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Economics of Cooperation: How Uzbekistan and Kazakhstan Are Creating a Common Space for Growth


Fri 14 Nov 2025 | 08:36 PM
SeeNews

Modern relations between Uzbekistan and Kazakhstan exemplify stable and dynamic cooperation, where political dialogue is organically complemented by concrete projects in trade, investment, and industry. Today, this partnership goes far beyond the bilateral agenda, becoming a key link in shaping a common economic space in Central Asia.

Economic Dynamics: Growth and Diversification of Trade

From January to September 2025, trade turnover between Uzbekistan and Kazakhstan reached $3.5 billion, marking a 15.5% increase compared to the same period of the previous year. Exports amounted to $1.06 billion (up 6% compared to 2024), while imports reached $2.42 billion, showing a 20.3% growth.

This positive dynamic reflects not only the quantitative expansion of trade volumes but also the gradual diversification of the trade structure, with an increasing share of value-added products in exports.

Key export categories include machinery, agricultural goods, and construction materials. Uzbekistan is actively expanding supplies of auto components, fruits and vegetables, mineral water, textiles, and cement. In 2024 alone, exports to Kazakhstan grew by 2.4%, and the range of exported goods expanded by 86 new product categories — from electricity and butter to copper and cocoa-based products.

Investments and Joint Ventures: Growing Participation and New Directions

As of August 2025, 1,157 enterprises with Kazakh capital were registered in Uzbekistan, including 281 joint ventures and 876 wholly foreign-owned enterprises. Their main areas of activity are trade, construction, information technology, insurance, and financial services.

In Kazakhstan, there are currently 5,400 legal entities with Uzbek capital, reflecting the growing mutual interest of the business communities of both countries.

Regional Cooperation Centers and Clusters

Regional cooperation hubs in Uzbekistan — particularly in Namangan and Syrdarya regions — are developing agro-industrial and industrial clusters. In Namangan, an agro-industrial cluster has been established to promote exports and introduce precision agriculture technologies. In Syrdarya, an industrial cluster covering 70 hectares is under construction, including facilities for producing polyethylene pipes, building materials, and an agro-complex.

Similar projects are being implemented in Karakalpakstan, Tashkent, and Samarkand regions, where logistics hubs and processing enterprises are being created. On the Kazakh side, Turkestan, Kyzylorda, and Zhetysu regions are actively engaged in initiatives focused on processing agricultural raw materials and producing high-value food products.

Such regional cooperation deepens economic integration, develops joint logistics systems, and creates sustainable production chains between neighboring regions of the two countries.

Forums and Dialogue: A Mechanism of Trust and Practical Solutions

The Intergovernmental Commission on Cooperation between the Republic of Uzbekistan and the Republic of Kazakhstan, co-chaired by Prime Minister of Uzbekistan Abdulla Aripov and Prime Minister of Kazakhstan Olzhas Bektenov, plays a key role in strengthening strategic partnership between the two countries.

In October 2025, the 22nd session of the Commission was held in Khiva, where the sides discussed in detail the expansion of trade, economic and investment cooperation, industrial collaboration, transport and transit connectivity, cooperation in agriculture and energy, as well as ecology and rational use of water resources. Special attention was given to interregional and border cooperation, as well as to joint initiatives in tourism and sports.

Earlier, the Fourth Interregional Cooperation Forum was held in Samarkand, resulting in the signing of a Roadmap developed by Minister of Investments, Industry and Trade of Uzbekistan Laziz Kudratov and Minister of Trade and Integration of Kazakhstan Arman Shakkaliyev, providing for the implementation of projects and contracts worth $7.1 billion. In addition, 32 agreements between the regions of the two countries and a package of trade contracts worth $700 million were signed.

These documents form a long-term foundation for creating joint industrial zones, transport and logistics centers, and energy initiatives.

The “C5+1” Format: Regional-Scale Cooperation

The “C5+1” Leaders’ Summit, held on November 5–6, 2025, in Washington, marked an important stage in strengthening the strategic partnership between Uzbekistan and Kazakhstan within the framework of regional cooperation.

The partnership between the two countries is enhanced through shared objectives — the development of sustainable infrastructure, energy connectivity, the introduction of digital and green technologies, and the creation of favorable conditions for the free movement of goods, capital, and investments.

Joint initiatives of Uzbekistan and Kazakhstan extend beyond their borders. Among the regional projects under consideration is the construction of the Trans-Afghan railway, which could transform Central Asia into a key link in Eurasian logistics. Supported by international partners, this project forms part of the broader strategy to connect Central and South Asia through Afghanistan.

A New Logic of Partnership: Industry, Energy, and Sustainable Development

Kazakhstan remains Uzbekistan’s largest partner in the CIS and its second-largest trading partner after Russia. Cooperation is developing under the logic of “new industrialization” — from joint production of auto parts and electrical equipment to collaboration in renewable energy, the construction of solar and wind power plants, and the exchange of experience in green finance and decarbonization.

Particular attention is given to transport integration, including the development of international corridors such as “Trans-Caspian”, “North–South”, and new routes through China, Iran, and Turkey, creating a solid basis for diversifying export flows and strengthening the region’s role in the global economy.

Conclusion: A Shared Future for Central Asia

The cooperation between Uzbekistan and Kazakhstan is more than pragmatic calculation or trade exchange. It represents the foundation of a new model of regional resilience, built on mutual trust, economic interdependence, and shared responsibility for the development of Central Asia.

Through joint projects, integration of energy and transport networks, support for entrepreneurship, and technological cooperation, the two countries are forming a modern space of partnership that serves as a model for the entire region.