Although Uzbekistan and Azerbaijan are developing in different geographical points of Eurasia, their paths of economic development are increasingly converging. In general, Central Asia is becoming one of the fastest-growing investment destinations on the continent. Over the past year, the volume of intra-regional trade within the region reached 10.7 billion dollars, and total investments grew by 17 percent. Central Asian economies are showing a growth rate of over 6 percent, which is significantly higher than the indicators of developed markets. Uzbekistan recorded one of the best results: in 2025, the country's GDP grew by 7.4 percent, and in 2026 economic growth is projected at the level of 6.8 percent.
Azerbaijan plays an important role in this regional dynamic. Infrastructure taking shape across the Caspian Sea is strengthening export potential, energy and transport corridors are connecting the region with Europe, and investments directed into the logistics sector are creating new directions for capital movement. It is not about the parallel development of the two countries, but rather about their integration into a unified investment ecosystem.
From Idea to System
Bound by historical proximity and cultural community, bilateral relations between Uzbekistan and Azerbaijan are increasingly transitioning to the stage of practical economic cooperation. In 2025, the number of joint projects between the two countries increased by 20–30 percent compared to 2024. The volume of trade turnover between the states is expected to reach 1 billion dollars by 2030, and programs on industrial cooperation have already been signed.
However, this is not a one-time initiative. Uzbekistan and Azerbaijan are working on forming a joint investment package of 10 billion dollars for the implementation of projects between enterprises of the two countries. In particular, they are transitioning to a systematic model of investment cooperation, namely the formation of a common portfolio of investment projects, their coordination through interstate mechanisms and roadmaps, as well as establishing regular business forums and interregional cooperation formats.
Political support imparts stability to these processes. Intergovernmental commissions, business councils, and regular visits by heads of state shape a long-term investment agenda, turning ideas into concrete projects. Cooperation is established through regular dialogue between the state and business, joint events, and practical working formats.
State Capital as a Policy Tool
From this perspective, in 2023 the two governments established the Uzbekistan-Azerbaijan Investment Company (UAIC). This was not a symbolic step, but a structure created as a practical tool for managing state capital. The authorized capital of the company was clearly defined — 500 million dollars.
UAIC invests in projects that align with the economic priorities of both countries. These include import substitution, the development of processing industries, high-tech manufacturing, and other vital sectors. At the same time, the company operates not as an administrative body, but as an investor that assesses risks and demands financial discipline.
This is an important distinction, because state capital rarely works on the logic of a private investor. UAIC participates in the boards of directors of portfolio companies, approves senior management structures, and sets requirements for financial performance.
Portfolio — Proof of Practical Result
The total volume of UAIC's investment portfolio has reached nearly 144 million dollars. This figure reflects not only the volume of invested funds, but also the pace of the company's operations. Funds are directed toward projects aimed at long-term development in manufacturing, education, and healthcare sectors in Uzbekistan and Azerbaijan.
Priority is given to projects that can make a significant contribution to the economy and strengthen bilateral cooperation. This can be seen in the following examples:
→ Following the investment in the American University of Technology in Tashkent, the company is considering the possibility of establishing an international school in cooperation with international investors and an experienced foreign operator. The project aims to develop modern educational infrastructure and train a new generation of specialists.
→ UAIC is investing in a new automobile plant being constructed in Azerbaijan in cooperation with a vertically integrated automotive holding. This project serves to develop local production, substitute imports, and strengthen industrial cooperation between Uzbekistan and Azerbaijan.
→ Together with a consortium of investors, the company plans to direct a large volume of investment into the construction of a multi-profile clinic. The project serves to create one of the region's main medical centers and expand the population's access to modern medical services.
→ Another direction is a joint project on the exploration and development of precious and rare earth metal deposits in Uzbekistan. It is expected to help expand the country's raw material base and strengthen its industrial potential.
Why 500 Million Dollars is Considered an Important Signal
An authorized capital of 500 million dollars is a very substantial amount for a state investment vehicle in the context of Central Asia. Such capital makes it possible to invest from 1 million dollars to 25 million dollars per project. This means forming a portfolio consisting of dozens of initiatives with varying degrees of risk. It is not about isolated investments, but about creating a permanently working investment mechanism.
State capital rarely works like a private investor. And UAIC demonstrates that state capital can also effectively function as a source of real economic growth.
Today, UAIC is shaping the model of a full-fledged investment institution operating on the basis of a long-term strategy and clear requirements for efficiency.
