In an era where technological advancements drive economic growth, the partnership between the United Arab Emirates and Uzbekistan offers a blueprint for future success in IT outsourcing.
Uzbekistan, a rapidly emerging frontier market nestled in Central Asia, is gaining recognition for its burgeoning IT sector. This transformation is largely attributable to a clear vision by the government that it will build an IT outsourcing sector – and the building blocks to do so, first and foremost an educated, young, tech-savvy, multilingual work force.
Uzbekistan: An Emerging IT Hub
Uzbekistan’s journey from a stop on the Silk Road to a technological powerhouse is nothing short of remarkable. The country boasts a large, young, and increasingly tech-savvy population, with an average age of 29 among its 36 million citizens. This demographic shift, combined with state-led initiatives offering generous incentives for foreign IT outsourcing, sets the stage for a vibrant tech industry.
During a pivotal visit to Dubai, Minister of Digital Technologies Sherzod Shermatov outlined Uzbekistan’s ambitious plans to elevate its IT sector. Participation in the World Government Summit and hosting the Uzbekistan Outsourcing Conference in the DIFC underscored the mutual interest in fostering a dynamic IT outsourcing relationship between the UAE and Uzbekistan.
IT Park: Spearheading Uzbekistan’s IT Revolution
At the heart of Uzbekistan’s IT surge is the IT Park, a catalyst for attracting both local and international IT companies. IT Park offers a plethora of benefits for its residents, including tax exemptions, subsidies, and access to cutting-edge technology, all aimed at reducing operational costs and encouraging innovation.
The results of these initiatives are undeniable. Uzbekistan’s IT export revenue has seen a meteoric rise, reaching $344 million last year. With a target of $1 billion in IT exports by 2024, Uzbekistan is on a fast track to becoming a global IT services provider. For UAE companies, the advantages of outsourcing to Uzbekistan are manifold. A cost-effective, skilled workforce, coupled with significant tax incentives and operational savings, presents a compelling case for choosing Uzbekistan as an IT outsourcing destination.
Uzbekistan goes the extra mile to attract foreign IT firms. Programs like “Zero Risk” and “Regional Headquarters” offer comprehensive support, from subsidizing local talent to providing fully equipped office spaces, ensuring a smooth entry into the Uzbek market. Uzbekistan’s commitment to fostering a conducive environment for IT companies extends beyond IT Park. Initiatives aimed at education, remote job creation, and the development of the “Enterprise Uzbekistan” International Digital Technology Center further enhance Uzbekistan’s appeal as an outsourcing hub.
Deepening Economic and Trade Ties Between Uzbekistan and the UAE in the IT sector
The growing trade volume between the UAE and Uzbekistan, which reached $475.7 million in 2023, is a testament to the strengthening economic and trade ties. Both nations are actively exploring avenues to expand their collaboration across various sectors, including energy, agriculture, and tourism. The presence of over 50 IT companies from the MENA region in IT Park, many with ties to the UAE, highlights the burgeoning partnership between the two regions. For UAE companies looking to tap into Uzbekistan’s IT potential, joining IT Park is a streamlined process designed to facilitate easy entry.
The strategic alliance between the UAE and Uzbekistan in IT outsourcing is poised for exponential growth. With a robust framework in place to support foreign IT companies, Uzbekistan presents a compelling proposition for UAE firms looking to enhance their competitive edge through outsourcing.
