source: Emerging Europe

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BAKU, Azerbaijan, November 13. The increasing energy demand within the European Union, a major global consumer, drives the initiation of new projects. As a result of this, Azerbaijan’s importance for Europe rises. Specifically, Azerbaijan assumes a distinctive role in developing cutting-edge technologies for energy transmission.

In December 2022, a fresh project was endorsed in Bucharest under the Global Gateway Initiative. Named the Black Sea Energy Submarine Cable, this project aims to establish secure energy sources for Europe. To support the project, a Strategic Partnership Agreement was inked in Bucharest involving the European Commission, Azerbaijan, Romania, Hungary, and Georgia.

The main priority of the project is to deliver renewable energy to Romania through underwater electrical cable passing through Azerbaijan and Georgia. It is anticipated that the project, with an initial budget of $2.3 billion, will be operational by 2029.

In her statement regarding the agreement, President of the European Commission Ursula von der Leyen stated that this project will bring the EU countries closer to the South Caucasus. The two South Caucasus countries, Azerbaijan and Georgia, have already proven how essential partners they are in crucial projects for Europe by implementing several energy and transit initiatives, including the Baku-Tbilisi-Ceyhan project. In the future, after ensuring peace and stability in the region, the possibility of Armenia joining the project is not ruled out.

The fact that all three countries possess substantial potential in alternative energy makes them crucial strategic partners for Europe. This project signifies the transmission of next-generation energy to the West, with Azerbaijan playing a key role in it.

Overall, Azerbaijan’s renewable energy potential amounts to 27 gigawatts on land and 157 gigawatts offshore. By 2027, 4 gigawatts of this potential will be realized, with 80 percent earmarked for export, a figure expected to increase to 25 gigawatts shortly. Azerbaijan plans to establish an additional transmission capacity of 6 gigawatts by 2027. In a few months, a comprehensive technical-economic justification for a new underwater cable project ensuring energy security will be ready. Currently, the technical-economic rationale is being prepared for 4 gigawatts of renewable energy sources.

As Julian Bowden, Senior Visiting Research Fellow at Oxford Institute for Energy Studies (OIES) told Trend earlier, the Black Sea cable project will cement Azerbaijan’s role as a reliable energy supplier. He noted that Azerbaijani gas has already played a crucial role in European decarbonization path, even though it is a fossil fuel; however, it is way better than coal.

In turn, Ariel Cohen, PhD, Senior Fellow at the Atlantic Council Eurasia Center and the Managing Director of Energy, Growth and Security Program at the International Tax and Investment Center, pointed out that Azerbaijan is set to become major green electricity exporter to Europe.

“Azerbaijan has signed 10-gigawatt worth of Memoranda of Understanding deals, and even if 1/3 or one half of those is materialized, this will be a major source of energy for Europe. The idea is to export such electricity by cable to the Georgian coast and then across the Black Sea to Romania. Some of it will go to Türkiye via a grid. This would boost the amount of gas available for exports and would make Azerbaijan a major electricity exporter,” he explained.

And, indeed, this project could extend beyond the countries that have already signed this agreement because the interconnection to power grids throughout Europe is well-developed. When integrated into the European energy system, electricity generated in Azerbaijan can reach any part of Europe, with its source being Azerbaijan’s renewable energy.

Considering the increasing demand for diverse energy resources, particularly renewables, Turkmenistan and Kazakhstan, alongside Azerbaijan, may join the green corridor initiative to export their substantial green energy resources to Europe. Turkmenistan has expressed its readiness to supply electricity to Azerbaijan and Turkey across the Caspian Sea. Currently, the country provides electricity to neighboring nations such as Uzbekistan and Kyrgyzstan. Recently, the foundation stone for a new 1,574 MW power plant was laid on the Turkmen coast near Turkmenbashi.

As of the end of 2022, Kazakhstan operates 130 renewable energy facilities with a combined capacity of 2,400 MW. In the previous year, the country’s renewable energy production reached 5.11 billion kWh, constituting 4.53 percent of total electrical energy production. This figure is expected to reach 5 percent in 2023. Additionally, in 2022, 12 renewable energy facilities with a total capacity of 385 MW and an investment of 180 billion tenge ($374 million) were commissioned. This year, 15 facilities with a total capacity of 276 MW are expected to become operational.

Azerbaijan and Kazakhstan are actively engaged in a promising project, working on laying a fiber-optic connection line on the Caspian seabed. This initiative alone holds the potential to significantly contribute to the development of digital infrastructure for connectivity services, establishing a digital telecommunication corridor between Europe and Asia.

Azerbaijan’s current efforts for Europe are demonstrating the most efficient approach to alleviate the escalating energy crisis in the region. The consensus supporting this notion and the interest in collaboration with Azerbaijan continue to rise. In this regard, prospects for Central Asian economies to join any initiatives carried out by Azerbaijan are only bright.

Source: Trend News

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ASTANA — Designating Astana as the financial center of the Turkic world will enhance the city’s standing as a vital economic and financial hub in the region, providing a platform to highlight the country’s immense potential and attractive investment opportunities, commented the Astana International Financial Centre press service on Nov. 9, following the announcement made by President Kassym-Jomart Tokayev during the 10th-anniversary Organization of Turkic States (OTS) Summit last week. 

Elaborating on Kazakhstan’s chairmanship in the OTS, Tokayev urged expansion of interregional trade and investment in the economy. 

“The Turkic Investment Fund has a unique role in this endeavor. To improve economic relations, it is necessary to establish a market for “green” finance.” he noted and thanked the participants for supporting the initiative of assigning the city of Astana the status of a financial center of the Turkic world. 

The decision to assign this status to Astana was made following the provision on granting certain statuses to cities of the Turkic world, approved during the Istanbul Summit in 2021. The document established the criteria for assigning the appropriate status to cities in the participating countries of the OTS. In particular, the candidate city must be a political, commercial, scientific, and cultural center of the Turkic world and play a vital role in Turkic civilization blossoming throughout history.

Astana is located next to the medieval settlement of Bozok, which served as a center of trade and crafts from the 8th to the 16th centuries and a point along the route of the Great Silk Road.

The Belt and Road initiative, which focuses on developing infrastructure and financing international transport corridors, was also announced for the first time in Astana. Infrastructure projects of the Trans-Caspian International Transport Route, including Caspian Integrated Maritime Solutions and KPMC

(a joint venture between PSA International Pte Ltd, a port operator and supply chain company with flagship operations in Singapore and Antwerp, and Kazakhstan Railways), are based in the AIFC.

The AIFC Green Finance Centre (GFC) operates as the regional office for the Green Investment Principles within the Belt and Road Initiative. Proactively championing sustainable finance in the region, the GFC has played a pivotal role in facilitating the issuance of green and social bonds in Kyrgyz Republic.

Astana has solidified its standing as a premier financial center in Eastern Europe and Central Asia, a recognition echoed by its placement in the Global Financial Centres Index. Functioning as a financial hub, the AIFC plays a crucial role in attracting investors and supporting businesses, providing an environment conducive to company growth not only in Central Asia but also beyond. 

Additionally, the Astana Financial Services Authority has forged agreements and memorandums with financial regulators from the OTS member countries, including Türkiye and the Kyrgyz Republic. These agreements facilitate information exchange and the supervision and regulation of activities conducted by these organizations.

The AIFC, operating as an independent jurisdiction, boasts a favorable legal and regulatory environment along with a developed infrastructure for commencing and conducting business. This makes it an attractive destination for investments, job creation, and the overall economic development of Kazakhstan.

Source: Astana Times

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Harnessing Kyrgyzstan’s Renewable Energy Resources: Opportunities and Challenges

Kyrgyzstan, a landlocked country in Central Asia, is blessed with abundant renewable energy resources, including hydro, solar, and wind power. With its mountainous terrain and numerous rivers, the country has a significant potential for generating clean and sustainable energy. However, despite its vast potential, Kyrgyzstan has yet to fully capitalize on these resources. This article explores the opportunities and challenges associated with harnessing renewable energy in Kyrgyzstan and the steps the country can take to overcome these obstacles.

Kyrgyzstan’s primary source of renewable energy is hydropower, which accounts for approximately 90% of the country’s electricity generation. The country has over 80 small and large hydropower plants, with the Toktogul Reservoir being the largest. However, the full potential of hydropower in Kyrgyzstan remains untapped, as only 10% of the estimated capacity has been developed. This presents a significant opportunity for the country to expand its hydropower capacity and reduce its reliance on fossil fuels.

In addition to hydropower, Kyrgyzstan has immense potential for solar and wind energy. The country receives an average of 2,500 to 3,000 hours of sunshine per year, making it an ideal location for solar power generation. Furthermore, Kyrgyzstan’s mountainous terrain creates favorable conditions for wind energy, with wind speeds reaching up to 10 meters per second in some areas. Despite this potential, solar and wind energy currently account for less than 1% of the country’s total electricity generation.

One of the primary challenges in harnessing Kyrgyzstan’s renewable energy potential is the lack of investment and financing. Developing renewable energy projects requires significant upfront capital, which can be a barrier for both domestic and foreign investors. Additionally, the country’s unstable political and economic climate may deter potential investors from entering the market. To overcome this challenge, the government needs to create a favorable investment climate by implementing transparent regulations, offering incentives, and ensuring political stability.

Another challenge is the country’s outdated and inefficient energy infrastructure. Kyrgyzstan’s power grid is characterized by high transmission losses and frequent power outages, which can hinder the integration of renewable energy sources. Upgrading the existing infrastructure and investing in smart grid technologies can help improve the reliability and efficiency of the power system, making it more conducive to renewable energy integration.

Furthermore, there is a lack of awareness and knowledge about renewable energy technologies among the general public and policymakers in Kyrgyzstan. This can result in misconceptions and resistance to the adoption of renewable energy solutions. To address this issue, the government and other stakeholders should invest in education and awareness campaigns to promote the benefits of renewable energy and dispel common myths.

Despite these challenges, there have been some positive developments in Kyrgyzstan’s renewable energy sector in recent years. The government has set a target to increase the share of renewable energy in the country’s energy mix to 10% by 2030. Additionally, several international organizations, such as the World Bank and the European Bank for Reconstruction and Development, have provided financial and technical support for renewable energy projects in the country.

In conclusion, Kyrgyzstan has a vast potential for renewable energy, which, if harnessed effectively, can help the country achieve energy security, reduce greenhouse gas emissions, and promote sustainable development. To realize this potential, the government and other stakeholders need to address the challenges associated with investment, infrastructure, and awareness. By doing so, Kyrgyzstan can become a leader in renewable energy in Central Asia and serve as a model for other countries in the region.

Source: Energy Portal

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• Leaders of Uzbekistan, Turkmenistan, Kazakhstan, Tajikistan and Kyrgyzstan traveled to Jeddah for GCC-C5 Summit
• Joint Action Plan for Strategic Dialogue and Cooperation approved at leaders meeting hosted by Crown Prince Mohammed bin Salman

JEDDAH: Arab Gulf states and Central Asian countries cemented their political, security and economic ties on Wednesday during the GCC-C5 Summit, a gathering of the leaders of the Gulf Cooperation Council member states and the presidents of Uzbekistan, Turkmenistan, Kazakhstan, Tajikistan and Kyrgyzstan.

At the event, which took place in in the Saudi city of Jeddah, a Joint Action Plan for Strategic Dialogue and Cooperation between GCC members and Central Asian states was approved, covering the period from 2023 to 2027.

In a joint statement at the end of the summit, the leaders of the two blocs stressed the importance of strengthening political and strategic relations at the collective and bilateral levels, and continuing coordination in order to achieve regional and international security and stability, confront challenges and work to ensure flexibility” in fields ranging from supply chains to food security.

Among other issues, they expressed concern about the growing rhetoric of racism and Islamophobia, and acts of violence against Muslim minorities and Islamic symbols.

“The action plan with Central Asia includes activating cooperation in various fields,” said Jasem Mohamed Albudaiwi, secretary-general of the GCC. “We are working on consolidating what has been agreed upon, and building consultation and coordination mechanisms with Central Asia.”

In recent years, there has been a growing interest in deeper economic cooperation between the GCC and Central Asia. The regions have complementary economies, with GCC countries enjoying a wealth of oil and gas resources and Central Asia benefiting from a young and growing workforce. There are also opportunities for cooperation in the areas of trade, investment and tourism.

Speaking on the sidelines of the Jeddah summit, Khalid Al-Falih, the Saudi minister for investment, said the Kingdom maintains close ties with nations in the Central Asian region and hopes to strengthen them further.

Saudi Crown Prince Mohammed bin Salman addressed the summit and also, during a separate event in Jeddah on Wednesday, presided over the 18th consultative meeting of Supreme Council of the GCC on behalf of King Salman.

Noting that all five of the Central Asian nations participating in the summit support Saudi Arabia’s bid to host World Expo 2030, the crown prince told them: “We appreciate your countries’ declaration of support for the Kingdom’s candidacy to host Expo 2030 in Riyadh, which reflects the strength of the relationship between our countries and our aspiration for a better future for our region.”

A press statement issued at the end of the consultative meeting quoted GCC Secretary-General Albudaiwi as saying: “Their Majesties and Highnessees reviewed during their meeting the developments of the joint GCC action process in addition to exchanging views on a number of regional and international issues.”

Al-Falih said the reason the Kingdom decided to host this first-ever summit between GCC and Central Asian nations was to reinforce those existing ties, the Saudi Press Agency reported.

He said said the Kingdom’s proactive involvement with Central Asia, under the leadership of King Salman and the crown prince, had been well received at the regional, pan-Asian and global levels.

In his comments to the SPA about the summit, Al-Falih expressed optimism about the expected outcomes of the event, especially those related to the development and expansion of economic and investment relations between participating countries.

The history of bilateral relations between GCC members and Central Asian countries is long and complex, dating back to the time of the Silk Road trade route. However, those historical ties were largely severed after the collapse of the Soviet Union in 1991.

In the years since then, the GCC and C5 nations have been working to rebuild the relationships. In 2001, the two regions established the GCC-Central Asia Dialogue, a forum in which to discuss political, economic and security cooperation. Talks have been held on a regular basis since then, and have helped to foster closer ties between the regions.

During his address to the summit, on behalf of King Salman, the crown prince welcomed the heads of the Central Asian delegations to their “second home,” and said the event was a continuation of ties based on history, resources and economic growth. He added that the Kingdom and its Gulf allies look forward to opening new windows of opportunity for cooperation between the two regions.

“The challenges our world faces today require all efforts to enhance cooperation between our countries to achieve security and stability in our region,” he told the summit.

“In this regard, we stress the importance of respecting the sovereignty, independence and values of states, non-interference in their internal affairs and the need to intensify joint efforts to confront everything that affects energy security and global food supply chains.”

On the GCC side, the participants included the emir of Qatar, Sheikh Tamim bin Hamad Al-Thani; the crown prince of Kuwait, Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah; and the vice president of the UAE, Sheikh Mohammed bin Rashid Al-Maktoum.

“The meeting of GCC and Central Asian leaders reflects the common desire to develop relations. We hope that our meeting today will contribute to strengthening partnerships between the Arabian Gulf and Central Asia,” the Kuwaiti crown prince told the summit.

Oman and Bahrain’s rulers were represented by Sayyid Asaad bin Tariq Al-Said and Sheikh Nasser bin Hamad Al-Khalifa respectively.

Sheikh Nasser praised the active role played by the Kingdom in enhancing cooperation and coordination among GCC countries and consolidating the friendships and joint cooperation with other countries.

The presidents of Tajikistan and Uzbekistan, Emomali Rahmon and Shavkat Mirziyoyev, arrived in Jeddah on Tuesday.

“We have close historical relations with Gulf states and we seek to develop them. We seek a long-term partnership with Gulf countries in various fields,” Mirziyoyev said.

“We look forward to economic and AI (artificial intelligence) cooperation with the Gulf. We seek to develop the clean-energy sector together with the Gulf. We are ready to implement a mechanism to enhance cooperation in the field of food security with the GCC.”

Security appeared to be high on the list of priorities of the visiting leaders.

“Security cooperation with Gulf countries is necessary to enhance stability in Central Asia,” President Rahmon told the summit.

During his visit, Kassym-Jomart Tokayev, the president of Kazakhstan, visited Madinah, where he prayed in the Prophet’s Mosque ahead of the summit.

“We share goals with GCC countries in terms of development and economy. We seek to expand cooperation between the countries of Central Asia and the GCC. We are ready to develop infrastructure to promote trade,” he said.

The president of Turkmenistan, Serdar Berdimuhamedow, and the president of Kyrgyzstan, Sadyr Japarov, arrived in Jeddah on Tuesday night.

“Global threats and challenges require us to strengthen partnership to ensure security. We want to strengthen partnership in the field of energy with Gulf countries,” Berdimuhamedow told the summit on Wednesday.

Source: Arab News

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ISLAMABAD: In a meeting with a delegation of industrialists and traders led by Faran Shahid Arain at Kyrgyzstan Trade House (KTH), Meher Kashif Younis, chairman of KTH and Coordinator to Federal Tax Ombudsman, emphasized the potential for economic integration between Pakistan and Kyrgyzstan.

He highlighted the longstanding and fraternal relations between the two countries and expressed Kyrgyzstan’s interest in enhancing bilateral trade and investment.

Younis noted that Pakistan’s strategic location provides landlocked countries such as Kyrgyzstan access to global markets through its ports, making it an attractive partner for trade and investment. He emphasized the need for closer interaction between traders and people-to-people contact to strengthen ties and increase economic cooperation.

Younis further stated that Central Asian Republics (CARs) and Kyrgyzstan have an estimated market size of over $90 billion with potential for business and investment. However, Pakistan’s trade with these countries has not been up to the mark.

He encouraged Pakistani exporters to consider exporting products such as textiles, leather, pharmaceuticals, agriculture products, electrical appliances, communication equipment, machinery, and building materials to Kyrgyzstan and other CARs.

Younis also highlighted that Kyrgyzstan imports a large variety of machinery and equipment from other sources, and Pakistan has the potential to become a major exporter of high-value products. He further added that Pakistan can import energy and other products from Kyrgyzstan and other countries.

Younis mentioned that the Ambassador of Kyrgyzstan to Pakistan, Ulanbek Totuiaev, is making efforts to promote bilateral trade between the two countries and facilitating importers and exporters to explore investment avenues and joint ventures. He further stated that KTH symbolises the trade cooperation between the private sectors of both countries.

In conclusion, Younis emphasized that Pakistan and Kyrgyzstan have centuries-long cultural, religious, and economic relations, and both countries are rich in mineral resources and have highly skilled human resources. Pakistani products have been found to be very competitive with affordable prices and can capture a better market share in Kyrgyzstan.

Source : PT

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