Uzbekistan has unveiled a comprehensive package of enhanced support measures targeting entrepreneurs in tourism and information technology sectors, signaling the government’s strategic pivot toward service industries as key employment generators. The announcement came during President Shavkat Mirziyoyev’s annual meeting with business leaders, where ambitious expansion plans and substantial financial incentives were outlined to transform these sectors into economic powerhouses.
The tourism sector stands at the center of this development drive, with impressive momentum already building. Nearly 7 million foreign visitors have traveled to Uzbekistan since the beginning of this year, while domestic tourism has generated 15 million trips within the republic. These figures set the stage for even more ambitious targets — the government projects foreign tourist arrivals to reach 15 million annually within the next 3-4 years.
Revolutionary land allocation model transforms hospitality development
The centerpiece of the new tourism program involves an unprecedented land allocation scheme. Over the next three years, 5,000 hectares of prime real estate will be auctioned specifically for hotel and tourism facility construction. In a groundbreaking approach, entrepreneurs choosing to build hotels will receive these land plots without upfront payment. Instead, the state becomes a co-founder, contributing the equivalent land value as its stake in the project.
This innovative partnership model offers remarkable flexibility for investors. Entrepreneurs can buy back the government’s share over a 10-year period, with an attractive 20% discount available for immediate full payment. The financial support extends beyond land access, with preferential credit facilities offering up to 30 billion sums ($2.4 million) in specialized tourist zones and regional centers, and up to 10 billion sums ($800,000) in other areas. These loans come with seven-year terms and two-year grace periods.
The support framework has been expanded to cover property conversions, moving beyond new construction projects. Government subsidies now apply to entrepreneurs purchasing existing state properties for hotel conversion, broadening opportunities across the hospitality spectrum. Additionally, tourist fees of up to 62,000 sums ($5 daily per tourist) have been eliminated in most regions, remaining only in Tashkent, regional centers, and designated special zones.
Technology sector receives major investment boost
Uzbekistan’s IT landscape is experiencing remarkable growth, with over 600 active startups currently operating in the country. These ventures have attracted a record-breaking $264 million in foreign investment over recent months — a fourfold increase compared to the previous year’s performance. Building on this momentum, the government has committed $100 million to transform 100 startup companies into globally competitive enterprises through advanced technology implementation.
The ambitious technology roadmap targets the monetization of thousands of young entrepreneurs’ ideas, with 200 startups expected to enter international markets. Government support will cover expenses for financial and marketing services provided by external experts, reducing barriers for emerging tech companies. A new entrepreneurial championship will select 100 promising ideas, each receiving investments of up to 1 billion sums ($80,000).
Digital commerce expansion creates new opportunities
The digital marketplace revolution in Uzbekistan shows impressive scaling, with the number of e-commerce platforms growing from 24 to 163 over the past three years. Entrepreneurs and craftsmen have successfully adapted to online sales channels, prompting requests for VAT refund mechanisms similar to traditional export transactions. President Mirziyoyev has directed relevant agencies to develop and approve appropriate procedures for this initiative.
The financial technology sector will receive dedicated attention through a five-year strategy designed to increase fintech startup numbers and establish an “open banking” system facilitating collaboration between financial institutions and IT companies. Investment volumes in startup projects are projected to increase tenfold in the coming years, with banks already allocating $6 billion for entrepreneurship financing this year alone. By 2026, $1 billion will be designated specifically for small and medium enterprises under preferential terms.
Strategic implications for international business expansion
These comprehensive support measures present significant opportunities for international companies operating in construction, hospitality, and interior design sectors. The land allocation model particularly benefits foreign hotel chains and hospitality brands seeking cost-effective market entry, with government co-investment reducing initial capital requirements while providing local partnership advantages. Construction companies specializing in hospitality infrastructure can leverage preferential lending conditions and the guaranteed demand from 5,000 hectares of development projects.
International furniture and interior design companies will find expanding opportunities as the hotel construction boom creates substantial demand for furnishing and design services. The government’s commitment to building 108 new hotels, 375 family guest houses, and 123 hostels over the coming period generates a predictable pipeline for suppliers of hospitality furnishing solutions. Additionally, the focus on improving service quality through annual competitions with $1 million prize funds indicates growing emphasis on international hospitality standards.
For technology companies and digital service providers, Uzbekistan’s rapid startup ecosystem growth and government investment commitments create partnership opportunities in fintech, e-commerce platforms, and digital banking solutions. The open banking initiative and 10-fold investment growth projection suggest a market ready for international technology transfer and joint venture opportunities, particularly for companies with expertise in financial technology and digital commerce infrastructure.
